Vietnam Complaint Vaude 16 April 2017

Final report of a complaint at a factory in Vietnam supplying Vaude

ON 16 April 2017, FWF received a complaint from a worker who was employed by the factory until February 2017. The complaint is related to the unused annual leave payment for 2015 and 2016. The employee took maternity leave for 6 months from 25 February 2016. In addition she took unpaid leave for 3 months after which she resumed work in December 2016. After that, she has applied a resignation letter with giving prior notice of 45 days before ending of contract. According to the employee she did not receive the unused annual leave payment in 2015 and 2016. According to the employee, she worked 3 months in 2016, so she should be entitled to at least 3 days of unused annual leave.

FWF decided that the case is admissible on 19 April 2017. VAUDE informed the factory management directly and received a reply within one week. Both VAUDE and factory management acknowledge managing the payments in time has been a challenge and are working hard to improve this. FWF’s complaints handler conducted additional research to confirm whether Article 961 of the labour code that deals with the timely payment of salary also applies to annual leave payments. From the interview with the complainant, FWF’s complaint handler learned the factory did not pay the severance allowance for the working time served when she did not pay unemployment insurance contributions as prescribed by law (such as probation period, maternity leave). Even though she did not raise this during the initial complaint, as she was not aware of this right, it is included in the remediation requirements.

Based on the review of the Labour Code, the complaint was found grounded. The employee is entitled to unused leave payment and severance allowance, which the factory must pay.  In the evening of 25 July, the complainant confirmed having received the payment of annual leave for 2015 and 2016 with interest. The complainant was positive about the role of FWF’s complaint system, and said the result was better than expected.

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