The Pilot on employment injury insurance in the textile sector in Bangladesh: A transformative business model

The protection of workers against work-related injury is a fundamental component of a fair and sustainable labour system. The Employment Injury Scheme (EIS) Pilot, launched on 21 June 2022, represents a transformative initiative addressing these needs. Developed collaboratively by the authorities of Bangladesh and social partners, the Pilot provides top-up compensation for work-related deaths and permanent disabilities. It bridges immediate gaps in workers’ protection while laying the foundation for a nationally owned employment injury insurance scheme, scheduled to be operational by June 2027, embedded in the national framework with an operational and robust institution. The project focuses on evaluating whether the Pilot serves as a viable business model to transform labour conditions and enhance respect for workers’ rights. This involves: 1. Identifying Key Drivers of Change: Understanding the factors that motivate international brands and major markets to support the Pilot, recognizing their critical role in influencing suppliers to adopt strong protective legislative frameworks. This aligns with the private sector guiding principles outlined in the Confederation's International Cooperation Strategy 2021–2024. 2. Assessing Private Sector Influence: Examining how international brands leverage their influence to drive national-level reforms in alignment with international labour standards and emerging trends in due diligence. 3. Analysing Broader Applicability: Exploring the potential of the Pilot as a replicable business model for addressing decent work deficits in other contexts, with particular attention brought to work-related injury and social protection. This includes identifying the essential conditions required for its success. The project tests the hypothesis that private sector intervention enables swift remedies, while ILO assistance focuses on fostering the systemic changes necessary for sustainable impact, based on robust social dialogue. There are clear synergies between Better Work and the Pilot. Both operate in the textile sector, are active in Bangladesh, and share the goal of promoting and ensuring decent work for workers and the industry. A model like the Pilot significantly enhances Better Work’s efforts to develop sustainable solutions for decent work deficits within its active value chains. The Pilot leverages Better Work’s reliable data and strong network of contacts in textile and footwear factories as entry points for broader systemic change. Furthermore, integrating the Pilot’s tools and methodologies into Better Work’s framework supports robust exit strategies, ensuring its legacy remains and its work continues to benefit workers and industries long-term.

Project symbol

GLO/25/51/MUL

Admin unit

SOCPRO

Start date

30/04/2025

End date

31/12/2027

Total allocation

440748

Total expenditure

Status

Active

377096

Development Partners

Multi-donor support for Better Work

Country/Countries

Bangladesh

Outcomes

Outcome 7: Universal social protection