Businesses, labour leaders seek clarity to avert unrest

Business and labour leaders have appreciated the government for passing the Labour (Amendment) Bill 2026 in the Jatiya Sangsad on Thursday within the stipulated timeframe, describing it as a positive step towards strengthening the country's industrial framework. However, they cautioned that lingering ambiguities in several provisions could create confusion and potentially fuel unrest if not addressed promptly.
In separate reactions, trade bodies welcomed the amendment but stressed that a lack of clarity in certain areas may lead to misinterpretation at the factory level, which could strain relations between workers and employers over time.
Under the amended act, trade unions can now be formed with the consent of a minimum of 20 workers -- depending on workforce size -- simplifying earlier requirements and expanding freedom of association and collective bargaining rights to previously excluded workers.
Talking to The Financial Express, BGMEA President Mahmud Hasan Khan Babu praised the government's timely action, noting that the law applies across all industries. However, he added that while the amendment may benefit some sectors, others could face challenges due to unclear provisions.
He said several sections require further clarification to prevent confusion among both workers and employers, warning that unresolved issues could disrupt workplace harmony.
Industry insiders echoed similar concerns, saying ambiguity in the law could escalate into disputes or unrest, particularly in labour-intensive sectors such as garments and knitwear.
They also noted that the amendment, initiated during the previous interim government, did not fully reflect decisions made in the tripartite council, contributing to existing confusion.
Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem also welcomed the passage of the law within the deadline but observed that time constraints during drafting led to inconsistencies in some provisions.
He noted that while the definition of "worker" in the earlier ordinance included employees or officers working for wages, it has been revised in the passed bill.
However, he expressed concern over the service benefit clause, which states that a permanent worker would receive seven days' wages for each year of service up to three years, 15 days' wages for service between three and 10 years, and 30 days' wages for service exceeding 10 years.
Hatem said the Tripartite Consultative Council (TCC) had agreed on a different structure -- seven days' wages for service between three and less than five years, and 15 days for five to less than 10 years -- warning that the current provision could potentially lead to labour unrest and send negative signals to foreign buyers.
He also said they acknowledged the provision of 'blacklisting' of workers as an unfair labour practice.
"However, we urge the government to initiate stricter penalties against individuals who, under the guise of labour activism, engage in unlawful activities such as vandalism, arson, illegal strikes, or obstructing other workers," he added.
He also raised concerns over the provision on collective bargaining agreements, noting that the clause would allow a trade union in a factory to be recognised as the collective bargaining representative.
"A union should qualify as the CBA only if it secures at least 51 per cent support through an election. If a factory has 1,000 workers and a trade union has 100 members, it should not be the CBA of all workers without an election," he said.
He warned that such inconsistencies may complicate implementation, create uncertainty, and affect industrial harmony, potentially discouraging both local and foreign investment.
Misinterpretation at the operational level, he added, could lead to tensions between workers and management, impacting production and business stability.
Business leaders urged the government to address these gaps by framing clear rules and, if necessary, introducing further amendments.
Babu expressed hope that the government would take prompt steps to issue detailed guidelines, making the law more practical for both industries and workers while encouraging investment and job creation.
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