High Court Orders Bangladesh to Form Profit-Sharing Rules for Foreign-Owned Firms
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The Bangladesh High Court has ordered the government to formulate regulations ensuring that workers in 100% foreign-owned companies receive their legal entitlement to five percent of the company’s net profits. The ruling, delivered on Monday by a bench comprising Justice K.M. Hafizul Alam and Justice Murad-e-Mowla Sohel, mandates that the Ministry of Labour and Employment establish these guidelines within three months.
The court’s directive follows a final hearing on a writ petition filed eight years ago, which sought to enforce compliance with the Bangladesh Labour Act. Under the court’s order, the new regulations must be developed in accordance with the provisions of Section 234(2) and Chapter 15 of the Labour Act. This mandate is intended to guarantee that employees in fully foreign-owned entities receive the benefits designated for worker participation and welfare funds.
The legal challenge originated from a 2018 petition filed by Rokshana Ahmed, a former employee of Onmobile Bangladesh Private Limited. Following her departure from the company, Ahmed sought judicial intervention to secure her share of the firm’s net profits. Her petition requested that the court compel the government to draft specific rules under Section 232(3) of the Labour Act to clarify the obligations of foreign-owned firms toward their workforce.
Following a preliminary hearing on December 9, 2018, the High Court issued a rule nisi, which has now been finalized. Senior lawyer Manzil Morshed, who represented the petitioner alongside advocate Sanjay Mandal, confirmed that the ruling ensures all employees in the sector are legally protected and entitled to their share of the welfare and participation funds. The Ministry of Labour and Employment was represented by senior lawyer Khaled Hamid Chowdhury, while Onmobile Bangladesh Private Limited was represented by Farabi Salauddin Tushib.
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