A South Korean company located in the southern Vietnamese province of Dong Nai has decided to unilaterally terminate labor contracts with nearly 1,900 workers as a consequence of a fire that erupted there in September.

Yupoong Vietnam Co. Ltd., a maker of fashionable headwear for export at the Lotecco Industrial Park in the province’s Bien Hoa City, unveiled the contract termination in a notice posted at the gate of the company on Saturday.  

According to the notice, a fire that occurred on September 21 gutted factory No. 1 of the firm so Yupoong Vietnam cannot continue providing jobs for the workers there and those at factory No. 2 , which makes finished goods on the basis of the production from the former facility.

The company is working with its insurance firm and it may take as long as a year for the compensation to be paid, the notice said.

The company said it had decided to terminate work contracts with nearly 1,900 workers from both factories and will sent termination notices to each worker by post in accordance with existent regulations.

Workers with work contracts having definite terms will receive 30 days’ termination notice and those with indefinite work contracts will get 45 days’.

Within seven working days from the termination, the firm will pay salaries, allowances, severance, if any, and other benefits to the workers.

The company will also offer every worker an amount of money equal to one month’s salary stated in their labor contracts, it said in the notice. 

Social insurance books will be sent to every worker later, the company added.

Nguyen Thi Ut, chairwoman of the company’s trade union, said the exact number of workers to have their labor contracts terminated early is 1,867, news website Dan Tri reported.

The company retains only 400 workers who are embroiderers and warehouse staff, Dan Tri quoted Ut as saying. 

On Monday, thousands of workers gathered at the gate of the company to oppose the unilateral contract termination.

Most of the laid-off workers wanted the company to recruit them again whenever it resumes normal operation, but Yupoong Vietnam turned down their request, some workers said. 

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