The government has amended the labour law by lowering the requirement for the formation of a trade union, aiming to make the law compatible with international standards.
Now, a trade union can be formed with only 20 workers in a factory, according to a gazette notification issued on November 17.
The development comes despite opposition from businesses, as they think allowing trade unions with such a low number of workers may affect stability in factories, a view that trade union leaders do not agree with.
Bangladesh has amended the labour law amid pressure from international bodies such as the International Labour Organisation (ILO), the European Union and the United States to align with global standards.
It is seen as crucial for improving the country's trade competitiveness, attracting foreign investment and signing new trade deals.
The ordinance expanded the definition of workers and said daily, casual workers and persons working on the digital platform will fall into the category of workers.
As per the revised law, 20 workers can form a trade union at a factory employing between 20 and 300 workers.
Some 40 workers' consent will be needed where 301 to 500 are employed. Some 100 workers' consent will be needed to form a trade union in factories with 501 to 1,500 workers.
And the consent of 300 will be required to form an association in factories having 1,501 to 3,000 workers. Some 400 workers' consent will be required to form a trade union in factories with more than 3,000 workers, according to the amendment.
The law has broadened the definition of farm labour and included horticulture, aquaculture and livestock. It has included domestic workers in the law.