Govt lowers trade union formation requirement

Business Report :

The government has amended the labour law by reducing the minimum requirement for forming a trade union, aiming to align the legislation with international labour standards. According to a gazette notification issued on Monday (November 17), only 20 workers are now needed to form a trade union in a factory.

The decision comes despite concerns from business groups, who argue that allowing unions to form with such small numbers may affect stability in factories. Trade union leaders, however, reject this claim, saying the amendment will strengthen workers’ rights and bring Bangladesh closer to global norms.

Reform Driven by International Pressure
The amendment comes at a time when the International Labour Organisation (ILO), the European Union and the United States have been urging Bangladesh to modernise its labour laws.

Policymakers see these changes as essential for enhancing the country’s trade competitiveness, attracting foreign investment and securing new trade agreements as Bangladesh prepares to graduate from the LDC status. Improving labour rights has been a key demand from global buyers and development partners.

Expanded Definition of ‘Worker’
The ordinance also broadens the definition of workers. Daily and casual labourers, as well as individuals working on digital platforms, are now officially recognised as workers under the law. This expansion aims to extend legal rights and protections to segments of the workforce previously left out of formal labour regulations.

New Union Formation Requirements by Factory Size
Under the revised thresholds, 20 workers can form a trade union in factories employing between 20 and 300 workers. In factories with 301 to 500 workers, the consent of 40 workers will now be required. For larger establishments with 501 to 1,500 workers, the minimum number has been set at 100, while factories with 1,501 to 3,000 workers will require at least 300 workers to form a union. In factories with more than 3,000 workers, 400 workers’ consent will be needed. These changes aim to balance worker representation with operational realities in large and small workplaces.

Law Expanded to Farm and Domestic Workers
The amendment further expands the definition of farm labour to include horticulture, aquaculture and livestock sectors. Domestic workers have also been brought under the scope of the labour law for the first time. The government says these reforms mark a significant advancement in extending labour protections to vulnerable and informal sector workers, strengthening the overall labour rights landscape in Bangladesh.