Workers of All Weather Fashion blocked the Mohakhali-Tejgaon road from Nabisco intersection to Mohakhali bus-stand from 9:30 to 10:30 on Monday morning.
The blockade caused long tailback on both sides of the road. Police later fired teargas shells to disperse the protesting workers.
Tejgaon zone Senior Assistant Commissioner Afrozul Islam said the factory, which is housed in a nine-storied building in Rasulbag, was given a notice to move out.
When the workers learned that the factory would be moved, they started demanding overdue salaries of the last few months.
The official said the traffic movement on the road has become normal.