Phuc Hung Mechanical and Electrical Joint Stock Company commits to pay salary arrears in 3 installments
Phuc Hung Mechanical and Electrical Joint Stock Company has just issued a notice stating that it has developed a specific payment plan and committed to implementing the full payment of outstanding salaries in installments, in accordance with the debt recovery progress.
Talking to a reporter of Lao Dong Newspaper, Mr. To Hong Chung - one of the workers whose salaries are owed - said that on March 30, a meeting took place between the company's Board of Directors including Mr. Nguyen Ngoc Duong - Chairman of the Board of Directors, Mr. Cao Van Lam - Director of the company and representatives of the group of workers who have terminated labor contracts and are still being late in paying salaries, including Mr. Phung Dinh Duc, Mr. Vu Thanh Truong and lawyers.
In the notice issued after the meeting, the company admitted that the unit still has outstanding salary payment obligations for 26 employees who have terminated labor contracts, arising in the period from 2022 to April 2025.
According to the company's explanation, the main reason for the slow payment of wages stems from objective financial difficulties. Specifically, some projects that the company has constructed have not completed finalization and have not been paid by the investor according to the expected progress, leading to prolonged capital embezzlement; cash flow is seriously interrupted, directly affecting the ability to balance payment sources; at the same time, the company is in the process of consolidating the management apparatus and handling outstanding debts from previous years.
The Company is clearly aware of the employer's obligations according to the provisions of labor law regarding full and timely payment of wages and affirms that there is no policy of delaying or appropriating workers' wages. The delay in payment is unintentional and arises from the objective difficulties mentioned above" - according to the notice.
Still in the notice sent to employees, the company said that despite facing many difficulties, the company has made efforts to balance resources to pay part of the outstanding salary in November 2025 and February 2026. At the same time, the company is actively implementing remedial solutions, including: Accelerating settlement and debt recovery from investors; reviewing and completing legal documents of projects; restructuring financial resources, prioritizing salary payments and finding legal capital sources to supplement cash flow.
On that basis, the company has developed a specific payment plan and committed to implementing the full payment of outstanding salaries in installments, in accordance with the debt recovery progress, as follows: Installment 1: Pay up to 33% of total outstanding debt before June 30, 2026. Installment 2: Pay up to 33% of total outstanding debt before September 30, 2026. Installment 3: Pay the entire remaining outstanding debt before December 31, 2026.
The company requests employees to consider the above payment plan and send written feedback before April 15, 2026 so that the company has a basis for implementation. In case employees agree, the company will invite employee representatives to coordinate in signing the payment agreement minutes, as a basis for establishing responsibilities and implementation roadmaps of the parties.
Talking to reporters, Mr. To Hong Chung said that the salary debt payment roadmap is too long. He proposed two salary payment milestones, April 15 and June 1, to be paid. "I am agreeing on the salary debt payment date with other workers, then sending information through the law firm for the company to send an official letter to respond" - Mr. Chung said.
Mr. Chung added that if the company does not meet the two salary debt payment milestones above, employees will continue to send petitions; if they cannot resolve it through a mediator, they will sue in court.
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