The worker, Panna, who uses one name, was beaten to death by security guards and an official of Titanic Limited after he was caught wearing a factory T-shirt, said Abul Kalam Azad of the Dhaka Metropolitan Police.
The incident occurred in the city's Pallabi area Friday morning when Panna, 20, was about to leave the workplace after completing his night shift, he said. At least 1,000 garment workers of Titanic and adjoining factories downed tools and staged angry protests after Panna's scarred body was recovered from the factory, police said.
"Marks of injuries were found on his body and neck," Azad said, adding the factory authorities and security guards had disappeared after the incident.
Bangladesh's 4,000 or so textile factories employ at least two million workers on an average monthly wage of 30 dollars.
Rights groups say oppression is rife and workers have to endure humiliations such as body checks and working in locked factories.
The industry also sees regular accidents due to poor safety standards.
Garments are Bangladesh's biggest export, bringing in nearly 80 percent of its total foreign exchange earnings. The country exported ready-made garments worth 6.573 billion dollars in the year ending June 30, 2005 - a 13 percent rise over the previous year.