A large number of garment factories in Bangladesh aren't members of registered association like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) or the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). There are about 800 such factories, out of 3,500 now in operation. Since they don’t come under a regulatory framework, they pose a problem. Many of them disregard safety rules. Generally these units are small and medium enterprises and are doing subcontracting jobs for big factories.

These factories are rife with irregularities. They don’t follow the government-announced wage structure, don’t issue appointment letters, identity cards and deny employees benefits like maternity leave and allowance. The Alliance for Bangladesh Workers Safety, comprising 26 North American retailers and brands, has said that the government of Bangladesh must decide whether it would be responsible for the country's readymade garment sub contractors.

Apparel trade bodies have declined to take responsibility for those units saying they are not affiliated with them. The Department of Inspection for Factories and Establishments prefers dialogue to convince these units to be members of any of the two associations. The commerce ministry has drafted a policy to bring those factories under a regulation, but it is yet to be finalised, though more than one year has elapsed since the move was taken.