An employee is entitled to a sick leave as long as he/she is actually sick. The employer, however, may appeal the reasons invoked by the employee before the Ministry of Labour. Section 21. 2541 as amended by the Labour Protection Act (No. A full service law firm with multiple branches in Thailand. The provisions of section 144 (2) of the Labour Protection Act B.E. 2541 as amended by the Labour Protection Act (No. The new Labor Protection Act (No. Where an employer wishes to terminate an indefinite term employment contract with immediate effect and without giving the statutory notice (ie, for other reason than a “permitted cause” under the LPA or the Civil and Commercial Code), payment in lieu of notice must now be made on the effective date of termination. Section 17. 2541 shall be repealed and replaced by the followings: “where there has been a change of employer or where the employer is a juristic person and there is a registration of change, assignment or merger with any juristic person resulting in an employee having a new employer, the employee shall grant consent to being under such new employer and the new employer shall assume the rights and duties, entitled to from their previous employer, and in connection with those employees in all respects”. Legal News & Analysis - Asia Pacific - Thailand - Labour & Employment 5 April, 2019 The Thai Labour Protection Act, B.E. Reading Time: 4 minutes The Thai National Legislative Assembly approved a resolution to amend the existing Labour Protection Act (the “LPA”) on December 13, 2018.This amendment to the LPA has been published in the Government Gazette on April 5, 2019, and will come into effect on May 6, 2019.Key takeaways of this amendment, which is largely favorable to employees, are set out below: Through extensive tripartite consultations, Thailand government and social partners have developed Thailand’s first Decent Work Country Programme (DWCP) covering the period 2019-21, which provides the overall framework for collaboration with the ILO. 2541 Section 7. (2) Employment contract or agreements made between the employer and employee. Ministry of Labor, Khon Kaen jointly launched a unit for the treatment of suffering, to create a smile to the people. On 13 December 2018, the draft amendment to the Labor Protection Act (LPA) was approved by the National Legislative Assembly and is expected to come into force soon. Section 15. Section 16. 2551 shall be repealed and replaced by the followings: “section 124/1. On 20 November 2019, the National Assembly of Vietnam adopted the Labor Code No. 2541 as amended by the Labour Protection Act (No. 2541 as amended by the Labour Protection Act (No. The main purposes of the amendment is to provide better protection for employees, to enhance In the case where the employer is the plaintiff of the court case, the employer shall place the guarantee to the court for the amount he or she shall pay in accordance with the order before initiating the case. However, termination of employment and wrongful dismissal are subject to certain rules that are important to respect in order to avoid any subsequent dispute with the employee or for the employer. 04 March 2019 . Visitor Times Posted Date 4 May 2018 facebook The provision of section 144(1) of the Labour Protection Act B.E. Thailand Law Library is managed by Siam Legal International. Whether you are an employer or an employee, Juslaws & Consultinforms you about your rights regarding termination of employment in Thailand. Career. 7, 2562 B.E. 2541: “(6) an employee who has worked for a continuous period of twenty years and more shall be paid for the amount of not less than the last rate of wages for four hundred days or of not less than his or her wages for the last four hundred days for an employee who receives wages on a piece rate basis”. Such notice must be conspicuous and must clearly state the timing for relocation and the new expected workplace. It should not be regarded as a comprehensive statement of the law and practice in this area. Where the employer terminates the employment of an employee, the employer shall pay wage, overtime pay, holiday pay, holiday overtime pay and money the employer shall pay under this Act to an employee who is entitled to receive such pay, within three days from the date of termination of the employment”. The amendment increases the amount of statutory severance pay for employees having worked for an uninterrupted period of 20 years or more by raising it to 400 days of the employee’s last wage (approximately 13.3 months). Our areas of expertise: Banking and Finance, Corporate and Commercial, Energy, Mining and Infrastructure, Mergers and Acquisitions, Real Estate and Construction, and Taxation. 2541 shall be repealed and replaced by the followings: “section 145. 2541 as amended by the Labour Protection Act (No. 2) B.E. The Thai National Legislative Assembly approved a resolution to amend the existing Labour Protection Act (the “LPA”) on December 13, 2018. If you require any advice or information, please speak to practicing lawyer in your jurisdiction. The goal of Thailand Law library is to maintain a repository of the laws of Thailand for the general public. 7) B.E.2562 (2019)”. An employer shall pay wage, overtime pay, holiday pay, holiday overtime pay and other money which the employer has the duties to pay under this Act correctly and within the specified time period as follows: (1) where wage is calculated on a monthly, daily, hourly basis or at other duration of no longer than one month or on the basis of work output, payment shall be made at least once a month, unless otherwise agreed upon by the employer and employee in the interests of the employee; (2) Where wage is calculated by methods other than as prescribed in (1), payment shall be made at the time agreed upon by the employer and employee; (3) Payment of overtime pay, holiday pay and holiday overtime pay shall be made at least once a month. The provisions of section 41 of the Labour Protection Act B.E. If the relocation materially affects the ordinary course of living of an employee, the employee may refuse to relocate by giving a written notice to the employer within 30 days of the relocation notice date. Employment with a definite periodis allow… Below is an English translation of the law provided by Natthanicha Lephilibert, Safe and Fair National Project Coordination for Thailand, ILO, United Nations. 2541: “section 125/1. THE ORIGINAL THAI TEXT AS FORMALLY ADOPTED AND PUBLISHED SHALL IN ALL EVENTS REMAIN THE SOLE AUTHORITY HAVING LEGAL FORCE. Full paid maternity leave remains, however, capped at 45 working days. It was published in the Government Gazette on 5 th April 2019. The Labor Protection Act regulates minimum standards for pay and working hours for employees. The new labour law, with more benefits for workers including a higher layoff compensation rate for long-serving employees, will come into effect on May 5. Section 24. Integrated international law firm providing technical excellence across our core areas of expertise; Accordingly, employers and HR departments should review their internal policies, employment contracts and internal HR process to ensure compliance with these provisions. 2541 (1998) (“LPA”) has previously been revised from time to time. The Thai Labour Protection Act, B.E. 5) B.E. But, and this is very important, a severance or ex gratia payment was not compulsory under Thai labor law before 1 September 2017. The followings shall be added as section 120/1 and section 120/2 of the Labour Protection Act B.E. Expanding benefits for workers, the new law will come into effect on May 5. Following this notice, the employment contract will be deemed to be terminated on the date of relocation and the employee will receive special severance pay (the amount of which equal to the statutory severance pay) within 7 days from the termination date. Table 6. 2) B.E. – contact@cpg-online.de, → Asia in Review: The weekly news review delivered to you free of charge. This article was first published on the DFDL website. On December 13, 2018, the National Assembly of Thailand approved significant amendments to the country’s Labor Protection Act (“LPA”). Introduction. Such notice shall contain, at least, the statements which are clear and sufficient to understand in regard to which, where and when an employee would be moved to. The provisions of section 59 of the Labour Protection Act B.E. ... (an employer with 10 or more employees must prepare and announce the work rules with minimum particulars as required by Thai labor law). An interest rate of 15% per year is now applicable to employers who fail to make payments in lieu of notice for termination (where required) or statutory payments for temporary cessation of the employer’s operations (for reasons other than an act of god)). Labour Protection Act (No. 11 April 2019. In the case where the Labour Welfare Committee considers and is of the opinion that the employee has no right to receive the special severance pay in lieu of the advance notice or special severance pay, as the case may be, the Labour Welfare Committee shall notify the employer and employee of such order. Expertise: Law. Client Update: Thailand. 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. The employee is entitled to special severance pay not less than the rate of severance pay he or she would be entitled to under Section 118. Protect Your Brand – FAQ on Trademark Registration... Who is responsible if an AI diagnoses your disease... Rise of the PMD: The Case for Compulsory Insurance in Singapore. The days of maternity leave referred to in this section shall include leave for pregnancy check-up before delivery. 2551 shall be repealed and replaced by the followings: “section 155/1. The provisions of section 120 of the Labour Protection Act B.E. The provisions of section 70 of the Labour Protection Act B.E. 2019 The Thai Labour Protection Act, B.E. The Amended Labor Protection Act will be effective on 5 May 2019 On 5 April 2019, the Government Gazette has published the Labor Protection Act (Issue 7) B.E. 2551 shall be repealed and replaced by the followings: “section 120. In-depth local and cross-border experience in complex and sophisticated transactions across a wide geographical front; Section 25. The provisions of section 151 paragraph two of the Labour Protection Act B.E. Based on the draft Amended LPA publicly available, … An employer who wishes to move a place for establishment of business operation to a new business establishment or to others place of an employer, the employer shall publish a notice in advance in a public place where such business operation is established and employees are able to see clearly for a continuous period of no less than thirty days as from the day of moving the business establishment. DFDL Expertise The followings shall be added as section 125/1 of Chapter 12, the submission of complaints and consideration of complaints, of the Labour Protection Act B.E. Prior to this amendment, the statutory severance pay for employees with 10 years of seniority or more in the company was capped at 300 days of pay. 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. Under the amendments, employees with 20 or more uninterrupted years of service will be entitled to receive 400 days’ pay as severance. Expanding benefits for workers, the new law will come into effect on May 5. In the case where an employer fails to return the guarantee security in the form of money under section 10 paragraph two or fails to pay money upon contract termination without giving notice under section 17/1 or fails to pay for wage, overtime pay, holiday pay and holiday overtime pay within the specified time under section 70, or fails to pay for compensation when an employer terminates the business establishment under section 75 or severance pay under section 118; special severance pay in lieu of advance or special  severance pay under section 120, section 121/1 and section 122, the employer shall pay the employee interest during the period of default at the rate of fifteen percent per annum”. Section 20. The provisions of section 13 of the Labour Protection Act B.E. The amendments took effect on May 6, 2019. The provisions of section 9 paragraph one of the Labour Protection Act B.E. In 1994, DFDL was built on the foundation of a unique vision: to build an integrated international standard law firm, with in-depth knowledge of the Mekong Region, while providing specialized and personalized advisory services to the international business community. The amended LPA was published in the Royal Gazette on April 5 and took effect May 5. Siam Legal International does not claim any rights over the republication of Thai laws within this website. The employer and the employee may agree to arrange the period of working hours for some types of works, as stipulated by the Thai labor law, but the total number of working hours in any case must not exceed 48 hours a week. 2541 shall be repealed and replaced by the followings: “section 70. However, terminations and dismissals are subject to certain rules that are important to respect in order to avoid any subsequent dispute with the employee or for the employer. 2553 shall be repealed and replaced by the followings: “Any person who fails to comply with an order of a labour inspection under section 124 shall be liable to imprisonment for a term not exceeding one year or to a fine not exceeding twenty thousand Baht or to both”. Key takeaways of this amendment, which is largely favorable to employees, are set out below: The employee’s consent is now required when a change of employer registration, or a merger between the employer and another company results in the transfer of employment to a new entity (for instance, when a new company is created following the merger between two companies). New Labour Protection Law. The legislation was changed to become more favorable for employees throughout 2018 and is expected to … Whether you … His Majesty King Maha Vajiralongkorn Bodindradebayavarangkun; His Majesty King Maha Vajiralongkorn Bodindradebayavarangkun is graciously pleased to proclaim that: Be it, therefore, enacted by the King, by and with the advice and consent of the National Legislative Assembly, as follows. Any employer who fails to comply with section 23 paragraph one or paragraph three shall be liable to a fine not exceeding five thousand Baht”. Siam Legal International does not claim any rights over the republication of Thai laws within this website. 5 April, 2019 The Thai Labour Protection Act, B.E. Keywords: Mazars, Thailand, Legal, Labour Protection Act, Royal Decree Section 14. Prior to the amendment, this timing requirement for payment applied to wages, holiday pay, overtime pay, and holiday overtime pay, but not to other types of remunerations or other statutory payments, such as severance. Here are 3 examples: (1) Preparing company work rules and regulations in compliance with the Labour Protection Act for submission to the Thailand Ministry of Labour. Again, this new provision gives more certainty to employers and HR departments in the event of breakdown of the employment relationship. It will become effective on and from 5 th May 2019. Although the amendment is silent on the form of the consent given by the employee, employers should seek to get a written consent for the sake of security. The New Labor Code will take effect from 1 January 2021. An Employer, a chief, a supervisor, or a work inspector shall be prohibited from committing sexual … An employer shall pay the wage of an employee on maternity leave under section 41, at a rate equal to the wage for a normal working day, for the entire period of time the leave being taken but not exceeding forty five days”. In the case where the complaint is considered and an order is issued by the Labour Welfare Committee, this shall be completed within sixty days as from the date of receiving the complaint and the order shall be notified to the employer and employee within fifteen days as from the date of issuance of order. Section 12. The followings shall be added as (6) of section 118 of the Labour Protection Act B.E. The Thai Government recently published in its Royal Gazette a set of new changes to the Labor Protection Act (LPA), effective 5 th May 2019, aiming at further improving employee’s working conditions as follows:. About the ILO in Thailand . 2541 as amended by the Labour Protection Act (No. Under the current regime, the government strives to promote stronger protection for employees at large. German-Southeast Asian Center of Excellence for Public Policy and Good Governance (CPG) – +66 2 613 2971 – +66 2 224 8100 (Fax) 2562(“ Amended LPA ”) and it will be effective on 5 May 2019. Naturally, many employers wanted to know more about how this affected them. 7) B.E. This Act is called the “Labour Protection Act (No. Any employer who fails to submit or notify a form stating employment conditions and working conditions under section 115/1 shall be liable to a fine not exceeding twenty thousand Baht”. However, gaps exist within the operations of the MOL that may hinder adequate labor law enforcement, including an insufficient number of labor inspectors. Section 9. R&T Asia (Thailand) Limited is a full service Thai law firm which has the expertise and resources, both international and local, to assist and support you on a wide range of legal services, including representation in the Thai courts, in international and domestic arbitration, contentious and non- 2551 shall be repealed and replaced by the followings: “(5) to issue an employer to pay for special severance pay instead of a given advance notice or special severance pay under section 120/1”. Leave. Thai labor law is relatively flexible for employers. 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). Under the current regime, the government strives to promote stronger protection for employees at large. Employment. 2541 shall be repealed and replaced by the followings: “(5) an employee who has worked for a continuous period of ten years but less than twenty years, shall be paid for the amount of not less than his or her last rate of wages for three hundred days, or of not less than his or her wages for the last three hundred days for an employee who receives wages on a piece rate basis”. 2551 shall be repealed and replaced by the followings: “section 9. In the case where the employer disagrees with the reason of the employee under paragraph tree, the employer shall submit a complaint to the Labour Welfare Committee within thirty days as from the date of receiving the written notice”. A well written employment contract can prevent and settle disputes which may arise in the future. Thailand Law Library is managed by Siam Legal International. On 13 December 2018, the meeting of the National Legislative Assembly (“NLA”) passed the Draft Labour Protection Act B.E. With Quick Consult, from a transparent, flat fee of $49, the lawyers will call you back on the phone within 1-2 days to answer your questions and give you legal advice. In 2019, labor law enforcement agencies in Thailand took actions to combat child labor (Table 6). Maternity leave entitlements for pregnant employees is now set at 98 days per pregnancy (increased from 90 days) and is extended to leave taken for pre-natal care, such as to attend medical appointments. Section 3. The amendment lays down various changes pertaining to the relocation of employees to a new place of business. (2019), which was published on 4 April 2019, and which became effective on 5 May 2019, addressed the following key issues. Section 13. 2562 (2019) (Amendment Act No. Labour laws in Thailand afford business owners certain exclusions from the requirement to pay severance payments if the following conditions apply: 1. Thailand's redrafted Labor Protection Act (LPA) has introduced major changes to the country's employment law. Employees are entitled to leave for necessary business for no less than three working day per year”. 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… Thailand has one of the most exciting, fast-paced job markets in South East Asia. Section 15. Section 22. 7), which introduces significant amendments to Thailand’s Labour Protection Act B.E. 7) B.E. Thai Labour Law on Automation Replacing Workers. Section 11. 2541 (1998) (“ LPA ”) has previously been revised from time to time. 2541: “section 17/1. 2) B.E. 2) B.E. 2541 shall be repealed and replaced by the followings: “section 53. The provisions of section 120 of the Labour Protection Act B.E. Section 19. The provisions of section 145 of the Labour Protection Act B.E. No individual who is a member, partner, shareholder or consultant of, in or to any constituent part of Interstellar Group Pte. The latest manifestation was revision to the Thai LPA was in 2010. Section 16. Labour Laws กรมสวัสดิการและคุ้มครองแรงงาน, กสร, Department of Labour Protection and Welfare, DLPW Labour Protection Act B.E. However, there can be some gray areas when it comes to knowing your rights as an employee in Thailand. The Amended LPA is now pending publication in the Royal Gazette. The provisions of section 146 of the Labour Protection Act B.E. Employees are now statutorily entitled to personal business leave of 3 working days per year. 2541: “section 120/1. For sick … Wealth. This amendment to the LPA has been published in the Government Gazette on April 5, 2019, and will come into effect on May 6, 2019. 2562 (A.D. 2019) was passed by the National Legislative Assembly (NLA) on 13 th December 2018 to amend the Labour Protection Act B.E. An Employer shall treat male and female Employees equally in employment unless the description or nature of work prevents such treatment. Siam Legal International does not claim any rights over the republication of Thai laws within this website. A Royal Decree on Labour Protection Act No. In the case where the employer fails to give an advance notice to an employee under paragraph one, the employer shall pay special severance pay, to an employee who does not wish to move to a new business establishment, in lieu of the advance notice in an amount equal to thirty days of the most recent wage rate received by him or her or not less than the wage for work performed in the last thirty days as an employee who is paid on the basis of his or her wage on a piece rate basis. By Florian Maier, Managing Director and Phi Ploenbannakit, Director – Antares Advisory, part of Antares Group. A full service law firm with multiple branches in Thailand. Section 5. 2541 (A.D. 1998) (LPA). DFDL Lawyers April 12, 2019 0 The Thai National Legislative Assembly approved a resolution to amend the existing Labour Protection Act (the “ LPA ”) on December 13, 2018. In May 2019, amendments to Thailand’s Labour Protection Act broadened the scope of the workplace relocation provisions to cover an employer’s other existing work locations, such as branches. New Labour Protection Law to be Effective in 2019. The provisions of section 53 of the Labour Protection Act B.E. Section 6. The new Labor Protection Act (No. Section 4. 2) B.E. This change also means that the law has now included the said statutory payments as part of severe failure to make statutory payments under the law whereby if the failure occurs with the clear intent of the employer without reasonable grounds, then, the employer would be subject to an additional surcharge of another 15% of the unpaid balance of the said statutory payments for every 7 day so long as they remain unpaid. In the case where it is necessary for an employer to terminate a whole or a part of the business operation temporarily for whatever important reason affecting the business operation of the employer and resulting in the employer being unable to operate the business as usual which is not due to force majeure, am employer shall make a payment to an employee for no less than seventy five percent of the wage the employee has received before the employer terminates the business operation throughout the time the employer does not require the employee to work at a payment place under section 55 and within the prescribed time period for payment under section 70(1)”. Any employer who fails to comply with section 15, section 27, section 28, section 29, section 30 paragraph one, section 45, section 53, section 54, section 56, section 57, section 58, section 59, section 65, section 66, section 73, section 74, section 75 paragraph one, section 77, section 99, section 108, section 111, section 112, section 113, section 114, section 115, section 117 or without advanced notice, section 121 paragraph one or section 139(2) or (3) shall be liable to a fine not exceeding twenty thousand Baht”. The amendment aims to promote and enhance gender equality through the concept of “work of the equal values” as part of the new condition for equal pay. Section 10. Where the work to be performed is of the same nature, quality and quantity or the work is in the equivalent value, the wage, overtime pay, holiday pay and holiday overtime pay shall be in fixed by the employer in the same rate regardless of whether the employee is male or female”. 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