Complaints > China > Continental Clothing Company Ltd, Complaint 459

China - Continental Clothing Company Ltd, Complaint 459

Status
Closed
Country
China
Date
07/21/2018
Complaint ID
459
Member involved
Continental Clothing Company Ltd
Filing party
Worker
Filed against
Factory management
Grounded

The case

The worker complained that as of 1 July 2018, the factory regulated that if workers request leave for more than three days in a month, they are responsible to pay 100% of the social security fee for that month, including both the personal share and the company's share. The complainant thought this regulation was illegal and expected the factory to interrupt this regulation.

Findings and conclusions

On 21 July 2018, FWF's complaints handler in China received a complaint from a factory worker claiming that management had introduced a regulation according to which workers who asked for leave for more than three days in a month would be responsible to pay 100% of the social security fee for the that month, including both their personal share and the company's share. FWF declared this complaint admissible and informed Continental Clothing, the FWF member sourcing at this factory. A similar complaint regarding social security deductions had already been lodged by another worker in 2017. Since FWF had planned to audit the factory in mid-September, the audit team was requested to pay special attention to the any problems related social security. At the end of the audit, the FWF team confirmed that when workers asked for personal leave for three days in a month, on top of their personal share for social security, 100% of the company's share was deducted from workers' wages. The factory's management confirmed they had implemented the policy to ensure the flow of their computerised hanger sewing line, since if one worker asked for leave, the flow would be affected. Since this represented a violation of the law, FWF requested the factory to pay back the company's share of the social security to all workers who had been charged in 2018. The factory informed Continental Clothing that they had discontinued the policy and reimbursed the affected workers. However, FWF could not reach the complainant again to verify whether the payments had been received. Being this the second complaint in this factory regarding social security deductions, FWF highly recommended Continental Clothing to work together with the factory, monitor and take further action, if necessary, on this problem. This complaint is closed.


See details

Overview of the complaint investigation

07/23/2018 Investigation

Continental Clothing reached out to the factory and asked to provide their comments on the complaint. At the end of July, the factory replied that, after checking, they found that they never deducted any of money from workers if they took more than three days of holiday. The factory would check with workers if some of them had misunderstood the factory's regulations.

08/01/2018 Investigation

FWF tried several times to contact the complainant again but he/she did not reply. Since the FWF audit team had planned to audit the factory in mid-September, FWF requested the audit team to pay special attention to the any problems related social security in the factory.

11/09/2018 Conclusion of the investigation

According to the FWF audit team, when workers asked for personal leave for three days in a month, on top of their personal share, the factory also charged them 100% of the company's share for social security. When they asked for sick/marriage/mourning leave for more than 15 days in a month, 50% of the company share for social security was required to be paid by workers. Management also confirmed they implemented the above policy to ensure the smooth flow of their computerised hanger sewing line, since if one worker asked for leave, the flow of the sewing line would be affected. This is a violation of the law.

11/12/2018 Remediation

FWF requested the factory management to pay back the company's share of the social security to all workers who paid it in 2018.

03/28/2019 Verification

The factory said they discontinued this policy and reimbursed the nine workers who had been affected and provided their signatures to confirm that the company's share of social security from January 2017 to December 2018 had been repaid.

04/03/2019 Evaluation of the complaint

FWF could not reach the complainant again to verify whether the payments were received.

04/03/2019 Closed

This case has been closed. Nevertheless, FWF highly recommends Continental Clothing to work together with the factory, monitor and take further action, if necessary, on the problem of illegal deductions from salaries for social security.

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