Dada Factory at old zone in Dhaka Export Processing Zone (DEPZ) in Savar was declared shut down for an indefinite period from Sunday.
The authorities suspended workers union president Rahima Begum and general secretary Sumi Akhter in the wake of agitation by workers since last several days.
Protesting the suspension of union leaders, the workers staged demonstration chanting various slogans.
The authorities declared leave for the workers Saturday noon after it failed to settle the matter amicably.
About 1,000 workers who came to join their duty on Sunday morning found the factory gate locked and staged demonstration demanding reopening of the factory.
A DEPZ official said the factory would be reopened soon.