Amendment to Thai Labour Protection Law. 2. Employment transfer. Maternity leave. However, the total amount of this additional special severance pay is limited to the equivalent of 360 days’ wages. Recent Key Updates in Thailand Labour Protection Law The Labour Protection Act BE 2541 (1998) (the “LPA”) has been periodically amended.The recent key amendments were made by the Labour Protection Act (No.6) BE 2560 (2017) and the Labour Protection Act (No.7) BE 2562 (2019), which became effective from 1 September 2017 and 5 May 2019, respectively. The multiple is: - less than 120 days of service, zero; Severance pay under both the LSA and the LPA must be paid within 30 days of termination. Employees cannot waive their rights to severance or retirement pay. However, it does specify severance pay for employees who have worked for 120 days or more and are terminated without cause. As a result, to avoid paying severance, many employers in Thailand set probation periods of up to 119 days. Severance Pay Rates. Maximum wage rate of 300 days for more than 10 years length of service. 2541 (A.D. 1998) Labour Protection Act B.E. 400 days of the most recent pay rate If you wish to discuss/share your proposal with us, please do not hesitate to leave your enquiry at contact@orbis-alliance.com . Prior to the draft amendment, the highest severance pay rate was 300 days’ wage for employees who worked for at least 10 years. Maximum maternity leave Increased from 90 days to 98 days (with 45day pay) for - each female employee. Changes to Thailand's Labor Protection Act (Thai), including increased statutory severance for employees with at least 20 years' service, will take effect on 5 May 2019. New personal leave. Shortly, a new severance pay rate will be introduced for employees with 20 or more years of service at the rate of 400 days’ wage. The Labor Protection Act (No. For severance pay under the LSA, severance pay will be equal to one month of average wages for each year of service for an employee who has been continuously employed by the same entity. A new maximum severance rate has now been capped at 400 days of the employee's latest wage and applies to employees with 20 or more years of service. The maximum cap on severance pay has been increased to 400 days of the employee's latest wage rate for 20 years or more of continuous service—previously 300 days … 3 working days per year (with pay). Severance pay is based on length of service, and is a multiple of “basic wage”, which essentially means salary exclusive of most benefits and allowances. Severance Pay. Severance payment varies from 30 days to 400 days depending on the length of the employee’s working with the employer, as following: • 30 days’ wages where the employment is at least 120 days but less than one year • 90 days’ wages where the employment is at least one year but less than three years 2. Severance pay Except in cases of serious wrongdoing, any employee that is terminated in Thailand is entitled under the Act to receive severance pay. Download EPLex legal data. The Labor Protection Act regulates minimum standards for pay and working hours for employees. We will get back to you very shortly. The basic presumption of Thai Labor Law is that the Employer is in a superior position in relation to the Employee therefore Employees require the law to equalize the imbalance of power. “Those terminated will also receive compensation as stipulated by law, that is those who have worked for more than 20 years will get 400 days’ wages, while those who have been here less than 20 years will get 300 days. A new maximum severance rate will now be capped at 400 days of the employee's latest wage and apply to employees with 20 or more years of service. 3. Employment transfer The amount of statutory severance pay for an employee who has worked for at least 20 years has been increased to 400 days at the employee’s last wage rate (from 300). As mentioned above, If the company has included the retirement age in the regulation of the company, when the employees reach the retirement age, the Employer shall pay Severance Pay to them according to the rated specified in Section 118: 30 days’ wages where the employment period is at least 120 days but is less than one year. Severance pay. severance pay Increased from 300 days to 400 days of wage for terminating an employee with an employment period of 20 years or more New personal leave 3 working days per year (with pay). Employers must grant pregnant employees 98 days’ maternity leave, which includes leave taken for pre-natal exams before the delivery date, and holidays that fall during the maternity leave period. But, and this is very important, a severance or ex gratia payment was not compulsory under Thai labor law before 1 September 2017. (No.2) 2551 (A.D. 2008) ... he/she is entitled to receive a severance pay equal to wages of 400 days. 2. Business Leave. Under the Thai Labor Protection Act of 1998, companies are required to pay legal severance payments (‘LSP’) to employees who leave employment at their retirement age, or … 3. Such retirement shall be effective within 30 days from the date of such expression, and the employer shall pay severance to the employee in accordance with Section 118.” Section 118/1 can be summarized as follows: Retirement is deemed to be termination of employment, and the retiring employees are entitled to severance pay under Section 118. • a minimum statutory redundancy/severance pay of 4-16 weeks. Working hours Increased to 400 days of wage for terminating an employee with an employment period of 20 years or more. In Thailand, all employers, and employees, ... he/she is entitled to statutory severance pay of from 30 days’ wages to 400 days’ wages. 1. Severance pay; Less than 120 days: No severance pay: 120 days - 1 year: Wages for at least 30 days: 1 year - 3 years: Wages for at least 90 days: 3 years – 6 years: Wages for at least 180 days: 6 years – 10 years: Wages for at least 240 days: 10 years – 20 years: Wages for at least 300 days: More than 20 years: Wages for at least 400 days The latest manifestation was revision to the Thai LPA was in 2010. A look at the key legal provisions governing the termination of employment in Thailand, including grounds for dismissal, notice requirements and severance pay, among other things. In addition, this legal information has been quantified by ILO lawyers and economists, to produce a series of synthetic, or aggregate, indicators of employment protection. Redundancies in Asia and the Pacific – South Asia Session – Thailand Supplement . An employee who has completed 90-120-days of service (probation) but less than a year is entitled to severance pay equivalent to thirty-days of current wage/basic only. 2) Dismissal based on business reasons: The special severance pay is capped at 365 days of the employee's wage. Maximum wage rate of 400 days for more than 20 years length of service. 122 LPA: In the event of termination for economic reasons (those listed in art. “To be eligible for the severance pay, candidates must sign their termination contract soon so the money can be paid along with July’s salary,” he said. Under the bill, employees who have worked for their employers for more than 20 years and who are laid off will be entitled to compensation amounting to 400 days of their pay instead of 300 days. days from the date of termination of employment. Business leave of at least three days per year with pay has now been set as the minimum number of business leave days for all employees. Read the official version of the Thai Labor Law: Labour Protection Act B.E. Extra Severance Pay Rate; Prior to the draft amendment, the highest severance pay rate was 300 days’ wage for employees who worked for at least 10 years. • One of the statutory grounds, a "major change in objective circumstances," requires 30 days' notice (or pay in lieu) and statutory severance. Maximum severance pay . All legal information contained in the EPLex database can be downloaded by theme. 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 … *Under the Amended LPA, an employee who works for more than 10 years but less than 20 years will continue to be paid severance pay for 300 days of the last wage rate, but if the employee works for at least 20 years, the amount of severance pay will be increased from 300 to 400 days of the last wage rate. China • Employees may only be unilaterally terminated on narrow statutory grounds. Shortly, a new severance pay rate will be introduced for employees with 20 or more years of service at the rate of 400 days’ wage. The Thai Labor Protection Act. The maximum severance pay rate will be adjusted from 300 days of the latest wage rate for the employee working for 10 years or longer to 400 days of the latest wage rate for the employee working for 20 years or longer. Business leave of at least 3 days per year with pay has now been set as the minimum number of business leave days for all employees. Extra Severance Pay Rate. Relocation of the employer's place of business Key revisions include the following: 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. Thai law does not explicitly mention probationary period in employment relationships. The employee can take a personal business leave with pay for at least 3 working days per year. The employer must pay a special severance pay amounting to 15 days of the employee's wage per year of employment (for example, ten years of uninterrupted employment gives rise to special severance pay of 150 days of the employee's wage). The amount required to be paid is based on the duration of employment, as follows: Length of Service Severance Pay Entitlement Increased to 98 days (with 45-day pay) for each female employee. An employee who has completed one-year of service but less than three years is entitled to severance pay equivalent to ninety-days of current wage/basic only. Redundancy payment: • See art. Termination of Employment and Severance in Thailand Country. 7) B.E. 121 LPA), an employee with at least 6 years of continuous service shall receive in addition to severance pay, a special compensation equal to 15 days' wages for every year of employment, with a maximum amount equal to 360 days' wages. 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