SALEWA, DYNAFIT & Wild Country, Complaint 338

Payment of a living wage Legally binding employment relationship

The complainant worked at the factory from 22 September 2017 to 31 October 2017 under probation period. The factory suggest to sign a one-year-contract but she has not signed yet. She resigned on 31 October 2017 as she had to return to her hometown for urgent matter. She did not received her salary for October 2017 and wants to receive it. She went to the factory on 7 February 2018 and met HR officer. Because she did not have her employee ID card nor identity card, the factory could not resolve her complaint and asked her to come back later.

Overview of the complaint investigation

2018-06-28 Investigation

Investigation proved the complaint to be grounded.
- Factory provided a payroll with total salary of Oct is 3,168,029VND and was deducted of 1,660,000VND --> remaining salary: 1,508,000VND
- Factory provided an apprentice contract that was signed by 2 parties. The contract was noted that the trainees must compensate the company for half a month's salary if they have not worked at the factory for at least 6 months.
1. According to the apprentice contract:
- Method of salary payment: in cash
- Payday: 10th of month.
2. According to Article 96 of Labor Code: "The employee is paid directly, fully and in a timely manner. In special case the salary may not be paid in a timely manner, it must not be later than 01 month and the employer must pay the employee an additional amount at least equal to the deposit interest rates by the State Bank of Vietnam announced at the time of payment."
According to Article 47.2 of Labor Code, "2. Within 07 working days as from terminating the labour contract, both parties are responsible to fully pay the amounts related to each party’s interests. This time limit may be longer if necessary but must not exceed 30 days."

a. The employer is obliged to pay employees directly, fully and in a timely manner according to the labour contract and the CBA . The payment does not depend on the employee's complaint. In this case, factory does not pay to workers on time (e.g. 10th of November for salary of October 2017), so that she has to complain.
She resigned on 31 October 2017 so that her salary is not paid later than 30 November 2017.
b. According to the apprentice contract, salary will be paid in cash on the 10th of month. If her salary had counted and paid on 10th of November, the complaint would have gone to factory to receive her money. However, her salary was not paid on time, so factory has to find other ways to pay her (such as paid by bank transfer or by post office, etc.). In this case, factory is not willing to pay worker, they just count to pay the remaining salary when receiving the complaint.
c. The local laws does not have any specific provisions on how to pay employees in case they cannot return factory or they live so far from factory.

2018-07-03 Remediation

FWF adivsed the brand to support the following action by discussing with the factory:
- the worker will go back to the factory in 4 or 5 months from now to collect her dues 1,508,000VND.
- it is suggested that Salewa and the factory agree on paying the cost of transportation from the worker's home to the factory and back.
- FWF complaint handler will follow up to make sure the meeting happens, that the factory is informed, and that the former worker brings her ID.

The estimated transportation cost is about VND50,000 per a round and about VND100,000 for a round trip. It is about 70 kilometers from her home to factory. I have just talked to the mother to know the transportation cost. She said that the worker can go to factory by motorbike by herself.

2018-09-06 Remediation

The factory said they will have papers ready when the worker returns in 5 months (December 2018).

But they would need to be advised in advance (2 weeks) before her visit. They have agreed to compensate the transportation fee if the worker can provide the invoice accordingly.

2018-11-27 Verification

The complainant went to the factory and received her remaining salary on 27 November 2018.

2018-11-27 Evaluation of the complaint

She thanks FWF for helping her. She went to factory by motorbike, but did not claim any transportation fee.

2018-11-27 Resolved

The case is resolved as the worker received her due payments.