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There are numerous laws governing labor matters in Thailand;

1. Civil and Commercial Code " Hire of Services "
2. Labor Relations Act of 1975
3. Act of Establishment of Labor Courts and Labor Court Procedure of 1979
4. Provident Fund Act of 1987
5. Social Security Act of 1990
6. Compensation Fund Act of 1994
7. Labor Protection Act of 1998

Labor Protection

Important features of the laws relating to labor protection are as follows:

General Provisions

1.
Security Deposit
2.
Change of employer

Working Conditions

1.
Work Hours and Holidays
2.
Rest Periods
3.
Weekly Holidays
4.
Traditional Holidays
5.
Annual Holidays
6.
Sick Leave
7.
Maternity Leave
8.
Military Leave

Remuneration

1.
Minimum Wage
2.
Overtime and Holiday Pay

Welfare and Worker Compensation

1.
Working Conditions
2.
Workers Compensation
3.
Social Security Fund

Working Rules

Termination and Severance Pay

1.
Rate of Severance Pay
2.
Non-entitlement of Severance Pay
3.
Special Severance Pay


General Provision

1.Security Deposit ( Section 10 )

Employers cannot request or receive a security deposit from an employee, except in the case of employees who are responsible for money and/or property belonging to the employer.

2.Change of employer ( Section 13 )

A change of employer based on a transfer, merger or similar reason shall not alter the employee's rights as established by his or previous employer and accordingly the new employer to accept all rights and obligations of the previous employer.

 

Working Conditions

1. Work Hours ( Section 23 )

Maximum working hours:

1.
Work that is considered hazardous must not exceed 7 hours per day or 42 hours per week.
2.
All other types of work must not exceed 8 hours per day or 48 hours per week.

2. Rest Periods ( Section 27 )

Employers must provide for a 1- hour rest period after 5 consecutive working hours. It is permissible for employers and employees to agree to rest less than 1 hour per 5-hour period, but not less than 1 hour per day (The employee must rest more than 1 time per-day).

3. Weekly Holidays ( Section 28 )

An employee is entitled to at least one day of holiday per week, and the interval between weekly holidays must not be more than six days. Any day of the week may be agreed upon in advance to be considered as the weekly holiday.

4. Traditional Holidays ( Section 29 )

An employee is entitled to a minimum of 13 traditional holidays with pay per year, including the National Labor Day (May 1). The employer may select which traditional holidays will be recognized. When a traditional holiday falls on a weekly holiday it must be postponed to the following working day.

5. Annual Holidays ( Section 30 )

Employees who have worked for a continuous period of one year are entitled to an annual holiday of not less than six working days with pay per year. The annual holidays may, by mutual agreement, be accumulated and postponed to another year.

6. Sick Leave ( Section 32 and 57 )

An employee is entitled to sick leave for any illness incurred, but the employer need not provide sick pay for more than 30 days per year. Employers may require employees to obtain a medical certificate upon taking 3 consecutive sick days of leave or more.

7. Maternity Leave ( Section 41 )

Pregnant employees are entitled to 90 days maternity leave with pay not exceeding 45 days. If a medical certificate is provided for confirming that she is unable to do work in line with her regular duties, she will then be entitled to request a temporary change of duty before or after giving birth.

 8. Military Leave ( Section 35 )

Male employees are entitled to leave for the purpose of military service in connection with a call up for inspection, military training or testing for readiness under the law regarding military service with pay during the period of leave but must not exceed 60 days per year.

 

Remuneration

1. Minimum Wage

Presently, (June 2000) minimum wage ranges from Baht 162 per day in Bangkok and 6 other provinces ( Nonthaburi, Pathumthani, Samutprakarn, Samutsakorn, Nakhonpathom and Phuket, Baht 140 in Ranong, Pang-Nga, Chonburi, Saraburi, Nakhon Ratchasima and Chiangmai and Baht 130 elsewhere.( except certain agricultural workers.and employees in such other occupations as the Ministery may stipulate )

2. Overtime and Holiday Pay ( Section 61, 62, 63 )

Employees are entitled to payment rates;

 

Welfare and Workers Compensation

1. Working Condition

The employer is required to provide clean drinking water, bathrooms, first aid and medical facilities, and safe, sanitary working conditions sufficient to accommodate all employees.

2. Workers Compensation

Workers who are injured or become ill in the normal course of their employment are entitled to medical disability. If a worker dies, his or her family is entitled to death benefits. The amount of compensation is small compared to other countries.

Employers who regularly employ 10 or more employees are required to contribute to the Workers Compensation Fund. The amount depends on the type of business, ranging from 0.2 to 2 percent of the employees' annual wages, with a maximum wage base of Baht 240,000 per year.

3. Social Security Fund

Any employer employing 10 or more people must also contribute to the Social Security Fund. The fund presently provides funds for the loss of wages as a result of childbirth, and non-work related injury, disability or death.

By 1996 the benefits will be expanded to include child welfare and retirement. Although presently not in force, unemployment benefits are also contained in the legislation.

 

Working Rules

Employer with 10 or more employees must establish rules and regulations governing working conditions that must contain at least the following particulars

1.
Working days, normal working hours and recreation periods
2.
Holidays and rules governing holidays and work stoppage
3.
Rules on overtime work and work on holidays
4.
Date and place where wages, overtime payment, holiday overtime payment will be paid.
5.
Leave of absence and rules governing the leave
6.
Discipline and disciplinary measures.
7.
Petition.
8.
Termination of employment, severance pay and special severance pay



Termination and Severance Pay

1. Rate of Severance Pay ( Section 118 )

An employee who has worked for a minimum of 120 days is entitled to severance pay for termination;

Work period

Severance Pay Rate

120 days less than 1 year

30 days

1 year less than 3 years

90 days

3 years less than 6 years

180 days

6 years less than 10 years

240 days

10 years and over

300 days

2. Non-entitlement of Severance Pay ( Section 119 )

Employers need not pay Severance Pay to employees who are terminated in any of following cases:

1.
Dishonesty to duties or deliberate commission of crime against the employer
2.
Intentionally causing damage to the employer
3.
Negligence causing serious damage to the employer
4.
Violation of work regulations or orders of the employer if the employer had already issued a written warning. In serious cases, the employer need not have issued a warning.
5.
Desertion of duty for three consecutive working days without reasonable cause.
6.
Being imprisoned under a final judgement ordering imprisonment, except if it is a sentence for an offence committed out of negligence or a petty offence.

If the parties have not fixed the duration of the employment, either party may terminate it by giving notice on or before the day prior to the final payday. No more than three months advance notice need be given, and the equivalent salary may be paid in lieu of notice. Advance notice or pay in lieu is in addition to the severance pay requirements discussed above.

3. Special Severance Pay ( Section 121, 122 )

If an employer terminates an employee due to improvement in the organizational structure, manufacturing process, sale or service on account of use of new machinery, or change of machinery or technology, and in effect reduces the number of employees, the employer must notify the employee whose employment is to be terminated and the Labor Inspector at least 60 days in advance of the termination. The employer can also terminate the employee by paying the employee severance pay equivalent to the rate of the last 60 days' wages in lieu of notice. Additionally, if an employer, under these circumstances, terminates an employee who has worked for an unbroken period of at least six years, the employer is required to pay additional special severance pay. The additional special severance pay must be paid in an amount not less than a sum equal to the last fifteen days' wages, for every full year of employment after the sixth year. According to the law, a period of more than 180 days is deemed to be a full year. The entire special severance pay shall not exceed a sum equal to the last 365 days wages.

 

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