HC orders rules for ensuring workers share in profits of foreign-owned firms

The High Court (HC) on Monday directed the government to frame rules within three months for providing workers of wholly foreign-owned companies with a five percent share of companies’ net profits through participation and welfare funds, as stipulated in the Bangladesh Labour Act.

The High Court bench of Justice KM Hafizul Alam and Justice Murad-e-Mawla Sohel issued the order while making absolute a rule issued earlier in a writ petition.

The court directed the government to formulate the rules under Section 234(2) of the Bangladesh Labour Act by applying the provisions of Chapter XV of the law.

It also asked the authorities to ensure that workers across the country receive their lawful benefits from participation and welfare funds in accordance with the legislation.

The writ was filed in 2018 by Roksanara Ahmed, an official of OnMobile Bangladesh Private Limited, seeking directions for the government to formulate rules under Section 232(3) of the Labour Act to ensure payment of workers' entitlement from five percent of net profits in wholly foreign-owned firms.

Following a preliminary hearing, the High Court had issued a rule on 9 December 2018.

During the hearing, senior lawyer Manzill Murshid, appearing for the petitioner, argued that although Section 232(3) was incorporated into the Labour Act through the 2013 amendment, requiring wholly foreign-owned companies to allocate five percent of their net profits to workers' participation funds, the government had yet to frame the necessary rules, depriving workers of the benefits guaranteed by law.

He further submitted that OnMobile Bangladesh had earned substantial profits during the 2016-17 financial year, according to its balance sheet, but neither the petitioner nor other employees received their entitled share from the participation fund.

Murshid also argued that workers' statutory right to the participation fund would remain intact regardless of when the government formulates the rules.

In support of his argument, he referred to a High Court judgment delivered by Justice Farah Mahbub on 29 August 2024, in a separate writ petition.

Advocate Khaled Hamed Chowdhury represented the government, while Advocate Farabi Tausif appeared for OnMobile Bangladesh.

Murshid was assisted during the hearing by Advocate Sanjoy Mondol.