Lazada's Laid Off Employees Set to Receive Additional Payouts; Some to Get Extra 2 Weeks’ Pay per Year of Service

By Thea Felicity

May 23, 2024 01:12 PM EDT

Lazada Vietnam resumes logistics services in Ho Chi Minh City
Following the Vietnamese government’s most recent directives to allow for delivery within Ho Chi Minh City despite the lockdown, Lazada Vietnam has resumed its logistics services to ensure that residents have access to food, groceries and other essentials. Since Monday, the eCommerce platform has delivered tens of thousands of orders to serve communities hard-hit by the pandemic and lockdown restrictions, which in some areas prohibit residents from venturing outside their homes.
(Photo : Lazada Official Website)

In January, CNA reported that Lazada suddenly laid off employees due to restructuring efforts within the company. Despite being unionized, a number of workers were laid off without prior notification to the union. 

While the exact reasons for the retrenchment were not explicitly disclosed, it is presumed to be a response to evolving business needs requiring prompt human resource allocation adjustments.

In a recent development shared by The Straits Times, former workers are set to receive additional payouts.

The amount to be given varies depending on factors such as length of service with Lazada, job grades, and membership validity with the Food, Drinks, and Allied Workers Union (FDAWU). 

Some employees will receive an additional two weeks' pay per year of service, while others will receive $1,200 in "training support."

READ NEXT: 'Amazon of Asia' Lazada bags $250M to cement e-commerce in Southeast Asia

Reactions of Lazada's Laid-Off Employees

Julie Cheong, the union president, mentioned that confidentiality clauses prevent her from sharing more details about the situation, while Ng Chee Meng, the NTUC secretary-general, confirmed that steps were taken to address the concerns and rights of the members who were impacted by the situation.

Some laid-off employees expressed satisfaction with the additional benefits, such as an extra two weeks' pay per year of service. 

Others, however, were disappointed, particularly those who received only $1,200 in "training support." They felt the payout did not adequately address their needs, especially after months of waiting and uncertainty.

READ MORE: Alibaba Gets $1 Billion Stake Investment In Lazada

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