The legal framework governing employment in Bangladesh has recently undergone a transformative shift with the promulgation of the Labour Law (Amendment) Ordinance, 2025. This amendment is not merely a routine update; it fundamentally restructures the employer-employee relationship, moving away from designation-based classifications to a focus on the nature of work.
For employers and HR professionals, this means a significant review of internal policies is now due. Below are the key changes that demand immediate attention.
The “Worker” Definition Expanded: Sales & Management
One of the most immediate impacts is the broadened definition of a “Worker.” The amendment explicitly includes “trade promotional” and “business development” work under the definition. This suggests that Field Sales Officers and Business Development Executives—roles previously often treated as management—are now likely classified as workers, entitling them to overtime and statutory termination benefits.
Furthermore, the “Manager” loophole has been tightened. An employee can only be excluded from the worker category if their appointment letter explicitly limits their role to administrative, managerial, or supervisory duties. If a supervisor does not have this authority defined in writing, they may legally be claimed as a worker.
New Financial Liability: Resignation Benefits
The amendment introduces a new tiered compensation structure for resignation, creating financial liability for employers much earlier in an employee’s tenure. Previously, resignation benefits were often tied to a 5-year service period. The new tiers are:
- Continuous 3 Years Service: 7 days’ wages for every completed year.
- 3 to 10 Years Service: 15 days’ wages for every completed year.
- 10 Years or More: 30 days’ wages per year or Gratuity (whichever is higher).
This means a worker resigning after just three years is now legally entitled to 21 days of wages, a cost that must be factored into payroll accruals immediately.
Strict Anti-Harassment & Anti-Discrimination Protocols
The law has codified the High Court’s directives on sexual harassment and introduced a rigorous anti-discrimination framework.
- Mandatory Committee: Every employer must form a 5-member “Complaint Resolution Committee.” Crucially, the majority of members must be women, the head must be a woman, and it must include two external members from NGOs specializing in gender issues.
- Disability Rights: Disability is now a strictly protected characteristic. Employers must adhere to “Equal Pay for Equal Work” for disabled workers, and affirmative action measures are explicitly permitted.
- Burden of Proof: In discrimination cases, the burden of proof has shifted to the employer to demonstrate that their actions were objectively reasonable and not discriminatory.
Modernized Safety: The “Right to Refuse” & Mental Health
Workplace safety rules have been updated to reflect modern realities. For the first time, the law grants workers the “Right to Refuse” work if they reasonably believe it poses an imminent danger to life or health, without fear of retaliation.
Additionally, the list of occupational diseases has been expanded to include:
- Mental Stress and Depression;
- Computer Vision Syndrome; and
- Musculoskeletal Disorders (MSDs).
Trade Union Reforms
The barrier to forming trade unions in large factories has been significantly lowered. The previous flat requirement of 20% workforce support has been replaced with a tiered system. For example, a factory with over 3,000 workers now requires only 400 signatures to form a union, down from the previous requirement of 600+ (20%), making unionization in large RMG and pharmaceutical plants much more likely.
The Labour Law (Amendment) Ordinance, 2025 requires employers to move beyond passive compliance. From auditing job descriptions to establishing compliant complaint committees, proactive steps are necessary to mitigate new legal liabilities.