New Amendments on Labor Laws – Thailand

Published On - 29 avril, 2019

Albert Hui Actu Orbis, Thailand

The Thai Government recently published in its Royal Gazette a set of new changes to the Labor Protection Act (LPA), effective 5th May 2019, aiming at further improving employee’s working conditions as follows:

Severance Pay

Currently Effective 5th May 2019
Capped at 300 days of salaries for employees who have worked for an uninterrupted period of 10 years or more Employees who have worked for an uninterrupted period of 20 years or more shall be entitled to severance pay equal to 400 days of the most recent pay rate

Maternity Leave

Currently Effective 5th May 2019
90 days of maternity leave inclusive of weekend and public holiday and the employer must pay minimum 45 days of the most recent pay rate during the leave 98 days of maternity leave inclusive of weekend and public holiday and the employer must pay minimum 45 days of the most recent pay rate during the leave

 

Maternity leave also includes leaves taken for medical appointments and examinations before the delivery

Necessary Business Leaves

Currently Effective 5th May 2019
The LPA recognizes necessary business leaves but it is at the employer’s discretion to set the criteria in the work rules (i.e. mainly definition of ‘necessary’, number of days and whether such days shall be paid or not) Employers shall grant employees a minimum of 3 days of paid necessary business leaves per year.

 

However, the definition of ‘necessary’ remains unclear

 

Workplace Relocation

Currently Effective 5th May 2019
Employers wishing to relocate employees to a new workplace and/or to another of its existing workplace must notify the employees of such relocation

 

Employees may refuse to be relocated and upon informing the employers of such refusal, shall be entitled to severance pay at the normal rate

 Employers wishing to relocate employees to a new workplace and/or to another of its existing workplace must post a notification of such relocation at the current workplace for a continuous period of 30 days in advance

 

The notice shall contain details on who, when and where the employees shall be relocated

 

If the employee thinks such relocation will considerably affect his/her living habits and does not wish to be relocated , he/she must notify the employer within 30 days following the employer’s notification or on the date of relocation and shall be entitled to severance pay at the normal rate

 

Employers may submit an objection to the employees’ refusal to be relocated to the Labor Office

Change of Employer

Currently Effective 5th May 2019
All employees’ rights accrued from the previous employer shall also be transferred to the new employer In case there is a change of employer (through merger or acquisition for instance), employers must obtain consent from the employees being transferred to the new juristic person.

 

All employees’ rights accrued from the previous employer shall also be transferred to the new employer

 

Employees may not consent and upon informing the employers of such refusal, shall be entitled to severance pay at the normal rate

 Suspension of Business

Currently Effective 5th May 2019
In case the employer needs to suspend the business activities, for any reason other than force majeure, for a temporary period, the employees shall be entitled to 75% of their daily pay rate during the suspension period. In case the employer needs to suspend the business activities, for any reason other than force majeure, for a temporary period, the employees shall be entitled to 75% of their daily pay rate during the suspension period.

 

The payment shall be made at the current workplace. Should it be made elsewhere, the consent from the employee must be obtained.

 Interests on late payments

Currently Effective 5th May 2019
In case the employer fails to pay employees in due time, interests at the rate of 15% per annum shall apply to the following payments:

–          Collateral (section 10)

–          Wage, Overtime, Holiday work (section 70)

–          Severance payment (section 118)

–          Payment in lieu of notice (relocation) and other Compensation under section 120, 121, 122

 

 In case the employer fails to pay employees in due time, interests at the rate of 15% per annum shall apply to the following payments:

–          Collateral (section 10)

–          Payment in lieu of notice (termination) (section 17/1)

–          Wage, Overtime, Holiday work (section 70)

–          Suspension of business (section 75)

–          Severance payment (section 118)

–          Payment in lieu of notice (relocation) and other Compensation under section 120, 121, 122

 Payment in lieu of notice

Currently Effective 5th May 2019
Employers may terminate employees with an advance notice of at least one payment cycle or immediately by paying salary in lieu of advance notice Employers may terminate employees with an advance notice of at least one payment cycle or immediately by paying salary in lieu of advance notice

 

Payment in lieu of notice must be paid on the date of termination

 Gender equality

Currently Effective 5th May 2019
Employers must pay wages, overtime payments, payment for working on holidays, and payment for working overtime on holidays, at the same rate for both male and female employees who undertake work of the same nature, quality, and quantity, at an equal rate Employers must pay wages, overtime payments, payment for working on holidays, and payment for working overtime on holidays, at the same rate for both male and female employees who undertake work of the same nature, quality, and quantity, or work of the same value, at an equal rate

Source: Royal Thai Government Gazette and Bangkok Post

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