Advocate Tanima Rahman

12/03/2025

Laws regarding Workers Profit Participation Fund (WPPF) in Bangladesh:

The Workers Profit Participation Fund (WPPF) is a system where companies share a portion of their profits with their workers. In Bangladesh, this is required under the Labour Law 2006 (Section 232). Companies that meet certain conditions must set up a WPPF and contribute 5% of their net profit every year. This amount is divided as follows:

-80% to the Workers Profit Participation Fund,
-10% to the Workers Welfare Fund,
-10% to the Bangladesh Workers Welfare Foundation Fund.

Who Needs to Create a WPPF?

A company must establish a WPPF if it meets either of these two conditions:

1. Its paid-up capital is at least Tk. 10 million (1 crore) at the end of the financial year.

2. Its permanent assets are worth at least Tk. 20 million (2 crores) at the end of the financial year.

However, companies that are 100% export-oriented or have 100% foreign investment are not required to create a WPPF unless the government makes specific rules for them.

Who Benefits from the WPPF?

All employees of the company are beneficiaries of the fund. However, employees must complete at least six months of service in a financial year to be eligible.

How is the WPPF Managed?

-A Board of Trustees is responsible for managing the WPPF.
-The company can use the fund for its business, but only with approval from the Board of Trustees.
-If there is a disagreement between the Board and the company, the government will make the final decision.

WPPF Audit

According to Section 248 of the Labour Act 2006, the WPPF must be audited every year.

Why is the WPPF Audit Important?

A proper audit ensures that workers receive their fair share of the profit and that the company follows the legal requirements.

12/07/2024

Strategies to Find an Ideal Business Partner:

Why is it never a good idea to do business with family members?

When dealing with family, formal agreements are often lacking, leading to poor accountability and difficulty in resolving conflicts. This can result in damaged or broken family relationships due to a bad business deal.

Another major concern is the increased legal liabilities. With non-family business partners, legal actions such as lawsuits are more straightforward if issues arise.

Is it a bad idea to do business with friends?

Good friends may not always make good business partners. Differences in goals, values, or readiness for responsibility can create issues. Creating a Business Plan can help assess the potential strength of a business relationship with a friend.

Can husband and wife do business together?

While starting a business with a spouse can be a dream for some couples, it might strain the relationship or distract from business concerns for others. The couple's bond can, however, make them excellent business partners if managed well.

Who can be an ideal business partner:

1. Someone you genuinely like, trust, and enjoy working with.

2. Someone who shares your values.

3. Partners should have complementary skills and traits.

4. Someone committed to mutual growth and supporting each other's development.

5. Each partner should feel a sense of equity, knowing contributions will balance out over time.

6. Someone who can manage conflicts proactively and strategically.

7. Someone who shares your vision, involving:

i. Creating the vision;
ii. Translating it into actions;
iii. Communicating and selling the vision to others;
iv. Staying true to the vision despite changes.

8. Someone prepared for the end of the partnership, with an exit plan covering:

i. Events triggering the end.
ii.Business valuation methods.
iii. Acceptable future ownership options.
iv. Necessary post-alliance restrictions, such as non-compete clauses.

23/11/2023

20/11/2023

Share allotment procedure in Bangladesh:

Step 1: Foreign citizens will remit money to the company's account from any of their foreign bank accounts. Bangladeshi citizens will transfer money to the company's account from any of their bank accounts in Bangladesh.

Step 2: In the case of foreigners a bank encashment certificate should be collected. In case of Bangladeshi citizens photocopy of bank cheque by which money was transferred as well as bank statement of the company should be provided to RJSC as proof of transfer of money.

Step 3: Board of Directors will allot shares to the allottees in the board meeting.

Step 4: Documents such as encashment certificate, bank statement, cheque, board resolution, NOC, Form XV and other relevant documents should be submitted to RJSC within 60 days of the share allotment.

Step 5: RJSC will issue approval within 1 month of the submission of the documents to the RJSC.

Step 6: The company should preserve the share return certificate, share certificate and transfer certificate to its office.

06/10/2023

Career options for aspiring lawyers of Bangladesh:

As there are many career options available for law graduates, at the beginning of the career, graduates often get confused as to determining which career path to pursue. I believe that before choosing any long-term career options, one must first identify what interests that person most.

For example, someone who loves teaching, debating and research work should try teaching as a career option. If someone likes research work but does not like teaching, s/he can opt for research related jobs in NGOs.

In Bangladesh, another demanding job is a government job. Government jobs provide steady career growth, job security, loans and excellent retirement benefits. Law graduates can become first class gazetted officers by passing the BJS or BCS examination.

Someone who wants faster career growth and wants to work in a dynamic work environment can go for working in the legal teams of big companies and banks.

Those who wish to run an independent business can become practicing lawyers (who represent clients in court) and choose different fields of law, such as civil, criminal, corporate, taxation, customs, immigration, intellectual property and so on, as practice areas depending on personal interest.

In order to work as an advocate (in Bangladesh practicing lawyers are called advocates), one has to pass the advocateship license examination governed by Bangladesh bar council. After working as an advocate for 2 years in the district court, an advocate becomes eligible to practice at the Supreme Court of Bangladesh if s/he qualifies at the High Court permission examination.

Those who want to practice in the UK/USA/Canada/Australia/others should take bar exams in any of those countries or even one can have a license to practice in 2/3/4 countries if s/he desires. In common law countries such as the USA (New York, California) and UK, advocates of Bangladesh can take part in bar examinations without studying LL.B./Juris Doctor course in those countries.

Unlike other legal professions, in law practice, lawyers have to make their own clients, which is a very tough job. Whether in Bangladesh or in any other country, creating a name in the market as a good lawyer generally takes several years of court practice.

In order to succeed in today's highly competitive job market, newcomers need to possess certain qualities such as extensive knowledge of different Bangladeshi laws, excellent language proficiency in Bangla and English, great networking and persuasion skills. These qualities will make young legal professionals distinguished from their counterparts in the long run.

To enhance professional skills and knowledge in the subject, lawyers can choose to do a specialized master's degree or diploma course from any well-reputed university either in Bangladesh or abroad. Other than academic and research-based jobs, legal professionals do not require a PhD for career growth.

13/06/2023

Payment of Festival Bonus in Bangladesh When Company is in Financial Crisis :

According to section 111(5) of Bangladesh Labour Rules 2015, employees who have completed at least one year of service are entitled to two festival bonuses each year. Each bonus should not be more than the basic salary.

Therefore, it is mandatory for the company to pay 2 festival bonuses to the employees, who have completed 1 year of service.

Although law has stipulated the maximum amount of festival bonus (equivalent to basic salary), it did not set any minimum amount for the festival bonus. Therefore, company can reduce the amount of festival bonus at any rate as it thinks fit and proper.
In such case, amount of festival bonus should be reduced at the same rate for all eligible employees so that it cannot create any discrimination.

Another option is that the company with mutual consent of the employees can decide to defer the payment of festival bonus and pay it any later date as agreed with the employees.

13/03/2023

Trademark Registration Process in Bangladesh:

1st Step: Online application

2nd Step: Journal publication

3rd Step: Objection of the mark

4th Step: Registration of the mark

Following documents / particulars are required for filing the application:

1. Name, nationality, address and trading style of the applicant

2. Specification of goods/services

3. Class / services

4. 10 Prints of the mark (if the mark is not word mark)

5. Power of Attorney

It will take 2-3 years to complete the whole registration process. However, after online application a temporary number will be given; therefore, applicant will be able to use the trademark temporarily as unregistered trademark with the symbol TM and after registration symbol (R) will be given.

Trademark registration in Bangladesh is valid for 7 years. After that renewal will be required. Renewal is valid for 10 years. Hence, renewal will be required again.

Trademark registration does not provide international protection. Hence, if a company wants to enter into international market, it should register its trademark according to the national law of the marketplace.

10/02/2023

কদিন ধরে জাপানের মেয়ে দুটোকে নিয়ে মা বাবার টানাটানি দেখতে দেখতে জাপানিজ ফ্যামিলি ল টা পড়তে আগ্রহী হলাম। বুঝতে পারলাম কেন বাংলাদশী বাবা সন্তান কে কাছে পেতে এতটা মরিয়া হয়েছেন। জাপানিজ ফ্যামিলি ল অনুযায়ী স্বামী এবং স্ত্রীর ডিভোর্স বা সেপারেশন হলে শুধুমাত্র বাবা অথবা মা এর মধ্যে যে কোন একজন সন্তানের কাস্টডি পায়। এক্ষেত্রে যিনি সন্তানের কাস্টডি পান তিনি সন্তানের জীবনের ছোট থেকে বড় সকল সিদ্ধান্ত নেবার অধিকার পান। এমনকি সন্তান তার কাস্টডি অধিকারহীন বাবা অথবা মা এর সাথে দেখা করবে কিনা সেই সিদ্ধান্ত ও যিনি কাস্টডি পাবেন তিনি নিবেন। আর বাবা বা মা এর কেউ যদি বিদেশি নাগরিক হন তবে সেই মা বা বাবা কখনই জাপানি আইন অনুযায়ী সন্তানের কাস্টডি পান না। তাই প্যারেন্টাল চাইল্ড আ্যবডাক্শান (বাবা মা এর সন্তান নিয়ে পালিয়ে যাওয়া) এর ঘটনা জাপানে ঘটছে অহরহ এবং প্যারেন্টাল চাইল্ড আ্যবডাক্শান জাপানি পেনাল কোডে একটা দন্ডনীয় অপরাধও বটে। বহু বিদেশি নাগরিক জাপানের এই বর্বর আইনের আয়াতায় পরে চিরতরে সন্তানের সাথে যোগাযোগের সুযোগ হারিয়েছে। আইনটি যে শীঘ্রই সংশোধিত হবে সে আশা নেই। তাই বাংলাদেশী বাবার সন্তানকে আটকে রাখার চেষ্টা ও তার হাহাকার দেখে মনে মনে ব্যাথিত হচ্ছি। সন্তানেরা একবার জাপানে চলে গেলে বাবা হয়তো আর কখনোই তার সন্তানদের সাবালকত্ব অর্জনের আগ পর্যন্ত তাদের আর কাছে পাবেন না যদি না মা চান। একজন সন্তানের জীবনে বাবা এবং মা দুজনেই অপরিহার্য অংশ তাই ভাবছি বাবা এবং মা দুজনের ভালোবাসা ও সংস্পর্শ পেয়ে কি এই বাচ্চাগুলো বড় হতে পারবে?

30/01/2023

After January 24, 2023 companies incorporated in Bangladesh, which have taken bank loan cannot change company's directorship structure or transfer shares without obtaining permission form the bank.