A total of 16 garment factories under Nassa Group will be permanently closed as authorities failed to continue operations due to multiple crises, including financial difficulties.

The decision was formalised at a tripartite meeting held on September 23 to address ongoing labour unrest, presided over by Department of Inspection for Factories and Establishments (DIFE) Additional Inspector General Arif Ahmed Khan at its head office in Srama Bhaban, Dhaka.

Representatives from workers, factory management, law enforcement and intelligence agencies, industrial police, the Bangladesh Army, and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) attended the meeting.

Under the agreement signed between Nassa Group management and workers, the 16 factories are set to close permanently on September 25.

The authorities will pay workers’ wages for August and September 2025 by 15 and 30 October, respectively.

A meeting source confirmed that the closure of 16 out of 25 factories will proceed in accordance with labour law provisions.

The source said that around Tk 2.0 billion will be required to cover outstanding wages and allowances for approximately 12,500 workers and employees, including notice pay, service benefits, and maternity leave where applicable.

To meet these obligations, the group plans to sell one of its properties, a piece of land in Gulshan.

Workers will also receive 30 days’ basic wage as notice pay, 30 days’ service benefit for each full year of employment, maternity leave payments as per labour law, and all other lawful dues by 30 November.

The agreement also ensures that no workers will be blacklisted, and the government will take legal action if factory authorities fail to comply.

The announcement sparked protests, with workers blocking the Bypile-Abdullahpur highway on September 24 morning demanding payment of their dues.

The situation led to a clash with police, who used water cannons and tear gas to disperse the crowd.

The highway returned to normal after about an hour, according to Abdul Hannan, Officer-in-Charge of Ashulia Police Station.