Odd Molly International AB, Complaint 203

CONCERNING LABOUR STANDARDS
Payment of a living wage Reasonable hours of work Legally binding employment relationship
STATUS
Closed
DATE
2017-01-22

The complainant claimed that, on 26 December 2016, management informed him/her that s/he was no longer needed at the factory. S/he was asked to sign a resignation letter in order to receive his/her final payment. The worker signed the resignation letter and received a cash amount of 5,700 INR. According to the complainant, this amount included the wages for 15 days and overtime payment for 2.5 hours daily on working days. The complainant had been employed for two months as a regular worker with an employee ID and social security coverage (via a contractor) at a salary of 318 INR/day.

Findings and conclusions

On 28 December 2016, FWF's complaints handler in India received a complaint from a worker who had recently left the factory. The complainant claimed that, on 26 December, management informed him/her that she was no longer needed at the company. S/he was asked to sign a resignation letter in order to receive his/her final payment, but did not receive a receipt or breakdown of this payment. S/he believed that not all money owed had been paid.

FWF informed Odd Molly about the case. The factory only replied on 3 March 2017. FWF verified the shared document (full and final payment receipt) and discussed the management’s response with the complainant, who had since started working at another factory and was not interested in pursuing the complaint further. The investigation revealed that overtime was likely not being paid at the proper rate.

FWF recommended the following points for remediation:
– Legal procedures must be followed in case the factory wishes to dismiss/terminate a contract.
– Overtime must always be paid at double rate. The factory should pay outstanding overtime wages to the complainant.

The complainant insisted that overtime wages had not been paid at double rate, but s/he was unable to provide proof of the overtime worked. S/he had since found employment elsewhere and was not interested in pursuing the complaint further.

Overview of the complaint investigation

2017-03-17 Investigation

FWF informed the brand about the complaint and sought information from factory management on this complaint. FWF looked into the response of the factory once the brand shared it.

2017-03-20 Conclusion of the investigation

During the investigation, management responded that the complainant was on probation, hence no notice pay was due to the complainant. This matched with the statement of the worker, as s/he had stated that she had been working in this factory for two months. The payment given to the worker was for the number of days worked and overtime hours at single rate. According to Factories Act, overtime hours should be compensated twice the hourly rate.

2017-05-05 Remediation

The worker should receive overtime payment for the hours worked at double rate. On a structural level, all overtime should be paid at premium rate.

2017-05-06 Verification

FWF tried to reach out to the complainant, who said s/he had joined another factory and no longer wanted to pursue his/her complaint against the factory.

2017-05-06 Evaluation of the complaint

The complainant did not want to pursue his/her complaint anymore.

2017-05-15 Closed

FWF considered this complaint closed as the complainant did not want to pursue it further. On a structural level, Odd Molly and the factory should ensure that all overtime hours are paid at double rate.