The Department of Inspection for Factories and Establishments (DIFE) has issued a show-cause notice to DIRD Composite Textiles Ltd for failing to pay Tk 70 million in employee dues, despite receiving a loan facilitated by the Ministry of Labour.

DIFE, under the Ministry of Labour and Employment, which is responsible for health and safety inspections in the country’s factories and establishments, issued the show-cause notice to the factory authorities on January 2, requesting a response within three working days.

The notice, signed by DIFE Labour Inspector (General) Md Romenul Islam, stated that the government arranged a loan of Tk 130 million for DIRD Composite Textiles through Standard Chartered Bank’s Gulshan branch on 10th December last year to clear workers’ wages and other employee dues.

The loan was granted following the factory’s application, with the intervention of the Ministry of Labour, it added.

While Tk 60 million of the loan was disbursed to pay workers’ wages and other lawful dues on 24th December last year, the staff’s dues remain unpaid, the notice explained.

“Furthermore, no concerned agencies, including DIFE, have been informed of the reasons for the non-payment of staff wages, which has created uncertainty regarding their payment,” the DIFE stated in the notice.

This situation could lead to protests, including road blockades, with the factory held responsible for any resulting public hardship.

The DIFE has instructed the factory authorities to provide an explanation for the non-payment, supported by evidence, within three working days, and warned that failure to do so will result in legal action.