But it does specify that severance must be paid to employees who have worked for 120 days or more and are terminated without cause. Notice (Please also see our comment in Q4-5) Under the LPA, unless a longer notice period is provided for in an employment agreement, an employee is generally entitled to receive one full pay period’s Further information about our firm can be found at: www.dezshira.com. Foreign employees working in Thailand are entitled to seek tax relief under relevant double taxation treaties between Thailand and their home country. The rights of all employees working in Thailand and the obligations of all employers are described in the Labour Protection Act (1998). Although Thailand has a complex and strictly regulated employment system, Thai labour laws are generally-speaking more favorable to employees than their employers. Thai law does not explicitly mention probationary periods in regard to employment relationships. Thai labor law is relatively flexible for employers. Other laws include the Labor Relations Act, the Social Security Act, the Act establishing the labor court and labor court procedure, the State Enterprise Labor Relations Act, the Workmen’s Compensation Act, and the Foreign Employment Act. An employee is entitled to a rest of not less than 1 … We know that every situation is unique, therefore it is essential to seek a consultation with someone who is specialized in Thai Labor Law to fully underst… Current personal income tax rates for resident individuals are given in the table below. Current personal income tax rates for resident individuals are laid out in the table below. Our subscription service offers regular regulatory updates, Further, a provident fund is managed wherein both employer and employee make equal monthly contribution ranging between two to 15 percent of the monthly remuneration. Furthermore, companies employing 10 or more workers must also publish written work rules at their place of work and file them with the district labour office within a prescribed period. The scope of this law has been expanded, such that relocating employees from one office in Thailand to another existing office in country will benefit from choosing to accept the relocation, or to terminate its employment contract and be entitled to severance pay according to the law. If an employment agreement is made in writing, employers must provide the employee concerned with a copy immediately after it has been signed. Relations between employers and employees are covered by the Thai Labor Protection Act (LPA). In case of termination, the LPA entitles employees who have worked for at least 120 days to severance pay equivalent to 30 days’ pay; those who have worked for one to three years, to severance pay equivalent to 90 days’ pay; whereas those who have worked for six to ten years are entitled to receive a compensation equivalent to 240 days’ pay. This column includes guidance for good employment practices based on the ILO Domestic Workers Convention, 2011 (No. A well written employment contract can prevent and settle disputes which may arise in the future. According to Section 17 of the Labour Protection Act B.E. 2541 states that the employer must pay severance pay to the employee who is terminated. Since its establishment in 1992, Dezan Shira & Associates has been guiding foreign clients through Asia’s complex regulatory environment and assisting them with all aspects of legal, accounting, tax, internal control, HR, payroll and audit matters. ASEAN Briefing is produced by Dezan Shira & Associates. Thai law does not explicitly mention probationary period in employment relationships. With... Dezan Shira & Associates helps This article was first published on ASEAN Briefing. Malaysian Labor Contracts: What You Need to Know, Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Pinterest (Opens in new window), Click to email this to a friend (Opens in new window), Thai Labor Contracts: What You Need to Know. Under Thai law, in order to terminate an employee under an "indefinite-term" employment contract, notice must be provided one payment period in advance. In certain circumstances, however, an employer may dismiss an employee without prior notice and due compensation. These rules must be published in both Thai and English for the benefit of foreign workers. Thailand does not mandate a written agreement between the employer and an employee. The latest manifestation was revision to the Thai LPA was in 2010. Other laws include the Labor Relations Act, the Social Security Act, the Act establishing the labor court and labor court procedure, … Thailand Severance Pay and Termination Issues. An employee whose employment is stipulated in a contract set for a definite periodand the employment is terminated at the end of that period, if this form of employment is in compliance with the Thai labour laws and regulations (Section 118 of the Act). All blog comments are checked prior to publishing, Workmen Compensation and Social Security Fund. Required fields are marked *. Special Pursuant to the Labor Law, all employment contracts and records must be in Arabic. According to Thai law work condition agreements can be amended in three (3) ways: 1. Foreign employees working in Thailand may seek tax benefits available under relevant double taxation treaties between Thailand and their home country. Note the article on Thai work permits on this website. As a full-service consultancy with operational offices across China, Hong Kong, India and ASEAN, we are your reliable partner for business expansion in this region and beyond. By Vasundhara Rastogi, editor, Dezan Shira & Associates. The employer and the employee (s) can voluntarily agree/ consent to adjust the terms of the contract by such means as a written amendment agreement; or 2. and grow their operations. be provided by law to domestic workers under the Thai Labour Act B.E. Sorry, your blog cannot share posts by email. While there is a general recognition of freedom to contract, it is not possible to contract around the minimum standards imposed by applicable Thai labor law. Editor’s Note: This article was first published on December 18, 2017 and has been updated on December 20, 2018 as per latest developments. Employment in Thailand may be terminated for a variety of reasons, including the following: Completion of agreed upon work. Professional advice in preparing an employment contract can significantly help employers avoid legal disputes with their employees and ensure complete compliance with Thai labor laws. Legal. Please contact us at asia@dezshira.com or visit our website at www.dezshira.com. Without prior notice, employers are required to provide salary in lieu of such notice. Other important legislation includes the: These laws, which are applicable to both Thai and foreign workers, cover all areas related to employment such as working hours, holidays and leave, notice, overtime, sick pay and severance. Thai Labor Contracts: What You Need to Know. In Thailand, the employer-employee relationship is governed by a series of laws and regulations, the chief ones of which are the Thai Labour Protection Act B.E.2541 (LPA) and the Thai Civil and Commercial Code. While Thailand does not mandate a written agreement between employers and staff, it does impose strict labour regulations with regards to working terms and conditions. Whether you are an employer or an employee, Juslaws & Consultinforms you about your rights regarding termination of employment in Thailand. For the purpose of taxation, individual taxpayers are categorized into “resident” individuals or “non-resident” individuals. 189) and protections offered to other workers under Thai Law. Under Thailand's employment laws, an employment agreement must not contain terms and conditions that are less than the minimum standards set by law. If a staff member is terminated, the LPA entitles them to severance pay that is equivalent to 30 days’ wages if they have worked for at least 120 days. If they have worked for between one to three years, they are eligible for the equivalent of 90 days’ pay. Labour rules, laws and regulation in Thailand, 3. The minimum notice period must be at least one week and not more than three months long. Termination of employment is defined as follows. businesses establish, maintain, Termination of employment contract Thai Lawyers | August 6, 2015 Section 118 of Labor Protection Act B.E. Serve as the best safeguard of the employers towards its employees and vice versa or and. The purposes of taxation, individual taxpayers are categorised into “ resident ” or “ non-resident individuals! Associates ' service Brochure Juslaws & Consultinforms you about your rights regarding termination of employees in with. 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