Remediation of Severance Pay Violations at Han Embroidery (Bangladesh)
April 28, 2016
I am pleased to report that a case of unpaid severance compensation at a Bangladeshi factory that embroiders university logos onto hats has been successfully resolved.
When Han Embroidery Ltd. closed on October 25, 2015, the factory failed to pay US$72,157 in legally required severance pay and notice pay. Han Embroidery embellished collegiate licensed hats produced by Han Apparel, a disclosed supplier of licensee Zephyr Graf-X. After investigating the workers’ allegations, and concluding that the factory had failed to pay legally mandated benefits to workers, the WRC contacted Zephyr regarding this violation of university codes of conduct. After the WRC clarified the factory’s obligation under Bangladeshi law and university codes of conduct, Zephyr secured a commitment from Han Apparel to provide the funds to make the workers whole.
Over the next two weeks, Han Apparel will distribute US$72,157 to the former Han Embroidery employees. This will constitute full remediation of university labor code violations.
Zephyr’s prompt recognition, in response to the WRC’s findings, of its obligations under university codes, and the company’s willingness to fulfill those obligations, will ensure that the former workers of Han Embroidery receive the severance they earned. This will repair the harm done to these workers at the time of factory closure and provide them and their families with funds that will significantly improve their economic and social prospects.
The WRC will observe the distribution and continue to update universities as to the implementation of this remediation.
Worker Rights Consortium
5 Thomas Circle NW, 5th Floor
Washington, DC 20005
ph 202 387 4884
fax 202 387 3292