Nudie Jeans Co., Complaint 132

CONCERNING LABOUR STANDARDS
Employment is freely chosen Legally binding employment relationship
STATUS
Resolved
DATE
2015-08-11

All three workers stated that they wanted to terminate their employment with the factory, but factory management refused to accept their resignation. According to the plaintiffs, factory management stated that they would not receive their social security (PF) settlement and bonus, if they left.
All three workers are migrant workers from Orissa and wish to return to their home area urgently. They had been working for the supplier for one year and nine/eleven months.

Findings and conclusions

On 11 August, three workers, all migrant workers from a different region, stated they wanted to terminate their employment with the factory for personal reasons, but management refused to accept their resignation. Further, according to the complainants, factory management said they would not receive social security settlement and bonus if they left. On 19 August there was a call between the brand, factory management and FWF’s country representative to discuss the situation. The factory claimed that workers were free to terminate their employment within legal notice periods, and that payments would be made according to law.

By September, FWF learned that all three workers had resigned and received their due wages, as well as their social security numbers, so now they are able to claim social security. Those workers who were elegible also received a settlement payment. FWF further suggests that the member support the development of a resignation and leave policy at the factory, in dialogue with workers.

Overview of the complaint investigation

2015-08-12 Investigation

FWF informed Nudie Jeans about the complaint on 12th August. As FWF received a similar complaint concerning the same factory, a call between Nudie Jeans, factory management and FWF’s Indian country representative was held on 19th August to discuss the situation.
The factory claimed that workers are free to terminate their employment within legal notice periods and that they would not withhold payments or information/forms necessary to apply for social security.

2015-10-09 Conclusion of the investigation

FWF received confirmation in September that all three workers had resigned and received their due wages.
On 9th October 2015 it was confirmed that the workers had also received their PF number and are now able to claim social security (distributed by a government statutory body). Before, the factory did postpone it several times according to the workers. Two of them also received a settlement payment; the third was not eligible for settlement payment.
On 8th January 2016 it was confirmed that they had received all eligible payments and returned to their village.

2016-01-08 Remediation

The claim of the three complainants has been resolved. In general, FWF recommends that if a worker wishes to resign, the factory may discuss the reason for resignation with the workers and look for a possible solution. If the worker still wishes to resign and follows the resignation policy, factory management must accept the resignation, pay a final payment according to law and sign all relevant forms regarding social security collection within a reasonable time. If the resignation was initiated by the worker, (s)he is required by law to work one more month.
FWF suggests that the factory develops a resignation and leave policy in dialogue with workers. Nudie Jeans could support this process.

2016-01-08 Verification

FWF verified that the complainants received all due payments.
The remediation steps outlined in this document will be verified at the next FWF audit at the factory and during the next Brand Performance Check at Nudie Jeans.

2016-01-08 Evaluation of the complaint

The workers were content that they received all due payments.

2016-01-08 Resolved

This complaint is resolved