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  5. Question & Answers on Employee Settlement

Question & Answers on Employee Settlement

09-03-2016

Question one:

Does this settlement mean that HUL admits that your former employees’ health was affected by their time working in the factory?

Answer one:

No, that is not correct. Several expert studies have been conducted since the factory’s closure and all have concluded that our ex-employees were not harmed by working in the former thermometer factory in Kodaikanal.

As suggested by the Honorable Madras High Court we have engaged with the representatives of the former employees to seek a resolution of the matter.

As part of the agreement, HUL, with an objective to ensure long term wellbeing of its former workers, will provide ex gratia payments to 591 former workers/association members and their families to be used towards livelihood enhancement projects and skill enhancement programs.

Question two:

What is the total liability that accrues to HUL due to their settlement? When will it reflect in the books of accounts?

Answer two:

This is not being disclosed as per the mutually agreed terms of agreement.

Question three:

Why has HUL made another payment when the full and final settlement was already made in 2001 after closure of the factory?

Answer three:

The ex- workers of our former thermometer factory in Kodaikanal had filed a petition in the Madras High Court in February 2006 seeking economic rehabilitation. This petition was filed more than four years after HUL had made a full and final settlement in November 2001. The severance package was significantly higher than the statutory requirement. The workers had been offered alternative jobs in another unit of the company. However, they opted out of service.

Since this episode first came to light, HUL has actively sought to address it in a responsible manner. Madras High Court more than once had asked both parties to the dispute to resolve it in an amicable manner through an out of court settlement. In line with this suggestion we engaged with our former workers & have resolved it in a mutually satisfactory manner.

Question four:

What are the terms of the settlement?

Answer four:

This is confidential as per the mutually agreed terms of the agreement.

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