Legal and Institutional Design of Industrial Relations in Bangladesh

Highlighting the multifarious functions of labor law, this chapter contends that in a globalized world, the contour of labor law is profoundly shaped by technological changes, changing patterns of work, the search for decent work, the need to correct market failure, and the urge to address inequalities and imbalances in bargaining power between workers and employers. Labor laws of Bangladesh are not an exception to this trend. The legal framework of industrial relations is grounded in the constitution of Bangladesh and different labor laws and regulations. The Bangladesh Labor Act 2006, enacted in response to demands of stakeholders for improving the regulatory framework, remains the main piece of legislation on the industrial relation system and has brought fundamental changes in the industrial relation system in Bangladesh by recognizing trade unions, collective bargaining, minimum wages, and elaborating the process of settlement of labor disputes, welfare measures for workers, and improving health and safety conditions in the workplace. This chapter argues that the legal framework has not been able to bring the desired results due to institutional and resource constraints in implementing the laws. Despite an enabling legal framework, Bangladesh is facing the challenge of keeping its labor laws abreast with international labor standards and modern trends in labor market regulation.