thai labor law severance pay

The goal of Thailand Law library is to maintain a repository of the laws of Thailand for the general public. Severance pay is a matter of agreement between an employer and an employee (or the employee's representative). Q:Can an employee take leg… In Thailand, retirement is deemed to be a termination of employment, entitling employees to a severance payment. BHUMIBOL ADULYADEJ, REX. If an employee does not wish to work for the company at the new location, such employee has the right to terminate the employment contract and be entitle to special severance pay at the rate of not less than 50 per cent of the rate of severance pay which the employee would be entitled to under Clause 8.1. Where an employment period is less than one year but the fraction thereof is greater than 180 days, it shall be deemed to be one year of employment. Whereas the Employer fails to notify the Employee in advance regarding the relocation of the place of business under paragraph one, the Employer shall pay Special Severance Pay in lieu of advance notice at a rate equivalent to the Employee’s last rate of Wages for thirty days, or equivalent to the Wages of the last thirty days for an Employee who is paid on a piece-rate basis. And the timing of their dismissal may also result in more expense than one may think could be incurred. December 4, 2010. General Information on the Thai Labour Laws _____ Working hours. There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay. Based on the Thai labour law, severance pay … To terminate the Contract of Employment under this Section, the Employee shall exercise his or her right within thirty days from the date of relocation, or from the date of the decision of the Labor Welfare Committee or the judgment of court becoming final. Effective 1 September 2017 , the LPA was amended to address situations where there was no express retirement age in the Work Rules of an employer company or in the applicable employment contract by introducing a “default or deemed retirement age” of 60 years old. The Employer is not required to pay severance pay to an employee whose employment has been terminated under any of the following conditions: violating work rules or regulations or orders of the Employer which are lawful and just, and after the written warning has been given by the Employer, except in a serious case where the Employer is not required to give warning. Therefore, the workers at Kabinburi are also entitled to an additional one-month salary in lieu of notice pay. You believe what the schools tell you and you are afraid to question them so you can stay in the Land of Smiles. For this purpose, if the Employee refuses to go to work in the new location, the Employee is entitled to terminate the Contract of Employment and receive Special Severance Pay of not less than fifty percent of the rate of Severance Pay he or she entitled to under Section 118. Employees’ severance pay rights and legal loopholes Thursday, December 17, 2020 Home » Labor Protection Act » Severance (Sections 118-122). Where the company fails to give advance notice less than 60 days in advance, the company shall pay special severance pay in lieu of the advance notice in an amount equal to 60-day pay at the most recent rate of basic pay, or the basic pay received in respect of the preceeding 60 days in the case of an employee who receives his basic pay based upon his output. Upon the submission, within 30 days from the date the company relocates the place of business, by an employee of a request to the Labor Welfare Committee, that Committee will consider whether or not the company must give prior notice or whether or not the employee is entitled to terminate his employment contract with the right to receive special severance pay. Use this calculator to determine the amount of severance pay that is owing. Where the company fails to give advance notice of relocation of its place of business to an employee less than 30 days, the company shall pay special severance pay in lieu of the advance notice in an amount equal to 30-day pay at the most recent rate of basic pay, or the basic pay received in respect of the preceeding 30 days in the case of an employee who receives his basic pay based upon his output. Under the circumstance of normal termination of employment where “termination of employment” means: The company shall pay severance pay to an employee whose employment is terminated, as follows: The company is not required to pay severance pay to an employee whose employment has been terminated for any of the following reasons: As a leading provider of corporate services, we specialise in covering everything startups and established companies need to successfully start and operate their new business in Thailand. As a result, the employee will be entitled to the amount equivalent to severance pay to be paid upon termination of employment. Recent Labor Law Changes in Thailand for Severance Pay, ... the National Legislative Assembly amended the Labor Protection Act increasing severance pay and ... What Thai … ... Review a list of federally regulated industries and contacts for provincial and territorial ministries of labour. Maximum severance pay. A full service law firm with multiple branches in Thailand. Complaints (Sections 123-125) ». Not exceed 8 hours per day and 48 hours per week ; Works which may be harmful to the health or safety of the employees as prescribed by Ministerial Regulations shall not exceed seven hours per day and not exceed 42 hours per week. The Thai Cabinet has endorsed a proposal to amend the Labour Protection Act, setting a statutory retirement age for the first time and entitling retirees to statutory severance pay. Where the Employer brings the case to court, the Employer is required to deposit money with the court equal to the amount to be paid to the Employee who submits the application under paragraph three prior to file the case. The provisions of paragraph one shall not apply to an Employee whose employment is for a definite period and the employment is terminated at the end of that period. These laws cover all areas related to employment such as working hours, holidays and leave, notice, overtime, sick pay, and severance, and are applicable to both Thai and foreign employees. Previously, the law was silent on the issue and employers had discretion to set their own retirement policy. Employees with at least 20 years of service are entitled to 400 days of statutory severance, up from 300 days for employees with at least 10 years' service. 2541 Given on this 12th day of February B.E. New amendments to Thailand’s Labor Protection Act have addressed this issue by introducing a retirement regime for the Thai private sector employees, placing severance obligations on employers, enhancing protection for employees, and creating a more effective framework for enforcement of labour laws. An employee has served the company for less than 120 days. Employment for a definite period under paragraph three is allowed for employment in a specific project which is not the normal business or trade of the Employer and requires a definite date to commence and end the work, or for work which is seasonal and the employment is made during the season. UNDER THAI LABOUR LAWS, employers are required to offer severance pay to employees who are terminated based on non-statutory grounds. Q:Does the employer have to pay additional compensation to an employee subject to a non-competition clause? Whereas the Employer terminates the employment of an Employee under Section 121 and such Employee has worked for uninterrupted period of more than six years, the Employer shall pay Special Severance Pay in addition to Severance Pay under Section 118 of not less than the Employee’s last rate of Wages for fifteen days for each year of employment or of not less than the Employee’s Wages for the last fifteen days for each year of employment for an Employee who is paid on a piece-rate basis. When managing a business in Thailand with employees, senior management should pay attention to the Labour Protection Act (1998) (“LPA”) and its related Ministerial Regulations given the broad impact it has coupled with the legal penalties which can be imposed on them should they breach this law. Severance Pay is the compensation that an employer provides to a laid off or terminated employee, whose job has been eliminated, who through mutual agreement, decided to leave the company or left the company because the company can no longer operate its business, or for other reasons. ... federal law will decide how much money your employer may owe you. When an employee is “let go”, they are entitled to either working notice, pay in lieu of notice (which is commonly referred to as severance pay or termination pay), or a combination of both. With the exception for offenses arising out of negligence or for petty offenses law will decide how thai labor law severance pay. Library | All rights Reserved of your own, 2020 under Thai laws... Industries and contacts for provincial and territorial ministries of labour Protection and Welfare B.E! To maintain a repository of the most important aspects of this Act and its Regulations 400 days wage. 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