Continental Clothing Company Ltd, Nudie Jeans Co., Epona Ltd, Complaint 293

Legally binding employment relationship

The complainant stated that he/she has not received his/her annual bonus which was due before Diwali (Oct 19th). The complainant claims that other workers face the same issue.
According to the complainant, he/she had been working in this factory for the past one and half years. The complainant had to take leave during the last week of September 2017 after an injury (not related to the factory). He/she requested the HR manager to pay the annual bonus which was due before Diwali (Oct 19th). He assured that he will transfer it into the complainant's account, but he/she did not receive anything. After bonus day he/she requested the HR Manager and Production Manager several times over phone. They asked the complainant to submit a resignation letter which he/she did in the same month (October-2017). Despite adhering to management's requirements the complainant says that he/she still has not been paid the bonus.

Findings and conclusions

On 1 December 2017, FWF's complaints handler in India received a complaint from a former factory worker, who claimed that claimed that the factory had not paid his/her bonus amount after he/she left the factory in August 2017. FWF declared this complaint admissible and informed Continental Clothing Company Ltd, Epona Ltd and Nudie Jeans Co., the FWF members sourcing at this factory. Nudie Jeans reached out to factory management who claimed that that the complainant left the factory in August 2017 without completing the formalities so they did not disburse his/her bonus during Diwali (time when bonus is paid to workers). In March 2018 the complainant went to the factory to complete his/her paperwork and received INR 6,552, the bonus amount. The complaint is thus considered as resolved. At a general level, FWF recommends the factory to educate/train workers on the required formalities to be completed before resigning, especially before large holidays when workers traditionally go on long leaves or resign. The complainant is satisfied with the outcome.

Overview of the complaint investigation

2018-01-03 Investigation

Once the complaint was received, Nudie Jeans approached the factory for clarification. FWF studied the explanation of the factory management given over mail.

2018-01-03 Conclusion of the investigation

Based on the investigation FWF concludes that the the complainant has not completed the resignation formalities. This led to the factory not transferring the pending bonus.

2018-02-20 Remediation

It is suggested that the factory assists the worker, when he/she comes to the factory, in completing resignation formalities which will thereby ensure that he/she receives the due payment.
At a general level, FWF recommends the factory to educate/train workers on the required formalities to be completed before resigning. The training should be especially timed before workers go on long leave during holidays like Diwali or Pongal. This could limit grievances cases against the factory.

2018-03-20 Verification

FWF called complainant to check about the payment and he/she confirmed having received the amount INR 6,552.

2018-03-20 Evaluation of the complaint

The complainant is content after receiving the bonus amount. However, the complainant said he/she was unaware that the bonus was with-held because of some formalities due from his/her side.

2018-03-20 Resolved

As the complainant received the pending bonus for which he/she raised the complaint, he/she is content with the outcome. FWF considers the complaint resolved.