A garment factory in Ashulia, on the outskirts of Dhaka, has laid off 565 workers, citing a prolonged business slowdown caused by a shortage of work orders and financial constraints.
The workers received the termination notices on their mobile phones while they were on leave.
The layoffs were announced in a notice issued on Thursday by the human resources and administration department of Alliance Knit Composite Ltd, with the decision set to take effect from August 8.
According to the notice, the factory has been facing a severe business downturn due to a combination of global and domestic factors. It said inadequate bank financing and a lack of sufficient work orders have significantly disrupted production, prompting the management to reduce its workforce to ensure the factory's survival and maintain business continuity.
The company said the layoffs were carried out in accordance with Section 20 of the Bangladesh Labour Act, 2006, following all legal procedures.
It also assured that the affected workers would receive all statutory dues and compensation within the timeframe prescribed by law, based on their length of service.
The notice further said that under Section 21 of the Bangladesh Labour Act, the laid-off workers would be given priority for re-employment within the next year if production expands or additional workers are needed.
A list of the affected workers was attached to the notice.
Repeated attempts to contact the factory's Managing Director, Zaim Ahmed, by phone and WhatsApp for comment went unanswered.
An official of Ashulia Industrial Police-1, speaking on condition of anonymity, confirmed the layoffs, saying the factory had cited a shortage of work orders and the ongoing gas crisis as the reasons behind the move. The official, however, declined to provide further details.
Md Ziarul Haque, a sewing section operator whose name appeared on the layoff list, said he received the notice via a mobile phone message around 11:00pm while visiting his home in Dinajpur during the three-day public holiday.
"I don't know why I was terminated. The factory was supposed to reopen on Saturday. Later, I learned that the notice had also been posted at the factory gate," he said.
Rafiqul Islam Sujon, president of the Bangladesh Garments and Industrial Workers Federation, condemned the decision, calling the claim of a business slowdown "an excuse."
"Laying off hundreds of workers at once during a public holiday is inhumane. We demand the immediate withdrawal of the notice and reinstatement of all affected workers," he said.