The Bangladesh Labour (Amendment) Ordinance, 2025 (promulgated 17 November 2025) introduces significant reforms, particularly expanded worker coverage, stronger trade union protections (including a ban on blacklisting), and adjustments to lay-off/resignation compensation. Core termination-of-employment rules and redress mechanisms remain structurally similar.

▷ There are no general size-related exclusions regarding the applicability of termination of employment provisions.
→ Under sections 15 and 16 of the LA, however, the provisions on (temporary) stoppage of work and lay-off do not apply to establishments with fewer than 5 workers.
This exclusion can affect termination of employment insofar as section 16(7) LA regulating lay-off provides that where, during a calendar year, a worker is to be laid off after the first forty-five days for any continuous period of fifteen days or more, the employer may retrench that worker instead of temporarily laying him/her off.

New: The 2025 Ordinance narrows the list of exclusions and expands the definition of “worker”, providing broader coverage.
Note: Sub-sections 4(d), 4(h), 4(k), 4(l), 4(n), and 4(o) of section 1 of the LA have been amended by the Labour (Amendment) Ordinance, 2025.
→ Section 1(4) Labour Act (2006): The Act does not apply to:
(a) Offices of or under the Government;
(b) Security printing press;
(c) Ordnance factories;
(d) Deleted [see 2025 Amendment]
(e) Shops or stalls in any public exhibition or show which deal in retail trade and which is subsidiary or to the purpose of such exhibition or show;
(f) Shops or stalls in any public fair or bazaar for religious or charitable purposes;
(g) Educational, training and research institutions;
(h) Deleted [see 2025 Amendment];
(j) workers whose recruitments and terms and conditions of service are governed by laws or rules made under article 62, 79, 113, or 133 of the constitution, except, for the purposes of chapters XII, XIII and XIV workers employed by the-
- (i) Railway Department
- (ii) Posts, Telegraph and Telephone Departments,
- (iii) Roads and highways Department,
- (iv) Public works Department,
- (v) Public Health Engineering Department,
- (vi) Bangladesh Government press.
(k) Workers employed in an establishment mentioned in clauses (b), (c), (e), (f), and (g) but workers other than teachers, employed by any university, shall not be subject to the restrictions except for the purposes of chapters XII, XIII and XIV;
[Modified under 2025 Amendment]
(l) Seafarers in any other field other than the field of application of Chapters XII, XIII and XIV;
[Modified see 2025 Amendment]
(m) Ocean-going vessels, except for the purpose of chapter XVI;
(n) any agricultural farm where less than five workers are normally employed, but for the purposes of Chapters XII, XIII and XIV, all other agricultural workers employed on any agricultural farm shall not be included in this prohibition;
[Modified see 2025 Amendment]
(o) any domestic servant in any case other than the scope of application of Chapters XII, XIII and XIV; and
[Modified see 2025 Amendment]
(p) establishments run by the owner with the aid of members of his family and without employing any hired labour"
▷ See also Section 2(65) Labour Act as modified under 2025 Amendment: “Worker” means any person, including a student, regardless of the terms and conditions of his employment, whether express or implied, who is employed in any establishment or industry, directly or through a contractor, by whatever name, for wages or money, as an employee or officer, skilled, unskilled, manual, technical, business development or clerical work, by whatever name, but includes all persons except those employed under 2(49)(b)”.

→ Section 4 LA does not regulate the use of fixed-term contracts, but it distinguishes between apprentices, badlis, casual workers, probationers, permanent and temporary workers
‣ A badli (= transfer worker) is a worker who is employed during the absence of a permanent worker or of a probationer worker.
‣ A casual worker is a worker employed on an ad-hoc basis in an establishment for work of a casual nature.
‣ A temporary worker is a worker who is employed to perform work which is essentially of a temporary nature, and is likely to be finished within a limited period.
‣ A probationer is a worker who is provisionally employed in an establishment to fill a permanent vacancy in a post and has not completed the period of his probation in the establishment.
‣ A permanent worker is a worker employed in an establishment on a permanent basis or who has satisfactorily completed the period of his probation in the establishment (§ 4 LA).
→ Section 26(2) LA provides that "the employment of a temporary worker may be terminated by the employer, otherwise than in the manner provided elsewhere in this chapter, and if it is not due to the completion, cessation, abolition or discontinuance of the temporary work for which he was appointed, by giving to him in writing
(a) Thirty days’ notice, if he is a monthly rated worker;
(b) Fourteen days' notice, in case of other workers."

▷ The LA does not regulate the use of fixed-term contracts but instead distinguishes between apprentices, badlis, casual workers, probationers, permanent and temporary workers
‣ A badli (= transfer worker) is a worker who is employed during the absence of a permanent worker or of a probationer worker.
‣ A casual worker is a worker employed on an ad-hoc basis in an establishment for work of a casual nature.
‣ A temporary worker is a worker who is employed to perform work which is essentially of a temporary nature, and is likely to be finished within a limited period.
‣ A probationer is a worker who is provisionally employed in an establishment to fill a permanent vacancy in a post and has not completed the period of his probation in the establishment.
‣ A permanent worker is a worker employed in an establishment on a permanent basis or who has satisfactorily completed the period of his probation in the establishment (§ 4 LA).
[From the above-mentioned definition, we can infer that reasons connected to the temporary nature of the work shall be present in order to hire a badli or a temporary worker and therefore, such workers cannot be hired to perform work of a permanent nature].

No statutory provisions were found in the examined legislation in this respect.

No statutory provisions were found in the examined legislation in this respect.

→ Section 4(8) LA: The probationary period shall be:
- 6 months for a worker exercising functions of a clerical nature and
- 3 months for other workers.
The probation period of a skilled worker may be extended by an additional 3 months if it has not been possible to determine the quality of the work within the first 3 months of probation.
→ Under section 4(9) LA: If the employment of a probationer is terminated but s/he is employed by the same employer within the next three years, s/he is exempted from the period of probation previously completed.

No statutory provisions were found in the examined legislation in this respect.

▷ No general list of prohibited grounds for discrimination of or dismissal in the LA, however:
→ Section 195(d) LA prohibits the dismissal, discharge, removal from employment or the threat to undertake such actions by reason that the worker is or proposes to become, or seeks to persuade any other person to become a member or officer of a trade union, or participates in the promotion, formation or activities of a trade union.
▷ New: The 2025 Ordinance inserts new clauses, including clauses (m), (p) and (t) after clause (l) of section 195 LA providing a broader protection for trade union membership and activities :
▻(m) If any worker or union member is terminated for any reason, no notice shall be issued or included in the database by blacklisting;
▻(p) Not to dismiss existing trade union officials in a biased manner and not to encourage the establishment of other trade unions;
▻(t) No worker shall be subjected to any retaliation at work for filing a complaint against the employer for violation of the terms and conditions of employment, or for participating in any activity, including through a helpline, or for seeking recourse from the appropriate administrative authority, or for giving evidence in an investigation into unfair labour practices as referred to in sub-section (2).
▷ Under section 2(78): (78) “Black Listing” means any activity undertaken by the owner or any organization of owners of an establishment, which is to prepare a list or database for the purpose of declaring the workers, including temporary and transfer workers, employed in an establishment under that establishment or any organization of owners, ineligible for re-employment in the factory or establishment after termination of employment due to retrenchment, discharge, dismissal, removal, retirement or any other reason;
→ Section 228 LA prohibits the employer to discharge, dismiss or terminate the employment of a worker while proceedings connected to an industrial disputes are pending (before the labour jurisdictions or an arbitrator) except with the permission of that body and for reasons of misconduct not connected with such dispute.
Furthermore, any discharge, dismissal or punishment for misconduct of a trade union officer while such proceedings are pending is prohibited, except with prior authorization from the Labour Court (§ 228(2) LA).

▷ Trade unions
→ Section 175 LA on "Special definition of workers and right to organize", as amended by the 2025 Ordinance, provides broader worker coverage, strengthened trade union and anti-discrimination protections indicating that:
(1) Unless the context otherwise requires and notwithstanding anything contained in sections 1(4) and 2(65), in this Chapter “worker” means “worker” as defined in section 2(65) as well as a self-employed worker, a worker employed on a daily or temporary basis, or a person employed through a digital labour platform, and for the purposes of any proceedings in relation to an industrial dispute under this Chapter, any worker laid off, retrenched, discharged, dismissed or otherwise removed from employment in connection with or as a result of such dispute or any worker whose lay-off, retrenchment, discharge, dismissal or removal gives rise to such dispute, but does not include any guard, patrol or security staff of an establishment, any member of the fire-fighting staff and any confidential assistant.
(2) Administrative, supervisory officers or persons responsible for managerial work may form separate associations or societies for matters relating to their interests.
→ Section 195(d) LA prohibits the dismissal, discharge, removal from employment or the threat to undertake such actions by reason that the worker is or proposes to become, or seeks to persuade any other person to become a member or officer of a trade union, or participates in the promotion, formation or activities of a trade union.
▷ New: The 2025 Ordinance inserts new clauses, including clauses (m), (p) and (t) after clause (l) of section 195 LA providing a broader protection for trade union membership and activities :
▻(m) If any worker or union member is terminated for any reason, no notice shall be issued or included in the database by blacklisting;
▻(p) Not to dismiss existing trade union officials in a biased manner and not to encourage the establishment of other trade unions;
▻(t) No worker shall be subjected to any retaliation at work for filing a complaint against the employer for violation of the terms and conditions of employment, or for participating in any activity, including through a helpline, or for seeking recourse from the appropriate administrative authority, or for giving evidence in an investigation into unfair labour practices as referred to in sub-section (2).
▷ Under section 2(78): (78) “Black Listing” means any activity undertaken by the owner or any organization of owners of an establishment, which is to prepare a list or database for the purpose of declaring the workers, including temporary and transfer workers, employed in an establishment under that establishment or any organization of owners, ineligible for re-employment in the factory or establishment after termination of employment due to retrenchment, discharge, dismissal, removal, retirement or any other reason;
→ Section 228 LA prohibits the employer to discharge, dismiss or terminate the employment of a worker while proceedings connected to an industrial disputes are pending (before the labour jurisdictions or an arbitrator) except with the permission of that body and for reasons of misconduct not connected with such dispute.
Furthermore, any discharge, dismissal or punishment for misconduct of a trade union officer while such proceedings are pending is prohibited, except with prior authorization from the Labour Court (§ 228(2) LA).
▷ Maternity
→ Section 50 on restriction on termination of employment of a woman in certain cases provides that: If any notice or order of discharge, dismissal, removal or termination of employment is given by an employer to a woman within a period of six months before and 60 (sixty) dayseight weeks after her delivery and such notice or order is given without sufficient cause, she will not be deprived of any maternity benefit to which she would have become entitled under this chapter.
Note: In section 50 of the LA, the words “eight weeks” has been replaced by the number, words and brackets “60 (sixty) days”.

→ Section 20(2) LA on retrenchment provides that :
(2) No worker who has been in continuous service for not less than one year under an employer shall be retrenched by the employer unless-
(a) The worker has been given one month's notice in writing, indicating the reasons for retrenchment, or the worker has been paid in lieu of such notice, wages for the period of notice; (...).
→ Under section 24(1) on procedure for punishment indicates that: No order of punishment under section 23 shall be made against a worker unless-
(a) The allegations against him are lodged in writing.
(b) He/she is given a copy thereof and not less than seven days' time to explain; (...).
→ Section 26(1) LA on termination of employment by employers otherwise than by dismissal, indicates that: The employment of a permanent worker may be terminated by the employer, otherwise than in the manner provided elsewhere in this Chapter, by giving to him in writing -
(a) One hundred and twenty days' notice, if he is a monthly rated worker;
(b) Sixty days' notice, in case of other workers.
▶ Exception
→ Under section 20 on retrenchment, paragraph 3 provides an exception indicating that: Notwithstanding anything contained in sub-section (2), in the case of retrenchment of a worker under section 16(7), no notice as mentioned in sub-section (2) (a) shall be necessary; but the worker so retrenched, shall be paid fifteen days wages in addition to the compensation or gratuity, as the case may be, which may be payable to him under sub-section (2) (c).
→ Section 16(7) La indicates that: In any case where, during a calendar year, a worker is to be laid off after the first forty-five days as aforesaid, for any continuous period of fifteen days or more, the employer may, instead of laying off such a worker, retrench him under section 20.
→ Section 23(1) LA on punishment for conviction and misconduct provides that :
(1) Notwithstanding anything regarding layoff, retrenchment, discharge and termination of service as provided elsewhere in this Act, a worker may be dismissed without prior notice or pay in lieu thereof if he is -
(a) convicted for any criminal offence; or
(b) he/she is found guilty of misconduct under section 24.
→ Section 26(2) LA on termination of employment by employers otherwise than by dismissal, indicates that: The employment of a temporary worker may be terminated by the employer, otherwise than by dismissal than in the manner provided elsewhere in this Chapter, and if it is not due to the completion, cessation, abolition or discontinuance of the temporary work for which he was appointed, by
giving to him in writing:
(a) thirty days' notice, if he is a monthly rated worker ;
(b) Fourteen days' notice, in case of other workers.

‣ In the event of a retrenchment, the employer shall give the employee one month's notice (§20(1) LA).
‣ In the event of termination without cause (§ 26 LA), the employer shall give the employee the following notice period:
‣ For permanent workers:
- 120 days' notice if the worker is paid on a monthly basis;
- 60 days' notice to other workers.
‣ For temporary workers (when termination is not due to the completion, cessation, abolition or discontinuance of the temporary work for which he was appointed):
- 30 days' notice if the temporary worker is paid on a monthly basis;
- 14 days' notice to other temporary workers.

→ Section 2(11) indicates that: 'retrenchment' means the termination by the employer of services of workers, not as a measure of punishment but on the ground of redundancy.
→ Section 20 on retrenchment states that: ( 1) A worker employed in an establishment may be retrenched from service on the ground of redundancy.
(2) No worker who has been in continuous service for not less than one year under an employer shall be retrenched by the employer unless-
(a) The worker has been given one month's notice in writing, indicating the reasons for retrenchment, or the worker has been paid in lieu of such notice, wages for the period of notice;
(b) A copy of the notice is sent to the Chief Inspector or any other officer a1,1thorised by him and also to the collective bargaining agent in the establishment, if any; and
(c) She has been paid compensation, which shall be equivalent to thirty days' wages or gratuity for every completed year of service, if any, whichever is higher.
(3) Notwithstanding anything contained in sub-section (2), in the case of retrenchment of a worker under section 16(7), no notice as mentioned in sub-section (2) (a) shall be necessary; but the worker so retrenched shall be paid fifteen days' wages in addition to the compensation or gratuity, as the case may be, which may be payable to him under sub-section (2) (c).
(4) Where any worker belonging to a particular category of workers is to be retrenched, the employer shall, in the absence of any agreement between him and the worker in this behalf, retrench the worker who was the last person to be employed in that category.

▷ There is no obligation as such on the part of the employer to undertake consultations with the worker's representatives on intended retrenchments. § 20(2)b) LA only requires that the collective bargaining agent (trade union) be notified.
▷ Note, however, that the LA recognizes the right of the collective bargaining agent in relation to an establishment to undertake collective bargaining with the employer on matters connected with the employment, non-employment, the term of employment or the conditions of work (§ 24(e) LA).
‣ In addition, if an industrial dispute is likely to arise between the employer and the workers (which can be the case for example in the event of retrenchments) the law recognizes the right of the collective bargaining agent to communicate his or its views in writing to the other party, which shall in turn arrange a meting for collective bargaining on the issue with a view to reaching an agreement (§ 210 on the settlement of industrial disputes).
‣ An industrial dispute is defined in the LA as "any dispute or difference between employers and employers or between employers and workers or between workers and workers which is connected with the employment or non-employment or the terms of employment or the conditions of work of any
person" (§ 2(62) LA).

→ Section 20(2)(b) LA indicates that: No worker who has been in continuous service for at least one year shall be retrenched by the employer unless- a copy of the notice is sent to the chief Inspector or any other officer authorized by him and also to the collective bargaining agent in the establishment, if any.

→ Section 20(2)(b) LA states that: A copy of the notice of retrenchment of a worker who has been employed for at least a year shall be sent to the collective bargaining agent in the establishment, if any.

No statutory provisions were found in the examined legislation in this respect.

No statutory provisions were found in the examined legislation in this respect.

→ Section 20(4) LA indicates that: Where any worker belonging to a particular category of workers is to be retrenched, the employer shall, in the absence of any agreement between him and the worker in this behalf, retrench the worker who was the last person to be employed in that category.

→ Section 21 LA on re-employment of retrenched workers indicates that: Where any number of workers are retrenched, and the employer proposes to take into her employ any worker within a period of one year from the date of such retrenchment, she shall give an opportunity to the retrenched workers belonging to the particular category concerned by sending a notice to their last known addresses, to offer themselves for employment, and the retrenched workers who so offer themselves for reemployment shall have preference over other retrenched workers, each having priority according to the length of her service under the employer.

No statutory provisions were found in the examined legislation in this respect.

▷ Severance pay is payable to a worker who has been continuously employed for at least one year in the event of a:
- Termination based on physical or mental incapacity or continued ill-health
→ Section 22 on discharge from service indicates that :
(1) A worker may be discharged from service for reasons of physical or mental incapacity or continued ill-health certified by a registered medical practitioner.
(2) If a worker who has completed not less than one year of continuous service is so discharged, he shall be paid by the employer compensation at the rate of thirty days' wages for every completed year of service, or gratuity, if any, whichever is higher.
- Termination with notice without any reason
(§ 26(4) LA).
→ Section 26(4) LA on employment by employers otherwise than by dismissal indicates that: Where the employment of a permanent worker is terminated under this section, he shall be paid by the employer, compensation at the rate of thirty days' wages for every completed year of service or gratuity, if any, whichever is higher, in addition to any other benefit to which he may be entitled under this Act.
▷ Note: Under section 2(10), 'gratuity' means wages payable on termination of employment of a worker, which shall be equivalent to not less than thirty days' wages for every completed year of service or for any part thereof in excess of six months;
It shall be in addition to any payment of compensation or payment in lieu of notice due to the termination of services of a worker on different grounds.
In both cases, severance pay amounts to 30 days' wages for each completed year of service or for any part thereof in excess of six months.
▶ Exception: In case a worker is dismissed for misconduct other than theft, misappropriation, fraud, embezzlement, breaking in the establishment, „riot“ or “disorderliness “, they are entitled to a severance pay of at least 15 days' wages for each completed year of service (§ 23(3) LA).

Sec. 20(2): In the event of retrenchment, any worker with at least one year of continuous service with an employer shall be entitlement to a payment of at least 30 days' wages for each completed year of service (or for any part thereof in excess of six months: see sec. 2(x) LA on the definition of gratuity)

1) Termination on the ground of misconduct (referred to as 'dismissal'): no severance pay
2) Termination for reasons of physical or mental incapacity or continued ill-health(referred to as 'discharge'): severance pay = 30 days' wages for each year of service.
3) Termination with notice without any reason: severance pay = 30 days' wages for each year of service.
4) Termination based on economic reasons (referred to as 'retrenchment'): redundancy payment = 30 days' for each year of service.