By Yoon Sat - Jan 23, 2025
Myanmar Arysta LifeScience Co., Ltd, located at Crystal Tower in Junction Square Compound, Kabar Aye Road, Kamaryut Township, Yangon, faces legal action by its employees for breaching the Employment Contract (EC) agreement, according to sources assisting the affected workers.
The company violated the mutual EC agreement with its employees by announcing a business closure. 28 employees, including staff with over 30 years of service, were called to the Yangon headquarters on October 8, 2024 by the Country Manager and General Manager Daw — to inform them that operations would cease on December 31, 2024. Notices were issued on the same day, sources said.
Employees were officially handed termination letters on October 10, 2024, and partial severance payments were transferred to their bank accounts on December 27, 2024. The employees were called to the headquarters again to sign off on the receipt of their severance packages on January 9, 2025, it was reported.
During this meeting, employees inquired about their remaining payments, such as pensions and goodwill compensation outlined in the EC agreement. The company stated that these payments would only be possible once outstanding payments from its sales agents were received.
Among the 28 employees affected, some had over 30 years of service. However, the company’s stance on linking severance payments to sales agents’ pending dues violates the mutually agreed-upon EC terms, sources assisting the workers said.
The employees announced their intention to proceed with legal action on the same day although the company indicated that a negotiation would take place on January 22.
The company has not completed all payments owed despite transferring some funds to the employees. The breach of the EC agreement by the company constitutes a grave violation of labor rights, especially for employees who had dedicated nearly three decades of their lives to the company, according to a labor rights advocate.
"We’ll have no choice but to file a lawsuit if negotiations don’t proceed," said someone close to the affected workers.
The STUM (Solidarity of Trade Unions Myanmar) has committed to supporting the workers in reclaiming their full entitlements, stating that the company’s actions represent a breach of both the EC agreement and fundamental labor rights.
