Violations Related to Wages, Overtime, and Financial Matters (or) 2025 October Violations

The following issues were observed in factories and workplaces across Myanmar during October:

1. Violations related to wages, overtime, and financial matters
2. Abuse of power by supervisors and harm to workers' dignity
3. Pressure related to operations and working hours
4. Malfunctioning of support systems and discriminatory treatment
5. Deficiencies in workplace environment and health-related conditions

These findings are based on monitoring and analysis conducted by Myanmar Labour Society, a partner organization, through reports related to labour law and rights violations published on the Myanmar Labour News website and social media pages.

In October, 27 reports related to labor law and rights violations within workplaces were published, involving 24 factories. Among these, three factories appeared in the reports more than once.

The factories mentioned in the reports include garment and toy manufacturing factories. These factories operate under the CMP (Cutting, Making, and Packaging) system. CMP factories play a significant role in Myanmar’s GDP but are also among the workplaces where labor rights and human rights violations are most prevalent.

According to officials from the news outlet, the reports published by Myanmar Labour News were based on incidents and cases submitted by trade unions, labor organizations, individuals providing labor rights assistance, and workers themselves.

Moreover, to ensure the reliability of the information, unverified accounts and data from non-direct sources were not included in the report. Myanmar Labour Society noted that, due to such limitations, the actual number of workplace violations could be even higher.

Myanmar Labour Society has thoroughly reviewed the reports, analyzing them in relation to Myanmar’s labor laws, ILO conventions, human rights standards, and social norms, to assess potential violations and breaches of labor and human rights.

In examining labor rights violations that occurred in October, the organization categorized the cases into 27 sectors, and found that violations occurred in 20 of those sectors.

Wage, Overtime, and Financial Violations

In October, the primary wage, overtime, and financial violations included forced collection of money under the label of “offering fees,” partial or deducted bonus payments, salary cuts over alleged quantity errors, deductions in original salaries and incentives after workers were relocated to other departments, non-payment of overtime wages, requiring work on Sundays without pay, discriminatory wage payments, wage reductions, denial of leave and paid leave entitlements, and deductions from regular daily wages.

With wage deduction cases reported in as many as 20 factories, this was the most prevalent type of violation in October, accounting for up to 83% of the total monthly violations. These violations were found to be inconsistent with the Minimum Wage Law (2013), Payment of Wages Law (2016) and relevant rules and regulations, as well as the Factories Act (1951) / Shops and Establishments Law (2016).

The factories where wage deductions were reported include Asia Just Co., Ltd., Chi Mei International Co., Ltd., Golden Five Myanmar Co., Ltd., Hermite, Jian Yi Garment Company Limited, Jin Kai Hui, Mayfair (Myanmar) Industry Co., Ltd., Myanmar Guotai Huasheng Glory Fashion Garment, Myanmar Handsome, Myanmar Huasheng Kefu Fashion Co., Ltd., Myantex, Saiform International Garment Myanmar, Sky Fashion Myanmar Co., Ltd., Skytex (Myanmar), Sudey, Sun Star, Wan Xin Myanmar Company Limited, Xin Rui, Xing Yuan, and Yuan Hong Garment Co., Ltd.

A total of 10 factories were reported to have forced workers to work overtime, including Asia Just Co., Ltd., Golden Five Myanmar Co., Ltd., GTIG HUBO Industrial Co., Ltd., Hyun Tex, Myanmar Guotai Huasheng Glory Fashion Garment, Myanmar Huasheng Kefu Fashion Co., Ltd., Saiform International Garment Myanmar, Sheng Jie (Myanmar) Clothing Co., Ltd., Sky Fashion Myanmar Co., Ltd., and Sun Star garment factories.

There were also 8 factories found to have denied workers their entitled leave and leave benefits. These factories include Golden Five Myanmar Co., Ltd., Jian Yi Garment Company Limited, Myanmar Guotai Huasheng Glory Fashion Garment, Myanmar Huasheng Kefu Fashion Co., Ltd., Myanto Industrial Co., Ltd., Sky Fashion Myanmar Co., Ltd., Xing Yuan, and Yuan Hong Garment Co., Ltd.

In addition, although medical leave should be granted under the Social Security Law, most factories were found to have denied workers this right.

Abuse of Power and Dignity Violations by Supervisors

This category of violations includes behaviors by supervisors in the workplace that constitute abuse of power and harm to workers’ dignity. These include verbal abuse, physical assault, sexually inappropriate comments, and threats or intimidation (such as threatening dismissal or reporting to security departments).

Physical assault incidents may be prosecuted under the Penal Code Section 323 (causing hurt) and Section 352 (use of criminal force). Threats fall under violations of Sections 503 and 506 of the Penal Code.

Threats of dismissal or pressure based on such threats may also constitute a labor dispute under the Labor Dispute Settlement Law (2019) and are grounds for formal complaint.

Workplace intimidation, abuse, and discriminatory treatment violate both the right to a Decent Work Environment and fundamental labor rights.

A total of 15 factories were found to be involved in threats and intimidation, including Asia Just Co., Ltd., Chi Mei International Co., Ltd., Golden Five Myanmar Co., Ltd., GTIG HUBO Industrial Co., Ltd., Hermite, Jian Yi Garment Company Limited, Myanmar Guotai Huasheng Glory Fashion Garment, Myanmar Huasheng Kefu Fashion Co., Ltd., Myantex, Myanto Industrial Co., Ltd., Saiform International Garment Myanmar, Sky Fashion Myanmar Co., Ltd., Wan Xin Myanmar Company Limited, Xing Yuan, and Yuan Hong Garment Co., Ltd.

Verbal abuse was reported in 10 factories, including Golden Five Myanmar Co., Ltd., GTIG HUBO Industrial Co., Ltd., Jian Yi Garment Company Limited, Mayfair (Myanmar) Industry Co., Ltd., Myanmar Guotai Huasheng Glory Fashion Garment, Myanto Industrial Co., Ltd., Saiform International Garment Myanmar, Sheng Jie (Myanmar) Clothing Co., Ltd., Sun Star, and Yuan Hong Garment Co., Ltd.

Discriminatory treatment was found in 8 factories: Mayfair (Myanmar) Industry Co., Ltd., Myanmar Guotai Huasheng Glory Fashion Garment, Myanto Industrial Co., Ltd., Saiform International Garment Myanmar, Sheng Jie (Myanmar) Clothing Co., Ltd., Sudey, Wan Xin Myanmar Company Limited, and Yuan Hong Garment Co., Ltd.

Operational Pressure and Work Hour-Related Coercion

This category of violations primarily includes excessive pressure to meet production targets. Workers are often forced to work overtime under pressure, including being compelled to work overnight shifts when they fail to meet set production quotas. Workers are sometimes made to sign warning letters for refusing overtime, denied leave (such as medical or personal leave), or stripped of their entitled leave benefits.

A total of 8 factories were found to have imposed coercive production target demands. These factories include Asia Just Co., Ltd., Golden Five Myanmar Co., Ltd., GTIG HUBO Industrial Co., Ltd., Jian Yi Garment Company Limited, Myanmar Guotai Huasheng Glory Fashion Garment, Myanto Industrial Co., Ltd., Saiform International Garment Myanmar, and Xing Yuan garment factories.

Pressure to Meet Production Targets

This form of violation harms workers’ health and safety, and the coercion involved may amount to forced labor practices, which are strictly prohibited under Myanmar labor laws.

Forcing workers to work overtime due to unmet targets amounts to the exploitation of labor, and constitutes a form of workplace harassment or abuse. It violates workers’ dignity and denies them adequate rest, thereby breaching legal protections.

These practices are directly related to the Factories Act (1951) and the Shops and Establishments Law (2016), and they constitute clear legal violations.

Refusing to work overtime is a legal right under labor law. Punishing workers for such refusal—whether by disciplinary action or by forcing them to sign warning letters—is unlawful and a form of coercion.

Denying workers their legally entitled leave or cutting their pay and leave benefits as a consequence of taking leave is a direct violation of the labor laws and regulations.

Breakdown of Grievance Mechanisms and Discriminatory Practices

Under the law, factories are required to form Workplace Coordinating Committees (WCCs) to resolve disputes between employers and workers, and to appoint Compliance Officers (COCs) to ensure legal compliance. Workers have the right to report grievances or negotiate issues through these WCC and COC representatives when they experience violations.

However, in practice, current WCC members are not elected by workers but are instead appointed directly by employers. Employers also reportedly fund and influence these committees, often bypassing legal procedures. Furthermore, violations of ethical standards by COC staff have led to increasing instances of worker grievances.

There were several reported issues involving WCC/COC committees in October: partiality, refusal to assist workers, ignoring complaints, threats of dismissal if investigations were pursued, and discriminatory treatment among workers.

A total of four factories were found to have failed in their obligations due to bias or inaction by WCC and COC members. These factories are Golden Five Myanmar Co., Ltd., GTIG HUBO Industrial Co., Ltd., Sky Fashion Myanmar Co., Ltd., and Yuan Hong Garment Co., Ltd.

Additionally, Sky Fashion Myanmar Co., Ltd. was found to have pressured workers to give false statements or manipulated responses during official inspections in an attempt to evade accountability.

Workplace Environmental and Health Deficiencies

In garment factories across Myanmar, several occupational health and environmental shortcomings were observed in October. These include unsanitary and unsafe toilet facilities, insufficient supply of usable water, unsafe drinking water, the presence of clinics without adequate medicine, nurses being assigned to unrelated tasks, a lack of emergency medical supplies, the absence of transport for emergencies, and creating obstacles that make it difficult for workers to return home after work.

The factories reported to have lacked the necessary workplace conditions to ensure a safe and comfortable environment for workers during October include: Asia Just Co., Ltd., Golden Five Myanmar Co., Ltd., GTIG HUBO Industrial Co., Ltd., Hyun Tex, Jian Yi Garment Company Limited, Myanmar Guotai Huasheng Glory Fashion Garment, Saiform International Garment Myanmar, Sheng Jie (Myanmar) Clothing Co., Ltd., Sky Fashion Myanmar Co., Ltd., Wan Xin Myanmar Company Limited, and Xing Yuan.

These deficiencies are violations of the Factories Act (1951), particularly Chapter 3 concerning health standards, as well as the Shops and Establishments Law and the Social Security Law.

Additional violations identified in October include 3 factories that dismissed workers unlawfully, 1 factory that employed child labor, 2 factories violating rights of live-in workers, 1 factory that forced workers to work off-days, 4 factories that shut down operations without following legal procedures, 4 factories that denied medical leave, 1 factory that violated employment contract (EC) terms, 3 factories that forced workers to perform non-standard duties, and 1 factory that required workers to work more than 5 hours without a break.

These findings are presented with the intention of supporting labor reform efforts and to serve as a resource for labor unions, labor federations, advocacy groups, and workers themselves in their pursuit of justice and workplace rights.

Myanmar Labour News Background

Myanmar Labour News (MLN) is Myanmar’s first independent digital media platform led by young people, with a particular focus on the labor sector. It aims to promote freedom of expression, workplace justice, and equal access to labor rights for all workers. MLN is committed to making labor-related information easily understandable and accessible, contributing to the social and economic development of grassroots communities.

Myanmar Labour Society

Myanmar Labour Society (MLS) engages in data collection and research, producing monthly and annual reports, organizing training programs to raise awareness about labor rights, and training freelance journalists to investigate and report on labor rights violations. MLS also works to promote workers’ understanding of education, health, and labor law by providing vocational training and livelihood-related knowledge.

MLN and MLS invite support to help ensure the regular publication of monthly reports and the production of high-quality monthly and annual labor-related publications.

Myanmar Labour Society
Research Team