Bestseller, a global fashion company based in Denmark, has identified the payment of due wages, excessive overtime, safe work and transport, and discrimination and harassment of vulnerable groups as significant human rights risks in its supply chain in Bangladesh.

The company identified the ‘four most salient human rights risks’ in a recently published report titled ‘Enhanced Human Rights Due Diligence Report: Bangladesh.’

‘Bestseller has identified Bangladesh as a sourcing country that requires enhanced due diligence due to the challenges in fulfilling the UN Guiding Principles’ ‘Protect, Respect, and Remedy’ framework amidst protests and a government transition,’ the report mentioned.

At its sourcing office in Bangladesh, Bestseller has a team of 65 employees, which includes five qualified social and labour specialists.

The company sources from 99 factories and 33 subcontracted units, collectively providing employment for around 350,000 people.

‘Given Bestseller’s significant business presence in Bangladesh, the ongoing political instability and associated risks necessitate continuous assessment of emerging threats to human rights and a proactive approach to human rights due diligence,’ the company said in the report.

During the recent political unrest, the company maintained daily communication with its suppliers to reaffirm its commitment and provide support during this challenging time.

Orders have been delayed due to ongoing disruptions, but Bestseller is working with suppliers to adjust delivery timelines and will offer modified payment terms without penalties for delays during this period, the report said.

However, regarding the payment of due wages, the company stated that it has clearly communicated to suppliers that there should be no deductions from wages, including bonuses or attendance bonuses, for non-working days during government-mandated holidays.

Square Group CEO Tapan Chowdhury said that therewas limited scope for excessive overtime in compliant factories, as globally recognised brands impose restrictions on this practice.

While some factories are offering overtime due to high demand and workers’ interest in earning extra income, he said.

Regarding wage payments, Tapan acknowledged that some factories may be behind on wages due to business losses, which can occur in any factory under special circumstances.

He saidthat the Bangladesh Garment Manufacturers and Exporters Association was actively working to address the issue, and he urged the government to provide support to companies to help resolve the situation and protect the industry.

At the beginning of August, during a three-day general holiday starting on August 5, most of Bestseller’s partner factories secured exemptions from the holiday and operated as usual on 7 August.

During the protests in Ashulia in mid-August, eleven of its supplier factories were closed on August 15 due to the blockade of the Nabinagar-Chandra highway over equal employment opportunities within the Dhaka Export Processing Zone, in order to protect their workforce.

Additionally, one of its supplier factories near Chittagong was closed for a day due to local flooding, adding another layer of disruption.

The company instructed its brands to engage with their suppliers to adjust delivery timelines and develop realistic plans.

‘Delayed orders will not be penalised during this period. However, we recognise that the risk of excessive overtime is heightened at this time. The increased cost of living due to political disruptions may prompt workers to seek additional income through overtime,’ the report observed.

According to the report, Bestseller maintained clear expectations that factories had robust procedures in place to manage excessive working hours.

In cases of critical backlogs, the company engaged in dialogue with suppliers about potential adjustments to delivery times to find solutions.

Citing surveys, it said that an estimated 95 to 98 per cent of factory workers walk to work, and most protests over the past month tended to start around 10 am, while most factories begin their working day at 8 am, reducing the likelihood of workers encountering protests during their commute.

‘We are particularly concerned about the safety of factory security teams, especially given recent attacks on other manufacturing facilities in the Dhaka Export Processing Zone ,’ it said.

Regarding discrimination and harassment of vulnerable groups, the company closely monitored the situation through worker interviews and stakeholder engagement, with particular focus on religious and ethnic minorities, the report mentioned.

It suggested that suppliers provide flexibility for workers regarding arrival and departure times and coordinate safe transportation to and from work.

The report recommended that suppliers should offer flexibility for workers regarding arrival and departure times, coordinate safe transportation, and ensure that justified irregularities do not affect bonuses.

All grievances must be adequately followed up, monitored, and effectively communicated to workers, with factories supporting industry-level resolution mechanisms and engaging in good faith, it suggested.

It also said that the factories should ensure that wages, bonuses, and benefits are paid on time each month.