By Myo Thein - Oct 23, 2025
Chi Mei International Company Limited, a garment factory, has reportedly violated labour laws during its temporary closure, citing a lack of orders as the reason. Workers claim that during this period, the company failed to properly communicate the shutdown or pay wages according to legal standards.
“They said the factory would temporarily shut down, but no official notice was sent to the Labour Office. They also didn’t clearly inform workers about the exact closure dates,” a worker said.
According to the 2011 Labour Organization Law of Myanmar, factories must notify the relevant authorities in the event of a closure. The Leave and Holidays Act (1951) also requires prior notification to both workers and authorities.
Workers said that the factory management announced the temporary closure in September and informed them that instead of the usual 11,000 MMK daily wage, they would receive only 5,800 MMK during the closure period. Other allowances would not be paid either, according to the manager.
“After news about this broke, labour department officials came to inspect the factory. That’s when it was revealed that the factory had not filed any notice or documentation with the relevant government offices. The officials then instructed the factory to pay 6,800 MMK per day plus full attendance allowances during the closure,” workers said.
Although an agreement was made following intervention by officials to pay 6,800 MMK and the full attendance bonus, workers reported being pressured to sign consent forms acknowledging acceptance of the reduced rate upon returning to work.
“On October 8, right after Thadingyut holidays, the factory told supervisors to tell workers they had to return that day or risk being terminated. No specific closure dates had been communicated beforehand. Some workers who couldn't return on that day were fired. Those who did return were made to sign forms agreeing to accept only 6,800 MMK. Some workers refused to sign,” they added.
Workers are entitled to their full regular pay and related allowances during temporary factory closures under Myanmar’s Minimum Wage Law (2013) and the Payment of Wages Law. Any forced deductions or reduced payments during this period are unlawful.
Experts on labour rights say that such dismissals not only result in workers losing severance pay but also violate the Termination clauses in the Employment and Skills Development Law (2013).
“On the 20th [of October], everyone was told to return to work. There used to be 20 production lines, but now only 6 are operating. Workers from the remaining 11 lines were told to wait until they’re called back. Those who couldn’t return on the 20th were marked as having quit voluntarily. The factory doesn’t provide enough work, doesn’t pay full wages, and now they’ll dismiss us again just like they did on the 8th and now on the 20th if we miss the day, they call us,” a worker said.
Workers also reported deductions in their performance-based "grade pay" when they missed work.
“Our wage structure is: 4,800 MMK for basic wage, 2,000 MMK for subsidy, 4,200 MMK for snack money, 11,000 MMK for total daily wage, 50,000 MMK for attendance bonuses for machine operators, and 30,000 MMK for other departments. Overtime is paid at 1,200 MMK with an 800 MMK snack allowance. There’s also grade pay which is given separately—A+ gets 120,000 MMK, A gets 90,000 MMK, and so on. But grade is reduced if we miss a day, ,” a worker explained.
Chi Mei International Company Limited is a Chinese citizen-owned garment factory located on pale Road, Industrial Zone (3), Shwepyithar Township, Yangon. It operates from the former site of the Honor Apparel garment factory and employs over 900 workers. It has previously manufactured brands such as Rafinat and Knox Village.
