Thailand Severance Pay and Termination Issues. Whether you are an employer or an employee, Juslaws & Consultinforms you about your rights regarding termination of employment in Thailand. Termination of employment is defined as follows. employment contracts. For employees involved in hazardous work, normal working hours are restricted to seven hours per day and 42 hours per week. Labor law or Employment law cases may also involve issues of wrongful termination, breach of contract or injuries that occur during scope of work. 2541 (1998) and the Civil and Commercial Code lay out the rights and responsibilities of both employers and employees. 14 B.E. Overtime Compensation. This column includes guidance for good employment practices based on the ILO Domestic Workers Convention, 2011 (No. According to Section 17 of the Labour Protection Act B.E. (1) Preparing company work rules and regulations in compliance with the Labour Protection Act for submission to the Thailand Ministry of Labour. In practice, however, English documentation is used in many businesses onshore. Employment in Thailand may be terminated for a variety of reasons: Completing a project; Expiry of a fixed term contract; Resignation Under Thai laws, the following financial compensations are required to be paid in order to terminate the employment contract. Although Thai Law does say that a contract can be oral or in writing, it has and ideally needs to be in writing. An employment contract is defined under the Labour Protection Act BE 2541 (1998) as an agreement, either written or verbal, that clearly or implicitly states that the employee agrees to work for the employer and that the employer agrees to pay a wage throughout the work period. Special The MOHRE standard contract is issued now in dual English and Arabic and dual with other popular largely South-Asian languages. Labour rules, laws and regulation in Thailand, 3. Notary. 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. Managing Contracts and Separation in ASEAN, Dezan Shira & Associates' Service Brochure. This covers areas such as working hours, holidays and leave, notice, overtime, sick pay, where summary dismissal is permitted without severance pay or notice, and the calculation of severance pay in a case … 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 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 you are a foreigner working for a Thai company it is important to familiarize yourself with the employment laws and regulations. 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. For employees involved in hazardous work, normal working hours are restricted to seven hours per day and 42 hours per week, Terminating employment contracts and severance pay, If an employment agreement does not specify the contract’s duration, both employers and employees have a statutory right to terminate the contract after giving prior notice. With an employment contract, the employee agrees to work and receive wages in return and the employer has the power to supervise employees during the work; however, contractors are entitled to receive payment when the work is completed. 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