VegaNana keeps refusing to pay wages owed and misleads the public – And now the facts

04/11/2024

(Note: Originally published in Slovak on 15th September 2024) On Tuesday, September 3, VegaNana posted an emotional video response related to a dispute between three former employees over the payment of wages and other financial claims owed. In this article, you will find the video transcribed into text form, accompanied by explanations of how things really are. This will be a longer read, but we find VegaNana`s recent behavior on social media to be unacceptable and in need of a more in-depth response.

BOSS`S CLAIMS IN THE VIDEO:

"Hello, my name is Katarína and I am speaking to you on behalf of VegaNana. I cannot go into details as legal actions have been taken today against all those involved and an investigation is currently underway. Those who know me, know that I do not like conflict and I am a very trusting person who tries to settle everything. Unfortunately, this situation has gone so far that I have to take these steps. The former employees in question worked for our company and had valid, signed permanent contracts of employment. The amount of their salary was fixed there.`

FACTS:

The situation with the contracts was not the same for all three workers (opposed to what we hear in the video). There was a mixture of contracts that had not yet been signed, contracts that were issued with a different start date than the actual start date, with a difference of not days but weeks or months, and contracts with entirely different amounts than those agreed at the time of recruitment (e.g. the minimum wage instead of the agreed amount). Also, the workers saw these contracts for the first time several months after they started their work, and they immediately expressed their disagreement with them. Thus, from an employment law perspective, VegaNana failed to comply with several of the employer`s obligations.

Jana started to work in October 2023 and, on joining, she and her boss Katarína agreed on a salary of €1,000 net. Although she repeatedly asked for the contract, she saw it for the first time on 2 April 2024, and it was only in electronic form as an attachment in an email from the accountant. The contract stated the minimum wage, an incorrect home address and an incorrect start date (a difference of 3 weeks). The contract with the corrected address, which Katarína showed her on her cell phone on April 9 2024, still stated the minimum wage. Jana disagreed with this contract and reiterated to the boss the wage rate they had agreed on in October (the owner, Alexandra, was also present). As Jana still does not have the contract, it could not have been signed.

Laura started work in September 2023 and on joining she and her boss Katarína agreed on a salary of €1,500 net, as she had previous experience in making vegan desserts. After many repeated requests, she did not receive her contract until 1 December 2023, which stated €1,400 gross, which she did not agree to. There was only one copy of the contract, which was kept by the boss. Laura received a physical copy of the contract only when she signed her notice of termination on 19 June 2024.
Veronika started her job in November 2023 and on joining she and her boss, Katarína, agreed on a salary of €1,000 net. Veronika also requested the contract from her boss many times during the course of the working relationship, but she saw it for the first time only on the day before she left work on 9 April 2024 (she received it via email). She did not physically receive it until she signed her notice of termination on 19 June 2024, but did not sign it because the contract stated the minimum wage (€750) and the incorrect start date of 1 February 2024.

We confirm that an investigation is currently under way. Jana, Laura and Veronika were called to testify this week and provided evidence confirming that they were not paid their wages. We consider the criminal complaint filed by VegaNana to be an attempt to intimidate and discourage people from supporting the former workers. The owner of VegaNana even claims in one post: "Why would we go to the police to turn ourselves in if we haven`t paid the wages?" Since we know exactly how employment was managed in this business and the amount of its debts, we are pondering this question ourselves.

BOSS`S CLAIMS IN THE VIDEO:

They received a salary, of course.

FACTS:

The former employees received some money, but it was paid out:
1) in parts,
2) irregularly,
3) not on time,
4) not in the agreed amount,
5) and not even in the amount according to the contracts that were delivered so late.

In addition, they did not receive pay slips during the duration of their employment.

The former employees have abundant private communication with VegaNana which confirms the above-mentioned facts. The fact that the two responsible persons know about these messages is in incomprehensible contrast to their statements on social media, where they prefer to play on people’s affections and falsely accuse the workers instead of communicating factually and dealing with the situation in a responsible manner.

Jana, Laura and Veronika agree to disclose all communication with VegaNana about the problems with wage payments and contracts. The same consent can be given by both responsible persons on VegaNana`s side, in which case all communication can be made public.


BOSS`S CLAIMS IN THE VIDEO:

This amount of wages was also used to calculate their contributions to the Social Insurance Agency and health insurance companies.

FACTS:

As they had different amounts in their contracts than what was agreed on when they started to work, the amount of the contributions was also different. For example, Jana has a statement from the Social Insurance Agency dated 4 June 2024 confirming that VegaNana paid her contributions from the amount of the minimum wage and, for most of the months she worked, these contributions were not paid at all.

Given the fact that VegaNana had issued employment contracts with a later date than the date of the actual start of work, the former workers were also registered with the insurance companies at a later date. According to Act No. 82/2005 Coll. on Illegal Work and Illegal Employment and on Amendments to Certain Acts, Section 2, paragraph 2, letter b) - https://www.slov-lex.sk/pravne-predpisy/SK/ZZ/2005/82/), late registration with the insurance company is considered illegal employment.


THE BOSS`S CLAIMS IN THE VIDEO:

According to the letter from Priama Akcia, they do not accept this employment contract and are asking us to make up the difference in wages, which they have determined themselves. And also the difference in insurance contributions, which is unacceptable. Yes, I realize that I made mistakes, I did make mistakes. The beginning was difficult, as I went into this business and opened this shop without any funding, without an investor. We were really starting from scratch from nothing. We went from day to day. It was challenging to pay all the dues on time and in due course. So the employees knew about it, were informed, did they get paid in parts? Yes.

FACTS:

The difference in wages, that is, the difference between the wage agreed upon at the time of hire and the wage stated in the contract, was caused by VegaNana`s actions. A detailed eight-page calculation of the amount owed was delivered to VegaNana with the demand letter we handed over on 13 August. The amount owed includes the wages for the months and days worked by the each worker (the money that has paid out already was, of course, deducted from this amount).

The amount does not include the debt owed to the Social Security Agency and health insurance companies, which will be collected from the owner by these institutions. However, we have included months when the employees were not registered with the Social Insurance Agency without their knowledge.

We also included in the calculation the difference between the insurance actually paid by the boss and the insurance she should have paid based on the originally agreed salary.

To explain this `difference in insurance contributions`, we give an example: Veronika agreed with her boss Katarína that she would receive €1,000 net, and that this income would be duly stated in the contract and the insurance would be deducted from it. This means that Veronika`s gross salary was to be approximately €1,300 and her employer was to pay approximately €650 in social security and health insurance for her. However, VegaNana deducted the amount of the minimum wage (€750 gross) on her behalf and therefore only €370 went towards Veronika`s social and health insurance.

Why is this important? Because the welfare system works on the principle that the more you give, the more you get.

Low contributions will be reflected in the benefits Veronika receives when she finds herself in a more difficult situation – for example, in unemployment. The calculation includes this difference in social insurance deductions, despite the fact that they cannot be paid back, because it at least gives employees the option of putting money aside.

We consider it fair that such practices by employers should not be tolerated. If VegaNana had behaved responsibly and complied with the conditions agreed upon when hiring the workers, it would have had to pay this money anyway.

Contributions to the social security system are an integral part of wages and therefore part of VegaNana`s debt to its employees. We have not included contributions to health insurance companies in the amount owed, as they do not work on the principle mentioned above, i.e. employees are not penalized when the contributions are reduced (that means that VegaNana still saved some money...).

In the video, we hear that the wages were paid in parts and not on time. Obviously, no one informed the employees when they started that they would be paid this way, so they couldn`t have agreed to it. Generally, as working people, we cannot even imagine someone starting a job where they agree to a specific salary during the hire and at the same time they accept that they actually do not know when, if and in what parts they will receive it.

In an Instagram story, the owner of VegaNana Alexandra shared a conversation in which she jokes with someone about a made-up debt. A friend texts her that "you owe me 15 thousand" because he "wants Rolex," and both of them have a good laugh about it. Jana, Laura and Veronika, however, are not asking for any luxuries, but are fighting for the wages they were promised when they began working for VegaNana. We also cannot speak of luxury in the case of unpaid social security contributions, the consequences of which they may feel if, for example, they claim maternity benefits, unemployment benefits or in case of health problems.


BOSS`S CLAIMS IN THE VIDEO:

April 9 was the last day all three were at work. And that evening, all three sent me the same text message that they would not come to work the next day unless I met their conditions.

FACTS:

April 9 was the last day at work for Laura and Veronika who sent an e-mail and a Whatsapp message to their boss. This is an extract from the their message:

„Hi Kati,
We wanted to work this out together in person, but we can`t wait any longer. When we have reached out to you before, it hasn`t led to anything except promises.

We both feel that we are the last ones considered when it comes to money and everything else takes precedence. It`s been weighing on us quite a bit the past few weeks, which I`m sure you`ve noticed, and it`s not doing our mental health any good either.

The situation with unpaid wages is becoming unbearable for us and we have decided that we no longer want to work for free. Therefore, until you pay us at least the two salaries you owe us, we will not come back to work.

At the same time, if we are to return to work, we expect payment of the remaining unpaid wages by the end of the month and also a guarantee of regular payment of wages each month on the appointed day as per the contract.

It is impossible to live without being paid the agreed wages for work done, let alone for such a long period of time, as has been the case in VegaNana. We have let it go too far. If we don`t get our money by the end of April, we will have to find other employment and we will also be forced to deal with this wage situation in other ways. We don`t see any other way to deal with it.“

Jana in fact worked on April 10. She e-mailed her boss Katarína that morning to inform her about quitting and added the following:

"... I have always seen and see great potential in VegaNana, I have always enjoyed my work, I have done it with passion, I have always cared about doing a good job, I have given a piece of myself to your company and I have loved the connections that have been made in this place in the form of a community that has brought people together. I learned a lot whether from you or within the company, I made great personal progress and I am very grateful for all the experiences and you know it yourself. You were, after a very long time, a person I could trust and you became a close person I felt safe around. I don`t think you had bad intentions from the beginning and I wish you the best because you are great at what you do and I am writing this to you as honestly as I can. I`m disappointed in how long you delayed priorities like the valuation of employees when you know I depend on this job and have no money to pay for even groceries. I`ve been disappointed in how many times you haven`t been straightforward, you`ve hidden information, you`ve kept me in a state of uncertainty, and you`ve made promises that have never translated into reality.

We have established an employment relationship that implies obligations and rights that are not being respected.

In order to maintain good relations, I respectfully request that you pay me the wages not yet paid by the above deadline."

The boss Katarína tried to persuade Jana that evening to stay working for VegaNana. Jana was willing to stay until the end of April, if VegaNana paid her at least one full month`s wage as agreed. This amount was not paid to her.

VegaNana was also deceptive about Jana, Laura, and Veronika`s departure from VegaNana in an Instagram and Facebook post on September 11. As for other statements, we are not going to comment on them because they are recurring themes, which we have clarified above.


VEGANANA IN THE POST:

In April, they told us that unless we increased their pay, they would stop coming to work. Since a wage increase was not possible and none of the employees has come to work since April (gross violation of work discipline), we terminated the employment relationship on 15.06.2024. (...) In the meantime, Jana has become employed by another employer (since 10.04.2024), which she did not even inform us about, we learned this fact from the Social Insurance Agency.

FACTS:

None of the former workers asked for a pay increase. The information regarding Jana, who was still working at VegaNana on 10 April, is also false. In addition, the Social Insurance Agency does not provide information on other employers.

With these statements, VegaNana is trying to give the impression that the non-payment of wages was not the reason for leaving the job. However, the wording of the messages that Jana, Laura and Veronika sent to their boss in April makes clear the reason of their departure, as well as the fact that they made efforts to resolve the situation.


BOSS`S CLAIMS IN THE VIDEO:

To me, this was unacceptable as an employer. Then, about a couple of days later, I found out that they had stolen the attendance records from our premises, stolen the employment contracts and also my recipe book.

FACTS:

After the publication of the article about the dispute, statements by the two responsible representatives of VegaNana began to appear on social media, in which they put themselves in the position of victims. They did not mention the psychological harm and exploitation experienced by their former workers in their statements, although they had been aware of their situation. To give one example: at one point Jana was so bad off financially that she sent a picture of her empty fridge to her boss Katarína in the hope that she would at least send her some money for food. If anything is unacceptable, in our opinion, it is this: not paying money for work done. VegaNana should understand what is a cause and what is an effect and finally accept responsibility.

As for the theft of items by Jana, Laura and Veronika, this did not happen in any instance. Attendance records were kept in a disorganized and chaotic manner, and Laura and Veronika were told after a few weeks that they did not need to keep their records because the boss knew when they were working (no attendance records were kept at all for the remaining months). Because of the lack of transparency, Jana started to keep her own private attendance record on her own initiative, which was transparently displayed at the workplace at all times. When she left, she naturally took it with her.

We have no idea how the employees could have stolen employment contracts that they did not receive at all during their employment.

Jana never had anything to do with the recipes, as she did not work as a baker but as a server. Laura and Veronika, the bakers, add that the handwritten recipes in the workbook were usually not even used for baking. They baked according to recipes that the boss Katarína either knew by heart (and dictated them on the fly) or were written on various slips of paper.

What is interesting is the timing of this accusation – it comes after we initiated the campaign for the payment of wages and other financial demands owed. In our experience, bosses have no problem pulling allegations of misconduct (breach of work discipline, causing damage, theft, etc.) on people who oppose their practices in order to discourage them from pursuing their demands. We have a similar experience from our dispute with the Civil Association Divé Maky (see this publication https://www.priamaakcia.sk/Pamphlet-about-conflicts-of-Priama-Akcia-union-in-English-language.html for detailed information). This whole absurd story about the stolen items, as well as many other social media posts published by other responsible persons from VegaNana (for example, an Instagram "story" by the owner of VegaNana Alexandra, who called the former workers thieves and then deleted the post, as well as others in which she falsely accuses and intimidates them), seem to be aimed at distracting attention from the real problems, which are VegaNana`s debts and unfulfilled obligations.


BOSS`S CLAIMS IN THE VIDEO:

Since I believed and hoped that the whole situation would somehow be resolved, I signed them out of the insurance agency on the fifteenth of June, and they were given written notice of termination on that date as well. They collected it in person.

FACTS:

From the beginning, it was the former workers who were proactive in dealing with the entire situation. Even in April, when the situation had already gone too far, they tried to be accommodating and expressed their interest in staying if they received at least some money and a promise to pay the rest. They also kept in touch after they had left, wrote messages and came to the shop in person. The situation had not been addressed and resolved by those responsible for a long time.

Regarding the deregistration from the insurance agency, the former workers were not notified. They only found out by chance when they checked with the Social Insurance Agency on 17 June if contributions had been paid on their behalf. This was important information for them at the time, as they could have missed the deadline for registering with the labor office and would have been at risk of having to pay the health insurance contributions. In addition, they had not yet received their employment record.


BOSS`S CLAIMS IN THE VIDEO:

Then also the inspection authorities, the hygiene authorities and the Labour Inspectorate came and, according to their verbal statements, we did not make any mistakes in the situation.

FACTS:

Let us compare this statement with the official statement of the Labour Inspectorate (LI), which was made available to the police, too. The LI statement issued on 3 September states that VegaNana did not cooperate during the labor inspection and did not submit the requested documents, so it was not possible to investigate the labor law violations.

When asked if there had been any verbal statement from the LI, the LI responded in an e-mail communication that at the time no statement could be provided, as the persons responsible had chosen to obstruct the LI‘s investigation and had not submitted any requested documents.


BOSS`S CLAIMS IN THE VIDEO:

Yes, I am aware that I have made mistakes. It was not an acceptable situation or a favorable situation. Paying wages in parts, not paying them on time. Also invoices, also other debts that we had. For some of the invoices we even have a payment plan and, so far, we are paying them gradually. But we are always addressing the situation and trying to sort it all out so that we are really making and correcting therefore the mistakes that we have made.

FACTS:

According to Slovak legislation non-payment of wages is a criminal offense. Thus, one interpretation of the boss`s statements is that she is aware that she is committing a crime. We are also learning new information here – the debts are not only related to former workers, but also to invoices and other claims. However, the boss makes no mention about rectification related to former employees. We therefore have no idea what she means by correcting the mistakes.

When Jana, Laura and Veronika worked at VegaNana, the boss took no steps to resolve the situation, only delaying the resolution and making promises that she did not keep. Nor did she take any action in the following months when they no longer worked there. She has expressed no intention of resolving the problem and continues not only to ignore the former workers but to use false accusations against them. Moreover, she has not even told the key information – it is one thing to admit that she paid wages in parts and not on time, but another to confirm that they have not yet been paid in full. This is not how `mistakes` are corrected.


BOSS`S CLAIMS IN THE VIDEO:

I`m really aware of that, and it`s really easier for me now, as I have a partner who is already here taking care of the management. I am taking care of the production, it`s easier. We`re improving, we`re growing and we`re going to get better and we`re going to grow. I take this whole situation as a personal attack by a certain group of people. It`s gone too far, because you`re threatening not only me and my family, my children, you’ve included even my granddaughter in this. You are threatening and attacking our friends, our acquaintances, our customers, our business partners. You are also threatening us with physical attacks, which is really over the line, which has gone so far that it goes beyond all moral principles. I just want to tell you this: You can try to destroy this business. By all means. You will not destroy me. I`ll start from scratch, again. If I have to start from scratch a thousand times, I will start from scratch a thousand times, because you cannot destroy me as a human being. If necessary, I will work 20 hours a day, 7 days a week. I`m used to it and everyone around me knows it. I still want to thank everyone, all of you who stand by us, who keep your fingers crossed for us, who support us and write to us. A big thank you and admiration for not giving up on us in spite of everything and we promise that we will always be here for you and we look forward to seeing you. Have a nice evening and I`m off to bake.

FACTS:

Similar claims in various variations are mentioned in their other social media posts. However, the fact is that the Priama Akcia union communicates mannerly and factually. We do not condescend to personal attacks or threats. The former employees are only asking for what VegaNana promised them the day they agreed to work for her. Their demands are calculated and detailed in an eight-page appendix that VegaNana received along with the request for payment of the debt. This campaign is not about personal attacks on anyone. We do not need to produce emotive videos or posts. Our point is that the agreements are honored and the consequences that arise from breaking them are resolved.

Priama Akcia union only mentioned the family of the responsible persons from VegaNana in the article in relation to their veganism. In the event that they received messages after the publication of the dispute in which any of the things described above occur, they were not written by us and we do not agree with them. In the article that we published, we include a recommended template of a message of support for Jana, Laura and Veronika, which does not contain any attacks or threats.

 
* * *

Finally, we would like to express our heartfelt thanks for the tremendous support that Jana, Laura and Veronika receive. The campaign to make VegaNana pay the debts is ongoing and still open for participation. For more information on how you can support them, please visit Priama Akcia union’s website and Facebook.

After the initial article we were contacted by other people with similar problems with VegaNana. If you too have had such an experience, please contact us.

Priama Akcia union