In this article I will outline the aspects of the Thai labour law concerning teachers in Thailand as covered by the Labour Protection Act, B.E. The issue of retrenchments in general and of assessing severance pay in particular are practically complicated and fraught with legal complexities. The Labour Protection Act sets out six severance pay rates based on the length of time that the employee worked, shown in the table below: This article addresses several of the most important aspects of this Act and its Regulations. How much tax you pay depends in part on how your employer pays your severance pay. The provisions of section 118 (5) of the Labour Protection Act B.E. My base salary is 90,000 a month, but in addition to that I have a housing allowance of 30,000 a month. *Under the Amended LPA, an employee who works for more than 10 years but less than 20 years will continue to be paid severance pay for 300 days of the last wage rate, but if the employee works for at least 20 years, the amount of severance pay will be increased from 300 to 400 days of the last wage rate. The basic presumption of Thai Labor Law is that the Employer is in a superior position in relation to the Employee therefore Employees require the law to equalize the imbalance of power. The latest manifestation was revision to the Thai LPA was in 2010. As a result, the employee will be entitled to the amount equivalent to severance pay to be paid upon termination of employment. According to Section 17 of the Labour Protection Act B.E. 2541 shall be repealed and replaced by the followings: Previously, the law was silent on the issue and employers had discretion to set their own retirement policy. Years Months (A) Weeks of Severance Pay Due Keywords: Labour Law, Termination, Thailand, Employee. My employer has said I'm entitled to 6 months severance pay. The obligation to pay severance pay to fixed-term employees By Johan Botes, Director, Employment Law, Cliffe Dekker Hofmeyr. However, it does specify severance pay for employees who have worked for 120 days or more and are terminated without cause. There is a lot of misunderstanding about the Thai labour law, the labour court and teachers' rights in Thailand. If the period of … business tax & tax rates in thailand. A look at the key legal provisions governing the termination of employment in Thailand, including grounds for dismissal, notice requirements and severance pay, among other things. So you think it is all fun and games. termination of employment. 2541 (1998) includes the fact that the retirement of … See ESA section 57 and 58. The Labor Protection Act regulates minimum standards for pay and working hours for employees. They are however claiming that only the 'base salary' qualifies for severance pay. For employees who receive wages based on work units performed, the severance pay may not exceed the wages received for the last 360 days. As a result, to avoid paying severance, many employers in Thailand set probation periods of up to 119 days. Keywords: Mazars, Thailand, Legal, Severance pay, Labour Protection Act, Wage rate. 2541 (1998), as well as the Foreign Employment Act. Amendments The amendments to the Labour Protection Act have been made to confirm the court’s rulings that retirement is considered as a termination of employment. Thai labour law provides that in the event that an employee violates an employer’s work rules, regulations or orders in circumstances where the employer has previously issued a warning letter to the employee in respect of the same violation, the employer may terminate the employee’s employment without severance pay. “(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”. Employment law 'labour protection act' rights and liberties individual employer and employee, ... Thai legal for expats . In case for an employee who has worked for uninterrupted period of 6 years or more, an employer must pay special severance pay in addition to severance pay for each year of employment of not less than the employee’s last rate of wages for 15 days or for each year of employment or of not less than an employee’s wages for the last 15 days for an employee who is paid on a piece rate basis. Article 132 of the UAE Labour Law states: “A worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. An employee who has worked for less than 120 days can be terminated without receiving severance pay. the period prescribed under Section 70, or severance pay under Section 118, special severance pay in lieu of advance notice, or special severance pay under Section 120, Section 121 and Section 122, the Employer shall pay interests to an Employee at the rate of … wrongful dismissal in thailand A new category of entitlement for statutory severance pay has been added for employees who have worked for an uninterrupted period of 20 years or more. New Rate of Severance Pay; An employee who has been terminated without cause will be entitled to, among others, severance pay; the rate of which depends on an employee’s length of service and last wage rate. You believe what the schools tell you and you are afraid to question them so you can stay in the Land of Smiles. Retirement is deemed to be termination of employment, and the retiring employees are entitled to severance pay under Section 118. All sounds fine from what I've read about Thai labour law. Severance Pay. Hours Of Work The law provides maximum working hours based on the type of work. In the case where an employer relocates the place of business in Thailand which affects the normal living of an employee or his/her family, the employer shall notify the employee at least 30 days before the date of relocation. tax submission forms in thailand. 4th time (dismiss worker immediately without payments of severance pay and 1 month notice) If interval between the times each other takes longer than 12 months, reset and restart from 1st time; Violating grave offenses (Annex-B) Dismiss worker immediately without payment of severance pay; Severance pay (Notification No. Paying income tax on lump-sum severance payments. Thai law allows the employee to refuse to move and become entitled to receive severance pay. statutory severance pay at the rate set out by the Labour Protection Act 1998 (“LPA”) (which ranges from 30 to 300 days’ wages depending upon length of service) to an employee whose employment is terminated without reason or for reasons other than those set out in Section 119 of the LPA. save on lawyer fees, save on travel time. If you get your severance pay as a lump sum, your employer will deduct the income tax. But, and this is very important, a severance or ex gratia payment was not compulsory under Thai labor law before 1 September 2017. This means that the effective date may be delayed. severance pay in thailand thai labour law restricted jobs for foreigners social security in thailand double taxation agreement tips for paying taxes as a foreigner. This would lead to voluntarily resignation and this resulted in employees being unable to claim severance pay under Thai law. Thai law does not explicitly mention probationary period in employment relationships. Special Severance Pay. The Thai Cabinet has endorsed a proposal to amend the Labour Protection Act, setting a statutory retirement age for the first time and entitling retirees to statutory severance pay. Note: If an employer ends an employee’s employment without giving written notice as set out in section 57 or 58 of the Act, the employee’s length of employment for severance pay purposes is calculated as if notice had been given. Employers are therefore not advised to deal with these without the assistance of an experienced and reputable labour law advisor. BY lvan lsraelstam, Chief Executive of Labour Law Management Consulting. If the employer has a retirement policy, or the employer agrees with the employee on retirement and the age of retirement, both parties are required to comply with such policy or agreement. The National Legislative Assembly has announced the new entitlements shall be effective from 24 February 2019, subject to the publication of the law in the Royal Gazette. Under Thai labour law, an employer may terminate an indefinite term employment contract immediately, without notifying the employee at least one payment cycle … However, under Thai Law, only employees who have worked for 120 days or more are entitled to severance pay if they are terminated without cause. Thailand has applied the same rate of severance pay since promulgation of the LPA in 1998 until this was adjusted on 5 May 2019. Working hours Even though Thailand’s labour law does not set the retirement age of employees, the interpretation of the Thai Labour Protection Act B.E. An employer shall pay severance pay to an employee whose employment is terminated, as follow: An employee who has worked for at least 120 consecutive days, but for less than one year shall be paid basic pay for 30 days at the most recent rate of basic pay received by him An employee terminated without a valid cause as stipulated by law is entitled to receive the following severance pay: 30 days’ wages where the employment period is at least 120 days but is less than one year. Section 14. Retirement Age of Employees Thai Lawyers | May 10, 2013. 90 days’ wages where the employment period is at least one year but is less than three years. ... New category of statutory severance pay . The employer shall make the severance payment to the employee not later than two months from the receipt of such a notice. 28 February 2020. For example, you may pay less tax if you get your severance pay as a salary continuance instead of as a lump-sum payment. 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