Does employees have right to obtain a share of the company's profit?

Workers' Profit Participation Fund (WPPF) under the Bangladesh Labour Act, 2006

A company makes profit out of the physical labor and sacrifice made by its workers. Therefore, a worker certainly has a legitimate right to obtain a share of the company's profit. The legislature has appreciated this right, and as a result, the Bangladesh Labour Act, 2006 was enacted wherein specific provision has been made in Chapter XV for establishment of workers' profit participation fund (WPPF). 

In accordance with section 232 of the Bangladesh Labour Act, 2006, Chapter XV of the Act is applicable for the following companies:

a) company or establishment having paid up capital of at least one crore taka on the last day of any accounting year; or 

b) company or establishment having fixed assets of at least Two Crore Taka on the last day of an accounting year 

The companies or establishment for which the provision is applicable are required under section 234 of the Act to establish Participation Fund, Welfare Fund and Workers' Welfare Foundation Fund and contribute 5% of the net profit of the previous year at the proportion of 80:10:10 respectively to the Participation Fund, Welfare Fund and Workers' Welfare Foundation Fund. The contribution to the aforesaid funds has to be made within 9 (nine) months of close of every year, 

All workers are eligible to participate in the funds. A worker not competing six months of employment with the company during a year of account shall not participate in the funds in respect of that year. 

Of the total amount deposited in the participation fund every year, two-thirds shall be distributed in equal proportion to all workers in cash and one-third shall be invested in accordance with the provisions to all workers. 

The management of the funds is vested on a Board of Trustees created for the purpose comprising of two persons nominated by the Collective Bargaining Agent and two persons nominated from the management of the company. 

Where any company fails to comply with the provisions of section 234, the Government may require it to comply with those provisions within such time as may be specified in take order. If the company fails to comply within the time specified therein, every director, manager or other officer responsible for the management of the affairs of the company shall, if the Government, by order so directs pay by way of penalty a sum which may extend to ten thousand taka and in the case of continuing failure, a further sum which may extend to one thousand taka for everyday after the first during which the failure continues.

An employee who has not been paid by his employer the aforesaid benefits as required by the law may file a suit/case before the concerned Labour Court and claim the benefits. It is pertinent to mention that the contribution to the funds is additional to the wages and any other benefits paid to the worker.