Myo Thein
Mar 12, 2026
Workers say the Lat War Co., Ltd (3) garment factory will close in April and that the factory has stated compensation will only be paid to workers who have completed one year of service.
“The factory informed us that it will close on April 3. For closure compensation, they said only workers who have completed one year of service will receive compensation, while workers who have worked more than six months but less than one year will not receive anything. They also said the compensation will be calculated based only on 7,800 kyat,” workers said.
Workers also reported that because the factory will be shutting down, Chinese supervisors and line leaders inside the workplace have been increasing pressure on workers and are more frequently shouting at and verbally abusing them.
The Industrial Workers’ Federation of Myanmar (IWFM) said that paying compensation only to workers who have completed one year of service would violate labor law.
“According to the workers’ statements, it means compensation would only be given after completing one full year. Under the law, workers who have worked six months must receive half a month’s salary as compensation, while workers who have worked one year must receive one month’s salary. This is clearly stipulated in the law. Calculating compensation based on 7,800 kyat is also incorrect because workers’ pay slips include allowances that must be added to the 7,800 kyat. Those payments are already part of the wages workers receive and that the employer regularly pays,” an IWFM official said.
The employment contract states that if a factory closes or the employer suspends operations, it is the employer’s responsibility to provide compensation and benefits to workers based on their length of service.
Workers also said that more than 60 underage workers are being employed inside the factory, and that management is demanding production targets that current workers cannot realistically meet.
“The supervisors and line leaders verbally abuse at workers in front of everyone when production targets are not met. The three supervisors from the style and packing lines are especially abusive,” workers said.
Lat War Co., Ltd (3) garment factory, owned by Chinese nationals, is located on Seikkantha Road in Industrial Zone 2, Hlaingtharyar Township, Yangon, and employs more than 1,000 workers.
