The High Court has scrapped a labour appellate tribunal's order to share profits of Grameen Kalyan, an organisation led by Nobel Laureate Muhammad Yunus, with 106 of its former employees.
The bench of Justice Zafar Ahmed and Justice Khondakar Diliruzzaman passed the order after hearing a petition on Thursday.
Lawyer Khurshid Alam Khan, accompanied by Gholam Rabbani Sharif, stood for the former employees of Grameen Kalyan, and lawyers AF Hasan Arif, Abdullah Al Mamun, and Khawaja Tanveer Ahmed represented the organisation.
The court declared the tribunal's verdict illegal, according to Mamun.
The labour appellate tribunal has no jurisdiction to rule on whether Grameen Kalyan workers will get a share of the profit under the labour law, he said.
Speaking to bdnews24.com, he said Grameen Kalyan is not obligated to distribute profits among its former 106 employees.
Citing section 231 of the Labour Act, he said the tribunal can only interpret, not issue orders.
Mamun also said workers can still take their case to the labour court.
From 2006 to 2013, 106 individuals were employed in various roles in Grameen Kalyan, with some retiring and others being terminated. These workers did not receive a share of the company's profits during their tenure.
According to the labour law, companies are required to distribute 5 percent of its dividend among the workers' participation fund as well as the welfare fund.
The company started sharing profits with workers in 2021. The former workers then asked for their share through a legal notice to Grameen Kalyan.
As the company did not respond, they filed a case with the tribunal.