Study on Fundamental Labour Rights under
the Labor Act 2006 and its Significances in
the RMG Sector of Bangladesh
1. Introduction
Bangladesh's Ready-Made Garments (RMG) industry has emerged as the most significant
export-oriented sector, playing a vital role in national economic growth, employment
generation, and foreign currency earnings. Despite the sector’s economic importance,
working conditions and labor rights issues have raised national and international concerns.
This assignment critically analyzes the fundamental labour rights as per the Bangladesh
Labor Act 2006 and evaluates their implementation and impact in the RMG sector.
2. Labor Act of 2006
The Bangladesh Labor Act 2006 was enacted to consolidate, simplify, and modernize the
country's labor laws. It applies to all establishments, including the industrial sector like
garments. The Act was later amended in 2013 and 2018 to align with international
standards, particularly after the Rana Plaza collapse.
Covers employment conditions, wages, safety, health, and welfare.
Provides grievance handling and dispute resolution mechanisms.
Includes labor courts to ensure legal recourse.
Incorporates maternity benefits and protections for women workers.
Mandates the establishment of safety committees in factories.
3. Fundamental Labour Rights under the Labor Act 2006
3.1 Right to Employment
Freedom from Forced Labor: Section 326 of the Act prohibits forced labor in any
form.
Proper Contractual Employment: Workers must be issued an appointment letter
and identity card.
Age Verification: Employing children below 14 is illegal; adolescents aged 14-18
may be employed under certain restrictions.
Probation Period: The Act defines probation periods (3-6 months), beyond which
permanent status must be granted.
3.2 Right to Wages
Minimum Wages: The Act ensures the establishment of a Minimum Wage Board
(Section 138) that revises wages periodically.
Timely Payment: Wages must be paid within 7 working days of the wage period’s
end.
Equal Pay: Prohibits wage discrimination based on sex for equal work (Section
345).
Overtime Pay: Overtime must be compensated at twice the regular hourly rate.
3.3 Right to Rest and Leisure
Working Hours: Maximum of 8 hours/day and 48 hours/week; overtime not
exceeding 10 hours/day and 60 hours/week.
Weekly Holiday: One day off after six consecutive working days (Section 103).
Festival Holidays: At least 11 paid holidays per calendar year.
Annual Leave: Earned leave of 1 day for every 18 days of work (Section 117).
Casual and Sick Leave: 10 days of casual and 14 days of sick leave annually.
3.4 Right to Occupational Safety and Health
Workplace Conditions: Factories must ensure ventilation, lighting, cleanliness,
and sanitation (Section 51–60).
Fire Safety: Required to have fire exits, extinguishers, and fire drills.
Machinery Safety: Dangerous machinery must be guarded and workers trained.
Medical and First Aid: Factories with 50+ workers must have first aid boxes and
a medical room.
Maternity Benefits: Women are entitled to 8 weeks before and 8 weeks after
childbirth leave, with full pay (Section 45–50).
3.5 Right to Trade Union and Collective Bargaining
Trade Union Formation: Workers have the right to form trade unions without
employer interference (Section 176).
Registration Process: Requires a minimum of 20% of total workers in an
establishment to register.
Collective Bargaining Agent (CBA): Recognized union can bargain with
management.
Participation Committees: Factories with over 50 workers must form committees
for dialogue on workplace issues.
3.6 Protection against Exploitation and Harassment
Discrimination: Prohibited based on religion, race, caste, gender, or political
belief.
Sexual Harassment: Must establish complaint committees in workplaces.
Wrongful Termination: Termination requires notice, reasons, and severance
payment.
Grievance Handling: Mechanism for workers to lodge complaints with labor
courts or inspectors.
4. RMG Sector of Bangladesh
The RMG sector has been the most dynamic segment of Bangladesh’s economy:
Economic Significance:
Employment: Over 4.4 million people directly employed.
Export Revenue: $47 billion in 2023, over 84% of total exports.
Global Market: 2nd largest exporter after China.
Workforce Demographics:
Women Workers: Over 60% of the workforce.
Youth Employment: Significant number of young workers below 30.
Industry Structure:
Over 4,500 active factories, many subcontracting to larger units.
Buyer-driven market: Big brands from the US, EU dominate orders.
5. Importance of Labour Rights in the RMG Sector
Economic Stability: Happy and healthy workers ensure higher productivity and
quality.
Market Access: Compliance with international labor standards is necessary to
maintain trade privileges like GSP.
Social Justice: Empowering workers with rights reduces poverty and inequality.
Gender Empowerment: Labor rights ensure protections for women, supporting
gender equality.
6. Implementation of Labour Rights in the RMG Sector
Progress Made:
Post-Rana Plaza Reforms: Massive inspections, building renovations.
Digital Wage Payment: Many factories introduced mobile banking.
Worker Databases: Centralized system to maintain transparency.
Collaborative Initiatives:
Accord and Alliance: International agreements to monitor factory safety.
ILO Better Work Program: Working to improve conditions.
Government Initiatives: More labor inspectors hired; digitized labor monitoring
systems.
7. Challenges in Ensuring Labour Rights
Challenge Details
Skill Gap Workers lack training in rights, compliance, and safety.
Poor knowledge limits access to complaint mechanisms or
Digitally Illiterate
banking.
Poor Unionization Less than 10% union coverage; fear of retaliation.
SupplyChain
Subcontracting often escapes formal inspections.
Complexities
Scalability Concerns Small factories struggle to meet all legal requirements.
Lack of Compliance Some factories falsify documents to pass audits.
RawMaterial
Supply delays lead to pressure on deadlines and overwork.
Dependency
8. Case Studies and Real-World Scenarios
Rana Plaza (2013)
Structural failure killed 1,134 workers.
Factory management ignored visible cracks.
Led to international outcry and major reforms.
Ashulia Worker Protest (2016)
Protest for minimum wage increase turned violent.
Over 1,500 workers dismissed.
Government faced criticism for crackdown on peaceful protest.
COVID-19 Impact
Factories shut down without paying wages.
Workers protested for food and wages.
Showcased the fragility of legal protections during crises.
9. Charts and Data Representation
Chart 1: Gender Composition of RMG Workers
Chart 2: Minimum Wage Development Over Years
Common Labour Violations in RMG (Survey)
Late Wage Payment – 30%
Unsafe Workplace – 25%
Verbal/Physical Harassment – 15%
Excessive Hours – 20%
Leave Denial – 10%
10. Recommendations and Policy Suggestions
Government
Strengthen labor inspection systems.
Increase labor court efficiency and reduce case backlog.
Launch mass awareness campaigns on labor rights.
Industry
Provide training on workplace rights and safety.
Adopt transparent wage and benefit systems.
Promote ethical sourcing and supplier monitoring.
International Buyers and NGOs
Include labor compliance in procurement contracts.
Provide financial support for factory upgradation.
Monitor supply chains for subcontracting abuses.
11. Conclusion
Bangladesh's Labor Act 2006 presents a strong legal foundation for protecting workers'
rights. However, the gap between law and practice in the RMG sector remains a major
concern. With sincere implementation, international cooperation, and worker
empowerment, these rights can be truly realized, ensuring a humane and sustainable future
for the RMG industry.
References:
Bangladesh Labor Act 2006 and amendments
ILO: Labor Standards in Bangladesh
BGMEA Reports and Statistics
Human Rights Watch
The Daily Star, Dhaka Tribune articles
