HC questions govt inaction over workers' welfare fund contributions
According to media reports, more than 8,000 companies in Bangladesh are eligible to contribute to the fund.
The High Court has issued a rule asking the government to explain why its failure to ensure mandatory profit contributions by companies to the Bangladesh Workers' Welfare Foundation Fund should not be declared illegal.
The court directed the labour secretary and other relevant authorities to respond to the rule within four weeks.
The order came today (5 July) after a hearing on a public interest writ petition filed by Advocate SM Arif Mondol. The bench of Justice Ahmed Sohel and Justice Fatema Anowar passed the order.
Keep updated, follow The Business Standard's Google news channel
Speaking to reporters, Arif said the writ challenged the authorities' failure to enforce the Bangladesh Workers' Welfare Foundation Act, 2006, under which the foundation's trustee board is responsible for ensuring that eligible public and private companies deposit the legally required share of their profits into the fund. The petition was filed on 21 June.
Under the law, companies are required to allocate 5% of their annual profits for workers' welfare, of which 4.5% is to be spent on the welfare of their own workers and the remaining 0.5% is to be deposited into the Bangladesh Workers' Welfare Foundation Fund.
Arif alleged that most eligible companies were not making the mandatory contributions despite the legal obligation. He cited Section 14(3) of the Act, which requires 50% of the amount deposited annually into a company's workers' welfare fund under the Bangladesh Labour Act to be transferred to the foundation fund within 30 days.
He also referred to Section 232(1)(a) of the Bangladesh Labour Act, 2006, which makes the contribution mandatory for companies with paid-up capital of at least Tk1 crore or total assets of Tk2 crore or more.
According to media reports, more than 8,000 companies in Bangladesh are eligible to contribute to the fund. However, only 518 companies or establishments have made deposits so far, resulting in collections far below the amount envisaged by law, the petitioner said.
Arif alleged that weak oversight and ineffective enforcement by the Ministry of Labour and Employment, the Department of Inspection for Factories and Establishments, and the Department of Labour had allowed companies to continue violating the law.
He argued that enforcing the Workers' Welfare Foundation Act is the government's responsibility, prompting the public interest litigation.
