Takko Holding GmbH, Complaint 896

CONCERNING LABOUR STANDARDS
Payment of a living wage Legally binding employment relationship
STATUS
Remediation
DATE
2020-05-20

The complainant informed the Fair Wear Complaints Handler that she has been working in the factory since 1 January 2006. The Managing Director of the factory terminated the complainant's contract via a telephone conversation on 2 May 2020, during the nationwide COVID-19 lockdown as declared by the Prime Minister. According to the complainant, the factory is experiencing a serious cash flow shortage due to the corona crisis, which also resulted in non-payment of wages and Eid bonus. According to the complainant, she eagerly requested the Managing Director not to cancel her employment as she is a single mother with two children, one of whom has special needs and the other has just been admitted to school.

The complainant has not yet received written notice from the factory. Therefore, the complainant hopes that with the support of Fair Wear and Takko, the factory will reconsider terminating her employment contract. If this is not possible, the complainant would like to receive all her legal dues and compensation. According to the complainant she is entitled to the following:
Due salary January to April 2020= TK 129,000/
Service benefit- = TK 342,062/-
Termination benefits = TK 97,000/-
Earn leave encashment = TK 51,333/-
Two festival bonus- = TK 18,000/-
Total Amount- = TK 638,127/-

Overview of the complaint investigation

2020-06-03 Remediation

Factory management called the complainant to reach a solution. During the discussion, factory management offered the complainant to continue working at the factory. The complainant, however, decided not to continue, as she felt it would disrespectful for her to continue after being subjected to contract termination and breach of trust. Therefore, she preferred to receive her legal dues. Her legal dues were in total BDT 459,000 but factory management requested to the complainant to consider the difficult economic condition of the factory and offered to pay her BDT 350,000 in a number of instalments. The complainant agreed to this and both parties signed a mutual agreement.