By Myo Thein
Feb 23, 2026
Workers at Myanmar LNY CAPS Co.,Ltd (1) say the factory is forcing piece-rate employees to work 61 hours of overtime per month as part of their fixed salary, according to complaints submitted to the Industrial Workers’ Federation of Myanmar (IWFM).
“Piece-rate workers have 61 overtime hours included in their monthly salary. We are not paid based on an eight-hour workday alone. The salary already assumes 61 hours of overtime. Only after exceeding those 61 hours do they calculate overtime pay at 2,000 kyats per hour,” a worker said.
The standard working time is eight hours per day, 44 hours per week, and 176 hours per month under Myanmar labor law. Any work beyond those limits is legally defined as overtime and must be compensated separately.
Workers say clerical staff and mechanics employed under piece-rate arrangements work the same hours as other employees but face discrimination in benefits and rights. They also allege unlawful disciplinary actions by management.
“They announced a 50,000-kyat bonus but later said piece-rate workers were excluded. We were told that because we are piece-rate workers even when we raised the issue with the factory manager, and we could not receive it. But we are treated the same as everyone else when it comes to punishment,” a worker said.
In February, the factory reportedly closed for six days. Some workers who traveled back to their hometowns were unable to return on the exact reopening date due to transportation or other difficulties. Those who failed to return on time were required to sign warning letters and had their wages deducted proportionally.
“Some mechanics who went back to their hometowns couldn’t return on the reopening date. On the 19th, they were forced to sign warning letters for absence. Their wages were deducted for missing days,” a worker said.
A former HR staff member advised that workers facing travel disruptions, ticket shortages, or health issues should retain documentation such as medical certificates or travel proof and notify HR in advance by phone or through colleagues.
“If you inform the responsible person in advance, stating when you will return and why you are delayed, it can be treated as reported leave rather than unauthorized absence. Then you may rely on legal leave entitlements. But whether the factory will grant leave is another question,” the HR source said.
Workers say that although piece-rate employees perform skilled labor, they face unequal treatment in working hours, benefits, and entitlements. They also allege that the HR department fails to independently assess disciplinary decisions.
“HR does not carefully review cases for workers. They carry it out if the factory manager orders dismissal. They pressure workers to sign if told to issue a warning. They do not examine whether actions are lawful or fair. Workers are not receiving real justice as a result,” employees said.
The factory, located on Malika Street, Shwe Than Lwin Industrial Zone near the BOC bus stop in Yangon, employs around 900 workers. It manufactures caps for brands including 47 CLEAN UP, FITCAP, OTTO, and CAP AMERICA, which are exported to the United States.
