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Alternative Dispute Resolution Labor Law in Bangladesh

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In various legal domains, including labor law, Alternative Dispute Resolution (ADR) has become a pivotal mechanism for conflict resolution. In Bangladesh, where the workforce is integral to the nation’s economic development, the effective resolution of labor disputes is crucial for maintaining a harmonious industrial environment.

This article explores the landscape of Alternative Dispute Resolution in the context of labor law within Bangladesh, examining its historical development, core principles, mechanisms, and its role in facilitating fair and prompt resolution of labor-related conflicts.

Evolution of Alternative Dispute Resolution Labor Laws in Bangladesh:

To appreciate the significance of Alternative Dispute Resolution in the context of Bangladeshi labor law, it is imperative to trace the evolution of labor laws in the country. Since gaining independence in 1971, Bangladesh has undergone notable economic and social transformations, with the development of the labor law framework playing a pivotal role in shaping the rights and responsibilities of employers and employees.

The primary legislation governing labor relations in Bangladesh is the Bangladesh Labor Act of 2006. This comprehensive legislation addresses various aspects of labor rights, industrial relations, and dispute resolution. Additionally, specific laws such as the Industrial Relations Ordinance of 1969 and the EPZ (Export Processing Zones) Labor Act of 1980 further establish the legal framework for resolving disputes within the labor sector.

Introduction to Alternative Dispute Resolution:

Alternative Dispute Resolution encompasses methods for resolving conflicts outside traditional judicial processes, providing parties involved in a dispute an alternative avenue for resolving issues. In the realm of labor law, ADR mechanisms aim to offer a more accessible, efficient, and collaborative means of resolving disputes between employers and employees.

Key Principles of Alternative Dispute Resolution in Labor Law:

  1. Voluntariness and Consent: A fundamental principle of Alternative Dispute Resolution is its voluntary nature. In the context of labor law, both employers and employees must willingly participate in the resolution process, ensuring active engagement in finding a mutually acceptable solution.
  2. Neutrality and Impartiality: ADR processes, such as mediation and arbitration, necessitate neutral and impartial third parties to facilitate discussions and make decisions. This principle ensures a fair and unbiased resolution of disputes, fostering trust in the process.
  3. Confidentiality: Maintaining confidentiality is critical in ADR to encourage open and honest communication between parties, particularly in labor disputes where sensitive issues may be discussed. This principle safeguards the reputations of both parties involved.
  4. Flexibility: ADR methods are adaptable and can be tailored to the specific needs of the parties involved. This flexibility is advantageous in the labor law context, where disputes may vary in complexity and nature.
  5. Enforceability: Agreements reached through ADR processes are generally binding and enforceable, providing a level of security for both parties, ensuring that the agreed-upon resolution will be upheld.

Mechanisms of Alternative Dispute Resolution in Bangladesh:

  1. Mediation: Mediation involves a voluntary and collaborative process where a neutral third party, the mediator, facilitates discussions between disputing parties to help them reach a mutually acceptable agreement. In Bangladesh, the Labor Court and the Ministry of Labor and Employment play roles in facilitating mediation processes.
  2. Arbitration: Arbitration entails the appointment of a neutral third party, the arbitrator, who makes a binding decision to resolve the dispute after hearing arguments from both sides. The Bangladesh Labor Act of 2006 empowers the Labor Court to act as an arbitrator in certain cases, and parties can also agree on private arbitrators.
  3. Conciliation: Conciliation is a process where a neutral third party, the conciliator, assists parties in reaching a settlement. Unlike mediation, the conciliator may suggest solutions, but the final agreement remains in the hands of the parties involved. The Ministry of Labor and Employment in Bangladesh often plays a role in conciliating labor disputes.
  4. Labor Court: The Labor Court, part of the traditional judicial system, serves as a formal dispute resolution mechanism for labor-related issues. While not a conventional Alternative Dispute Resolution method, the Labor Court aims to provide an expedited resolution to disputes, having the authority to adjudicate on matters such as unfair labor practices and wrongful dismissals.

Role of ADR in Promoting Fair and Expeditious Resolution of Labor Disputes:

  1. Reducing Backlog: A significant challenge in the traditional judicial system is the backlog of cases, causing delays in resolving disputes. ADR mechanisms, such as mediation and arbitration, offer faster and more efficient resolution processes, contributing to a reduction in backlog and ensuring timely justice.
  2. Preserving Employment Relations: Unresolved labor disputes can strain employer-employee relationships, negatively impacting productivity and workplace morale. ADR methods focus on preserving relationships through open communication and collaborative problem-solving, allowing parties to maintain a working relationship post-resolution.
  3. Cost-Effectiveness: Traditional litigation can be expensive, involving legal fees, court expenses, and potential damages. ADR methods are often more cost-effective, streamlining the resolution process and reducing the financial burden on both parties.
  4. Tailoring Solutions to the Workplace: Labor disputes are often complex and unique to specific workplaces. ADR mechanisms, with their flexibility, allow parties to tailor solutions that best fit their workplace dynamics, promoting a more sustainable and customized resolution.
  5. Encouraging Compliance: Agreements reached through ADR mechanisms are generally binding and enforceable, fostering compliance with the terms of the resolution. This provides assurance for both employers and employees that agreed-upon terms will be upheld.

Challenges and Opportunities for ADR in Bangladesh’s Labor Law:

  1. Awareness and Education: The lack of awareness about ADR methods and their benefits poses a challenge in Bangladesh. Efforts to educate employers, employees, and legal professionals about the advantages of ADR can enhance its acceptance and utilization.
  2. Institutional Capacity: Strengthening institutional capacity for ADR is crucial, involving training for mediators, arbitrators, and conciliators to ensure they possess the necessary skills for effective dispute resolution.
  3. Legal Framework and Standardization: While a legal framework for ADR in labor law exists, further refinement and standardization are necessary. Clear guidelines and procedures can contribute to a more consistent and predictable ADR process.
  4. Cultural Factors: Cultural factors can influence the willingness of parties to engage in ADR. Promoting a culture that values collaborative problem-solving and alternative dispute resolution methods is essential for successful implementation.
  5. Access to ADR Mechanisms: Ensuring accessibility to ADR mechanisms, particularly for workers in remote or rural areas, is vital. Efforts should be made to establish ADR centers in various regions, making it easier for all parties to access these services.


Alternative Dispute Resolution in the context of Bangladeshi labor law plays a crucial role in fostering a harmonious and productive work environment. As Bangladesh continues its economic development, the efficient resolution of labor disputes becomes increasingly important.

ADR methods, emphasizing collaboration, flexibility, and timeliness, offer a promising avenue for addressing the complex issues that can arise in employer-employee relationships. By addressing challenges and capitalizing on opportunities, Bangladesh can enhance the effectiveness of its ADR mechanisms, contributing to a fair and equitable labor landscape.


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