It's a case his supporters have claimed is politically motivated.
83-year-old Yunus and his Grameen Bank won the 2006 peace prize for their work to lift millions out of poverty.
They had been granting tiny loans of under $100 to the rural poor of Bangladesh, pioneering a global movement now known as microcredit.
Prime Minister Sheikh Hasina, however, has accused him of 'sucking blood from the poor'.
Yunus' supporters say the government is attempting to discredit him, because he once considered setting up a political party to rival Hasina's Awami League.
Human rights groups have accused Hasina and her government of targeting political dissent, as she seeks her fourth consecutive term in a January 7 election.
Yunus and three employees from Grameen Telecom, a company he founded, were convicted on Monday of violating the labor laws.
The court later granted them bail pending a possible appeal.
