Investment & Trade
Bangladesh Labor Act 2006 (Amended 2018)
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Executive Summary
The Bangladesh Labour Act 2006 (as amended in 2013, 2018, and 2019) consolidates and amends the laws relating to employment, conditions of service, and labour welfare in Bangladesh. The Act applies to all establishments (industrial, commercial, agricultural) with 10+ workers. The 2013 amendment (post-Rana Plaza) made significant changes including: mandatory safety committees in factories with 50+ workers, prohibition of sending pregnant women to night shift, increased maternity leave from 112 to 112 days (consolidated) plus 16 weeks for first two children, and stronger provisions against child labour. The 2018 amendment further strengthened workers' rights: easier trade union formation (30% vs 20% previously), grievance redressal mechanism, and improved compensation for workplace injuries. The 2019 amendment brought export processing zones (EPZs) under the Act (previously exempt). Key compliance areas for exporters: 8-hour work day, weekly holiday, overtime payment (double rate), maternity benefit, provident fund, gratuity, group insurance for high-risk jobs, and worker participation committees.
Key Points
- Enacted 2006, amended 2013, 2018, 2019
- Applies to all establishments with 10+ workers
- 2013 amendment (post-Rana Plaza): safety committees mandatory for 50+ workers
- Maternity leave: 112 days (16 weeks for first 2 children)
- Prohibition on night shift for pregnant women
- 2018: easier union formation (30% threshold, was 20%)
- 2019: EPZs brought under the Act
- 8-hour workday, weekly holiday mandatory
- Overtime: double the ordinary wage
- Provident fund + gratuity for 5+ year service
- Group insurance for high-risk jobs
- Worker Participation Committee in every factory
- Child labour prohibition below 14 years
Full Details
The principal labor legislation covering employment conditions, wages, working hours, health and safety, and worker rights in Bangladesh.