a. Freedom of Association and the Right to Collective Bargaining

The law provides for the right of workers to form and join independent unions, bargain collectively, and conduct legal strikes. The law permits labor organizations to demand the reinstatement of workers dismissed for union activity, but it does not explicitly prohibit antiunion discrimination in the form of demotions or mandatory transfers, nor does it offer protection for workers seeking to form a union. The law does not provide adequate protection for workers from dismissal before a union is officially registered.

Laws prohibit civil servants and personnel of the security services and police from forming unions. The law permits workers to join unions only within their category of trade or activity, and the definition of trade or activity lacks clarity. Basic labor organizations must have a minimum of 30 workers and register through township registrars with the Chief Registrar’s Office of the Ministry of Labor, Immigration, and Population (Ministry of Labor). Township labor organizations require a minimum of 10 percent of relevant basic labor organizations to register; regional or state labor organizations require a minimum of 10 percent of relevant township labor organizations. Each of these higher-level unions must include only organizations within the same trade or activity. Similarly, federations and confederations also require a minimum number of regional or state labor organizations (10 percent and 20 percent, respectively) from the next lower level in order to register formally. The law permits labor federations and confederations to affiliate with international union federations and confederations.

The law provides for voluntary registration for local NGOs, including NGOs working on labor issues. Organizations that choose to register are required to send organizational bylaws and formation documents to the government. Broader restrictions on freedom of assembly remained in place (see section 2.b.).

The law gives unions the right to represent workers, to negotiate and bargain collectively with employers, and to send representatives to a conciliation body or conciliation tribunal. Union leaders’ rights to organize, however, are only protected after the official registration of the union. The law does not contain detailed measures regarding management of the bargaining process, such as requiring bargaining to be in good faith or setting parameters for bargaining or the registration, extension, or enforcement of collective agreements. The National Tripartite Dialogue Forum (NTDF), with representatives from government, business, and labor unions, met three times during the year. The NTDF consults with parliament on revising legislation on labor.

The law stipulates that disputes in special economic zones be settled in accordance with original contracts and existing laws. The government appointed a labor inspector for each such zone and established zonal tripartite committees responsible for setting wage levels and monitoring the ratio of local and foreign labor.

In May parliament passed an amended law on the settlement of labor disputes; however, the implementing regulations remained under draft. The law continues to provide the right to strike in most sectors, with a majority vote by workers, permission of the relevant labor federations, and detailed information and three days’ advance notice provided to the employer and the relevant conciliation body. The law does not permit strikes or lockouts in essential services. For “public utility services” (including transportation; cargo and freight; postal; sanitation; information, communication, and technology; energy; petroleum; and financial sectors), lockouts are permitted with a minimum of 14 days’ notice provided to the relevant labor organizations and conciliation body. Strikes in public utility services require generally the same measures as in other sectors, but with 14 days’ advance notice and negotiation between workers and management before the strike takes place to determine maintenance of minimum service levels. The law prohibits strikes addressing problems not directly relevant to labor issues.

The amended law no longer defines complaints as “individual” or “collective,” but as “rights-based” or “benefits-based.” A “rights-based” dispute includes violations of labor laws, whereas a “benefits-based” dispute pertains to working conditions. The type of dispute determines the settlement procedure. Under the amended law, “rights-based” disputes do not go through a conciliation process or an arbitration proceeding, but go directly to court proceedings. The amended law significantly increases fines for labor violations, but it eliminates prison terms as punishment for violations.

Labor groups continued to report labor organizations’ inability to register at the national level, a prerequisite for entering labor framework agreements with multinational companies, due to the registration requirements under the law. In addition, the International Labor Organization (ILO), labor activists, and media outlets continued to report employers firing or engaging in other forms of reprisal against workers who formed or joined labor unions. Trade unions reported cases in which criminal charges were filed against workers for exercising their right to strike, and trade union members were arrested and charged with violating peaceful assembly laws when holding demonstrations regarding labor rights generally. Labor organizations also reported that local labor offices imposed unnecessary bureaucratic requirements for union registration that were inconsistent with the law.

Workers and workers’ organizations continued to report they generally found the Ministry of Labor to be helpful in urging employers to negotiate, but there were consistent reports of employers engaging in forms of antiunion discrimination.

b. Prohibition of Forced or Compulsory Labor

Laws nominally prohibit all forms of forced or compulsory labor, although it is allowed for use by the military and in penal institutions. Laws also provide for the punishment of persons who impose forced labor on others. The government did not effectively enforce the law.

The law provides for criminal penalties for forced labor violations; penalties differ depending on whether the military, the government, or a private citizen committed the violation. The penalties are insufficient to deter forced labor.

The government established an interim complaints mechanism under the authority of the President’s Office with the aim of having a more fully developed mechanism at a later date. The ILO and unions expressed concerns that the government’s mechanism does not provide for protections for victims.

The ILO reported the number of complaints of forced labor was decreasing. Reports of forced labor occurred across the country, including in conflict and cease-fire areas, and the prevalence was higher in states with significant armed conflict.

The military’s use of forced labor in Rakhine, Kachin, and Shan States remained a significant problem, according to the ILO. Forced labor reports included forced portering and activities related to the military’s “self-reliance” policy. Under this policy, military units are responsible for procuring their own food and labor supplies from local villagers–a major factor contributing to forced labor and other abuses.

Although the military and the government received complaints logged by the complaints mechanism, no military perpetrators have been tried in civilian court; the military asserted that commissioners and other ranks were subjected to military justice.

Prisoners in the country’s 48 labor camps engaged in forced labor (see section 1.c., Prison and Detention Center Conditions).

The ILO did not receive any verified reports of forced labor in the private sector. Domestic workers remain at risk of domestic slavery.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law does not prohibit all of the worst forms of child labor. In July parliament passed the Child Rights Law, which set the minimum age at 14 for work in certain sectors, including shops, establishments, and factories; the law establishes special provisions for “youth employment” for those older than 14. There is, however, no minimum age for work for all sectors in which children were employed, including agriculture and informal work. Some sector-specific laws identify activities that are prohibited for children younger than 18. The law prohibits employees younger than 16 from working in a hazardous environment, and the government has prepared a hazardous work list enumerating occupations in which child labor is specifically prohibited.

Trained inspectors from the Factories and General Labor Laws Inspection Department monitored the application of these regulations, but their legal authority only extends to factories. In addition, inspectors were hindered by a general lack of resources.

The Ministry of Labor worked with other ministries to collect better data on existing child labor and continued a campaign directed at parents to raise awareness of the risks of child labor and provide information on other education options available to children. The Ministry of Labor engaged with the Ministry of Education on two programs: one to bring children out of the workplace and put them in school, the other to support former child soldiers’ pursuit of classroom education or vocational training. The Labor Ministry supported vocational schools to train young workers for jobs in nonhazardous environments.

The ILO noted the widespread mobilization and recruitment of children for use in armed conflict. Penalties under the law and their enforcement for other child labor violations were insufficient to deter violations.

The government did not effectively enforce the law. Child labor remained prevalent and highly visible. Children were at high risk, with poverty leading some parents to remove them from schools before completion of compulsory education. In cities children worked mostly as street vendors or refuse collectors, as restaurant and teashop attendants, and as domestic workers. Children also worked in the production of garments.

Children often worked in the informal economy, in some instances exposing them to drugs and petty crime, risk of arrest, commercial sexual exploitation, and HIV/AIDS and other sexually transmitted infections (also see section 6).

Children were vulnerable to forced labor in teashops, agriculture, and begging. In rural areas children routinely worked in family agricultural activities, occasionally in situations of forced labor.

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor report at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings  and the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor at https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods .

d. Discrimination with Respect to Employment and Occupation

Labor laws and regulations do not specifically prohibit employment discrimination.

Women remained underrepresented in most traditionally male-dominated occupations (mining, forestry, carpentry, masonry, and fishing) and were effectively barred from certain professions.

There were reports government and private actors practiced anti-Muslim discrimination that impeded Muslim-owned businesses’ operations and undercut their ability to hire and retain labor, maintain proper working standards, and secure public and private contracts. There were reports of discrimination based on sexual orientation and gender identity in employment, including the denial of promotions and firing of LGBTI persons. Activists reported job opportunities for many openly gay and lesbian persons were limited and noted a general lack of support from society as a whole. Activists reported that in addition to general societal discrimination, persons with HIV/AIDS faced employment discrimination in both the public and private sectors, including suspensions and the loss of employment following positive results from mandatory workplace HIV testing.

e. Acceptable Conditions of Work

The official minimum daily wage was above the poverty line. The minimum wage covers a standard eight-hour workday across all sectors and industries and applies to all workers except for those in businesses with fewer than 15 employees. The law requires the minimum wage to be revised every two years. Labor unions and activists criticized the May 2018 raise in the minimum wage as too small for workers to keep up with the rising cost of living.

The law requires employers to pay employees on the date their salary is due for companies with 100 or fewer employees. For companies with more than 100 employees, the employer is required to pay employees within five days from the designated payday. Overtime cannot exceed 12 hours per workweek, should not go past midnight, and can exceed 16 hours in a workweek only on special occasions. The law also stipulates that an employee’s total working hours cannot exceed 11 hours per day (including overtime and a one-hour break). The law applies to shops, commercial establishments, and establishments for public entertainment.

The law sets the terms and conditions required for occupational safety, health, and welfare. It was not clear if workers could remove themselves from situations that endanger their health or safety without jeopardizing their employment.

The Ministry of Labor’s Factories and General Labor Laws Inspection Department oversees labor conditions in the private sector. The government did not effectively enforce the law. The number of labor-law inspectors and factory inspectors was insufficient to address occupational safety and health standards, wage, salary, overtime, and other issues adequately. In some sectors other ministries regulated occupational safety and health laws (e.g., the Ministry of Agriculture, Livestock, and Irrigation). Workers’ organizations alleged government inspections were rare and often announced with several days’ notice that allowed factory owners to bring facilities–often temporarily–into compliance. Corruption and bribery of inspectors reportedly occurred.

The public sector was reasonably likely to respect labor laws; frequent violations occurred in private enterprises. Workers continued to submit complaints to relevant government agencies and the dispute settlement mechanism.

Several serious industrial accidents occurred during the year. In April, for example, more than 50 miners died in an accident at a jade mine.

a. Freedom of Association and the Right to Collective Bargaining

The law broadly provides for the right of private-sector workers to form and join trade unions of their own choice, the right to bargain collectively, and the right to strike. Nevertheless, the law puts significant restrictions on the right to organize, limits the right to strike, curbs the right to assemble, facilitates government intervention in internal union affairs, excludes certain categories of workers from joining unions, permits third parties to seek the dissolution of trade unions, and imposes minor penalties on employers for unfair labor practices.

Onerous registration requirements amount to a requirement for prior authorization for union formation. Union registration requirements include filing charters, listing officials and their immediate families, and providing banking details to the Ministry of Labor and Vocational Training. The law forbids unregistered unions from operating. Civil servants, teachers, workers employed by state-owned enterprises, and workers in the banking, health care, and informal sectors may form only “associations,” not trade unions, affording them fewer worker protections than unionized trades. The law also prohibits workers who have been convicted of a crime from union leadership, management, or administration, and restricts illiterate workers and those younger than age 18 from holding union leadership.

Some employers reportedly refused to sign notification letters to recognize unions officially or to renew short-term contract employees who had joined unions. (Approximately 80 percent of workers in the formal manufacturing sector were on short-term contracts.) Employers and local government officials often refused to provide necessary paperwork for unions to register. Labor activists reported many banks refused to open accounts for unregistered unions, although unions are unable by law to register until they provide banking details. Provincial-level labor authorities reportedly indefinitely stalled registration applications by requesting more materials or resubmissions due to minor errors late in the 30-day application cycle, although anecdotal evidence suggested this practice has decreased, particularly for garment- and footwear-sector unions.

Workers reported various obstacles while trying to exercise their right to freedom of association. There were reports of government harassment targeting independent labor leaders, including the use of spurious legal charges. Several prominent labor leaders associated with the opposition or independent unions had charges pending against them or were under court supervision. On May 28, the Appeals Court acquitted six prominent union leaders who had been criminally charged for their alleged involvement in a violent wage protest in 2014. In July, however, the court convicted a newly elected president of the Coalition of Cambodian Apparel Workers Democratic Union of violence related to protests in 2016.

Reports continued of other forms of harassment. For the first half of the year, some NGOs and unions complained that police were monitoring their activities and intimidating participants by sending uniformed police to stand outside their offices during meetings (see section 2.b.).

The International Labor Organization (ILO) noted reports of antiunion discrimination by employers through interference with and dismissal of members of independent unions, as well as through the creation of employer-backed unions. Although the law affords protection to union leaders, many factories successfully terminated elected union officials prior to the unions’ attainment of formal registration.

The law stipulates that workers can strike only after meeting several requirements, including the successful registration of a union; the failure of other methods of dispute resolution (such as conciliation, mediation, and arbitration); completion of a 60-day waiting period following the emergence of the dispute; a secret-ballot vote of the absolute majority of union members; and seven days’ advance notice to the employer and the Ministry of Labor and Vocational Training. Strikers can be criminally charged if they block entrances or roads or engage in any other behavior interpreted by local authorities as harmful to public order. A court may issue an injunction against the strike and require the restart of negotiations with employers.

There were credible reports of workers dismissed on spurious grounds after organizing or participating in strikes. Unions initiated most strikes without meeting all the requirements stated above, making them technically illegal, according to Better Factories Cambodia (BFC). Participating in an illegal strike, however, is not in itself a legally acceptable reason for dismissal. In some cases employers failed to renew the short-term contracts of active unionists; in others, they pressured union personnel or strikers to accept compensation and quit. Government-sponsored remedies for these dismissals were generally ineffective.

The Ministry of Labor and Vocational Training’s Strike Demonstration Resolution Committee reported that during the first half of the year, 16,585 workers conducted 26 strikes and demonstrations, compared with 28 strikes involving 4,617 workers in the same period of 2018. The report said the committee resolved 16 of the 26 cases successfully while 10 others went to the Arbitration Council.

During the year, the government restricted workers’ right to assembly. On January 2, police pulled down a public display by a group of associations and unions marking the anniversary of a violent government crackdown on a 2014 strike. Phnom Penh municipal authorities initially denied a request by 12 associations and unions to celebrate the March 8 Women’s Day at the National Stadium, but the government eventually allowed these groups to hold a celebration inside the stadium, although it deployed large numbers of riot police to prevent them from leaving the area.

The resolution of labor disputes was inconsistent, largely due to government officials’ ability to classify disputes as “individual” rather than “collective” disputes. The Arbitration Council only hears collective disputes. Unions reported progress in “minority” unions’ ability to represent workers in collective disputes. The Arbitration Council noted it received 68 cases in the first seven months of the year, up from 28 cases for the same period last year, reflecting the ability of minority unions to represent workers in disputes.

There is no specialized labor court. Labor disputes that are designated “individual” disputes may be brought before the courts, although the judicial system was neither impartial nor transparent.

The law places significant, detailed reporting responsibilities and restrictions on labor unions. Union representatives feared many local chapters would not be able to meet the requirements.

b. Prohibition of Forced or Compulsory Labor

The law prohibits all forms of forced or compulsory labor.

The government did not effectively enforce the law. Officials reported difficulties in verifying working conditions and salaries in the informal fishing, agricultural, construction, and domestic-service sectors. Legal penalties for forced labor were stringent, including imprisonment and fines, but these penalties were insufficient to deter violations. Although the government made efforts to highlight the problem of forced labor, the extent to which these efforts were effective remained unclear. Moreover, there was some evidence that employers, particularly those operating brick kilns, were violating the law prohibiting forced or bonded labor, and that some local government authorities were turning a blind eye to such abuses. The majority of brick-factory workers did not have access to the free medical care provided by the National Social Security Fund, because those factories were not registered as fund members.

Third-party debt remained an important issue driving forced labor. According to an August report from human rights group LICADHO (Cambodian League for the Promotion and Defense of Human Rights), two million Cambodians have loans to microfinance lenders, and levels of debt have “skyrocketed” in recent years, leading to child labor and bonded labor. According to a 2017 survey, 48 percent of 1,010 construction workers in Phnom Penh had debts; 75 percent of the debtors owed money to microfinance lending operations or banks, and 25 percent owed money to family members.

Because most construction companies and brick factories operate informally and without registration, workers in those sectors have few benefits. They are not entitled to a minimum wage, lack insurance, and work weekends and holidays with few days off.

Forced labor, usually related to overtime work, remains an issue in factories making products for export. Unions and workers reported some factory managers had fired workers who refused to work overtime.

Children were also at risk of forced labor (see section 7.c.).

Also see the Department of State’s annual Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law establishes 15 as the minimum age for most employment and 18 as the minimum age for hazardous work. The law permits children age 12 to 15 to engage in “light work” that is not hazardous to their health and does not affect school attendance; an implementing regulation provides an exhaustive list of activities considered “heavy work.” These include agriculture, brickmaking, fishing, tobacco, and cassava production. The law limits most work by children age 12 to 15 to a maximum of four hours on school days and seven hours on nonschool days and it prohibits work between 8 p.m. and 6 a.m.

In May 2018 the Ministry of Labor and Vocational Training issued a regulation that provided clear definitions of household work and set the minimum age for household work at 18. The regulation, however, does not specify rights for household workers employed by relatives. While the regulation extends minimum age protections to domestic workers, the labor code does not apply to children outside of formal employment, so children participating in other forms of informal employment are not protected under existing minimum age laws.

The law stipulates fines of up to 60 times the prevailing daily base wage for persons convicted of violating the country’s child labor provisions, but they were not sufficient to deter violations, and such sanctions were rarely imposed.

The Department of Child Labor, part of the Ministry of Labor and Vocational Training, employed an insufficient number of inspectors to effectively enforce the law. Child labor inspections were concentrated in Phnom Penh and provincial, formal-sector factories producing goods for export, rather than in rural areas where the majority of child laborers work. In addition, the National Committee on Countering Child Labor reported the labor inspectorate does not conduct inspections in hospitality or nightlife establishments after business hours because the inspectorate lacks funds to pay inspectors overtime. In 2018 the government imposed penalties on 10 firms for violations of child labor standards, which was significantly lower than the reported prevalence of child labor in the country.

Inadequate training also limited the capacity of local authorities to enforce these regulations, especially in rural areas and high-risk sectors.

Children were vulnerable to the worst forms of child labor, including in agriculture, brick making, and commercial sex (also see section 6, Children). On March 9, a nine-year-old girl lost her arm in a brick-molding machine in a brick kiln in Kandal Province’s Ksach Kandal district. No criminal action was taken against the owner of the brick kiln. Poor access to basic education and the absence of compulsory education contributed to children’s vulnerability to exploitation. Children from impoverished families were at risk because some affluent households reportedly used humanitarian pretenses to hire children as domestic workers whom they abused and exploited. Children were also forced to beg.

Child labor in export-sector garment factories declined significantly in recent years. Some analysts attributed the decline to pressure from BFC’s mandatory remediation program. Since 2015 the BFC has found fewer than 20 child workers per year in a pool of approximately 550 such factories. In its latest available report for May 1, 2017, to June 30, 2018, the BFC discovered only 10 children younger than age 15 working in export garment factories. The BFC and others expressed concern, however, that child labor and other abuses may be more prevalent in factories making footwear and travel goods for export, since these sectors do not fall under BFC’s mandate for monitoring.

See also the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings .

d. Discrimination with Respect to Employment and Occupation

The law prohibits employment discrimination based on race, color, sex, disability, religion, political opinion, birth, social origin, HIV-positive status, or union membership. The law does not explicitly prohibit employment discrimination based on sexual orientation or gender identity, age, language, or communicable disease. The constitution stipulates that citizens of either sex shall receive equal pay for equal work.

The government generally did not enforce these laws. Penalties for employment discrimination include fines, civil, and administrative remedies. Penalties were not sufficient to deter violations.

Harassment of women was widespread. A BFC report in March 2018 said more than 38 percent of workers surveyed felt uncomfortable “often” or “sometimes” because of behavior in their factory, and 40 percent did not believe there was a clear and fair system for reporting sexual harassment in their factory.

e. Acceptable Conditions of Work

The Ministry of Labor and Vocational Training is responsible for enforcing labor laws, but the government did not effectively enforce the law. Penalties were seldom assessed and were insufficient to address problems. Outside the export garment industry, the government rarely enforced working-hour regulations. The government enforced standards selectively due to poorly trained staff, lack of necessary equipment, and corruption. Ministry officials admitted their inability to carry out thorough inspections on working hours and said they relied upon the BFC to do such inspections in export-oriented garment factories.

The Ministry of Labor and Vocational Training, however, did conduct training and testing for more than 600 labor inspectors during the year and stated that each inspector was required to pass a test to stay on the job.

Work-related injuries and health problems were common. On June 23, a Chinese-owned and -designed facility collapsed in Sihanoukville, killing 26 local workers and injuring 26 others. Those victims and their families could not get full compensation from the National Social Security Fund (NSSF) because the construction company was not registered.

There was insufficient inspection of construction worksites by the government. Occupational safety and health laws for the construction industry have penalties that are not sufficient to deter violations.

The minimum wage covered only the garment and footwear sector. It was more than the official estimate for the poverty income level.

By law workplace health and safety standards must be adequate to provide for workers’ well-being. Labor inspectors assess fines according to a complex formula based on the severity and duration of the infraction, as well as the number of workers affected. Labor ministry inspectors are empowered to assess these fines on the spot, without the cooperation of police, but there are no specific provisions to protect workers who complain about unsafe or unhealthy conditions. The number of inspectors was insufficient to effectively enforce the law. In June the government ordered provincial officials to inspect brick kilns for child and bonded labor, and it launched a campaign to eliminate child labor in brick kilns by the end of the year.

Mass fainting remained a problem. The NSSF noted that 417 workers in five factories reportedly fainted during the first six months of the year, down from 1,350 workers during the same period in 2018. Observers reported excessive overtime, poor health, insufficient sleep, poor ventilation, lack of nutrition, pesticides in nearby rice paddies, and toxic fumes from production processes all continued to contribute to mass fainting.

Compliance with safety and health standards continued to be a challenge in the garment export sector largely due to improper company policies, procedures, and poorly defined supervisory roles and responsibilities.

The NSSF reported that during the first half of the year, 24 workers died in traffic accidents on the way to or from work, an increase from eight in the same period in 2018. The accidents injured 920 others, an increase from 62 during the same period in 2018. Workers’ unsafe transportation was a big concern for stakeholders of the garment industry. On April 4, five workers lost their arms in a crash when the truck they were riding on collided with another truck.

Workers and labor organizations raised concerns that the use of short-term contracts (locally known as fixed duration contracts) allowed firms, especially in the garment sector where productivity growth remained relatively flat, to avoid certain wage and legal requirements. Fixed duration contracts also allowed employers greater freedom to terminate the employment of union organizers and pregnant women simply by failing to renew their contracts. The law limits such contracts to a maximum of two years, but more recent directives allow employers to extend this period to up to four years. The Arbitration Council and the ILO disputed this interpretation of the law, noting that after 24 months, an employee should be offered a permanent “unlimited duration contract.” (Also see section 7.a.).

The law provides for a standard legal workweek of 48 hours, not to exceed eight hours per day. The law establishes a rate of 130 percent of daytime wages for nightshift work and 150 percent for overtime, which increases to 200 percent if overtime occurs at night, on Sunday, or on a holiday. Employees may work a maximum two hours of overtime per day. The law prohibits excessive overtime, states that all overtime must be voluntary, and provides for paid annual holidays. Workers in marine and air transportation are not entitled to social security and pension benefits and are exempt from limitations on work hours prescribed by law.

Workers reported overtime was often excessive and sometimes mandatory; many complained that employers forced them to work 12-hour days, although the legal limit is 10, including overtime. Workers often faced dismissal, fines, or loss of premium pay if they refused to work overtime.

a. Freedom of Association and the Right to Collective Bargaining

The law provides for the right of workers to form and join independent unions without previous authorization or excessive requirements and to conduct legal strikes, but it does not protect the right to collective bargaining or obligate employers to bargain. Trade unions claimed the lack of collective bargaining rights and divisions in the labor movement weakened workers’ leverage in negotiations. The law explicitly prohibits civil servants from bargaining collectively.

The law prohibits firing an employee for striking and voids any section of an employment contract that punishes a worker for striking. The commissioner of police has broad authority to control and direct public gatherings, including strikes, in the interest of national security or public safety.

According to the law, an employer cannot fire, penalize, or discriminate against an employee who exercises his or her union rights and cannot prevent or deter the employee from exercising such rights. Penalties for violations of laws protecting union and related worker rights included fines as well as legal damages paid to workers, and penalties were sufficient to deter violations. Dismissed employees, however, had difficulty proving antiunion discrimination. In August, according to media reports, Cathay Pacific Airways (Cathay) warned employees that they may be fired if they joined a city-wide general strike. Cathay’s cabin crew union head Rebecca Sy told the press in August that Cathay Dragon, a Cathay subsidiary, fired her after company officials showed her printouts of proprotest movement postings on her private Facebook account.

b. Prohibition of Forced or Compulsory Labor

The law does not prohibit all forms of forced or compulsory labor, nor do laws specifically criminalize forced labor. Instead, the SAR uses its Employment and Theft Ordinances to prosecute labor violations and related offenses. Penalties for these offenses were not sufficient to deter violations.

NGOs expressed concerns some migrant workers, especially domestic workers in private homes, faced high levels of indebtedness assumed as part of the recruitment process, creating a risk they could fall victim to debt bondage. Domestic workers in Hong Kong were mostly female and mainly came from the Philippines, Indonesia, and other Southeast Asian countries. The SAR allows for the collection of maximum placement fees of 10 percent of the first month’s wages, but some recruitment firms required large up-front fees in the country of origin that workers struggled to repay. Some locally licensed employment agencies were suspected of colluding with agencies overseas to profit from debt schemes, and some local agencies illegally confiscated the passports and employment contracts of domestic workers and withheld them until they repaid the debt.

SAR authorities stated they encouraged aggrieved workers to file complaints and make use of government conciliation services as well as actively pursued reports of any labor violations.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law prohibits the worst forms of child labor. Regulations prohibit employment of children younger than 15 in any industrial establishment. The law prohibits overtime in industrial establishments with employment in dangerous trades for persons younger than 18. Children between 13 and 14 may work in certain nonindustrial establishments, subject to conditions aimed at ensuring a minimum of nine years of education and protection for their safety, health, and welfare.

The Labor Department effectively enforced these laws and regularly inspected workplaces to enforce compliance with the regulations. Penalties for violations of child labor laws include fines and legal damages and were sufficient to deter violations.

d. Discrimination with Respect to Employment and Occupation

The law and regulations prohibit employment discrimination based on race or ethnicity, disability, family status (marital status or pregnancy), or sex. The law stipulates employers must prove that proficiency in a particular language is a justifiable job requirement if they reject a candidate on those grounds. Regulations do not prohibit employment discrimination on the grounds of color, religion, political opinion, national origin or citizenship, sexual orientation or gender identity, HIV or other communicable disease status, or social status.

The government generally enforced these laws and regulations. In cases in which employment discrimination occurred, the SAR’s courts had broad powers to levy penalties on those who violated these laws and regulations.

Human rights activists and local scholars continued to raise concerns about job prospects for minority students, who were more likely to hold low-paying, low-skilled jobs and earn below-average wages. Experts assessed that a lack of Chinese-language skills was the greatest barrier to employment.

e. Acceptable Conditions of Work

The statutory minimum wage was below the poverty line for an average-sized household. There were many press reports regarding poor conditions faced by and underpayment of wages to domestic workers.

There is no law concerning working hours, paid weekly rest, rest breaks, or compulsory overtime for most employees. Several labor groups reported that employers expected extremely long hours, and the groups called for legislation to address that concern.

Laws exist to provide for health and safety of workers in the workplace. Workers may remove themselves from situations that endanger health or safety without jeopardy to their employment. Employers are required to report any injuries sustained by their employees in work-related accidents.

The government effectively enforced the law, and the Labor Tribunal adjudicated disputes involving nonpayment or underpayment of wages and wrongful dismissal. The number of labor inspectors was sufficient to deter violations except in the cases of nonpayment or underpayment of wages to and working conditions of domestic workers. Penalties for violations of the minimum wage or occupational safety and health violations include fines, payments of damages, and worker’s compensation payments. These penalties were sufficient to deter violations.

The Occupational Safety and Health Branch of the Labor Department is responsible for safety and health promotion, identification of unsafe conditions, enforcement of safety management legislation, and policy formulation and implementation; it enforced occupational safety and health laws effectively.

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a. Freedom of Association and the Right to Collective Bargaining

The Basic Law provides workers the right to form and join unions, but the Legislative Assembly has not passed legislation to regulate this right. Workers may join labor associations of their choice, but employers and the government reportedly wielded considerable influence over some associations. The law does not provide that workers can collectively bargain, and, while workers have the right to strike, there is no specific protection in the law from retribution if workers exercise this right. The law prohibits antiunion discrimination, stating employees or job seekers shall not be prejudiced, deprived of any rights, or exempted from any duties based on their membership in an association. The law imposes financial penalties for antiunion discrimination, but observers noted this may not be sufficient to deter discriminatory activity. The law does not require reinstatement of workers dismissed for union activity.

The law forbids workers in certain professions, such as the security forces, to form unions, take part in protests, or to strike. Such groups had organizations that provided welfare and other services to members and could speak to the government on behalf of members. Vulnerable groups of workers, including domestic workers and migrant workers, could freely associate and form associations, as could public servants.

Workers who believed they were dismissed unlawfully could bring a case to court or lodge a complaint with the Labor Affairs Bureau (LAB) or the CAC, which also has an Ombudsman Bureau to handle complaints over administrative violations. The bureau makes recommendations to the relevant government departments after its investigation.

b. Prohibition of Forced or Compulsory Labor

The law prohibits all forms of forced or compulsory labor. Penalties range from three to 12 years’ imprisonment, with the minimum and maximum sentences increased by one-third if the victim is younger than age 14. Observers previously noted these penalties generally were sufficient to deter the use of forced labor.

Children and migrants were vulnerable to sex and labor trafficking, including in construction and domestic work. The government investigated cases, but there were no convictions during the year.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

A law prohibits minors younger than age 16 from working, although minors from ages 14 and 15 may work in “exceptional circumstances” if they get a health certificate to prove they have the “necessary robust physique to engage in a professional activity.” The law defines “exceptional circumstances” as: the minor (younger than age 16) has completed compulsory education and has the authorization of the LAB after hearing the Education and Youth Affairs Bureau’s opinions; minors between ages 14 and 16 may work for public or private entities during school summer holidays; minors of any age may be employed for cultural, artistic or advertising activities upon authorization of the LAB after hearing the Education and Youth Affairs Bureau’s opinions and when such employment does not adversely affect their school attendance. The law governing the number of working hours was equally applicable to adults and legally working minors, but the law prohibits minors from working overtime hours. According to the civil code, minors who are age 16 can acquire full legal capacity if they marry.

The law prohibits minors younger than age 16 from certain types of work, including but not limited to domestic work, employment between 9 p.m. and 7 a.m., and employment at places where admission of minors is forbidden, such as casinos. The government requires employers to assess the nature, extent, and duration of risk exposure at work before recruiting or employing a minor. These regulations serve to protect children from physically hazardous work, including exposure to dangerous chemicals, and jobs deemed inappropriate due to the child’s age.

The LAB enforced the law through periodic and targeted inspections, and prosecuted violators. Penalties were sufficient to deter violations.

d. Discrimination with Respect to Employment and Occupation

The law provides that all residents shall be equal before the law and shall be free from discrimination, irrespective of national or social origin, descent, race, color, gender, sexual orientation, age, marital status, language, religion, political or ideological beliefs, membership in associations, education, or economic background. Equal opportunity legislation states that women are to receive equal pay for equal work. The law prohibits discrimination in hiring practices based on gender or physical ability and allows for civil suits. Penalties exist for employers who violate these guidelines and the government generally enforced the law effectively.

Some discrimination occurred. According to official statistics, at the end of June, nonresident workers accounted for approximately 28 percent of the population. They frequently complained of discrimination in the workplace in hiring and wages.

e. Acceptable Conditions of Work

Local labor laws establish the general principle of fair wages and mandate compliance with wage agreements. The SAR does not calculate an official poverty line. The law provides for a 48-hour workweek, an eight-hour workday, paid overtime, annual leave, and medical and maternity care. The law provides for a 24-hour rest period each week. All workers employed in the SAR, whether under a term contract or an indefinite contract, are entitled to such benefits as specified working hours, weekly leave, statutory holidays, annual leave, and sick leave. It was not clear whether penalties were sufficient to deter violations. The law requires that employers provide a safe working environment, and the LAB sets industry-appropriate occupational safety and health standards. The law prohibits excessive overtime but permits legal overtime (a maximum of eight hours and irrespective of workers’ consent) in force majeure cases or in response to external shocks, at the discretion of the employer.

All workers, including migrants, have access to the courts in cases in which an employee is unlawfully dismissed, an employer fails to pay compensation, or a worker believes his or her legitimate interests were violated. If an employer dismisses staff “without just cause,” the employer must provide economic compensation indexed to an employee’s length of service.

The LAB provides assistance and legal advice to workers upon request, and cases of labor-related malpractice are referred to the LAB.

The LAB enforced occupational safety and health regulations, and failure to correct infractions could lead to prosecution. The number of labor inspectors was adequate to enforce compliance.

The law allows workers to remove themselves from hazardous conditions without jeopardy to their employment.

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a. Freedom of Association and the Right to Collective Bargaining

The law provides all workers the right to form and join independent unions, bargain collectively, and strike.

The law prohibits some forms of antiunion discrimination, including victimizing workers or firing a worker for union membership.

The law limits who may be an officer of a trade union, prohibiting noncitizens, for example, from serving as officers. The constitution prohibits union officers from becoming members of parliament. The law also limits the ability of union officers to form or join political parties and exercise other political rights.

All unions must register with the government, which has discretionary power to refuse to register any union with a name that is “offensive or racially or ethnically discriminatory.” By law the government may cancel registration of existing unions in exceptional cases.

By law any trade union with seven or more members in an industry not designated as essential may enter into collective bargaining with an employer.

Unions may conduct secret strike ballots upon 14 days’ notice to the Registrar of Trade Unions and the strike may begin if 50 percent of all members who are entitled to vote approve the strike. Workers in essential services may strike but must also notify the Arbitration Court; and provide the category of workers who propose to strike, the starting date, and location of the strike. The law designates “essential service and industries” to include corporations engaged in finance, telecommunications, public-sector employees, mining, transport, and the airline industry. The definition of essential services and industries also includes all state-owned enterprises, statutory authorities, and local government authorities.

The law permits the minister of employment to declare a strike unlawful and refer the dispute to the Arbitration Court. If authorities refer the matter to the court, workers and strike leaders could face criminal charges if they persist in strike action.

The government did not enforce these rights. Penalties under law for violations of freedom of association and of collective bargaining agreements include fines and imprisonment; observers considered them sufficient to deter violations. Individuals, employers, and unions (on behalf of their members) may submit employment disputes and grievances alleging discrimination, unfair dismissal, sexual harassment, or certain other unfair labor practices to the Ministry of Employment, Productivity, and Industrial Relations (MEPIR).

Relations between the government and the two trade union umbrella bodies, the FTUC and the Fiji Islands Council of Trade Unions remained strained. The government took a number of steps against union officials and workers planning strikes and protest marches. In April, authorities harassed officials of the FTUC who planned to hold a May 3 nationwide strike and a May 4 protest in Nadi, the site of an ADB summit to be hosted by Fiji on May 1-5. Authorities denied permits for the protests and deployed approximately 400 police officers to cover the summit, warning the union to desist from “causing any major incidents to undermine Fiji’s reputation.” On May 1, police arrested several workers of the Water Authority of Fiji (WAF) for breaching the POA after they had gathered to protest the termination of many WAF employees. Also arrested were FTUC General Secretary Felix Anthony, the secretaries of the FTA and nurses’ union, and an officer of the National Union of Workers. Anthony was held for 48 hours under the POA for organizing “unlawful gatherings” about the WAF dispute. On June 28, police again arrested Anthony, charging him with breach of the POA for false statements regarding the expiry of employment contracts for the WAF workers and other infractions. Anthony was later released on bail, but charges remain pending.

Trade unions reported additional antiunion government action, including unilateral voiding of collective-bargaining agreements with civil servants; lockouts and threats of retaliation in order to prevent unions from voting on industrial action; dismissal of union members; and a pattern of systematic harassment and intimidation.

b. Prohibition of Forced or Compulsory Labor

The constitution and law prohibit all forms of forced or compulsory labor.

The Office of Labour Inspectorate, police, and Department of Immigration are responsible for enforcing the law, depending on the circumstances of the case. The government effectively enforced the law. The law prescribes penalties which were sufficient to deter violations.

There were reports forced labor occurred, including forced labor of children (see section 7.c.). Forced labor and trafficking of children occurred in the field of domestic work. Southeast Asians were subject to forced labor in manufacturing, agriculture, and fishing.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

Education is compulsory until age 15; the Employment Relations Promulgation specifies that children ages 13 to 15 may be employed on a daily-wage basis in nonindustrial “light” work not involving machinery, provided they return to their parents or guardian every night. The law sets a limit of eight hours per day that a child can work but does not include a list of permissible activities. Children ages 15 to 17 may be employed, but they must have specified hours and rest breaks. They may not be employed in hazardous occupations and activities, including those involving heavy machinery, hazardous materials, mining, or heavy physical labor, the care of children, or work within security services.

MEPIR deployed inspectors countrywide to enforce compliance with the law, including law covering child labor. The government effectively enforced applicable law, and penalties were generally sufficient to deter violations. The law provides for imprisonment, fines, or both, for companies that violate these provisions. MEPIR maintains a database on child labor. Unannounced inspections are permitted within the informal sector, but inspectors must first seek the business owners’ permission before conducting the inspection. If there is reasonable cause to believe that prior notification of an inspection will prejudice the performance of the inspector’s duties, a police officer must accompany the inspector during the inspection.

Poverty continued to influence children to migrate to urban areas for work, increasing their vulnerability to exploitation, and to work as casual laborers, often with no safeguards against abuse or injury. Child labor continued in the informal sector and in hazardous work, including work as wheelbarrow boys and casual laborers. Children engaged in hazardous work in agriculture and fishing. Commercial sexual exploitation of children occurred (see section 6, Children). Some children worked in relatives’ homes and were vulnerable to involuntary domestic servitude or forced to engage in sexual activity in exchange for food, clothing, shelter, or school fees.

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings .

d. Discrimination with Respect to Employment and Occupation

The law prohibits employment discrimination and stipulates that every employer pay male and female workers equal pay for work of equal value. The law prohibits women working underground but places no other legal limitations on the employment of women. Workers may file legal complaints of sexual harassment in the workplace.

The government did not provide data on the enforcement of antidiscrimination provisions. Penalties for employment discrimination include fines and imprisonment and were, when enforced, sufficient to deter violations.

Discrimination in employment and wages occurred against women and persons with disabilities. Women generally received less pay than men for similar work. The nongovernmental Fiji Disabled People’s Association reported most persons with disabilities were unemployed due in significant part to discrimination by employers.

e. Acceptable Conditions of Work

There was no official poverty-level income figure, but the minimum wage did not typically provide a decent standard of living for a worker and family. The regulations stipulate all employers must display a written national minimum wage notice in their workplace to inform employees of their rights.

MEPIR’s Office of Labour Inspectorate is responsible for enforcing the minimum wage, but the inspectorate lacked capacity to enforce the law effectively. The Employment Relations Tribunal and the Employment Court adjudicate cases of violations of minimum-wage orders. Convictions for a breach of the minimum-wage law result in a fine, imprisonment, or both.

There is no single countrywide limitation on maximum working hours for adults, but there are restrictions and overtime provisions in certain sectors. The government establishes workplace safety laws and regulations.

The Occupational Health and Safety Inspectorate monitored workplaces and equipment and investigated complaints from workers. Government enforcement of safety standards suffered from a lack of trained personnel and delays in compensation hearings and rulings. Although the law excludes mines from general workplace health and safety laws, it empowers the director of mines to inspect all mines to provide for the health, safety, and welfare of employees. The Employment Relations Tribunal and the Employment Court decides compensation claims filed by the inspectorate on behalf of workers.

Unions generally monitored safety standards in organized workplaces, but many work areas did not meet standards, and the ministry did not monitor all workplaces for compliance. Workers in some industries, notably security, transportation, and shipping, worked excessive hours.

a. Freedom of Association and the Right to Collective Bargaining

The law does not provide for the right of workers to form and join worker organizations independent of the Lao Federation of Trade Unions (LFTU), an organ of the LPRP. The law defines collective bargaining but does not set out conditions, and it requires the examination of all collective bargaining agreements by the Labor Administration Agency. The law provides for the right to strike, subject to certain limitations. The law does not permit police, civil servants, foreigners, and members of the armed forces to form or join unions. There is a general prohibition against discrimination against employees for reasons unrelated to performance, although there is no explicit prohibition against antiunion discrimination. There is no explicit requirement for reinstatement of workers fired for union activity.

The law requires a workforce of 10 or more workers to elect one or more employee representatives. Where a trade union exists, the head of the union is by default the employee representative. Both representatives and trade union heads may bargain collectively with employers on matters including working conditions or recruitment, wages, welfare, and other benefits.

Trade union law allows workers in the informal economy, including workers outside of labor units or who were self-employed, to join LFTU-affiliated unions. It also established rights and responsibilities for “laborer representatives,” which the law defines as “an individual or legal entity selected by the workers and laborers in labor units to be a representative to protect their legitimate rights and interest.”

There was no information on the resources dedicated to enforcement of freedom of association provisions of the labor laws. Penalties under law for infringing on workers’ freedom of association include fines, incarceration, and/or business license revocation; these penalties were sufficient to deter violations, although violations and enforcement were rare.

The government reported the law permits affiliation between independent unions of separate branches of a company but that it does not explicitly allow or disallow affiliation at the industry, provincial, or national levels. There were reports that unions not affiliated with the LFTU existed in some industries, including the garment industry, light manufacturing, and agricultural processing. These unions were not allowed to strike.

Labor disputes reportedly were infrequent, and the Ministry of Labor and Social Welfare generally did not enforce the dispute resolution section of the labor law, especially in dealings with joint ventures in the private sector. In February 2018 the government issued a decree to help resolve labor disputes, including disputes related to salaries and working hours.

According to local law, workers who join an organization that encourages protests, demonstrations, and other actions that might cause “turmoil or social instability” can face prison time. The government’s overall prohibition of activities it considered subversive or demonstrations it considered destabilizing, workers’ lack of familiarity with the provisions of the amended labor law, and general aversion to open confrontation continued to make workers extremely unlikely to exercise their right to strike.

b. Prohibition of Forced or Compulsory Labor

The law prohibits all forms of forced or compulsory labor. The law prohibits private employers from using forced labor, and the penalties for perpetrating forced labor can include fines, suspension from work, revocation of business license, and prosecution. The law allows for prisoners to work. There may be civil or criminal prosecutions for forced labor violations. Penalties for trafficking in persons, which includes forced labor, consist of imprisonment, fines, and confiscation of assets. Such penalties were sufficiently stringent to deter violations. Due to limited numbers of inspectors, among other factors, the government did not effectively enforce the law.

According to civil society organizations, the establishment of large-scale, foreign-financed agricultural plantations led to displacement of local farmers. Unable to continue traditional practices of subsistence agriculture, many farmers sought employment as day laborers through local brokers.

Also, see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law prohibits the worst forms of child labor. Child labor is outlawed except under very strict, limited conditions that ensure no interference with the child’s education or physical well-being. Age 14 is the minimum for employment. The law allows children from ages 14 to 18 to work a maximum of eight hours per day, provided such work is not dangerous or difficult. Employers may, however, employ children from ages 12 to 14 to perform light work. The law applies only to work undertaken in a formal labor relationship, not to self-employment or informal work.

The Ministry of Public Security and Justice, and the Ministry of Labor and Social Welfare are responsible for enforcing child labor laws, including in the informal economy, but enforcement was ineffective due to the lack of inspectors. The law prescribes penalties of imprisonment and fines, which were not sufficient to deter violations. The Ministry of Labor and Social Welfare conducted public awareness campaigns, organized workshops with the National Commission for Mothers and Children in the northern and southern provinces, and collected data on child labor as part of its effort to implement the National Plan of Action for the elimination of the worst forms of child labor.

There were reports of commercial sexual exploitation of children (see section 6, Children).

d. Discrimination with Respect to Employment and Occupation

The law requires equal pay for equal work, although a gender wage gap persisted, and prohibits discrimination in hiring based on a woman’s marital status or pregnancy, and it protects against dismissal on these grounds. The government enforced prohibitions against employment discrimination or requirements for equal pay; penalties under law included fines but were insufficient to deter violations.

e. Acceptable Conditions of Work

In May 2018 the government raised the monthly minimum wage for all private-sector workers; it is higher than the estimated national poverty line.

The law provides for a workweek limited to 48 hours (36 hours for employment in dangerous activities). Overtime may not exceed 45 hours per month, and each period of overtime may not exceed three hours. Employers may apply to the government for an exception, which the law stipulates workers or their representatives must also approve.

Occupational health and safety standards existed, but inspections were inconsistent. The law provides for safe working conditions and higher compensation for dangerous work, but it does not explicitly protect the right of workers to remove themselves from a hazardous situation. In case of injury or death on the job, employers are responsible to compensate the worker or the worker’s family. The law requires employers to report accidents causing major injury to or death of an employee or requiring an employee to take a minimum of four days off work to the Labor Administration Agency. The law also mandates extensive employer responsibility for workers who became disabled while at work. The law does not specify penalties for noncompliance with occupational safety and health provisions, but they could include warnings, fines, “re-education,” or suspension of business license.

The law also prohibits the employment of pregnant women and new mothers in occupations deemed hazardous to women’s reproductive health. The law requires the transfer of women working in such jobs to less demanding positions, and they are entitled to maintain the same salary or wage.

The government did not always effectively enforce the law.

The Department of Labor Management within the Ministry of Labor and Social Welfare is responsible for workplace inspections. The number of inspectors was insufficient to enforce compliance.

Some piecework employees, especially on construction sites, earned less than the minimum wage. The overtime or wage law was not effectively enforced.

There were a number of undocumented migrant workers in the country, particularly from Vietnam and Burma, who were vulnerable to exploitation by employers in the logging, mining, and agricultural sectors. Migrants from China and Vietnam also worked in construction, plantations, casinos, and informal service industries, sectors where wage and occupational safety and health violations were common.

a. Freedom of Association and the Right to Collective Bargaining

The law provides for limited freedom of association and for some categories of workers to form and join trade unions, subject to a variety of legal and practical restrictions. The law provides for the right to strike and to bargain collectively, but both were severely restricted. The law prohibits employers from interfering with trade union activities, including union formation. It prohibits employers from retaliating against workers for legal union activities and requires reinstatement of workers fired for union activity.

The law prohibits defense and police officials, retired or dismissed workers, or workers categorized as “confidential, managerial, and executive” from joining a union. The law also restricts the formation of unions to workers in “similar” trades, occupations, or industries. Foreign workers may join a trade union but cannot hold union office unless they obtain permission from the Ministry of Human Resources. In view of the absence of a direct employment relationship with owners of a workplace, contract workers may not form a union and cannot negotiate or benefit from collective bargaining agreements.

The director general of trade unions and the minister of human resources may refuse to register or withdraw registration from some unions without judicial oversight. The time needed for a union to be recognized remained long and unpredictable. Union officials expressed frustration about delays in the settlement of union recognition disputes; such applications were often refused. If a union’s recognition request was approved, the employer sometimes challenged the decision in court, leading to multi-year delays in recognizing unions.

Most private-sector workers have the right to bargain collectively, although these negotiations cannot include issues of transfer, promotion, appointments, dismissal, or reinstatement. The law restricts collective bargaining in “pioneer” industries the government has identified as growth priorities, including various high-technology fields. Public-sector workers have some collective bargaining rights, although some could only express opinions on wages and working conditions instead of actively negotiating. Long delays continued in the treatment of union claims to obtain recognition for collective bargaining purposes. The government also had the right to compel arbitration in the case of failed collective bargaining negotiations.

Private-sector strikes are severely restricted. The law provides for penal sanctions for peaceful strikes. The law prohibits general strikes, and trade unions may not strike over disputes related to trade-union registration or illegal dismissals. Workers may not strike in a broad range of industries deemed “essential,” nor may they hold strikes when a dispute is under consideration by the Industrial Court. Union officials claimed legal requirements for strikes were almost impossible to meet; the last major strike occurred in 1962.

The government did not effectively enforce laws prohibiting employers from seeking retribution for legal union activities and requiring reinstatement of workers fired for trade union activity. Penalties included fines but were seldom assessed and generally not sufficient to deter violations. In July the Federal Court upheld a lower-court ruling that two banks had promoted clerical staff to executive positions without giving them any executive powers in order to exclude the employees from the National Union of Bank Employees (Nube). The union’s lawyer called the decision “groundbreaking.”

Freedom of association and collective bargaining were not fully respected. National-level unions are prohibited; the government allows three regional territorial federations of unions–peninsular Malaysia, Sabah, and Sarawak–to operate. They exercised many of the responsibilities of national-level labor unions, although they could not bargain on behalf of local unions. The Malaysian Trade Unions Congress is a registered “society” of trade unions in both the private and government sectors that does not have the right to bargain collectively or strike but may provide technical support to affiliated members. Some workers’ organizations were independent of government, political parties, and employers, but employer-dominated or “yellow” unions were reportedly a concern.

The inability of unions to provide more than limited protection for workers, particularly foreign workers who continued to face the threat of deportation, and the prevalence of antiunion discrimination created a disincentive to unionize. In some instances, companies reportedly harassed leaders of unions that sought recognition. Some trade unions reported the government detained or restricted the movement of some union members under laws allowing temporary detention without charging the detainee with a crime. Trade unions asserted some workers had wages withheld or were terminated because of union-related activity.

b. Prohibition of Forced or Compulsory Labor

The law prohibits and criminalizes all forms of forced or compulsory labor. Five agencies, including the Department of Labor of the Ministry of Human Resources, have enforcement powers under the law, but their officers performed a variety of functions and did not always actively search for indications of forced labor. NGOs continued to criticize the lack of resources dedicated to enforcement of the law.

The government did not effectively enforce laws prohibiting forced labor in some cases, and large fines as penalties were not sufficient to deter violations. In July a court overruled an earlier labor department ruling that there was no remedy for undocumented domestic workers to pursue claims of unpaid wages and ordered an Indonesian domestic worker’s case against her employer to receive a full hearing. The Indonesian employee, filing her case under the pseudonym “Nona,” claimed her employer failed to pay her for five years. The executive director of the NGO Tenaganita stated, “with this precedent, there is hope for undocumented workers to seek redress in court.”

In 2018 the government established an Independent Committee on Foreign Workers to provide comprehensive reform plans to the government regarding foreign-worker management and labor policy. The committee presented its final report to cabinet in July with recommendations on streamlining policies related to foreign workers, but the report was not made public.

A variety of sources reported occurrences of forced labor or conditions indicative of forced labor in plantation agriculture, the fishing industry, electronics factories, garment production, construction, restaurants, and domestic service among both adults and children (also see section 7.c.).

Employers, employment agents, and labor recruiters subjected some migrants to forced labor or debt bondage. Many companies hired foreign workers using recruiting or outsourcing companies, creating uncertainty about the legal relationship between the worker, the outsourcing company, and the owner of the workplace, making workers more vulnerable to exploitation and complicating dispute resolution. Labor union representatives noted that recruiting agents in the countries of origin and in Malaysia sometimes imposed high fees, making migrant workers vulnerable to debt bondage.

In August three nonprofit organizations filed a formal complaint with a foreign government urging it to ban imports of products from FGV Holdings Berhad, a Malaysian palm oil company, due to reports of forced labor at FGV plantations. Another petition filed earlier in the year accused FGV of using child labor. An FGV spokesperson told media in August, “We are committed to ensure respect for human rights. We are very serious in handling this.” The trial of former deputy prime minister Zahid Hamidi for his role in a fraudulent scheme involving hundreds of thousands of Nepali workers seeking jobs in the country continued as of November. Private companies linked to the then deputy prime minister’s brother and brother-in-law reportedly charged Nepali workers more than RM185 million ($46.3 million) for medical tests and to submit visa applications during the prior five years. These medical and visa processing services increased the cost tenfold without offering additional protections or benefits. Zahid denied involvement in or knowledge of the scam, but the Malaysian Anticorruption Commission charged him in October 2018 with 45 counts of corruption, bribery, and money laundering, three of which concern RM3 million ($750,000) he allegedly received in bribes from a company that ran a visa center for Nepali workers. Critics of the former government had long characterized the foreign-worker recruitment system as corrupt.

Nonpayment of wages remained a concern. Passport confiscation by employers increased migrant workers’ vulnerability to forced labor; the practice was illegal but widespread and generally went unpunished. Migrant workers without access to their passports were more vulnerable to harsh working conditions, lower wages than promised, unexpected wage deductions, and poor housing. NGOs reported that agents or employers in some cases drafted contracts that included a provision for employees to sign over the right to hold their passports to the employer or an agent. Some employers and migrant workers reported that workers sometimes requested employers keep their passports, since replacing lost or stolen passports could cost several months’ wages and leave foreign workers open to questions about their legal status.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law prohibits all of the worst forms of child labor. The law prohibits the employment of children younger than 14 but permits some exceptions, such as light work in a family enterprise, work in public entertainment, work performed for the government in a school or in training institutions, or work as an approved apprentice. There is no minimum age for engaging in light work. For children between the ages of 14 and 18, there was no list clarifying specific occupations or sectors considered hazardous and therefore prohibited.

The government did not effectively enforce laws prohibiting child labor. Those found contravening child labor laws faced penalties that were not sufficient to deter violations.

Child labor occurred in some family businesses. Child labor in urban areas was common in the informal economy, including family food businesses and night markets, and in small-scale industry. Child labor was also evident among migrant domestic workers.

NGOs reported that stateless children in Sabah were especially vulnerable to labor exploitation in palm oil production, forced begging, and work in service industries, including restaurants. Although the National Union of Plantation Workers reported it was rare to find children involved in plantation work in peninsular Malaysia, others reported instances of child labor on palm oil plantations across the country. Commercial sexual exploitation of children also occurred (see section 6, Children).

Also, see the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor at https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods .

d. Discrimination with Respect to Employment and Occupation

The law does not prohibit discrimination with respect to hiring; the director general of labor may investigate discrimination in the terms and conditions of employment for both foreign and local employees. The director general may issue necessary directives to an employer to resolve allegations of discrimination in employment, although there were no penalties under the law for such discrimination.

Employers are obligated to inquire into most sexual harassment complaints in a prescribed manner. Advocacy groups such as the Association of Women Lawyers stated these provisions were not comprehensive enough to provide adequate help to victims.

Discrimination in employment and occupation occurred with respect to women; members of national, racial, and ethnic minorities; and persons with disabilities. A code of practice guides all government agencies, employers, employee associations, employees, and others with respect to placement of persons with disabilities in private-sector jobs. Disability-rights NGOs reported that employers were reluctant to hire persons with disabilities. A regulation reserves 1 percent of public-sector jobs for persons with disabilities.

Migrant workers must undergo mandatory testing for more than 16 illnesses as well as pregnancy. Employers may immediately deport pregnant or ill workers. Migrant workers also faced employment discrimination (see sections 7.b. and 7.e.). Employers were unilaterally able to terminate work permits, subjecting migrant workers to immediate deportation.

Women experienced some economic discrimination in access to employment. Employers routinely asked women their marital status during job interviews. The Association of Women Lawyers advocated for passage of a separate sexual harassment bill making it compulsory for employers to formulate sexual harassment policies. The law prohibits women from working underground, such as in sewers, and restricts employers from requiring female employees to work in industrial or agricultural work between 10 p.m. and 5 a.m. or to commence work for the day without having 11 consecutive hours of rest since the end of the last work period.

The government reserved large quotas for the bumiputra majority for positions in the federal civil service as well as for vocational permits and licenses in a wide range of industries, which greatly reduced economic opportunity for minority groups (see section 6).

e. Acceptable Conditions of Work

The minimum wage applied to both citizen and foreign workers in most sectors, with the exception of domestic service (see below). The minimum wage rates were less than Ministry of Finance-published poverty income levels in Sabah and Sarawak.

Working hours may not exceed eight per day or 48 per week, unless workers receive overtime pay. The law specifies limits on overtime, which vary by sector, but it allows for exceptions. The law protects foreign domestic workers only with regard to wages and contract termination. The law excludes them from provisions that would otherwise stipulate one rest day per week, an eight-hour workday, and a 48-hour workweek. Instead, bilateral agreements or memoranda of understanding between the government and some source countries for migrant workers include provisions for rest periods, compensation, and other conditions of employment for migrant domestic workers, including prohibitions on passport retention.

In January 2018 employers became responsible for paying a levy for their foreign workers, a move designed to better protect low-wage foreign workers and to encourage the hiring of local employees. Previously, employers regularly passed the costs on to employees and withheld as much as 20 percent of a worker’s annual salary to cover the levy.

The Ministry of Human Resources began enforcing amendments to the Private Employment Agencies Act (PEAA) in 2018. The measure aims to make the cost of business too high for small-scale recruiting agencies that have been sources of abuses in the past. Employment agencies must now pay as much as RM250,000 ($62,500) to operate a business that recruits foreign workers, a significant increase from the RM1,000 ($250) required under the original PEAA. In addition, agencies must secure a guaranteed bank note for as much as RM250,000 ($62,500) that would be liquidated (and used for victim repatriation costs) if they are found to be in violation of the law. Under a new amendment, agencies found operating without a license face tough new penalties, including a RM200,000 ($50,000) fine and a maximum three years in prison, an increase from the previous RM5,000 ($1,250) fine.

Migrant workers often worked in sectors where violations were common, performed hazardous duties, and had no meaningful access to legal counsel in cases of contract violations and abuse. Some workers alleged their employers subjected them to inhuman living conditions and physically assaulted them. Employers of domestic workers sometimes failed to honor the terms of employment and subjected workers to abuse. Employers reportedly restricted workers’ movement and use of mobile telephones; provided substandard food; did not provide sufficient time off; sexually assaulted workers; and harassed and threatened workers, including with deportation.

Occupational health and safety laws cover all sectors of the economy except the maritime sector and the armed forces. The law requires workers to use safety equipment and cooperate with employers to create a safe, healthy workplace, but it does not specify a right to remove oneself from a hazardous or dangerous situation without penalty. Laws on worker’s compensation cover both local and migrant workers but provide no protection for migrant domestic workers.

The National Occupational Safety and Health Council–composed of workers, employers, and government representatives–creates and coordinates implementation of occupational health and safety measures. It requires employers to identify risks and take precautions, including providing safety training to workers, and compels companies with more than 40 workers to establish joint management-employee safety committees.

The Department of Labor of the Ministry of Human Resources enforces wage, working condition, and occupational safety and health standards. The government did not effectively enforce the law. The number of labor enforcement officers was insufficient to enforce compliance in businesses and households that employ domestic help. Department of Labor officials reported they sought to conduct labor inspections as frequently as possible. Nevertheless, many businesses could operate for years without an inspection.

Penalties for employers who fail to follow the law begin with a fine assessed per employee and can rise to imprisonment. Employers can be required to pay back wages plus the fine. If they refuse to comply, employers face additional fines per day that wages are not paid. Employers or employees who violate occupational health and safety laws are subject to fines, imprisonment, or both. Penalties were not sufficient to deter violations.

Employers did not respect laws on wages and working hours. The Malaysian Trade Union Congress reported that 12-, 14-, and 18-hour days were common in food and other service industries.

According Department of Occupational Safety and Health statistics, 127 workers died, 3,491 acquired a nonpermanent disability, and 131 acquired permanent disability in work-related incidents in the first half of the year.

a. Freedom of Association and the Right to Collective Bargaining

The law provides for freedom of association, and the government interpreted this right as allowing persons to form and join independent labor unions. The law neither provides for nor prohibits collective bargaining or the right to strike. The law does not specifically prohibit antiunion discrimination, nor does it require the reinstatement of workers fired for union activity.

The government enforced freedom of association laws. Penalties take the form of fines and were sufficient to deter violations.

With a small number of major employers, there were few opportunities for workers to unionize. Independent trade unions did not exist, and there were no NGOs promoting the rights of workers.

b. Prohibition of Forced or Compulsory Labor

The law prohibits and criminalizes all forms of forced labor and prescribes penalties which are sufficient to deter violations.

The government did not effectively enforce the law. There were no reports of government enforcement, and there were no reported investigations of forced labor.

There were reports of families holding or attempting to hold extended relatives, including children, in domestic servitude, but there were no known formal allegations made or convictions for this practice. There were also reports some foreign fishermen were subjected to conditions indicative of forced labor on ships in Marshallese waters.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

There is no law or regulation setting a minimum age, hours of work, or occupational health restrictions for employment of children. The law prohibits exploitation of children younger than 18, including in the worst forms of child labor, child begging, and child domestic work. Penalties were not sufficient to deter violations. No information was available on government enforcement efforts regarding the worst forms of child labor.

Children typically did not work in the wage economy, but it was common for them to assist their families in fishing, agriculture, retailing, and other small-scale enterprises. This was particularly true in the subsistence economies of the more remote atolls where copra production can take children from school and may reduce educational outcomes.

d. Discrimination with Respect to Employment and Occupation

The constitution states that no person may be treated in a discriminatory manner under law or by public officials. Labor laws and regulations do not specifically prohibit employment discrimination. The constitution states that the attorney general, in all cases of violations of the constitution, whether by private or public officials, has the standing to complain of the violation in judicial proceedings. The criminal code does not stipulate any specific penalty in such cases. There were no formal complaints of employment discrimination during the year. No law mandates equal pay for equal work; government employees receive pay equity. Under the law citizens receive preference in hiring, and noncitizen workers are hired only to supplement the local work force when no citizens qualify for the job. The law requires that employers who hire foreign workers pay a fee used for training citizen workers. Many employers willingly paid the fee to hire technically skilled labor, which was not widely available in the country.

e. Acceptable Conditions of Work

The law establishes a minimum wage which is not above the poverty line. The government has not effectively enforced the law. The minimum wage does not apply to casual workers or family employees.

Foreign employees and local trainees of private employers who invested in or established a business in the country are exempt from minimum-wage requirements provided the employer receives government authorization. Most foreign workers, who constituted approximately 30 percent of the workforce (excluding agroforestry), and most of the professional and technical classes in the country earned considerably more than the minimum wage. Their earnings were estimated to average at least 50 percent higher than those of local workers.

The law provides for a standard workday of eight hours but places no restrictions on the amount of overtime that could be worked.

No legislation provides protection for workers who file official complaints about conditions that endanger their health or safety. The law does not provide for workers to remove themselves from situations that endanger health or safety without jeopardy to their employment.

Occupational health and safety standards are generally appropriate. The Board of Inquiry within the Ministry of Foreign Affairs has the authority to make recommendations to the Nitijela on working conditions, such as the minimum wage, legal working hours, overtime payments, and occupational health and safety standards for workers. There were no policy recommendations or political initiatives by the Board of Inquiry during the year, however, and the board did not conduct any health and safety inspections of workplaces. The board is empowered to do so, but it does not have dedicated inspectors to carry out inspections to enforce sufficient compliance. The law provides no protections for informal sector workers, which generally included work on a family farm or in copra production.

a. Freedom of Association and the Right to Collective Bargaining

The law provides for the right of workers to form or join independent unions and professional organizations of their choosing without previous authorization or excessive requirements. The law provides for the rights of all workers except those employed in essential services to participate in union activities without discrimination, conduct strikes, and bargain collectively. The law requires reinstatement of workers fired for union activity.

The law bars persons employed in essential services–defined as occupations critical for national defense and safety, including police, utilities, and transportation services–from striking, and it prohibits third parties from organizing strikes. The law prohibits strikes unrelated to matters regulated by a collective agreement.

Laws providing for the rights of collective bargaining and freedom of association generally were enforced. Penalties, largely fines, for violations of freedom of association and collective bargaining provisions were not sufficient to deter violations. Labor dispute settlement committees resolved most disputes between individual workers and management. These committees comprise representatives of the local government, the employer, and the employee, who is joined by a representative of the Confederation of Mongolian Trade Unions (CMTU). The CMTU reported the court process was so lengthy many workers abandoned their cases due to time and expense.

The CMTU stated some employees faced obstacles, including the threat of salary deductions, to forming, joining, or participating in unions. Some employers prohibited workers from participating in union activities during work hours. The CMTU also stated workers terminated for union activity were not always reinstated. The CMTU further reported some employers took steps to weaken existing unions. For example, some companies used the portion of employees’ salaries deducted for union dues for other purposes and did not forward the monies to the unions. The CMTU also reported some employers refused to conclude collective bargaining agreements.

b. Prohibition of Forced or Compulsory Labor

The constitution prohibits all forms of forced or compulsory labor, except as part of a legally imposed sentence. The criminal code provides for a fine or imprisonment for forced labor offenses, but penalties were not sufficient to deter violations. The government did not effectively enforce the law.

There were isolated reports of forced labor, including forced child labor.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law does not prohibit all the worst forms of child labor. The law prohibits children younger than 14 from working. At age 14, children may, with parental and government permission, work a maximum of 30 hours per week, to acquire vocational training and work experience. At age 15, children may establish a vocational training contract with permission from parents or guardians. According to a Ministry of Labor and Social Protection order, children younger than 18 may not work in hazardous occupations such as mining and construction; engage in arduous work; serve as jockeys during the winter (children may be jockeys beginning at age seven during other seasons); participate in cultural, circus, or folk art performances at night; work in businesses that sell alcoholic beverages; or engage in roadside vending. Despite these restrictions, children were commonly seen participating in horse racing, roadside vending, and other occupations in contravention of the order.

Authorities reported employers often did not follow the law, requiring minors to work in excess of 40 hours per week and paying them less than the minimum wage.

The criminal code’s child protection provisions cover hazardous child labor, which is punishable by severe penalties that are not sufficient to deter violations due to ineffective enforcement. The government did not effectively enforce the law.

The government convenes a council on trafficking in persons on a monthly basis. Despite government programs to support the employment of adult family members, unemployment remains a problem.

Child labor, including cases of forced child labor, was suspected in many sectors, including hotels and restaurants, vehicle repair, manufacturing, petty trade, scavenging and forced begging, event or street contortionism (a local art form), and the illicit sex trade (see section 6, Children). The FCYDA and the General Agency for Specialized Inspection (GASI) conducted child labor inspections, including at artisanal mining sites, public markets, service centers, dumpsites, construction and transportation sites, and on farms.

International organizations continued to express concern about child jockeys in horseracing. Children commonly learned to ride horses at age four or five, and young children traditionally served as jockeys during the annual Naadam festival in races ranging from two to 20 miles. All jockeys including child jockeys are prohibited from working from November 1 to May 1, when cold weather makes racing more hazardous.

The regulations also require registration, adequate headgear, and chest protection, but despite greater government and public attention to safety, enforcement was inconsistent. GASI reported that in sanctioned races during the year, there were 49,641 instances of a child competing in a race (children who raced more than once were counted multiple times). In these races, 550 children fell from horses, 166 were slightly injured, and 12 were seriously injured. The number of deaths was not reported, and races not sanctioned were not counted in these statistics. The FCYDA maintained an electronic database containing information on more than 10,325 child jockeys and collected biometric information to better track jockeys and prevent children younger than seven years from working as jockeys. In addition the Ministry of Labor and Social Protection established guidelines requiring the purchase and maintenance of an insurance policy for jockeys that costs 100,000 tugriks ($37) and pays to jockeys or their surviving family members up to 20 million tugriks ($7,300) in case of injury or death sustained during a race. Observers reported compliance with safety regulations at national races, but less satisfactory compliance at community and regional events. The government, however, only conducts child labor inspections at horse racing events once a year and must provide 48 hours’ notice before conducting an investigation.

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings  and the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor at https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods .

d. Discrimination with Respect to Employment and Occupation

The law prohibits discrimination in employment and occupation based on nationality, language, race, age, gender, sexual orientation, sex or marital status, social origin or status, wealth, religion, ideology, education, or medical status. It also prohibits employers from refusing to employ a person with disabilities but provides broad exceptions, applying “unless the condition of such person prevents him from performing a specified activity or would otherwise be contrary to established working conditions at the workplace.” The law prohibits employers from refusing employment to or dismissing an individual diagnosed with HIV/AIDS unless the condition makes it difficult to perform job duties. The law also prohibits women from working in occupations that require heavy labor or exposure to chemicals that could affect infant and maternal health.

The government enforced the law in a limited manner, and discrimination occurred in employment and occupation based on sex and disability, as well as on sexual orientation, gender identity, and HIV status. Penalties were not sufficient to deter violations.

The law charges employers with taking steps to prevent sexual harassment in the workplace, including by establishing internal rules about sexual harassment and the redress of complaints, but provides no penalties. The NHRC reported poor knowledge of the law’s sexual harassment provisions among both employers and employees.

The NHRC found employers were less likely to hire, promote, or provide professional development opportunities to women. There were also reports some employers refused to hire overweight persons, claiming they could not perform essential job functions.

Although the law requires workplaces with more than 25 employees to employ a minimum of 4 percent of persons with disabilities or pay a fine, NGOs reported a reluctance to hire them persisted, and many companies preferred to pay the fine. They also noted the government itself failed to meet the quota. Members of the disability community noted that, even when hired, the lack of accessible public transport made it difficult for persons with disabilities to hold a job (see section 6, Persons with Disabilities).

The labor ministry’s Department for the Development of Persons with Disabilities is responsible for developing and implementing employment policies and projects for persons with disabilities. Government organizations and NGOs reported employers’ attitude toward employing persons with disabilities had not improved and that many employers still preferred to pay fines to the Employment Support Fund maintained by the Ministry of Labor and Social Protection rather than employ persons with disabilities.

NGOs, the NHRC, and members of the LGBTI community reported companies rarely hired LGBTI persons who were open about their sexual orientation or gender identity, and LGBTI persons who revealed their status in the workplace frequently faced discrimination, including the possibility of dismissal. Illegally dismissed LGBTI persons rarely sought court injunctions to avoid disclosing their status and increasing the risk of discrimination.

Foreign migrant workers did not receive the same level of protection against labor law violations as the general population.

e. Acceptable Conditions of Work

The minimum wage was above the poverty line.

Laws on labor, cooperatives, and enterprises set occupational health and safety standards, which apply equally to local and foreign workers. GASI noted many standards were outdated.

Labor inspectors assigned to GASI’s regional and local offices are responsible for enforcement of all labor regulations and have the authority to compel immediate compliance. The government did not effectively enforce minimum wage, working hours, and occupational safety and health laws and regulations. Neither the penalties nor the number of inspectors was sufficient to enforce compliance. GASI reported its inspectors, faced with large investigative workloads, needed better training on investigative techniques and evidence collection. The number of labor inspectors was insufficient for the size of the country’s workforce. Inspectors generally did not conduct inspections in the informal sector.

GASI acknowledged that fines imposed on companies for not complying with labor standards or for concealing accidents were insufficient to induce management to resolve problems. Moreover, safety experts responsible for labor safety and health were often inexperienced or had not received training. GASI lacks the authority to perform surprise inspections.

The law on pensions allows for participation by small family businesses and workers in the informal economy (such as herders) in pension and social benefit programs. These categories of workers were able to access health care, education, social entitlements, and an optional form of social security.

Many workers received less than the minimum wage, particularly at smaller companies in rural areas. Workers in the construction sector, in which work is constrained to a few months each year due to extreme winters, were sometimes pressured to work long hours, increasing the risk of accidents and injuries.

Many foreign workers, the majority of whom were Chinese mining and construction workers, reportedly worked in conditions that did not meet government regulations.

Workers from the Democratic People’s Republic of Korea were in the country at the beginning of the year, and the government enforced a series of deportations in compliance with relevant UN Security Council resolutions.

Reliance on outmoded machinery, poor maintenance, and management errors led to frequent industrial accidents, particularly in the construction, mining, and energy sectors. According to the NHRC, lack of proper labor protection and safety procedures made the construction sector particularly susceptible to accidents. The CMTU stated workers had limited awareness of their legal right to refuse to work in unsafe conditions.

GASI provided safety training to companies and private enterprises. According to GASI, the training resulted in a decrease in industrial accidents in accident-prone sectors such as light industry, food, health, and education. According to most recent data provided by GASI, 17 persons were killed in industrial accidents in 2016. Construction-related industrial accidents were especially deadly: according to GASI, over the previous 10 years, 246 persons were killed in such accidents. According to newspaper reports, four workers died in February at a gold mine, and there were other reports that cited industrial accidents.

a. Freedom of Association and the Right to Collective Bargaining

The law provides for the right of workers to form and join independent unions of their choice without previous authorization or excessive requirements, to bargain collectively, and to conduct legal strikes, with some restrictions. The law prohibits antiunion discrimination. While it does not require reinstatement of workers dismissed for union activity, the courts may order this at their discretion.

Police have the right to freedom of association and the right to organize and bargain collectively, but sworn police officers (including all uniformed and plainclothes police but excluding clerical and support staff) do not have the right to strike or take any form of industrial action.

Contractors cannot join unions, bargain collectively, or conduct strike action.

Workers may strike while negotiating the right to a collective bargaining agreement or over matters of health and safety. Strikes by providers of key services are subject to certain procedural requirements, including mandatory notice of three to 28 days, depending on the service involved. The list of “key services” was broader than international standards on the definition of “essential services.”

To bargain collectively, unions must be registered, independent, governed by democratic rules, and have a minimum of 15 members. Unions may not bargain collectively on social or political issues.

The government respected these rights and effectively enforced applicable laws without lengthy delays. The law provides penalties for violations of freedom of association or collective bargaining protections and includes fines sufficient to deter violations. Cases were occasionally referred to the Civil Employment Court.

b. Prohibition of Forced or Compulsory Labor

The law prohibits and criminalizes all forms of forced labor. The government’s efforts to enforce the law were not always effective. Penalties were not sufficiently stringent to deter violations because of the possibility that a fine can be imposed in lieu of imprisonment. Fines can also be imposed for labor violations that may be indicators of forced labor such as underpayment of wages and excessively long working hours.

The government continued to pursue convictions under forced labor and trafficking laws.

Recruitment agencies based in the country that recruit workers from abroad must utilize a licensed immigration adviser. The government expanded partnerships with foreign governments during the year to better monitor and regulate the recruitment of foreign migrant workers. According to the government, the aim of these partnerships was to reduce the risk of exploitation by providing greater transparency in recruitment and compliance to employers.

Foreign migrant workers, including in agriculture, construction, hospitality, and domestic service were vulnerable to forced labor. Some foreign migrant workers were charged excessive and escalating recruitment fees, experienced unjustified salary deductions, nonpayment or underpayment of wages, excessively long working hours, and restrictions on their movement. Some had their passports confiscated and contracts altered. Victims were often deterred from filing complaints out of fear of jeopardizing their visa status. In response to forced labor concerns, foreign-flagged fishing vessels in the country’s economic waters are required to reflag as New Zealand vessels and follow New Zealand labor laws.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law prohibits the worst forms of child labor and provides for a minimum age of employment, limitations on working hours, and occupational safety and health restrictions for children. By law children younger than 16 years may not work between 10 p.m. and 6 a.m. The law also states that children enrolled in school may not work, even outside school hours, if such employment would interfere with their education. The law bans employment of children younger than 15 in hazardous industries such as manufacturing, mining, and forestry.

Inspectors from WorkSafe New Zealand effectively enforced these laws. The law outlines prison sentencing guidelines and fines for the most serious offenses. Penalties were adequate to deter violations.

Children ages 16 to 18 worked in some hazardous industries and occupations, such as agriculture. The law requires them to be fully trained. Children younger than 15 cannot drive a tractor or large vehicle, except children working in agriculture if they are older than 12 and are fully trained or are being trained, or they live on the property. Concerns remained about the commercial sexual exploitation of children (see section 6, Children).

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings  for information on the country and its self-governing territories, Cook Islands and Niue, and the dependent territory, Tokelau.

d. Discrimination with Respect to Employment and Occupation

The law prohibits discrimination with respect to employment and occupation. The government effectively enforced these prohibitions.

The HRC has an equal opportunity employment team that focuses on workplace gender-related problems. This team regularly surveyed pay scales, conducted a census of women in leadership roles, and engaged public and private employers to promote compensation equality. The Office of Ethnic Affairs continued to take measures to promote ethnic diversity in occupation and employment.

According to the New Zealand Council of Trade Unions, Maori and Pacific Island people–and women in particular–remained disadvantaged compared with the general population in terms of conditions of employment and wages.

e. Acceptable Conditions of Work

The minimum hourly wage was above the amount–60 percent of the median household income–that researchers frequently used as an unofficial poverty level.

The law provides that work hours should be set in collective or individual agreements between employers and employees. Although a 40-hour workweek is traditional, employer and employee parties may contractually agree to a workweek of more than 40 hours. Labor regulations do not define an absolute maximum number of overtime hours.

Extensive laws and regulations govern health and safety issues. Employers are obliged to provide a safe and healthy work environment, and employees are responsible for their own safety and health, as well as ensuring that their actions do not harm others. The government requires employers to provide health insurance for their seasonal workers. The law allows workers to refuse to perform work likely to cause serious harm and permits legal recourse if they believed an employer penalized them as a result.

The government proactively investigated labor conditions and in cases of noncompliance with labor law inspectors levied fines, required restitution of wages to workers, and revoked licenses of offenders. The Ministry of Business, Innovation, and Employment enforces laws governing working conditions, including wages and hours, through Employment New Zealand’s labor inspectorate. The number of inspectors was sufficient to deter violations. In particular, employers who have breached minimum employment standards with regard to vulnerable migrant workers face a set “stand-down” period from the ability to support migrant visa applications.

In 2018 the Employment Relations Authority ordered a South Island-based tour company to pay NZ$75,000 ($48,270) in penalties, having found the company culpable for 153 breaches of employment law covering 30 employees. These breaches ranged from failure to keep proper time and wage records, failure to pay holiday pay, and failure to pay the minimum wage. In addition to fines, the New Zealand Transport Agency revoked the company’s Transport Service License, and Immigration New Zealand placed the company on the stand-down list. As of August, 90 companies or employers in the country were on the stand-down list.

WorkSafe New Zealand deals with occupational health and safety issues. The department’s inspectors effectively enforced safety and health rules in all sectors including the informal economy, and they have the power to shut down equipment if necessary. The department normally investigated reports of unsafe or unhealthy working conditions within 24 hours of notification. Convictions for violations of the occupational health and safety law and the wages and hours law carry either monetary penalties or imprisonment, penalties sufficient to deter violations. The law stipulates penalties for employers who exploit workers, including migrant workers; penalties include imprisonment, a fine, and deportation for noncitizen residents.

Between July 2018 and June 2019, the country saw 82 workplace-related fatalities. Construction, agriculture, forestry, and fishing were the country’s most dangerous sectors; 15 persons were killed in construction-related work. The majority of workplace assessments carried out in 2018 by WorkSafe New Zealand’s health and safety inspectors targeted the high-risk industries and manufacturing. WorkSafe New Zealand reported that 75 percent of surveyed employers changed their workplace practices following its inspections.

a. Freedom of Association and the Right to Collective Bargaining

Workers do not have the right to form or join independent unions, bargain collectively, or strike. There were no known labor organizations other than those created and controlled by the government. While the law stipulates that employees working for foreign companies may form trade unions and that foreign enterprises must provide conditions for union activities, the law does not protect workers who might attempt to engage in union activities from employer retaliation, nor does it provide penalties for employers who interfere in union activities. Unlawful assembly may result in five years of correctional labor.

The WPK purportedly represents the interests of all labor. The central committee of the WPK directly controls several labor organizations in the country, including the General Federation of Trade Unions of Korea and the Union of Agricultural Workers of Korea. Operating under this umbrella, unions functioned according to a classic Stalinist model, with responsibility for mobilizing workers to support production goals and for providing health, education, cultural, and welfare facilities.

The government controlled all aspects of the formal employment sector, including assigning jobs and determining wages. Joint ventures and foreign-owned companies were required to hire their employees from government-vetted lists. The government organized factory and farm workers into councils, which purportedly afforded a mechanism for workers to provide input into management decisions.

b. Prohibition of Forced or Compulsory Labor

The law prohibits forced or compulsory labor. Nonetheless, the government mobilized the population for construction and other labor projects. “Reformatory labor” and “re-education through labor,” sometimes of entire families, were common punishments for political offenses. Forced and compulsory labor in such activities as logging, mining, tending crops, and manufacturing continued to be the common fate of political prisoners.

The law requires all citizens of working age to work and “strictly observe labor discipline and working hours.” There were numerous reports that farms and factories did not pay wages or provide food to their workers. Forced labor continued to take place in the brick making, cement manufacturing, coal mining, gold mining, logging, iron production, agriculture, and textile industries. The South Korean NGO Open North Korea estimated that North Koreans perform $975 million worth of forced labor each year. The Walk Free Foundation, in its 2018 Global Slavery Index, estimated that one of every 10 individuals, or approximately 2.6 million persons, in North Korea were in situations of modern slavery.

According to reports from an NGO, during the implementation of short-term economic plans, factories and farms increased workers’ hours and asked workers for contributions of grain and money to purchase supplies for renovations and repairs. By law failure to meet economic plan goals may result in two years of “labor correction.” In 2018 workers were reportedly required to work at enterprises to which the government assigned them and then failed to compensate or undercompensated them for their work. Media reported an increasing number of urban poor North Koreans moved to remote mountains to hide from authorities and avoid mass mobilizations.

The May UN report The Price Is Rights noted work “outside the State system, in the informal sector, has become a fundamental means to survival [but] access to work in the informal sector has become contingent on the payment of bribes.”

In 2018 the UN special rapporteur on the situation of human rights in North Korea noted that in 2017 authorities reportedly evicted up to 600 families in villages in Ryanggang Province to allow for the construction of a new railway line and high-rise apartment blocks. Some of those evicted were reportedly mobilized alongside local youth shock brigades to help with the railway construction.

According to Open North Korea’s report Sweatshop, North Korea, 16- or 17-year-olds from the low loyalty class were assigned to 10 years of forced labor in military-style construction youth brigades called dolgyeokdae. One worker reportedly earned a mere 120 won (less than $0.15) per month. During a 200-day labor mobilization campaign in 2016, for example, these young workers worked as many as 17 hours per day. State media boasted that the laborers worked in subzero temperatures. One laborer reported conditions were so dangerous while building an apartment building that at least one person died each time a new floor was added. Loyalty class status also determines lifelong job assignments, with the lowest classes relegated to dangerous mines.

Human Rights Watch reported the government operated regional, local, or subdistrict level “labor training centers” and forced detainees to work for short periods doing hard labor, with little food and subject to abuse, including regular beatings. Authorities reportedly sent individuals to such centers if suspected of engaging in simple trading schemes or unemployed. In October 2018 the HRNK reported that tens of thousands of citizens, including children, were detained in prisonlike conditions in these centers and suggested that satellite imagery indicated the number and size of such camps were expanding.

At the end of the year, tens of thousands of North Korean citizens were working overseas, primarily in Russia and China. Workers were also reportedly present during the year in the following countries: Algeria, Angola, Bangladesh, Cambodia, Equatorial Guinea, Ethiopia, Guinea, Italy, Kyrgyzstan, Laos, Malaysia, Mali, Mongolia, Mozambique, Nepal, Nigeria, Oman, Poland, Qatar, Republic of the Congo, Senegal, Tanzania, Thailand, the United Arab Emirates, Vietnam, Zambia, and Zimbabwe. Some of these countries subsequently removed most or all North Korean workers during the year. However, reports suggested several countries either had not taken action or had resumed issuing work authorizations or other documentation, allowing North Koreans to resume work. Russia reportedly issued more than five times as many tourist and study visas to DPRK residents as it did during the previous year, strongly suggesting that these visas are being used as a workaround for workers. Similarly, there were reports that previously closed factories in China had resumed operations with new North Korean workers.

Numerous NGOs noted North Korean workers abroad were subjected to forced labor. NGO reports indicated the government managed these laborers as a matter of state policy and that they were under constant and close surveillance by DPRK security agents. Laborers worked between 12 and 16 hours per day, and sometimes up to 20 hours per day, with only one or two rest days per month. Employers stated the average wage was 270,000 to 900,000 won per month ($300 to $1,000), but in most cases employing firms paid salaries directly to the DPRK government, which took between 70 percent and 90 percent of the total earnings, leaving approximately 90,000 won ($100) per month for worker take-home pay. The government reportedly has received hundreds of millions of dollars from this system each year. The state reportedly withheld some wages in certain instances until the laborers returned home after the completion of their three-year contracts. Workers reportedly worked in a range of industries, including but not limited to apparel, construction, footwear manufacturing, hospitality, information technology services, logging, medical, pharmaceuticals, restaurant, seafood processing, textiles, and shipbuilding.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

By law the state prohibits work by children younger than age 16 but does restrict children 16 to 17 from hazardous labor conditions. The law criminalizes forced child labor, but there were reports such practices occurred. NGOs reported government officials held thousands of children and forced them to work in labor camps with their parents.

Officials occasionally sent schoolchildren to work in factories or fields for short periods to assist in completing special projects, such as snow removal on major roads or meeting production goals. The UN Committee on the Rights of the Child has noted its concern children were also sometimes subjected to mass mobilizations in agriculture away from their families, with long working hours per day, sometimes for periods of a month at a time. Human Rights Watch published North Korean students’ reports that their schools forced them to work without compensation on farms twice a year for one month each time. Human Rights Watch also reported schools required students under the minimum working age to work in order to raise funds for faculty salaries and maintenance costs for school facilities. According to media reports in August, students ages 14-15 were required to work in WPK opium fields.

Children ages 16 and 17 were enrolled in dolgyeokdae (military-style construction youth brigades) for 10-year periods and subjected to long working hours and hazardous work. Students suffered from physical and psychological injuries, malnutrition, exhaustion, and growth deficiencies as a result of required forced labor.

d. Discrimination with Respect to Employment and Occupation

While the law provides that all citizens “may enjoy equal rights in all spheres of state and public activities” and all “able-bodied persons may choose occupations in accordance with their wishes and skills,” the law does not prohibit discrimination with respect to employment or occupation on the basis of race, religion, ethnicity, or other factors. There is no direct reference to employment discrimination in the law; classification based on the songbun loyalty system has a bearing on equal employment opportunities and equal pay.

Despite the law according women equal social status and rights, societal and legal discrimination against women continued. Labor laws and directives mandate sex segregation of the workforce, assigning specific jobs to women while impeding their access to others. Women’s retirement age is also set at 55 years, compared with 60 years for men, which has material consequences for women’s pension benefits, economic independence, and access to decision-making positions.

Persons with disabilities also faced employment discrimination. Most of the approximately 1,200 workshops or light factories for persons with disabilities built in the 1950s were reportedly no longer operational; there were limited inclusive workplaces.

e. Acceptable Conditions of Work

There is no legal minimum wage in the country. No reliable data were available on the minimum wage paid by state-owned enterprises. Wages are sometimes paid at least partially in kind rather than in cash.

The law stipulates an eight-hour workday, although some sources reported that laborers worked longer hours, perhaps including additional time for mandatory study of the writings of Kim Il Sung and Kim Jong Il. The law provides all citizens with a “right to rest,” including one day’s rest per week (Sunday), paid leave, holidays, and access to sanitariums and rest homes funded at public expense. The state’s willingness and ability to provide these services were unknown, however.

The law recognizes the state’s responsibility for providing modern and hygienic working conditions. The law criminalizes the failure to heed “labor safety orders” pertaining to worker safety and workplace conditions, but only if the conditions result in the loss of lives or other “grave loss.” Workers themselves do not have a designated right to remove themselves from hazardous working conditions. No information is available on enforcement of labor laws.

Mandatory participation in mass events on holidays and practice sessions for such events sometimes compromised leave or rest from work. Workers were often required to “celebrate” at least some part of public holidays with their work units and were able to spend an entire day with their families only if the holiday lasted two days. Failures to pay wages were common and reportedly drove some workers to seek income-generating activity in the informal or underground economy.

Many worksites were hazardous, and the industrial accident rate was high.

The United States does not have diplomatic relations with the Democratic People’s Republic of Korea. The DPRK does not allow representatives of foreign governments, journalists, or other invited guests the freedom of movement that would enable them to assess fully human rights conditions or confirm reported abuses.

a. Freedom of Association and the Right to Collective Bargaining

The law provides for the right of workers in the public and private sectors to form and join independent unions, conduct legal strikes, and bargain collectively. The government has limited influence over trade union formation and registration. The law does not cover workers in the informal sector, which accounted for 85 percent of the labor force, most of whom were engaged in small-scale farming.

The law requires unions to register with the Department of Labor and Industrial Relations. An unregistered union has no legal standing and thus cannot operate effectively. Although the law provides for the right to strike, the government may, and often did, intervene in labor disputes, forcing arbitration before workers could legally strike or refusing to grant permission for a secret ballot vote on strike action. Some union leaders complained that the Labor Department’s refusal to allow for votes on strike action constituted undue government influence. By law the government has discretionary power to intervene in collective bargaining by canceling arbitration awards or declaring wage agreements void when deemed contrary to government policy.

The law prohibits both retaliation against strikers and antiunion discrimination by employers against union leaders, members, and organizers. The law does not provide for reinstatement of workers dismissed for union activity. In cases of retaliation or unlawful dismissal for union activity, the court may fine an employer and may order the reinstatement of the employee and reimbursement of any lost wages. If an employer fails to comply with such directives, the court may order imprisonment or fines until the employer complies.

The Labor Department is responsible for enforcing the law, but the government did not effectively enforce the law. Penalties were insufficient to deter violations. With two labor inspectors per province and inadequate resources, inspectors usually monitored and enforced the law on an ad hoc basis. The Labor Department did not always act to prevent retaliation against strikers or protect workers from antiunion discrimination, which remained widespread in the logging sector and in state-owned enterprises. Observers attributed its ineffectiveness to a lack of sufficient manpower and resources.

Unions were generally independent of both the government and political parties, whose influence diminished from previous years. Employees of some government-owned enterprises went on strike on several occasions during the year, primarily to protest against privatization policies, terminations, and appointments of managers or board members, or in pay disputes. In most cases the strikes were brief due to temporary agreements reached between the government and workers.

Workers in both the public and private sectors engaged in collective bargaining. The Labor Department and courts were involved in dispute settlement.

b. Prohibition of Forced or Compulsory Labor

The constitution and law prohibit all forms of forced or compulsory labor. Penalties are sufficiently stringent to deter violations, but the government did not effectively enforce the law.

Logging and mining sites primarily operated in remote regions with negligible government oversight, and authorities did not make efforts to identify forced labor victims at these sites. The law allows officials, on order of a judge or magistrate, to apprehend a noncitizen crewmember of a foreign-registered ship who fails to rejoin the crewmember’s ship during its time in the country. The crewmember is placed at the disposal of the diplomatic representative of the country in which the ship is registered (or, if no such representation exists, the ship’s owner or representative) in order to return the crewmember to the ship. Observers noted this practice might prevent foreign workers from reporting or escaping situations of forced labor.

There were reports that foreign and local women and children were subjected to forced labor as domestic servants, as beggars or street vendors, and in the tourism sector (also see section 7.c.). Foreign and local men were subjected to forced labor, including through debt bondage, in the logging, mining, and fishing sectors. There also were reports of foreign workers, particularly from China and other Pacific nations, entering the country with fraudulent documents and being subjected to forced labor.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law does not prohibit all the worst forms of child labor. By law the minimum working age is 16, although children ages 14 to 15 may be employed if the employer is satisfied that the child is no longer attending school. In addition children ages 14 to 15 may work aboard ships. The minimum age for hazardous work is 16, but the government has not identified a list of which occupations are hazardous. There are no provisions prohibiting children ages 16 to 18 from engaging in hazardous work. Children ages 11 to 16 may be employed in light work in a family business or enterprise, provided they have parental permission, medical clearance, and a work permit from a labor office. This type of employment was rare, except in subsistence agriculture. Work by children ages 11 to 16 must not interfere with school attendance, and children younger than 16 may not be employed in working conditions dangerous to their health. The law does not, however, specify the types of activities in which light work is permitted nor the number of hours per week this work may be undertaken. The Labor Department is responsible for enforcing child labor law provisions. The government did not effectively enforce the law, and penalties were insufficient to deter violations.

There was a high prevalence of child labor in urban and rural areas, including in hazardous occupations. Children were seen directing parking vehicles and selling cigarettes, food, and DVDs on the street and in grocery stores throughout the country, sometimes near mining and logging camps. There were reports of boys as young as 12 being exploited as “market taxis” in urban areas, carrying extremely heavy loads for low pay; some may have been victims of forced labor. There were also reports of children engaging in mining activities, including prospectors forcing children to work in alluvial gold mining.

Children worked mainly in subsistence agriculture, cash crop farming, and livestock herding. This included seasonal work in plantations (for coffee, tea, copra, and palm oil) in the formal and informal rural economies.

Some children (primarily girls) worked long hours as domestic servants in private homes, often to repay a family debt to the “host” family, in situations that sometimes constituted domestic servitude. In some cases the host was a relative who informally “adopted” the child. There were reports of commercial sexual exploitation of children (see section 6, Children).

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings .

d. Discrimination with Respect to Employment and Occupation

No law prohibits discrimination regarding race, language, sexual orientation, gender identity, HIV or other communicable disease status, or social status. The constitution bars discrimination based on disability, but the government did not take measures to protect persons with disabilities from discrimination. The law bans discrimination based on gender for employment and wages in the workplace. The government did not effectively enforce the law.

The law explicitly precludes women from employment in certain occupations, allows the government to recruit either men or women for certain civil service positions, and discriminates by gender in eligibility for certain job-related allowances.

Discrimination occurred based on the above categories with respect to employment and occupation. For example, the International Labor Organization noted there were concerns regarding discrimination against certain ethnic groups, including Asian workers and entrepreneurs.

e. Acceptable Conditions of Work

The minimum wage was above the official estimate for the poverty income level. The law regulates minimum wage levels, allowances, rest periods, holiday leave, and overtime work. The law limits the workweek to 42 hours per week in urban areas and 44 hours per week in rural areas, and it provides for premium pay for overtime work. Labor law does not apply to workers in the informal sector.

The Labor Department is responsible for enforcing the law regarding minimum wage and work hours and occupational safety and health. It sets occupational safety and health standards and is required by law to inspect work sites on a regular basis. The government did not effectively enforce the law. Workers are entitled to wages while the inspection takes place, although the law does not specify further protection for employees who seek to remove themselves from conditions they deem hazardous. The number of occupational health and safety and industrial relations inspectors was insufficient to enforce compliance. Penalties were insufficient to deter violations. In the case of a second or subsequent, continuing offense, the employer is liable for a fine for each day or part of each day for which the offense continued. When an employer fails to obey an order, direction, or requirement, the court may order imprisonment of the offender until the directive is obeyed.

Violations of wage, overtime, and occupational safety and health law and regulations were common in the logging, mining, agricultural, and construction sectors due to the government’s lack of enforcement capacity. The logging industry in particular was known for extremely low wages and poor working conditions, including cramped and unhygienic worker housing. Workers in the mining sector were also subjected to hazardous and exploitative conditions, including exposure to toxic metals such as mercury.

According to World Bank data, 90 percent of the 2.9 million workers labored in rural areas, where law enforcement and monitoring were weak.

a. Freedom of Association and the Right to Collective Bargaining

The law provides for the rights of workers, with the exception of the military, police, short-term contract employees, and some foreign workers, to form and join independent unions, bargain collectively, and conduct strikes; it prohibits antiunion discrimination. The law, however, places several restrictions on these rights.

Laws and regulations provide for the right to organize and bargain collectively in both the private sector and corporations owned or controlled by the government. The law prohibits organizing by foreign national or migrant workers unless a reciprocity agreement exists with the workers’ countries of origin specifying that migrant workers from the Philippines are permitted to organize unions there. The law also bars temporary or outsourced workers and workers without employment contracts from joining a union. The law requires the participation of 20 percent of the employees in the bargaining unit where the union seeks to operate; the International Labor Organization (ILO) called this requirement excessive. The scope of collective bargaining in the public sector is limited to a list of terms and conditions of employment negotiable between management and public employees. These are items requiring appropriation of funds, including health care and retirement benefits, and those that involve the exercise of management prerogatives, including appointment, promotion, compensation structure, and disciplinary action, are nonnegotiable.

Strikes in the private sector are legal. Unions are required to provide advance strike notice (30 days for issues associated with collective bargaining and 15 days for issues regarding unfair labor practices), respect mandatory cooling-off periods, and obtain approval from a majority of members before calling a strike. The Department of Labor and Employment’s (DOLE/labor department) National Conciliation and Mediation Board reported 580 mediation-conciliation cases from January to September. Of these, 398 cases were filed under preventive mediation, 165 under notices of strike or lockout, 13 cases under actual strike or lockout, and four wildcat strikes or strikes without notice. The number of wildcat strikes increased from one to four during the year, mostly dealing with contractualization and regularization issues.

The law subjects all problems affecting labor and employment to mandatory mediation-conciliation for one month. The labor department provides mediation services through a board, which settles most unfair labor practice disputes. Through the National Conciliation and Mediation Board, the department also works to improve the functioning of labor-management councils in companies with unions.

If mediation fails, the union may issue a strike notice. Parties may bring any dispute to mediation, but strikes or lockouts must be related to acts of unfair labor practice, a gross violation of collective bargaining laws, or a collective bargaining deadlock. The law provides for a maximum prison sentence of three years for participation in an illegal strike, although there has never been such a conviction. The law also permits employers to dismiss union officers who knowingly participate in an illegal strike.

The law prohibits government workers from joining strikes under the threat of automatic dismissal. Government workers may file complaints with the Civil Service Commission, which handles administrative cases and arbitrates disputes. Government workers may also assemble and express their grievances on the work premises during nonworking hours.

The secretary of the DOLE, and in certain cases the president, may intervene in labor disputes by assuming jurisdiction and mandating a settlement if either official determines that the strike-affected company is vital to the national interest. Vital sectors include hospitals, the electric power industry, water supply services (excluding small bottle suppliers), air traffic control, and other activities or industries as recommended by the National Tripartite Industrial Peace Council (NTIPC). Labor rights advocates continued to criticize the government for maintaining definitions of vital services that were broader than international standards.

By law antiunion discrimination, especially in hiring, is an unfair labor practice and may carry criminal or civil penalties (although generally civil penalties were favored over criminal penalties).

In most cases, the government respected freedom of association and collective bargaining and enforced laws protecting these rights. The Department of Labor has general authority to enforce laws on freedom of association and collective bargaining. The National Labor Relations Commission’s (NLRC) labor arbiter may also issue orders or writs of execution for reinstatement that go into effect immediately, requiring employers to reinstate the worker and report compliance to the NLRC. Allegations of intimidation and discrimination in connection with union activities are grounds for review by the quasijudicial NLRC, as they may constitute possible unfair labor practices. If there is a definite preliminary finding that a termination may cause a serious labor dispute or mass layoff, the DOLE secretary may suspend the termination and restore the status quo pending resolution of the case.

Penalties under the law for violations of freedom of association or collective bargaining laws were generally not sufficient to deter violations. Administrative and judicial procedures were subject to lengthy delays and appeals.

The NTIPC serves as the main consultative and advisory mechanism on labor and employment for organized labor, employers, and government on the formulation and implementation of labor and employment policies. It also acts as the central entity for monitoring recommendations and ratifications of ILO conventions. The labor department, through the NTIPC, is responsible for coordinating the investigation, prosecution, and resolution of cases alleging violence and harassment of labor leaders and trade union activists pending before the ILO.

Workers faced several challenges in exercising their rights to freedom of association and collective bargaining. Some employers reportedly chose to employ workers who could not legally organize, such as short-term contract and foreign national workers, to minimize unionization and avoid other rights accorded to “regular” workers. The nongovernmental Center for Trade Union and Human Rights contended that this practice led to a decline in the number of unions and workers covered by collective bargaining agreements. In August the president vetoed a proposed law that would have converted many of these temporary workers into regular workers. Employers also often abused contractual labor provisions by rehiring employees shortly after the expiration of the previous contract. The labor department reported multiple cases of workers alleging employers refused to bargain.

Unions continued to claim that local political leaders and officials who governed the Special Economic Zones (SEZs) explicitly attempted to frustrate union organizing efforts by maintaining union-free or strike-free policies. Unions also claimed the government stationed security forces near industrial areas or SEZs to intimidate workers attempting to organize and alleged that companies in SEZs used frivolous lawsuits to harass union leaders. Local SEZ directors claimed exclusive authority to conduct their own inspections as part of the zones’ privileges intended by the legislature. Employers controlled hiring through special SEZ labor centers. For these reasons, and in part due to organizers’ restricted access to the closely guarded zones and the propensity among zone establishments to adopt fixed term, casual, temporary, or seasonal employment contracts, unions had little success organizing in the SEZs. The DOLE does not have data on compliance with labor standards in SEZs.

In June the ILO noted that numerous cases of trade union murders and other acts of violence remained for which the presumed perpetrators have yet to have been identified and the guilty parties punished, even several years after the incidents.

In February union activists said that Pulido Apparel Company claimed financial difficulties to justify dismissing most of its workforce and then reopened and refused to hire workers with union ties.

b. Prohibition of Forced or Compulsory Labor

The law prohibits all forms of forced or compulsory labor. Legal penalties are sufficient to deter violations. The government did not effectively enforce the law.

Trade unions reported continued poor compliance with the law, due in part to the government’s lack of capacity to inspect labor practices in the informal economy. The government continued awareness-raising activities, especially in the provinces, in an effort to prevent forced labor. The DOLE’s efforts included an orientation program for recruits for commercial fishing vessels, who were among the workers most vulnerable to forced labor conditions.

Reports of forced labor by adults and children continued, mainly in fishing and other maritime industries, small-scale factories, gold mines, domestic service, agriculture, and other areas of the informal sector (see section 7.c.). Unscrupulous employers subjected women from rural communities and impoverished urban centers to domestic servitude, forced begging, and forced labor in small factories. They also subjected men to forced labor and debt bondage in agriculture, including on sugar cane plantations and in fishing and other maritime industries.

There were reports some persons who voluntarily surrendered to police and local government units in the violent antidrug campaign were forced to do manual labor or other activities that could amount to forced labor without charge, trial, or finding of guilt under law.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law prohibits employing children younger than age 15, including for domestic service, except under the direct and sole responsibility of parents or guardians, and sets the maximum number of working hours for them at four hours per day and no more than 20 hours per week. The law also prohibits the worst forms of child labor. Children between 15 and 17 are limited to eight working hours per day, up to a maximum of 40 hours per week. The law forbids the employment of persons younger than 18 in hazardous work. The minimum age for work is lower than the compulsory education age, enticing some children to leave school before the completion of their compulsory education.

Although the government imposed fines and instituted criminal prosecutions for law violations in the formal sector, such as in manufacturing, it did not effectively enforce the law consistently. Fines for child labor law violations were not sufficient to deter violations. From January to July, the DOLE, through its Sagip Batang Manggagawa (Rescue Child Laborers) program (part of the Health, Education, Livelihood, and Prevention, Protection, and Prosecution, Monitoring and Evaluation [H.E.L.P.M.E.] Convergence Program), conducted five operations and removed nine minors from hazardous and exploitative working conditions. As of July, the department closed four establishments for violations of child labor laws.

The government, in coordination with domestic NGOs and international organizations, continued to implement programs to develop safer options for children, return them to school, and offer families viable economic alternatives to child labor. The labor department continued its efforts to reduce the worst forms of child labor and to remove children from hazardous work under the H.E.L.P.M.E. Convergence Program. Additionally, in September an executive order created the National Council Against Child Labor, mandating it to fully implement existing child protection laws.

Despite these efforts, child labor remained a widespread problem. Previous cases reported to the DOLE centered in the service and agricultural sectors, notably in the fishing, palm oil, and sugar cane industries. Most child labor occurred in the informal economy, often in family settings. Child workers in those sectors and in activities such as gold mining, manufacturing (including of fireworks), domestic service, drug trafficking, and garbage scavenging faced exposure to hazardous working environments. In 2018 the DOLE issued two administrative orders related to child labor. One order harmonized the process of removing children from child labor, referring them to the appropriate agency, and assisting them with all necessary service(s) and intervention. The other created the Task Force Against Illegal Recruitment, Recruitment of Minor Workers, and Trafficking in Persons.

NGOs and government officials continued to report cases in which family members sold children to employers for domestic labor or sexual exploitation.

Online sexual exploitation of children and child soldiering also continued to be a problem (see sections 6 and 1.g., respectively).

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings .

d. Discrimination with Respect to Employment and Occupation

The law prohibits discrimination with respect to employment and occupation based on age, sex, race, creed, disability, HIV, tuberculosis, hepatitis B, or marital status. The law does not prohibit employment discrimination with respect to color, political opinion, national origin or citizenship, language, sexual orientation, gender identity, age, other communicable disease status, or social origin. While some local antidiscrimination ordinances exist at the municipal or city levels that prohibit employment discrimination against lesbian, gay, bisexual, and transgender–but not intersex–persons, there was no prohibition against such discrimination in national legislation.

The law requires most government agencies and government-owned corporations to reserve 1 percent of their positions for persons with disabilities; government agencies engaged in social development must reserve 5 percent. The law commits the government to providing “sheltered employment” to persons with disabilities, for example in workshops providing separate facilities. The labor department’s Bureau of Local Employment maintained registers of persons with disabilities that indicate their skills and abilities and promote the establishment of cooperatives and self-employment projects for such persons.

Persons with disabilities experienced discrimination in hiring and employment. The labor department estimated that only 10 percent of employable persons with disabilities were able to find work.

Between January and July, no cases were filed to enforce the law. The government did not effectively monitor laws prohibiting employment discrimination or regarding the employment of persons with disabilities. The effectiveness of penalties to prevent violations could not be assessed.

The government had limited means to assist persons with disabilities in finding employment, and the cost of filing a lawsuit and lack of effective administrative means of redress limited the recourse of such persons when prospective employers violated their rights. In 2016 an HIV-positive worker won a case against his employer for having been fired because of his HIV-positive diagnosis. The court ordered that the individual be reinstated and receive approximately 600,000 pesos ($11,200) in damages and back wages.

Discrimination in employment and occupation against LGBTI persons occurred; a number of LGBTI organizations submitted anecdotal reports of discriminatory practices that affected the employment of LGBTI persons. Discrimination cases included the enforcement of rules, policies, and regulations that disadvantaged LGBTI persons in the workplace. For example, in June a transgendered professor at the University of the Philippines disclosed that the reviewing committee denied her tenure application by citing both professional and interpersonal concerns. She believes her denial was due, in part, to her being transgender.

Women faced discrimination both in hiring and on the job. Some labor unions claimed female employees suffered punitive action when they became pregnant. Although women faced workplace discrimination, they continued to occupy positions at all levels of the workforce.

Women and men were subject to systematic age discrimination, most notably in hiring.

The government allowed refugees to work. A DOLE order affirmed refugees’ and stateless persons’ access to work permits. The Bureau of Immigration provided temporary work permits for persons with pending applications for refugee or stateless status upon endorsement by the RSPPU. The types of employment open to refugees and stateless persons were generally the same as those open to other legal aliens.

e. Acceptable Conditions of Work

As of May, tripartite regional wage boards of the National Wage and Productivity Commission had not increased the daily minimum wage rates for agricultural and nonagricultural workers. Minimum wages were below the poverty line.

The law did not cover many workers, since wage boards exempted some newly established companies and other employers from the rules because of factors such as business size, industry sector, export intensity, financial distress, and capitalization level.

Domestic workers worked under a separate wage and benefit system, which lays out minimum wage requirements and payments into social welfare programs, and mandates one day off a week. While there were no reliable recent data, informed observers believed two million or more persons were employed as domestic workers, with nearly 85 percent being women or girls as young as 15 years old.

Penalties for noncompliance with increases or adjustments in the wage rates as prescribed by law are a fine not exceeding 25,000 pesos ($467), imprisonment of one to two years, or both. In addition to fines, the government used administrative procedures and moral persuasion to encourage employers to rectify violations voluntarily. The penalties were not sufficient to deter violations. The government did not effectively enforce minimum wage or occupational safety and health laws.

By law the standard work week is 48 hours for most categories of industrial workers and 40 hours for government workers, with an eight hour per day limit. The law mandates one day of rest each week. The government mandates an overtime rate of 125 percent of the hourly rate on ordinary days, 130 percent on special nonworking days, and 200 percent on regular holidays. There is no legal limit on the number of overtime hours that an employer may require.

The law provides for a comprehensive set of occupational safety and health standards. Regulations for small-scale mining prohibit certain harmful practices, including the use of mercury and underwater, or compressor, mining. The law provides for the right of workers to remove themselves from situations that endangered health or safety without jeopardy to their employment. Most labor laws apply to foreign workers, who must obtain work permits and may not engage in certain occupations.

The DOLE’s Bureau of Working Conditions (BWC) monitors and inspects compliance with labor law in all sectors, including workers in the formal and informal sectors, nontraditional laborers, as well as inspects SEZs and businesses located there. The number of labor law compliance officers, who monitor and enforce the law, including by inspecting compliance with core labor and occupational safety standards and minimum wages, was insufficient for the workforce of 42 million, particularly in rural areas. ILO standards for developing countries suggest a need for approximately 2,800 labor inspectors–one inspector for every 15,000 workers. The labor department prioritized increasing the number of officers while acknowledging that insufficient inspection funds continued to impede its ability to investigate labor law violations effectively, especially in the informal sector and in small- and medium-size enterprises.

The DOLE continued to implement its Labor Laws Compliance System for the private sector. The system included joint assessments, compliance visits, and occupational safety and health standards investigations. Labor department inspectors conducted joint assessments with employer and worker representatives; inspectors also conducted compliance visits and occupational safety and health standards investigations. The labor department and the ILO also continued to implement an information management system to capture and transmit data from the field in real time using mobile technology. Violations from January to July included 10,950 for general labor standards, 4,480 for violations of minimum wage rates, and 20,585 for occupational safety and health standards. Following a deficiency finding, the labor department may issue compliance orders that can include a fine or, if the deficiency poses a grave and imminent danger to workers, suspend operations. DOLE-BWC closed six establishments, rescuing 13 minors, for child labor violations as of July.

During the year various labor groups criticized the government’s enforcement efforts, in particular the DOLE’s lax monitoring of occupational safety and health standards in workplaces. Between January and July, the BWC recorded 27 work-related accidents that caused 26 deaths and 35 injuries. Statistics on work-related accidents and illnesses were incomplete, as incidents were underreported, especially in agriculture.

Violations of minimum wage standards were common. Many firms hired employees for less than minimum wage apprentice rates, even if there was no approved training in their work. Complaints about payment under the minimum wage and nonpayment of social security contributions and bonuses were particularly common at companies in the SEZs.

A DOLE order sets guidelines on the use of labor contracting and subcontracting. Some labor unions, however, criticized the order for not ending all forms of contractual work. On July 26, President Duterte vetoed the Security of Tenure Bill, which would have added limits to the use of contract workers, and requested another version of the bill from the Senate and House of Representatives to be filed. The DOLE is also filing its own version.

There were also gaps and uneven applications of the law. Media reported problems in the implementation and enforcement of the domestic worker’s law, including a tedious registration process, an additional financial burden on employers, and difficulty in monitoring employer compliance.

The government and several NGOs worked to protect the rights of the country’s overseas citizens, most of whom were Philippine Overseas Employment Agency (POEA) contract or temporary workers. Although the POEA registered and supervised domestic recruiter practices, authorities often lacked sufficient resources to provide complete worker protection overseas. The Overseas Worker Welfare Administration provides support to overseas workers in filing grievances against employers via its Legal Assistance Fund. The fund covers administrative costs that would otherwise prevent overseas workers from filing grievance complaints. Covered costs include fees for court typing and translation, visa cancellation, and contract termination.

The government continued to place financial sanctions on, and bring criminal charges against, domestic recruiting agencies found guilty of unfair labor practices. From January to July, the POEA reported the closure of four unlicensed companies.

a. Freedom of Association and the Right to Collective Bargaining

The law protects the rights of workers to form and join independent unions, to conduct legal strikes, and to bargain collectively. There are certain restrictions on the right to strike for government workers, imposed principally for reasons of public safety. The law states that a public sector employee who engages in a strike or any other industrial action is considered “dismissed from…employment.” The law prohibits antiunion discrimination, such as contract conditions that restrict free association. The law addresses a range of fundamental rights and includes the establishment of a national tripartite forum that serves as the governing body for labor and employment matters in the country.

The government effectively enforced laws on unionization, and the government generally respected freedom of association. Penalties were sufficient to deter violations. The Public Service Association functioned as a union for all government workers. Unions generally conducted their activities free from government interference.

Workers exercised the right to organize and bargain collectively. The Public Service Association engaged in collective bargaining on behalf of government workers, including on wages. Arbitration and mediation procedures were in place to resolve labor disputes, although such disputes rarely arose. The government has the right to dissolve unions without going to court, a provision of the law criticized by the International Labor Organization (ILO).

There were no reports of strikes.

b. Prohibition of Forced or Compulsory Labor

The law prohibits forced or compulsory labor, and the government generally enforced such laws. There is an exception in the constitution for service required by local custom. A key feature of the matai system is that non-matai men perform work in their village in service to their families, church, or the village as a whole. Most persons did so willingly, but the matai may compel those who do not wish to work, including children.

The government did effectively enforce the law. The law states that forced labor is punishable by penalties sufficient to deter violations. Aside from the cultural exception noted above and street vending by children, forced labor was not considered a problem. The Ministry of Commerce, Industry, and Labor received no complaints and found no violations of forced labor during inspections conducted.

c. Prohibition of Child Labor and Minimum Age for Employment

The law does not prohibit all of the worst forms of child labor. The ILO noted that the law does not effectively prohibit the procuring or offering of children between the ages of 16 and 18 for the production of indecent materials. The law also does not specifically prohibit the use, procuring or offering of a child for illicit activities, in particular for the production and trafficking of drugs.

The law prohibits employing children ages 12-14 except in “safe and light work.” The government issued a public notice clarifying the hazardous work occupations prohibited for children under age 18.

The law does not apply to service rendered to family members or the matai, some of whom required children to work for the village, primarily on family farms. The law prohibits any student from engaging in light or heavy industrial activity during school hours of 8 a.m. to 2 p.m.

The law restricts vending by school-aged children (younger than age 14) if it interferes with their school attendance, participation in school activities, or educational development. This law is effectively enforced in the formal economy, but only minimally enforced in the informal economy in areas such as child street vending, which takes place at all hours of the day and night. Children frequently sold goods and food on street corners. The problem of child street vending attracted significant media coverage and public outcry. There were no reliable statistics available on the extent of child labor, but it occurred largely in the informal sector.

The extent to which children had to work on village farms varied by village, although anecdotal accounts indicated the practice was common. Younger children primarily did yard work and light work such as gathering fruit, nuts, and plants. Some boys began working on plantations as teenagers, helping to gather crops such as coconuts and caring for animals. Some children reportedly had domestic service employment.

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings .

d. Discrimination with Respect to Employment and Occupation

The law prohibits discrimination, direct or indirect, against an employee or an applicant for employment based on ethnicity, race, color, sex, gender, religion, political opinion, national extraction, sexual orientation, social origin, marital status, pregnancy, family responsibilities, real or perceived HIV status, and disability.

The government effectively enforced the law, and penalties were sufficient to deter violations. The Labor Ministry received one complaint regarding unfair hiring practices during the year. The hiring and recruiting process for the private sector is outside of the scope of the Labor and Employment Relations Act. No cases drew public attention.

To integrate women into the economic mainstream, the government sponsored numerous programs, including literacy and training programs.

e. Acceptable Conditions of Work

There were separate minimum wage scales for the private and public sectors. Both minimum wages were below the official estimate of the poverty income level for a household. The government effectively enforced wage laws, and penalties were sufficient to deter violations. Approximately 75 percent of the working population worked in the subsistence economy and had no formal employment.

The law covers private and public sector workers differently. For the private sector, the law specifies overtime pay at time and a half, with double time for work on Sunday and public holidays. For the public sector, there is no paid overtime, but authorities give compensatory time off for overtime work.

The law establishes certain rudimentary safety and health standards for workplaces, which the labor ministry is responsible for enforcing. The law also covers nonworkers who are lawfully on the premises or within the workplace during work hours. The law contains provisions for the identification and assessment of, and risk control for, workplace hazards and hazardous substances. In January the Labor Ministry issued a public notice clarifying the list of hazardous work prohibited for children.

Safety laws do not generally apply to agricultural service rendered to the matai or work in a family enterprise. Government employees have coverage under different and more stringent regulations, which the Public Service Commission enforced adequately.

Independent observers reported that the Labor Ministry did not strictly enforce safety laws, except when accidents highlighted noncompliance. It investigated work accidents when it received reports. The number of inspectors was generally sufficient to deter violations. Penalties were sufficient to deter violations.

Many agricultural workers had inadequate protection from pesticides and other dangers to health. Government education and awareness programs sought to address these concerns by providing appropriate training and equipment to some agricultural workers.

The Labor Ministry investigates any potential labor law violations in response to complaints. The police and education ministries may assist if needed; the PSC handles all government labor matters.

The commissioner of labor investigates reported cases of hazardous workplaces. Workers are legally able to remove themselves from situations that endanger health or safety without jeopardy to their employment.

a. Freedom of Association and the Right to Collective Bargaining

The law provides for the right of most workers to form and join trade unions. Workers have the legal right to strike and to bargain collectively. The law prohibits antiunion discrimination.

Parliament may impose restrictions on the right of association based on security, public order, or morality grounds. The Ministry of Manpower also has broad powers to refuse to register a union or to cancel a union’s registration. Laws and regulations restrict freedom of association by requiring any group of 10 or more persons to register with the government. The law also restricts the right of uniformed personnel and government employees to organize, although the president may grant exemptions. Foreigners and those with criminal convictions generally may not hold union office or become employees of unions, but the ministry may grant exemptions.

The law requires more than 50 percent of affected unionized workers to vote in favor of a strike by secret ballot, as opposed to 51 percent of those participating in the vote. Workers in “essential services” are required to give 14 days’ notice to an employer before striking, and there is a prohibition on strikes by workers in the water, gas, and electricity sectors.

Unions were unable to carry out their work without interference from the government or political parties. The law limits how unions may spend their funds, prohibiting, for example, payments to political parties or the use of funds for political purposes, and restricts the right of trade unions to elect their officers and choose their employees.

Almost all unions were affiliated with the National Trade Union Congress (NTUC), an umbrella organization with a close relationship with the government and the ruling PAP. The NTUC secretary-general was a cabinet minister and four PAP members of parliament were in NTUC leadership positions. NTUC policy prohibited union members who supported opposition parties from holding office in its affiliated unions.

Collective bargaining was a routine part of labor-management relations in all sectors. Because nearly all unions were its affiliates, the NTUC had almost exclusive authority to exercise collective bargaining power on behalf of employees. Union members may not reject collective agreements negotiated between their union representatives and an employer. Although transfers and layoffs are excluded from the scope of collective bargaining, employers consulted with unions on both issues.

Foreign workers constituted approximately 15 percent of union members. Labor NGOs also filled an important function by providing support for migrant workers, including legal aid and medical care, especially for those in the informal sector.

b. Prohibition of Forced or Compulsory Labor

The law does not define “forced labor,” but the government used the definition found in International Labor Organization Convention 29. Under the law, destitute persons can be compelled to work.

The government enforced the law, although it was more likely to prosecute employers for less serious employment infringements than those of domestic servitude or bonded labor. Penalties included prison terms and fines, which were usually sufficient to deter violations. The government took law enforcement action against employers for workplace violations, including for nonpayment of salaries, serious safety violations, and abuse or mistreatment of foreign domestic workers. It also investigated and imposed fines on some employment agencies for committing other illegal practices. The Ministry of Manpower reported, for example, that in March an employment agency lost its license and was fined S$48,000 ($34,800) for advertising 49 foreign domestic workers on an online marketplace in an undignified light, as if they were commodities. Given the number of low-paid foreign workers in the country, however, outside observers believe that many cases of abuse were undetected.

Practices indicative of forced labor, including the withholding of wages and passports, occurred. Migrant workers in low-wage and unskilled sectors such as domestic work, hospitality, and construction were vulnerable to labor exploitation.

The law caps the fees payable by foreign domestic workers to employment agencies in the country at one month’s salary per year of the employment contract not to exceed two months’ salary, irrespective of the duration of the contract. Observers noted that unscrupulous agencies in migrant workers’ countries of origin could charge exorbitant fees.

Some observers also noted that the country’s employer sponsorship system made legal migrant workers vulnerable to forced labor because there are limited circumstances in which they may change employers without the consent of their employer.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law prohibits all of the worst forms of child labor. The law prohibits employment of children younger than 13 years. A child age 13 or older may engage in light work in a nonindustrial undertaking, subject to medical clearance. Exceptions include work in family enterprises; a child 13 or older may only work in an industrial undertaking that employs members of his or her family. Ministry of Manpower regulations prohibit night employment of children and restrict industrial work for children between 15 and 16. Children younger than 15 may not work on commercial vessels, with moving machinery, on live electrical apparatus lacking effective insulation, or in any underground job, and normally they are prohibited from employment in the industrial sector.

The Ministry of Manpower effectively enforced these laws and regulations. Employers who violated laws related to child labor were subject to fines, imprisonment, or both, penalties that were sufficient to deter violations. Government officials asserted that child labor was not a significant problem.

The incidence of children in formal employment was low, although some children worked in family enterprises.

d. Discrimination with Respect to Employment and Occupation

The constitution provides for equality in employment. No specific antidiscrimination legislation exists, although some statutes prohibit certain forms of discrimination. For example, employers may not dismiss female employees during pregnancy or maternity leave, and employers may not dismiss employees solely due to age, gender, race, religion, nationality, marital status, family responsibilities, disability, or medical condition.

The Ministry of Manpower’s Fair Consideration Framework requires all companies to comply with the Tripartite Guidelines on Alliance for Fair and Progressive Employment Practices and have employment practices that are open, merit based, and nondiscriminatory. These guidelines call for eliminating language referring to age, race, gender, religion, marital status, family responsibilities, and disability in employment advertisements. Employers are required to provide explanations for putting requirements such as specific language skills in the job advertisement. Penalties for violation of government guidelines are at the discretion of the ministry. There were no similar government guidelines with respect to political opinion, sexual orientation, or HIV or other communicable disease status.

The Tripartite Alliance for Fair and Progressive Employment Practices received complaints of employment discrimination, largely due to the preference to hire foreigners over citizens.

In January, President Halimah Yacob announced the formation of a Council for Board Diversity, which aims to increase the proportion of women on the boards of listed companies, public sector entities, nongovernmental organizations and charities. The council replaced a committee that focused on women’s representation on large listed companies. As of June the council reported that women’s representation on boards of the largest 100 companies listed on the Singapore Exchange was 15.7 percent, while women filled 24.5 percent of positions on statutory boards, and 27.4 percent of those on registered nongovernment organizations and charities.

Some ethnic Malays and Indians reported that discrimination limited their employment and promotion opportunities. There were also some reports of discrimination based on disability, pregnancy, and sexual orientation or gender identity. Pregnancy is a breach of the standard work permit conditions for foreign workers, and the government cancels work permits and requires repatriation of foreign domestic workers who become pregnant.

e. Acceptable Conditions of Work

The law does not specify a national minimum wage for all sectors of the economy. The government has set minimum wages in the cleaning, landscaping, elevator maintenance, and security services sectors as a requirement to obtain a business license. The majority of these wages were below the unofficial poverty line determined by the National University of Singapore’s Social Service Research Center.

The law sets the standard legal workweek at 44 hours, and requires employers to apply for an overtime exception from the Ministry of Manpower for employees to work more than 72 hours of overtime per month. Workplace protection including paid sick leave, mandatory annual leave, and protection against wrongful dismissal is available to all private sector employees, except domestic workers and seafarers who are covered under separate laws. The law also mandates benefits for part-time employees, defined as those working 35 hours or less.

The law establishes a framework for workplaces to comply with occupational safety and health standards, and regular inspections enforced the standards. Officials encouraged workers to report situations that endanger health or safety to the ministry, but the law does not specifically protect the right of workers to remove themselves from a hazardous working environment.

The Ministry of Manpower effectively enforced laws and regulations establishing working conditions and comprehensive occupational safety and health regulations. Penalties for violating these regulations–fines and stop-work orders–were sufficient to deter violations. The number of inspectors was sufficient to deter violations. During the year, the ministry continued to promote training to reduce the frequency of job-related accidents in high-risk sectors such as construction, and authorities provided tax incentives to firms who introduced hazard control measures. Workplace fatalities in the first six months of the year were the lowest since 2006, when statistics first became publicly available. This continues a downward trend in the number of workplace fatalities, although the number of reported injuries has been relatively constant. The government also enforced requirements for employers to provide one rest day per week or compensation for foreign domestic workers.

In September, Ong Chin Chong, the sole proprietor of a transport firm, was fined S$140,000 ($102,000) for a fatal accident resulting from unsafe lifting operations that he supervised. Authorities found that Ong used unsafe equipment and had not provided training for the men on how to perform their roles. Authorities also issued a S$60,000 ($43,500) fine to Unipac, the firm for which Ong was a contractor, and a S$160,000 ($116,000) fine to Sunway, the occupier of the worksite, for failing to ensure that lifting operations were properly conducted on its premises. Ong’s fine was the highest imposed on an individual prosecuted for unsafe working conditions, for which the maximum sentence is a S$200,000 ($145,000) fine, up to two years’ imprisonment, or both.

In September parliament passed the Work Injury Compensation Act, which will take full effect in September 2020. The new law incentivizes companies to prevent workplace injuries by permitting employers with better safety records to pay lower premiums, expedites the benefit claim process for workers, and increases the size of benefit payouts to injured workers.

The Tripartite Alliance for Dispute Management, which includes the Ministry of Manpower, unions, and the employers’ federation, offers advice and mediation services to help employees and employers to manage employment disputes. The Labor Relations and Workplaces Division of the Ministry of Manpower provided free advisory services to both foreign and local workers who experienced problems with employers; it provided mediation services for a fee. The ministry operated a hotline for foreign domestic workers.

The majority of foreign workers were concentrated in low-wage, low-skill jobs and were often required to work long hours in construction, shipbuilding, services, and domestic work.

The majority of foreign domestic workers, mainly from the Philippines and Indonesia, worked under clearly outlined contracts. Any employer of a foreign domestic worker or a member of the employer’s family, if convicted of certain offenses against the worker, such as causing hurt or insulting the modesty of the worker, is liable to a maximum penalty of one and one-half times the mandated penalty when the victim is not a domestic worker. Nevertheless, there were reports of employers abusing or mistreating such workers (see section 7.b.).

a. Freedom of Association and the Right to Collective Bargaining

The law provides for the right of workers to form and join unions, conduct legal strikes, and bargain collectively. The law prohibits antiunion discrimination but does not specifically provide for reinstatement of workers fired for trade union activity. The law permits strikes in both the public and private sectors. A notice to the government 28 days prior to a strike is required for strikes to be legal. The government has discretionary power in relation to cancelation and suspension of registration of unions, a power which can take effect even in the case of judicial review.

The government prohibits strikes by civil servants in essential services, but there are procedures in place to provide these workers due process and protect their rights. The government defines essential services as including, but not limited to, the health, public security, aviation, marine, immigration, and disaster-relief sectors. The law does not provide for the rights of workers in the informal sector to organize or to collective bargaining. In addition the law places limits on the rights of workers to act as union representatives based on age, literacy, criminal record, and membership in more than one union.

Government enforcement of the law was inconsistent; the small penalties were not sufficient to deter violations. The penalty for antiunion discrimination was not effective, for example, because employers could afford to pay the fine and easily replace workers. Penalties for illegal strikes, on the other hand, served as a deterrent for employees to strike.

Collective bargaining agreements determined wages and conditions of employment in the formal economy. Disputes between labor and management not settled between the two sides were referred to the Trade Disputes Panel for arbitration, either before or during a strike. While the panel deliberates, employees have protection from arbitrary dismissal or lockout. The three-member panel, composed of a chairperson appointed by the judiciary, a labor representative, and a business representative, is independent and neutral. The panel’s decisions are binding on the parties. Administrative and judicial procedures were not subject to lengthy delays or appeals.

Workers exercised their rights to associate and bargain collectively, although employers did not always respect these rights. Since only a small percentage of the workforce was in formal-sector employment, employers could easily replace workers if disputes were not resolved quickly.

In 2018 the Solomon Islands Nurses Association issued a strike notice to the government for not honoring a 2008 agreement to improve working conditions. The government agreed to review the agreement, and the union withdrew the strike notice. In February nurses threatened to strike again after the government failed to honor the understanding from 2018.

The Workers Union of Solomon Islands actively negotiated with private employers during the year.

b. Prohibition of Forced or Compulsory Labor

The constitution prohibits all forms of forced or compulsory labor, except as part of a court sentence or order. The government did not effectively enforce the law. The immigration act prohibits transnational forced labor, and the penalties are sufficient to deter violations. Penalties for forced labor which is not transnational are sufficient to deter violations.

The government typically relied on labor inspectors to report on any instances of forced or compulsory labor during regularly scheduled routine inspections; however, there were not enough inspectors or resources to enforce the laws effectively. The government continued its efforts to monitor and investigate operations at logging companies, although it did not initiate any prosecutions.

There were reports of children and adults forced to work in logging camps and of children in domestic servitude or service industries. Local and foreign fishermen reported situations indicative of labor trafficking, including nonpayment of wages, severe living conditions, violence, and limited food supply on Taiwan-flagged fishing vessels in the country’s territorial waters and ports.

Also see the Department’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law prohibits labor by children younger than age 12, except light agricultural or domestic work performed in the company of parents, or other labor approved by the commissioner of labor. Children younger than age 18 may not work at night in any industry without specific written permission from the labor commissioner. Girls younger than age 18 may not work on a ship or underground in mines; boys may work on a ship or underground in a mine if they are at least 16 years old, provided they have a medical certificate attesting they are fit for such work. The law bars children younger than age 15 from work in industry or on ships, except aboard training ships for educational purposes. The law does not limit the number of hours a child can work, nor does it clearly set forth a minimum age for hazardous work or delineate the type of work considered hazardous for all children. Not all of the worst forms of child labor are prohibited. The law does not specifically outlaw the use, procuring, or offering of a child younger than age 18 for the production and trafficking of drugs.

The commissioner of labor is responsible for enforcing child labor laws, but the resources devoted to investigating child labor cases were inadequate to investigate or deter violations. The law provides for penalties that are insufficient to deter violations.

Children worked in agriculture, fishing, alluvia mining, as domestic servants, cooks, and in logging camps where conditions often were poor. For example, young girls worked long hours and in isolation as domestic workers in mining camps. In some cases these conditions could amount to forced labor (see section 7.b.). There were reports of commercial sexual exploitation of children (see section 6, Children). Children also assisted in cultivating, distributing, and selling local drugs such as betel nut or marijuana. They were at risk of physical abuse, mental illness, addiction, sexual abuse, and robbery.

According to the Solomon Islands Demographic and Health Survey, 2 percent of children age five to 11 years and 12 percent of children age 12 to 14 were engaged in paid labor. Paid child labor was more common among female children in urban areas and all children living in rural areas.

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings .

d. Discrimination with Respect to Employment and Occupation

No laws prohibit discrimination in employment and occupation. By regulation public service officers should ensure their workplace is “free from harassment, including sexual harassment.” Discrimination in employment and occupation occurred on grounds of gender, disability, language, sexual orientation and gender identity, and HIV-positive status.

Women experienced discrimination especially in the attainment of managerial positions. Employed women were predominantly engaged in low-paying and low-skilled jobs. A significant gender gap exists in senior positions. For example, women dominated the lower administrative level on the public-service workforce, but very few women held senior management positions. A shortage of jobs compounded the limited entry and advancement opportunities for women in the workforce. A program, “Waka Mere” (She Works), funded and implemented by the International Finance Corporation, Australia, and New Zealand, worked with businesses to promote gender equality in the private sector.

e. Acceptable Conditions of Work

In August the minimum wage was increased and is above the poverty level. The proportion of the population living below the food poverty line was 4.4 percent. The standard workweek is 45 hours and is limited to six days per week.

Occupational safety and health laws require employers to provide a safe working environment and forbid retribution against any employee who seeks protection under labor regulations. These laws are current and appropriate for main industries. Laws on working conditions and safety standards apply equally to foreign workers and citizens. Penalties are sufficient to deter violations. Some workers could not remove themselves from situations that endangered their health or safety, particularly in the fishing and logging industries, without jeopardy to their employment.

The commissioner of labor in the Ministry of Commerce, Industry, Labor and Immigration, the public prosecutor, and police are responsible for enforcing labor laws; however, they usually reacted to complaints rather than routinely monitoring adherence to the law. The government did not effectively enforce labor laws. The government’s minimal human and financial resources limited its ability to enforce the law in smaller establishments, the informal economy, and the subsistence sector. The number of labor inspectors was, moreover, insufficient to monitor labor practices routinely, particularly in extractive sectors outside of the capital. An active labor movement and an independent judiciary, however, helped provide effective oversight of labor law enforcement in major state and private enterprises. The law does not specify penalties for violations, significantly weakening effective enforcement.

Workers in the logging, construction, and manufacturing industries were subject to hazardous and exploitative work. Accidents were largely due to negligence or failure to adhere to safety practices by employees and employers.

a. Freedom of Association and the Right to Collective Bargaining

The law provides for the right of workers to form and join independent unions, conduct strikes, and bargain collectively. The law allows foreign workers to form and join unions and to serve as union officers. The law establishes three types of unions: enterprise unions, industrial unions, and professional unions. Enterprise unions are responsible for negotiating the immediate labor rights and entitlements of enterprise-level “collective agreements.” A minimum of 30 members is required to form an enterprise union; there may only be one union per enterprise. Employees in companies with fewer than 30 workers may only join a professional union or an industrial union to exercise their rights. This applied to approximately 78 percent of employees of small and medium sized enterprises. Industrial unions help to link workers in the same industry. Professional unions are geographically constrained within municipal boundaries.

The law prohibits discrimination, dismissal, or other unfair treatment of workers for union-related activities and requires reinstatement of workers fired for trade union activity. Employees hired through dispatching agencies (i.e., temporary workers) do not have the right to organize and bargain collectively in the enterprises where they work. In May the Labor Standards Act was modified to provide job security measures to, and identify the liability of enterprises and dispatching agencies for, temporary workers, particularly the responsibility for occupational injury and the presumption of indefinite and nontransferrable contract.

The right to strike remained highly regulated. Teachers, civil servants, and defense industry employees do not have the right to strike. Workers in industries such as utilities, hospital services, and telecommunication service providers are allowed to strike only if they maintain basic services during the strike. Authorities may prohibit, limit, or break up a strike during a disaster. For all workers, the law divides labor disputes into “rights disputes” and “adjustment disputes.” Workers are allowed to strike only in adjustment disputes, which include issues such as compensation and working schedules. The law forbids strikes in rights disputes related to violations of collective agreements and employment contracts.

The law requires mediation of labor disputes when authorities deem them sufficiently serious or involving unfair practices. Most labor disputes involved wage and severance issues. Local labor authorities were the usual venue to settle disputes by either mediation or arbitration, which is referred to as the alternative dispute resolution. Mediation, which accounted for 95 percent of all cases in 2018, provided a civil resolution and cost-effective way to reach a settlement, usually within 20 days. Arbitration, with legally binding obligations, generally took between 45 and 79 working days to finalize, which was often too lengthy for cases requiring urgent remedies. The law prohibits labor and management from conducting strikes or other acts of protest during conciliation or arbitration proceedings. Labor organizations said this prohibition impeded workers’ ability to exercise their right to strike.

The Ministry of Labor oversees implementation and enforcement of labor laws, in coordination with local labor affairs bureaus. Authorities effectively enforced laws providing for the freedom of association and collective bargaining. A labor ministry arbitration committee reviewed cases of enterprises using discriminatory or improper action to repress union leaders and their activities, and authorities subjected violators to fines or restoration of employee’s duties. Such fines, however, generally were not sufficient to deter violations, especially for financial sectors. Among 12 arbitrated cases with China Airlines as of October, six were appealed by the enterprise; two of them, with a restoration order, have yet to be complied with.

Large enterprises frequently made it more difficult for employees to organize an enterprise union by using such methods as blacklisting the union organizers from promotion or relocating them into other work divisions. These methods were particularly common in the technology sector. For example, there was only one enterprise union in the entire Hsinchu Science Park. With the exception of the banking industry, industrial unions were also underdeveloped.

Authorities encouraged collective bargaining agreements to provide better terms and conditions than the law stipulates. For example, the High-Speed Rail Trade Union successfully won back overtime payments through collective bargaining. The implementation of collective bargaining is still inconsistent. For example, after inspections, the Financial Supervisory Commission removed the chairpersons of certain financial holdings companies from their firms’ independent salary review committees.

Professional unions have grown more influential in collective bargaining. For example, the Taoyuan pilots’ professional union began a strike in February to win better safety provisions for pilots on “red-eye” routes. In August the Taoyuan flight attendants’ professional union went on strike on behalf of EVA Air flight attendants, which became Taiwan’s longest strike on record, lasting 17 days before reaching an agreement.

b. Prohibition of Forced or Compulsory Labor

The law prohibits all forms of forced or compulsory labor. The law prescribes penalties for forced labor, and the government effectively enforced the law, but courts delivered light sentences or fines in most forced labor convictions. Such penalties were inadequate to serve as an effective deterrent. Authorities continued public-awareness campaigns, including disseminating worker-education pamphlets, operating foreign-worker hotlines, and offering Ministry of Education programs on labor trafficking as part of the broader human rights curriculum. According to the National Immigration Agency, 13 forced labor cases were opened, and a further five individuals were convicted in the first seven months of the year.

Labor laws do not cover domestic household workers, leaving them vulnerable to exploitation. Forced labor occurred primarily in the domestic service, fishing, farming, manufacturing, and construction sectors. Foreign workers were most susceptible to forced labor, especially when serving as crew members on Taiwan-flagged fishing vessels. Some labor brokers charged foreign workers exorbitant recruitment fees and used debts incurred from these fees in the source country as tools of coercion to subject the workers to debt bondage (see section 7.e.). Authorities ordered six brokers convicted of illegal activities in 2018 to close; however, there was no legal prohibition against reopening a business through a proxy that registers as a new company. In November 2018 the Employment Services Act was modified to require brokers to report to law enforcement authorities within 24 hours if they learn of an employer mistreating a foreign worker. Penalties were not sufficient to deter violations, although authorities sought to enforce the law.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law prohibits all the worst forms of child labor. The law prohibits work by children younger than 15 years without approval from appropriate authorities after an evaluation of the nature of the work to be performed, the working environment, and other factors. The law prohibits children younger than 18 from doing heavy or hazardous work. Working hours for children are limited to eight hours per day, and children may not work overtime or on night shifts.

Authorities effectively enforced minimum age laws. Employers who violate minimum age laws face a prison sentence, fines, or both, which was sufficient to deter violations.

d. Discrimination with Respect to Employment and Occupation

The law prohibits discrimination with respect to employment and occupation. The law prohibits potential employers from requesting medical reports from job candidates to prove they do not have HIV or other communicable diseases. The law forbids termination of employment because of pregnancy or marriage.

Workers who encounter discrimination can file complaints with two independent committees composed of scholars, experts, and officials in city and county departments of labor affairs. Local labor affairs bureaus are empowered to intervene and investigate discrimination complaints. Authorities enforced decisions made by those committees. Employers can appeal rulings to the Ministry of Labor and the Administrative Court.

Latest available statistics showed that among the 201 sex discrimination cases reported in 2017, the majority involved forced resignations due to pregnancy. 141 sexual harassment cases and 118 unfair treatment or work equality cases were reported the same year. Scholars said these numbers significantly understated the problem due to workers’ fear of retaliation from employers and difficulties in finding new employment if the worker has a history of making complaints.

Persons with “minor” disabilities who have not applied for proof of disability from the government are nonetheless protected against employment discrimination. The Ministry of Labor imposes fines of between NT$300,000 and NT$1.5 million ($9,770 and $48,900) on employers who discriminate against this category of disabled workers or job seekers.

The law requires 3 percent of the workforce in the public sector and 1 percent of the workforce in the private sector to be persons with disabilities. In 2018, 4.3 percent of the public sector workforce were persons with disabilities; the private sector continued to fall short of the regulated target. The unemployment rate for persons with disabilities was three times higher than that for persons without disabilities.

e. Acceptable Conditions of Work

The minimum wage is above the poverty line. There is no minimum wage for workers in categories not covered by the law, such as management employees, medical doctors, healthcare workers, gardeners, bodyguards, self-employed lawyers, civil servants, contractors for local authorities, and domestic household workers.

The law stipulates an eight-hour workday and 40-hour work week and allows up to 54 hours per month overtime. The mandatory rest interval for shift work is eight hours in certain sectors, provoking health and safety concerns. The permissible number of consecutive working days is 12 in two weeks. Employees in the “authorized special categories” approved by the Ministry of Labor are exempt from regular working hours stipulated in the law. These categories include security guards, flight attendants, insurance salespersons, real estate agents, nursery school teachers, ambulance drivers, hospital workers, media journalists, and public transport drivers.

Religious leaders continued to raise concerns the law did not guarantee a day off for domestic workers and caregivers, which limited their ability to attend religious services. This problem was particularly salient among the 235,000 foreign caregivers and household workers, predominantly from Indonesia and the Philippines, many of whom are Muslim or Christian and want to, or believe they must, attend religious services on a certain day of the week.

The law sets occupational safety and health standards that are appropriate for the main industries in the country. Employers are not subject to criminal charges if an employee is involved in a fatal accident due to unsafe working conditions. The freight and passenger transportation industries saw higher than average accident rates among drivers working overtime. Their employers often sought to transfer legal liability from the company to the driver.

Labor inspections conducted by local governments and specified agencies are regulated by the labor inspection law; but due to relatively weak enforcement, labor inspections often failed to serve as an effective deterrent against labor law violations and unsafe working conditions. Authorities can fine employers and withdraw their hiring privileges for violations of the law, and the law mandates publicizing the names of offending companies. The number of inspectors was not sufficient to deter violations.

The Ministry of Labor operated a Foreign Worker Direct Hire Service Center and an online platform to allow employers to hire foreign workers without using a broker. The Taiwan International Workers’ Association maintained, however, that red tape in the system continued to enable brokers to extract profits from foreign workers and prevented the Service Center from achieving widespread implementation. Regulations require inspection and oversight of foreign labor brokerage companies.

The Ministry of Labor may also permit foreign workers to transfer to new employers in cases of exploitation or abuse. Authorities also introduced several measures to reduce such exploitation. For example, authorities eliminated the requirement that foreign workers leave Taiwan every three years between re-employment contracts.

Taiwan authorities maintained a 24-hour toll-free “1955” hotline service in five languages (Mandarin, English, Indonesian, Thai, and Vietnamese) available for all foreign workers to obtain free legal advice, request urgent relocation and protection, report abuse by employers, file complaints about delayed salary payments, and make general inquiries. All cases reported are registered in the system for law enforcement to track and intervene if necessary. Among the 187,338 calls, the hotline helped 5,162 foreign workers to reclaim a total of NT$139 million ($4.53 million) in salary payments in 2018. Foreign workers’ associations maintained that in spite of the existence of the hotline and the authorities’ record of effective response, foreign workers often were reluctant to report employer abuses for fear the employer would terminate the contract and deport them, leaving them unable to reimburse debt accrued during the recruitment process.

The approximately 703,000 foreign workers, primarily from Indonesia, the Philippines, Thailand, and Vietnam, were vulnerable to exploitation. Foreign workers generally incurred significant debt burdens during the recruitment process due to excessive brokerage fees, guarantee deposits, and higher charges for flights and accommodations. Brokerage agencies, for example, often required their clients to take out loans for “training” and other fees at local branches of Taiwan banks in their home countries at high interest rates. Abuse was common in domestic service; there were several reports of employers raping foreign domestic helpers. In some instances, the victims were unable to leave until they paid off debts to employment brokers. Locally operated service centers, which briefed foreign workers on arrival, maintained a hotline for complaints and assistance and funded and operated shelters to protect abused workers. NGOs reported that the monthly take-home pay of some domestic workers was as low as 6.7 percent of the official poverty level.

Mistreatment and poor working conditions for foreign fishermen remained common. Foreign fishermen recruited offshore were not entitled to the same labor rights, wages, insurance, and pensions as those recruited locally. For example, the Control Yuan in 2018 issued a “correction verdict” to the Fisheries Agency and the Kaohsiung City Marine Bureau for their mismanagement and inaction when it became aware that the fishing vessel Fuh Sheng 11 subjected its Indonesian crewmembers to inhuman treatment.

Regulations only require a minimum monthly wage of $450 for foreign fishermen, significantly below the minimum wage on the island. Moreover, NGOs reported foreign fishing crews on Taiwan-flagged long-haul vessels generally received wages below $450 per month because of dubious deductions for administrative fees and deposits. Several NGOs, including the Taiwan International Workers Association, advocated abolishing the separate hiring system for foreign fishermen. In response the Fisheries Agency dispatched officers to the United States, Samoa, Mauritius, Fiji, Palau, South Africa (Cape Town), and Marshall Islands to monitor labor conditions on Taiwan-flagged long-haul fishing vessels when they dock at these ports. These officers used a multilingual questionnaire to interview foreign fishermen and examine labor conditions on board.

a. Freedom of Association and the Right to Collective Bargaining

The constitution provides that a person shall enjoy the liberty to unite and form an association, cooperative, union, organization, community, or any other group. Labor laws guarantee the rights of workers in private-sector and state-owned enterprises (SOE) to organize trade unions and engage in collective bargaining. Civil servants have the liberty to assemble as a group, provided that such assembly does not affect the efficiency of national administration and continuity of public services and does not have a political objective.

Among wage and salary workers, 3.5 percent are unionized and only 34 out of 77 provinces have labor unions.

The law allows private-sector workers to form and join trade unions of their choosing without prior authorization, to bargain collectively, and to conduct legal strikes, although these rights come with restrictions. For example, workers have the rights to strike legally if they have notified the authorities 24 hours in advance, if a demonstration is not on public roads, and if it does not violate any laws.

When bargaining collectively, workers can submit a set of demands through the union if at least one-fifth of the workforce are members of that union; or at workplaces without a union, if they have signatures from at least 15 percent of the workforce. Under the law, only workers with the same employer or in the same industry may form a union. Contract workers, even if working in the same factory and doing the same job as full-time workers, cannot join the union because they are classified as belonging to the service industry while full-time workers come under the “manufacturing industry.” Nevertheless, the law makes contract workers eligible for the same benefits as those enjoyed by union members. The inability for contract workers and full-time workers to join the same union could diminish the benefits of bargaining collectively as a larger group. In addition, short-term contract workers are less likely to join unions for fear of losing their jobs. Labor advocates claim that many companies hire contract workers to undermine unionization efforts. A survey of the auto-parts and electronics industries found that more than 45 percent of the workforce consists of contract workers, and about half of them have short-term contracts.

The law allows one union per SOE. Banks, trains, airlines, airports, marine ports, and postal services are among those industries owned by SOEs. If an SOE union’s membership falls below 25 percent of the eligible workforce, regulations require dissolution of the union.

The law restricts formal links between unions of SOEs and their private-sector counterparts because they are governed by two separate laws.

The law allows employees at workplaces without a union to submit collective demands if at least 15 percent of employees are listed as supporting that demand. Employees in private enterprises with more than 50 workers may establish “employee committees” to represent workers’ financial interests and to negotiate with employers; employees may also form “welfare committees” to represent workers’ non-financial interests. Employee and welfare committees may offer employers suggestions but are barred from submitting labor demands or going on strike. The law prohibits employers from taking adverse employment actions against workers for their participation in these committees and from obstructing the work of the committees. Union leaders often join employee and welfare committees to avail themselves of this legal protection. Within 11,600 enterprises which have more than 50 workers in the country, there are 1,689 labor unions, 14,888 welfare committees, and 739 employee committees. NGOs report that welfare committees are uncommon in the border regions where the majority of workers are migrants.

The government may block private-sector strikes with national security implications or with negative repercussions on the population at large, but it did not invoke this provision during the year.

Strikes and lockouts are prohibited at SOEs and penalties for violations include imprisonment, fines, or both.

In March 2018 the Supreme Court ordered seven union leaders of the State Railway of Thailand (SRT) to pay a fine of THB 15 million ($500,000) plus accrued interest for leading an illegal strike after a train derailment in 2009 despite the finding of the International Labor Organization (ILO) that union leaders’ actions were in line with international standards on the role of unions in occupational safety and health (OSH). To execute the court order, the SRT in November 2018 started to garnish the wages and seize the assets of union leaders. In addition, several SRT union leaders were charged with corruption and face imprisonment of up to 10 years and fines. In October the NACC filed criminal corruption charges against the seven union leaders. If convicted, the leaders could potentially face up to five years in prison.

Noncitizen migrant workers, whether registered or undocumented, do not have the right to form unions or serve as union officials. Migrants can join unions organized and led by Thai citizens. Migrant-worker participation in unions is low due to language barriers, weak understanding of legal rights, frequent changes in employment status, membership fees, restrictive union regulations, and segregation of citizen workers from migrant workers by industry and by zones (particularly in border and coastal areas). In practice, unregistered associations, community-based organizations, and religious groups often represent the interests of migrant workers. In workplaces where the majority of workers are migrants, migrant workers are sometimes elected to the welfare committees and employee committees. Migrant workers are allowed to make collective demands if they obtain the names and signatures of at least 15 percent of employees. NGOs reported few cases, however, where migrant workers’ collective demands were successful in effecting change, particularly along the border areas.

The law does not protect union members against antiunion actions by employers until their union is registered. To register a union, at least 10 workers must submit their names to the Department of Labor Protection and Welfare (DLPW). The verification process of vetting the names and employment status with the employer exposes the workers to potential retaliation before registration is complete. Moreover, the law requires that union officials be full-time employees of the company or SOE and prohibits permanent union staff.

The law protects employees and union members from criminal or civil liability for participating in negotiations with employers, initiating a strike, organizing a rally, or explaining labor disputes to the public. The law does not protect employees and union members from criminal charges for reputational damage, however, and NGOs report that reputational damage charges are sometimes used to intimidate union members and employees. The law also does not prohibit lawsuits intended to censor, intimidate, or silence critics through costly legal defense. In March the government amended the Criminal Procedure Code to protect defendants in frivolous libel cases from prosecution. Under this amended law, a court may dismiss a defamation lawsuit if it is considered dishonest. Human rights defenders hope this amendment will help minimize strategic litigation against workers and provide protection for honest whistleblowers. In June human rights lawyers assisted five migrant workers in filing a retaliatory lawsuit claiming compensation for lost wages, reputational damage, and legal fees after the courts dismissed the employer’s lawsuit against the migrant workers on charges of illegal entry, illegal stay, and theft.

The law prohibits termination of employment of legal strikers but permits employers to hire workers or use subcontract workers to replace strikers. The legal requirement to call a general meeting of trade union members and obtain strike approval by at least 50 percent of union members constrained strike action, given that many factories use shift workers, making it difficult to make a quorum.

Labor-law enforcement was inconsistent and in some instances ineffective in protecting workers who participated in union activities. Employers may dismiss workers for any reason except participation in union activities, provided the employer pays severance. There were reports of workers dismissed for engaging in union activities, both before and after registration; in some cases, labor courts ordered workers reinstated. Labor courts or the Labor Relations Committee may make determinations on complaints of unfair dismissals or labor practices and may require compensation or reinstatement of workers or union leaders with wages and benefits equal to those received prior to dismissal. The Labor Relations Committee consists of representatives of employers, government, and workers groups, and there are associate labor court judges who represent workers and employers. There were reports employers attempted to negotiate terms of reinstatement after orders were issued, offering severance packages for voluntary resignation, denying reinstated union leaders access to work, or demoting workers to jobs with lower wages and benefits.

In some cases, judges awarded compensation in lieu of reinstatement when employers or employees claimed they could not work together peacefully; however, authorities rarely applied penalties for conviction of labor violations, which include imprisonment, a fine, or both. Penalties were insufficient to deter violations. Labor inspection increasingly focused on high-risk workplaces and the use of intelligence from civil society partners. Labor inspections, however, remained infrequent and the number of labor inspectors and resources were inadequate given the size of the workforce. Trade-union leaders suggested that inspectors should move beyond perfunctory document reviews toward more proactive inspections. Rights advocates reported that provincial-level labor inspectors often attempted to mediate cases, even when labor rights violations requiring penalties had been found.

There were reports employers used various techniques to weaken labor-union association and collective-bargaining efforts. These included replacing striking workers with subcontractors, which the law permits as long as strikers continue to receive wages; delaying negotiations by failing to show up at Labor Relations Committee meetings or sending non-decision makers to negotiate; threatening union leaders and striking workers; pressuring union leaders and striking workers to resign; dismissing union leaders, ostensibly for business reasons, violation of company rules, or negative attitudes toward the company; prohibiting workers from demonstrating in work zones; inciting violence, then using a court order to clamp down on protests; transferring union leaders to other branches, thus making them ineligible to participate in employee or welfare committees; transferring union leaders and striking workers to different, less desirable positions or stripping them of management authority; and supporting the registration of competing unions to circumvent established, uncooperative unions.

Employers sometimes filed lawsuits against union leaders and strikers for trespass, defamation, and vandalism. For instance, in 2015 the central labor court ordered four union leaders of Thai Airways to pay claims of damages in the amount of THB 326 million ($10,900,000) for causing reputational damage; the case is now pending a Supreme Court decision. The ILO expressed concern that the court decision ran counter to the principles of freedom of association, and that the excessive damages awarded were likely to have an intimidating effect on the Thai Airways Union and inhibit their legitimate union activities. Human rights defenders said lawsuits like these and threats to terminate the employment of union leaders had a chilling effect on freedoms of expression and association (also see section 7.b.).

NGOs and labor advocates reported incidents where their staff were followed or threatened by employers after they had been seen advocating for labor rights.

b. Prohibition of Forced or Compulsory Labor

The law prohibits forced or compulsory labor, except in the case of national emergency, war, martial law, or imminent public calamity. The prescribed penalties for human trafficking were sufficient to deter violations. The government amended the Anti-Trafficking in Persons Act for the third time in five years. The new amendment defined forced labor as a stand-alone offense, and guaranteed access to services and protections for forced-labor victims similar to services and protections for human-trafficking victims. It also applied the same penalties when forced labor victims were seriously injured or killed. To implement the amendment, government agencies and non-government groups worked on revisions of subordinate regulations, victim-identification guidelines, and standard operating procedures. The Ministry of Social Development and Human Security, the Ministry of Labor, and the Office of Attorney General organized training workshops for law enforcement and multidisciplinary teams to understand the changes to the law.

There were many reports that forced labor continued in fishing, agriculture, domestic work, and begging. The government did not effectively enforce the law. Penalties were not sufficient to deter violations.

NGOs acknowledged a decline in the most severe forms of labor exploitation in the fishing sector. Some NGOs, however, point to inconsistencies in enforcing labor laws, particularly around irregular or delayed payment of wages, illegal wage deductions, illegal recruitment fees, withholding of documents, and not providing written contracts in a language that workers understand. In March the government for the first time began to award accident compensation for all migrant fishery workers regardless of registration status.

Labor rights groups reported that some employers sought to prevent migrant workers from changing jobs or forced them to work by delaying wages, burying them in debt, or accusing them of theft. NGOs reported cases where employers colluded to blacklist workers who reported labor violations, joined unions, or changed jobs.

The government and NGOs reported a significant increase in the number of trafficking victims identified among smuggled migrants, particularly from Burma. Most of those cases involved transnational trafficking syndicates both in Thailand and in the country of origin. Many victims were subjected to deception, detention, starvation, human branding, and abuse during their journey. Traffickers sometimes destroyed the passports and identity documents of victims. Some victims were sold to different smugglers and subjected to debt bondage.

Private companies continued to pursue civil and criminal lawsuits against workers, NGOs, and journalists (also see section 7.a.). Since 2016, Thammakaset, a poultry farm owner in Lopburi Province, has filed 13 criminal and civil cases against 14 former employees, labor rights activists, and journalists on various charges such as criminal defamation, theft of timecards, and computer crime, most recently in May. Authorities and courts dismissed most of these complaints and ordered Thammakaset to pay THB 1.7 million ($56,600) in compensation for back wages, overtime, and holiday pay to 14 former employees for labor-law violations. As of September some of these cases were still pending a court decision.

The ILO noted that the law allowed for forced prison labor in several circumstances, including as punishment for participating in strikes or for holding or expressing certain political views.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The law does not prohibit all of the worst forms of child labor. The law protects children from child trafficking, commercial sexual exploitation, use in illicit activities, and forced labor, but does not meet the international standard for prohibiting military recruitment of children by non-state armed groups. The law regulates the employment of children under age 18 and prohibits employment of children under 15. Children under 18 are prohibited from work in any activity involving metalwork, hazardous chemicals, poisonous materials, radiation, extreme temperatures, high noise levels, toxic microorganisms, operation of heavy equipment, and work underground or underwater. The law also prohibits children under 18 from workplaces deemed hazardous, such as slaughterhouses, gambling establishments, places where alcohol is sold, massage parlors, entertainment venues, sea-fishing vessels, and seafood processing establishments. As such, children ages 15 to 17 may legally engage in hazardous “home work” (work assigned by the hirer of an industrial enterprise to a homeworker to be produced or assembled outside of the workplace). The law provides limited coverage to child workers in some informal sectors, such as agriculture, domestic work, and home-based businesses. Self-employed children and children working outside of employment relationships, defined by the existence of an agreement or contract and the exchange of work against pay, are not protected under the national labor law, but they are protected under laws on child protection and trafficking in persons. Children participating in paid and non-paid Muay Thai (Thai boxing) competitions, however, are not protected under national labor law, and it is unclear whether child-protection legislation sufficiently protects child Muay Thai participants.

Penalties for violations of the law may include imprisonment or fines and have been largely effective as a deterrent. Parents of victims whom the court finds were “driven by unbearable poverty” can be exempt from penalties.

Government and private-sector entities used bone-density checks and dental examinations in an effort to identify potentially underage job applicants. Such tests, however, were not always conclusive. Labor inspectors used information from civil society to target inspections for child labor and forced labor.

Civil society and international organizations reported few cases of child labor in manufacturing, fishing, shrimping, and seafood processing. They attributed the decline to legal and regulatory changes in 2014 that expanded the number of hazardous-job categories in which children under 18 were prohibited from working and that in 2017 increased penalties for the use of child laborers.

NGOs, however, reported that some children from Thailand, Burma, Cambodia, Laos, and ethnic minority communities were working in informal sectors and small businesses, including farming, home-based businesses, restaurants, street vending, auto services, food processing, construction, domestic work, and begging. Some children were forced to work in prostitution, pornography, begging, and the production and trafficking of drugs (see section 6, Children). The Thailand Internet Crimes against Children task force investigated 19 cases of child-sex trafficking and 60 cases of possession of child-pornographic materials.

The government did not effectively enforce the law. The DLPW is the primary agency charged with enforcing child-labor laws and policies. In 2018 the government increased the number of labor inspectors and interpreters. During the year, 94 percent of labor inspections were targeted at fishing ports and high-risk workplaces including garment factories, shrimp and seafood processing, poultry and pig farms, auto repair shops, construction sites, and in service-sector businesses like restaurants, karaoke bars, hotels, and gas stations. The DLPW identified 99 cases involving 206 alleged violations of child-labor laws. In the majority of cases, employers were cited for failing to notify DLPW of employing children ages 15 to 18. Only 16 cases of underage child labor were found. Penalties were not sufficient to deter violations.

Observers noted several limiting factors in effective enforcement of child-labor laws, including insufficient labor inspectors, insufficient interpreters during labor inspections, ineffective inspection procedures (especially in hard-to-reach workplaces like private residences, small family-based business units, farms, and fishing boats), and a lack of official identity documents among young migrant workers from neighboring countries. A lack of public understanding of child-labor laws and standards was also an important factor.

In June the government published its first national working-children survey, using research methodology in line with international guidelines. This survey was the product of cooperation among the Ministry of Labor, the National Statistical Office (NSO), and the ILO. The survey revealed that of 10.47 million children ages 5 to 17, 3.9 percent were working children, including 1.7 percent who were child laborers (exploited working children)–1.3 percent in hazardous work, and an additional 0.4 percent in non-hazardous work. The majority of child laborers were doing hazardous work in household or family businesses (55 percent), in the areas of agriculture (56 percent), service trades (23 percent), and manufacturing (20 percent). Boys were in child labor more than girls and more than half of child laborers were not in school. Of the top three types of hazardous work which children performed in the country, 22 percent involved lifting heavy loads, 8 percent working in extreme conditions or at night, and 7 percent being exposed to dangerous chemicals and toxins.

Also, see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings , and the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor at https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods .

d. Discrimination with Respect to Employment and Occupation

Labor laws do not specifically prohibit discrimination in the workplace. The law does impose penalties of imprisonment or fines for anyone committing gender or gender-identity discrimination, including in employment decisions. A law requires workplaces with more than 100 employees to hire at least one worker with disabilities for every 100 workers.

Discrimination with respect to employment occurred against LGBTI persons, women, and migrant workers (also see section 7.e.). Government regulations require employers to pay equal wages and benefits for equal work, regardless of gender. Union leaders stated the wage differences for men and women were generally minimal and were mostly due to different skills, duration of employment, and types of jobs, as well as legal requirements which prohibit the employment of women in hazardous work. Nonetheless, a 2016 ILO report on migrant women in the country’s construction sector found female migrant workers consistently received less than their male counterparts, and more than half were paid less than the official minimum wage, especially for overtime work (see also section 6, Women).

In September 2018 the police cadet academy announced it would no longer admit female cadets. This decision was widely criticized as discriminatory and detrimental to the ability of the police force to identify some labor violations against women. Discrimination against persons with disabilities occurred in employment, access, and training. Advocacy groups for the rights of persons with disabilities filed a complaint on embezzlement and illegal deduction of wages from workers with disabilities in April. The case is under investigation by the Public Sector Anti-Corruption Commission.

Members of the LGBTI community faced frequent discrimination in the workplace, partly due to common prejudices and a lack of protective laws and policies on discrimination. Transgender workers reportedly faced even greater constraints, and their participation in the workforce was often limited to a few professions, such as cosmetology and entertainment.

e. Acceptable Conditions of Work

The minimum wage was three times higher than the government-calculated poverty line.

The maximum workweek by law is 48 hours, or eight hours per day over six days, with an overtime limit of 36 hours per week. Employees engaged in “dangerous” work, such as the chemical, mining, or other industries involving heavy machinery, may work a maximum of 42 hours per week and may not work overtime. Petrochemical industry employees may not work more than 12 hours per day but may work continuously for a maximum period of 28 days.

The law requires safe and healthy workplaces, including for home-based businesses, and prohibits pregnant women and children younger than 18 from working in hazardous conditions. The law also requires the employer to inform employees about hazardous working conditions prior to employment. Workers do not have the right to remove themselves from situations that endangered health or safety without jeopardy to their employment.

Legal protections do not apply equally to all sectors. For example, the daily minimum wage does not apply to employees in the public sector, SOEs, domestic work, nonprofit work, and seasonal agricultural work. Ministerial regulations provide household domestic workers some protections regarding leave, minimum age, and payment of wages, but they do not address minimum wage, regular working hours, social security, or maternity leave. NGOs reported contract workers in the public sector received wages below minimum wage as they were governed by separate laws.

A large income gap remained between formal and informal employment, with workers in nonagricultural sectors earning three times that of those in the agricultural sector, on average. According to government statistics, 55 percent of the labor force worked in the informal economy, with limited protection under labor laws and the social security system.

The ILO and many NGOs reported that daily minimum wages, overtime, and holiday-pay regulations were not well enforced in small enterprises, in certain areas (especially rural or border areas), or in certain sectors (especially agriculture, construction, and sea fishing). Labor unions estimated 5-10 percent of workers received less than the minimum wage; however, the share of workers who received less than minimum wage was likely higher among unregistered migrant workers and in the border region. Unregistered migrant workers rarely sought redress under the law due to their lack of legal status and the fear of losing their livelihood. In September police raided and interviewed hundreds of workers in medium-size garment factories in Mae Sot along the Burma border after the media reported that workers were paid less than the daily minimum wage. Labor inspectors under the Department of Labor Protection and Welfare then demanded that employers in those factories pay back wages to workers as required by the law.

The DLPW enforces laws related to labor relations and occupational safety and health. The law subjects employers to fines and imprisonment for minimum-wage noncompliance, but the government did not effectively enforce the law and penalties were insufficient to deter violations. There were many reports during the year of minimum-wage noncompliance which went to mediation, where workers settle for owed wages lower than the daily minimum wage. The DLPW issued orders to provincial offices in 2018 prohibiting labor inspectors from settling cases where workers received wages and benefits less than that required under the law.

Convictions for violations of occupational safety and health (OSH) regulations include imprisonment and fines; however, the number of OSH experts and inspections was insufficient, with most inspections only taking place in response to complaints. The number of labor inspectors was insufficient for the size of the workforce as well. Union leaders estimated only 20 percent of workplaces, mostly large factories owned by international companies, complied with government OSH standards. Workplace safety instructions as well as training on workplace safety were mostly in Thai, likely contributing to higher incidence of accidents among migrant workers.

Medium-sized and large factories often applied government health and safety standards, but overall enforcement of safety standards was lax, particularly in the informal economy and among smaller businesses. NGOs and union leaders noted that ineffective enforcement was due to insufficient qualified inspectors, an overreliance on document-based inspection (instead of workplace inspection), a lack of protection against retaliation for workers complaints, a lack of interpreters, and a failure to impose effective penalties on noncompliant employers. The Ministry of Labor hired and trained more inspectors and foreign-language interpreters in 2018. The interpreters were assigned primarily to fishing-port inspection centers, multidisciplinary human-trafficking teams, and provincial labor offices with a high density of migrant workers.

The country provides universal health care for all citizens, and social security and workers’ compensation programs to insure employed persons in cases of injury or illness and to provide maternity, disability, death, child-allowance, unemployment, and retirement benefits. Registered migrant workers in both the formal and informal labor sectors and their dependents are also eligible to buy health insurance from the Ministry of Public Health.

NGOs reported that many construction workers, especially subcontracted workers and migrant workers, were not in the social-security system or covered under the workers’ compensation program, despite legal requirements. While the social-security program is mandatory for employed persons, it excludes workers in the informal sectors. Workers employed in the informal sector, those in temporary or seasonal employment, and the self-employed, may contribute voluntarily to the workers’ compensation program and receive government matching funds.

In March the Ministry of Labor issued regulations providing workers compensation to all workers except vendors and domestic workers. Labor-union leaders reported, however, that compensation for work-related illnesses was rarely granted because the connection between the health condition and the workplace was often difficult to prove.

In November a new labor-protection law for workers in the fishing industry came into effect. It required workers to have access to health-care and social-security benefits, and for vessels with deck size over 300 tonnage gross or which go out more than three days at a time to provide adequate living conditions for workers. Social-security benefits and other parts of the law, however, were not enforced pending approval of subordinate laws by the Council of State. The existing government requirements are for registered migrant fishery workers to buy health insurance and for vessel owners to contribute to the workers’ compensation fund. In August, NGOs reported the first case where a fishery migrant worker holding a border-pass became eligible for accident compensation. The lack of sufficient occupational safety and health training in the migrant workers’ language, of inspections by OSH experts, of first aid, and of reliable systems to ensure timely delivery of injured workers to hospitals after serious accidents, increased the vulnerability of fishery workers. During the year, NGOs reported several cases where the navy rescued fishery workers who had been in accidents at sea.

NGOs reported poor working conditions and lack of labor protections for migrant workers, including those near border-crossing points. In July 2018 the Royal Ordinance Concerning the Management of Foreign Workers’ Employment went into effect. The decree provides for civil penalties for employing or sheltering unregistered migrant workers, while strengthening worker protections by prohibiting Thai employment brokers and employers from charging migrant workers additional fees for recruitment. The decree also bans subcontracting and prohibits employers from holding migrant workers’ documents. It outlaws those convicted of violating labor and anti-trafficking-in-persons laws from operating employment agencies. In October the Chiang Mai provincial court sentenced an employer who retained the personal documents of migrant employees to one month in prison and a fine of THB 10,000 ($333), but the penalties were later reduced to 15 days’ imprisonment and a fine of THB 5,000 ($167).

Labor-brokerage firms used a “contract labor system” under which workers sign an annual contract. By law businesses must provide contract laborers “fair benefits and welfare without discrimination;” however, employers often paid contract laborers less and provided fewer or no benefits.

Department of Employment regulations limit the maximum charges for recruitment fees, but effective enforcement of the rules was hindered by workers’ unwillingness to provide information and the lack of documentary evidence regarding underground recruitment, documentation fees, and migration costs. Exploitative employment-service agencies persisted in charging citizens working overseas illegal recruitment fees as high as THB 500,000 ($16,700), that frequently equaled two years of earnings. NGOs reported that workers would often borrow this money at exorbitant interest rates from informal moneylenders.

In 2018, the latest year for which data were available, there were 86,297 reported incidents of accidents or work-related diseases. Of these, 2 percent resulted in organ loss, disability, or death. The Social Security Office reported most serious workplace accidents occurred in manufacturing, wholesale retail trade, construction, transportation, hotels, and restaurants. Observers said workplace accidents in the informal and agricultural sectors and among migrant workers were underreported. Employers rarely diagnosed or compensated occupational diseases, and few doctors or clinics specialized in them.

a. Freedom of Association and the Right to Collective Bargaining

The constitution affords the right to associate and the right to demonstrate but limits the exercise of these rights, including by preventing workers from organizing or joining independent unions of their choice. While workers may choose whether to join a union and at which level (local or “grassroots,” provincial, or national), the law requires every union to be under the legal purview and control of the country’s only trade union confederation, the Vietnam General Confederation of Labor (VGCL), a CPV-run organization. Only citizens may form or join labor unions.

The law gives the VGCL exclusive authority to recognize unions and confers on VGCL upper-level trade unions the responsibility to establish workplace unions. The law stipulates the VGCL answers directly to the CPV’s VFF, which does not protect trade unions from government interference in or control over union activity.

The law also limits freedom of association by not allowing trade unions full autonomy in administering their affairs. The law confers on the VGCL ownership of all trade-union property and gives it the right to represent lower-level unions. By law trade union leaders and officials are not elected by union members but are appointed.

The law requires that, if a workplace trade union does not exist, the next level “trade union” must perform the tasks of a grassroots union, even where workers have not so requested or have voluntarily elected not to organize. For nonunionized workers to organize a strike, they must request the strike “be organized and led by the upper-level trade union,” and if nonunionized workers wish to bargain collectively, the upper-level VGCL union must represent them.

The law stipulates trade unions have the right and responsibility to organize and lead strikes. The law also establishes substantive and procedural restrictions on strikes. Strikes that do not arise from a collective labor dispute or do not adhere to the process outlined by law are illegal. The law forbids strikes over “rights-based” disputes. This includes strikes arising out of economic and social policy measures that are not a part of a collective negotiation process, as they are both outside the law’s definition of protected “interest-based” strikes.

The law prohibits strikes by workers in businesses that serve the public or that the government considers essential to the national economy, defense, public health, and public order. “Essential services” include electricity production; post and telecommunications; and maritime and air transportation, navigation, public works, and oil and gas production. The law also grants the prime minister the right to suspend a strike considered detrimental to the national economy or public safety.

The law prohibits strikes at the sector- or industry-level and prohibits workers and unions from calling for strikes in support of multiemployer contracts.

The law states the executive committee of a trade union may issue a decision to go on strike only when at least 50 percent of workers support it.

Laws stipulate an extensive and cumbersome process of mediation and arbitration before a lawful strike may occur. Unions or workers’ representatives may either appeal decisions of provincial arbitration councils to provincial people’s courts or strike. The law stipulates strikers may not be paid wages while they are not at work. The law prohibits retribution against strikers. By law individuals participating in strikes declared illegal by a people’s court and found to have caused damage to their employer are liable for damages.

The laws include provisions that prohibit antiunion discrimination and, nominally, interference in union activities while imposing administrative sanctions and fines for violations. The laws do not distinguish between workers and managers, however, and fail to prohibit employers’ agents, such as managers who represent the interests of the employer, from participating or interfering in union activity. Penalties were not adequate to deter violations.

According to the Ministry of Labor, Invalids, and Social Affairs (MOLISA), there were 67 strikes in the first half of 2019. Most of them occurred in southern provinces. Approximately 82 percent of the strikes occurred in foreign direct-investment companies (mainly Korean, Taiwanese, Japanese, and Chinese companies). The strikers sought higher wages, better social insurance, and better meals between shifts. None of the strikes followed the authorized conciliation and arbitration process and thus authorities considered them illegal “wildcat” strikes. The government, however, took no action against the strikers and, on occasion, actively mediated agreements in the workers’ favor. In some cases the government imposed heavy fines on employers, especially of foreign-owned companies, that engaged in illegal practices that led to strikes.

Because it is illegal to establish or seek to establish independent labor unions, there were no domestic NGOs involved in labor organizing. Local, unregistered labor NGOs, however, supported efforts to raise awareness of worker rights and occupational safety and health issues and to support internal and external migrant workers. Multiple international labor NGOs collaborated with the VGCL to train VGCL-affiliated union representatives in labor organizing, collective bargaining, and other trade union issues. The International Labor Organization (ILO)-International Finance Corporation (IFC) Better Work project reported management interference in trade union activities was a significant issue in garment factories.

Labor activists and representatives of independent (non-VGCL) worker organizations faced antiunion discrimination. Independent labor activists seeking to form unions separate from the VGCL or inform workers of their labor rights sometimes faced government harassment. In February 2018 a court convicted and sentenced peaceful labor and environmental activist Hoang Duc Binh to 14 years’ imprisonment under vague articles of the penal code. Binh, arrested in 2017, advocated for compensation for fishermen affected by a 2016 toxic waste spill and posted critical online content about the government’s response to the spill (see section 1.d.). In addition, authorities continued to use foreign travel prohibitions against labor activists, including the chairwoman of the independent Viet Labor Movement, Do Thi Minh Hanh (also see section 2.d.).

b. Prohibition of Forced or Compulsory Labor

The constitution and law prohibit forced or compulsory labor. The labor code’s definition of forced labor, however, does not explicitly include debt bondage. In January penal code amendments entered into effect that criminalized all forms of labor trafficking of adults and children younger than 16. The penalties were not sufficient to deter violations; in fact, the law does not provide any penalty for violating provisions prohibiting forced labor. NGOs continued to report the occurrence of forced labor of men, women, and children within the country (see also section 7.c.).

Labor recruitment firms, most affiliated with state-owned enterprises, and unlicensed brokers reportedly charged workers seeking overseas employment higher fees than the law allows, and they did so with impunity. Those workers incurred high debts and were thus more vulnerable to forced labor, including debt bondage.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

c. Prohibition of Child Labor and Minimum Age for Employment

The newly ratified labor code establishes that only people age 18 or older are eligible to work. However, other laws address conditions for employment of children under the age 18. The constitution prohibits “the employment of persons below the minimum working age,” generally 13, with exceptions set by the Labor Ministry. The law prohibits children under 18 from working heavy, hazardous, and dangerous jobs.

Illegal child labor was reported in labor-intensive sectors such as garments and textiles, construction, agriculture, and some manufacturing. Local media also reported children working as beggars in gangs whose leaders abused the children and took most of the children’s income. Some children started work as young as 12, and nearly 55 percent of child workers did not attend school.

In the garment sector, children as young as six and up to 18 reportedly produced garments in conditions of forced labor. The most recently available information from government raids, NGOs, and media reports during the year indicated this was most common in small, privately owned garment factories and informal workshops. Reports indicated these employers beat or threatened the children. In addition, there was evidence children as young as 12 were working while confined in government-run rehabilitation centers. Employers forced these children to sew garments without pay under threat of physical or other punishments.

The Ministry of Labor is responsible for enforcing child labor laws and policies. Government officials may fine and, in cases of criminal violations, prosecute employers who violate child labor laws. As part of the government’s 2016-20 National Plan of Action for Children and National Program for Child Protection, the government continued efforts to prevent child labor and specifically targeted children in rural areas, disadvantaged children, and children at risk of exposure to hazardous work conditions.

International and domestic NGOs noted successful partnerships with provincial governments to implement national-level policies combatting child labor.

Also see the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor at https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods .

d. Discrimination with Respect to Employment and Occupation

The law prohibits discrimination based on gender, race, disability, color, social class, marital status, belief, religion, HIV-status, and membership in a trade union or participation in trade union activities in employment, labor relationships, and work but not explicitly in all aspects of employment and occupation. The law does not prohibit discrimination based on political opinion, age, language, national origin, sexual orientation, or gender identity.

No laws prohibit employers from asking about family or marital status during job interviews.

The government did not effectively enforce employment discrimination laws but did take some action to address employment discrimination against persons with disabilities. Companies with a workforce composed of at least 51 percent employees with disabilities may qualify for special government-subsidized loans.

Discriminatory hiring practices existed, including discrimination related to gender, age, disability, and marital status. Women were expected to retire at age 60, compared with age 62 for men, affecting women’s ability to rise to managerial ranks and have higher incomes and pensions.

Women-led enterprises continued to have limited access to credit and international markets. Female workers earned, per year, an average of one month’s income less than male workers, with skilled female workers earning less than male workers with similar skills. Many women above the age of 35 found it difficult to find a job, and there were reports of women receiving termination letters at 35. The VGCL’s Institute of Workers and Trade Unions noted women older than 35 accounted for roughly half of all unemployed workers in the country.

Social and attitudinal barriers and limited accessibility of many workplaces remained problems in the employment of persons with disabilities.

e. Acceptable Conditions of Work

The minimum wage varies by region. In all regions, the minimum wage exceeds the World Bank official poverty income level.

The law limits overtime to 50 percent of normal working hours per day, 30 hours per month, and 200 hours per year, but it provides for an exception in special cases, with a maximum of 300 overtime hours annually, subject to advance approval by the government after consultations with the VGCL and employer representatives.

The law provides for occupational safety and health standards, describes procedures for persons who are victims of labor accidents and occupational diseases, and delineates the responsibilities of organizations and individuals in the occupational safety and health fields. The law provides for the right of workers to remove themselves from situations that endanger health or safety without jeopardy to their employment. The law protects “labor subleasing,” a pattern of employment, and thus extends protection to part-time and domestic workers.

The Ministry of Labor is the principal labor authority, and it oversees the enforcement of labor law. The Labor Inspections Department is responsible for workplace inspections to confirm compliance with labor laws and occupational safety and health standards. Inspectors may use sanctions, fines, withdrawal of operating licenses or registrations, closures of enterprises, and mandatory training. Inspectors may take immediate measures where they have reason to believe there is an imminent and serious danger to the health or safety of workers, including temporarily suspending operations, although such measures were rare. The ministry acknowledged shortcomings in its labor inspection system and emphasized the number of labor inspectors countrywide was insufficient.

The government did not effectively enforce labor laws, particularly in the informal economy.

Credible reports, including from the ILO-IFC Better Work 2019 Annual Report, indicated factories exceeded legal overtime thresholds and did not meet legal requirements for rest days. The ILO-IFC report stated that, while a majority of factories in the program complied with the daily limit of four hours overtime, 77 percent still failed to meet monthly limits (30 hours) and 69 percent exceeded annual limits (300 hours). In addition, and due to the high prevalence of Sunday work, 40 percent of factories failed to provide at least four days of rest per month to all workers.

Migrant workers, including internal economic migrants, and uncontracted laborers were among the most vulnerable workers, and employers routinely subjected them to hazardous working conditions. Members of ethnic minority groups often worked in the informal economy and, according to the ILO, informal workers typically had low and irregular incomes, endured long working hours, and lacked protection by labor market institutions. Additionally, workers in the informal sector are only eligible to pay into a voluntary social insurance fund covering only retirement and survivors’ allowances. Workers in the formal sector and their employers contribute to a system that covers sickness, maternity, labor accidents, and occupational disease as well as retirement and survivors’ allowances.

On-the-job injuries due to poor health and safety conditions and inadequate employee training remained a problem. In 2018 the government reported 7,997 occupational accidents with 8,229 victims, including 972 fatal incidents with 1,038 deaths. Among the fatal incidents, 578 incidents involved contracted laborers, while 394 incidents involved uncontracted laborers.