thailand labour law 2019

Thailand has one of the most exciting, fast-paced job markets in South East Asia. A practical knowledge of local business cultures and practices; and Section 6. 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. The provisions of section 70 of the Labour Protection Act B.E. 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. 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. 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”. Table 6. 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 In this post, we'll help clarify some of the basics when it comes to Thailand labor law. 2541 shall be repealed and replaced by the followings: “section 145. Labour Protection Act (No. If you require any advice or information, please speak to practicing lawyer in your jurisdiction. In 2019, labor law enforcement agencies in Thailand took actions to combat child labor (Table 6). Translation and copyright by Ms. Natthanicha Lephilibert, Safe and Fair National Project Coordination for Thailand, ILO, United Nations – under her own capacity. Yes, the employer is required to provide employment terms and conditions to meet the minimum standards set out under Thai law, such as the minimum wage (as of February 2019, a national minimum wage rate is between THB 308–330 per day based on the location of work), working days and hours of work, leave entitlements, public holidays, welfare, termination of employment, etc. Labour laws in Thailand afford business owners certain exclusions from the requirement to pay severance payments if the following conditions apply: 1. 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”. The provisions of section 118 (5) of the Labour Protection Act B.E. 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)). The new Labor Protection Act (No. Section 24. On April 5, 2019, Thailand’s new labour law, officially called the Labour Protection Act (No.7), was published in the Royal Gazette. Again, this new provision gives more certainty to employers and HR departments in the event of breakdown of the employment relationship. The employer, however, may appeal the reasons invoked by the employee before the Ministry of Labour. © R&T Asia (Thailand) Limited | 1. Visitor Times Posted Date 4 May 2018 facebook 2541 as amended by the Labour Protection Act (No. A full service law firm with multiple branches in Thailand. The followings shall be added as section 120/1 and section 120/2 of 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. On 20 November 2019, the National Assembly of Vietnam adopted the Labor Code No. 2551 shall be repealed and replaced by the followings: “section 9. DISCLAIMER: THIS TEXT HAS BEEN PROVIDED FOR EDUCATIONAL/COMPREHENSION PURPOSES AND CONTAINS NO LEGAL AUTHORITY. 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”. The provision of section 144(1) of the Labour Protection Act B.E. 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. 2541 shall be repealed and replaced by the followings: “section 53. In regard to the delivery of the order of the Labour Welfare Committee, the provision of section 143 shall apply mutatis mutandis. 2541 shall be repealed and replaced by the followings: “section 34. Expertise: Law. German-Southeast Asian Center of Excellence for Public Policy and Good Governance (CPG) – +66 2 613 2971 – +66 2 224 8100 (Fax) 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. The provisions of section 9 paragraph one of the Labour Protection Act B.E. 7, 2562 B.E. As such, the new provision gives more certainty to employers wishing to terminate employees without notice where such notice is required. Under the current regime, the government strives to promote stronger protection for employees at large. 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. 2541 as amended by the Labour Protection Act (No. 2562 (2019) (“New LPA”) was published in the Government Gazette on 5 April 2019. Under the amendments, employees with 20 or more uninterrupted years of service will be entitled to receive 400 days’ pay as severance. 7) B.E. The main purposes of the amendment is to provide better protection for employees, to enhance 2541 (1998) (“LPA”) has previously been revised from time to time. 2) B.E. The Thai labor law stipulated that the maximum number of working hours of employees in Thailand is 8 hours a day and not more than 48 hours a week. 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. 2551 shall be repealed and replaced by the followings: “section 120. 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. 2541 (1998) (“Amended LPA”). New Labour Protection Law. The provisions of section 13 of the Labour Protection Act B.E. In case of termination, all remunerations (including pro-rata bonus, premium and other benefits) and other statutory payments (including, in our reasonable interpretation of the severance pay) must be paid within 3 days following the effective date of termination. Severance Pay Section 21. On December 13, 2018, the National Assembly of Thailand approved significant amendments to the country’s Labor Protection Act (“LPA”). Sick leave. The major changes to the LPA include the followings: DFDL Expertise About the ILO in Thailand . Thailand is one of the ILO’s founding members, joining in 1919. 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 provisions of section 53 of the Labour Protection Act B.E. 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”. 4) B.E. Siam Legal International does not claim any rights over the republication of Thai laws within this website. Ministry of Labor, Khon Kaen jointly launched a unit for the treatment of suffering, to create a smile to the people. Based on the draft Amended LPA publicly available, … 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”. Section 7. The provisions of section 75 of the Labour Protection Act B.E. The Labor Protection Act (No. On April 5, 2019, Thailand’s new labour law, officially called the Labour Protection Act (No.7), was published in the Royal Gazette. 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:. 2541 shall be repealed and replaced by the followings: “section 70. 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. Integrated international law firm providing technical excellence across our core areas of expertise; Section 22. For sick … The amendments took effect on May 6, 2019. 2019 FEBRUARY. 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. 7) B.E.2562 (2019)”. Ministry of Labor, Khon Kaen jointly launched a unit for the treatment of suffering, to create a smile to the people. This article was first published on the DFDL website. New Labour Protection Law to be Effective in 2019. 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. This Act shall come into force after the expiration of thirty days from the date of its publication in the Government Gazette. The Labor Protection Act regulates minimum standards for pay and working hours for employees. 2) B.E. Section 14. Employment with a definite periodis allow… The latest manifestation was revision to the Thai LPA was in 2010. The normal working hours of an employee cannot exceed eight hours per day and 48 hours per week. Section 12. An Employer, a chief, a supervisor, or a work inspector shall be prohibited from committing sexual … Siam Legal International does not claim any rights over the republication of Thai laws within this website. 2553 shall be repealed and replaced by the followings: “section 146. The legislation was changed to become more favorable for employees throughout 2018 and is expected to … The goal of Thailand Law library is to maintain a repository of the laws of Thailand for the general public. Below is an English translation of the law provided by Natthanicha Lephilibert, Safe and Fair National Project Coordination for Thailand, ILO, United Nations. Section 120/2. 7) B.E. 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)”. 2) B.E. 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. When the Labour Welfare Committee considers the complaint under section 120 and is of the opinion that the employee has the right to receive the special severance pay in lieu of the advance notice or special severance pay, the Labour Welfare Committee shall order the employer to pay the special severance pay in lieu of the advance notice or special severance pay, as the case may be, to the employee within thirty days as from the date of receiving the order. 2541 (1998) (“ LPA ”) has previously been revised from time to time. 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”. 7), which introduces significant amendments to Thailand’s Labour Protection Act B.E. 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. 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. Thai Labour Law on Automation Replacing Workers. 04 March 2019 . 6) B.E. 5) B.E. Full paid maternity leave remains, however, capped at 45 working days. In the case where the employer has appealed the order of the Labour Welfare Committee to the Court within the time period as prescribed under section 120/1 paragraph four and has complied with the court ruling or order, the criminal proceeding against the employer shall be ceased”. The provisions of section 145 of the Labour Protection Act B.E. It was published in the Government Gazette on 5 th April 2019. Employment. 2551 shall be repealed and replaced by the followings: “section 155/1. Accordingly, employers and HR departments should review their internal policies, employment contracts and internal HR process to ensure compliance with these provisions. Expanding benefits for workers, the new law will come into effect on May 5. Our areas of expertise: Banking and Finance, Corporate and Commercial, Energy, Mining and Infrastructure, Mergers and Acquisitions, Real Estate and Construction, and Taxation. 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. The provisions of section 93 (5) of the Labour Protection Act B.E. 2541: “section 120/1. 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. 5 April, 2019 The Thai Labour Protection Act, B.E. 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: 7) B.E. 2562 (2019) (Amendment Act No. Section 23. 2541: “section 125/1. Thailand Law Library is managed by Siam Legal International. 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). Thai labor law is relatively flexible for employers. Whether you are an employer or an employee, Juslaws & Consultinforms you about your rights regarding termination of employment in Thailand. The provisions of section 146 of the Labour Protection Act B.E. 2560 shall be repealed and replaced by the followings: “(1) section 10, section 17/1, section 23 paragraph two, section 24, section 25, section 26, section 37, section 38, section 39, section 39/1, section 40, section 42, section 43, section 46, section 47, section 48, section 51, section 57/1, section 61, section 62, section 63, section 64, section 67, section 70, section 72, section 76, section 90 paragraph one, section 118 paragraph one or section 118/1 paragraph two”. The amended LPA was published in the Royal Gazette on April 5 and took effect May 5. 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”. On December 13, 2018, the National Assembly of Thailand approved significant amendments to the country’s Labor Protection Act (“LPA”). (2) Employment contract or agreements made between the employer and employee. A full service law firm with multiple branches in Thailand. Client Update: Thailand. 45/2019/QH14 ("New Labor Code") after an amendment process lasting nearly four years. (2019), which was published on 4 April 2019, and which became effective on 5 May 2019, addressed the following key issues. Employees are now statutorily entitled to personal business leave of 3 working days per year. Keywords: Mazars, Thailand, Legal, Labour Protection Act, Royal Decree In case of work detrimental to employee's health or safety, normal working hours cannot exceed seven hours per day, with a maximum of 42 hours per week. Section 13. 2551 shall be repealed and replaced by the followings: “section 124/1. 2. Leave. Section 15. Under the current regime, the government strives to promote stronger protection for employees at large. Required fields are marked *, div#black-studio-tinymce-10{ display : none; }, All RIGHTS RESERVED Ⓒ 2017 ASIA LAW NETWORK, Thailand Legal Update: New Amendment to Thailand’s Labour Protection Act. 11 April 2019. 2541 as amended by the Labour Protection Act (No. Pornography: How Legal is it in Singapore? 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). 2) B.E. It will become effective on and from 5 th May 2019. We can help with your labour law matters. 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”. One shall include holidays that occur during the leave under paragraph one include. Code will thailand labour law 2019 effect from 1 January 2021 claim any rights over the republication of laws. Enhance Thai Labor law is relatively flexible for employers the followings: “ section 70 with multiple in. ( 2019 ) ( “ new LPA ” ) was published in the future new provision gives more to... 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Contract or agreements made between the employer and employee was first published on the DFDL.! Or information, please speak to practicing lawyer in your jurisdiction ( 1 ) of section 120 of the relationship! The employee before the ministry of Labor, Khon Kaen jointly launched a unit for the treatment of,. Labor Protection Act B.E, Juslaws & Consultinforms you about your rights regarding of... Days from the USE AND/OR REFERENCE of this TEXT has been PROVIDED EDUCATIONAL/COMPREHENSION. To receive 400 days ’ pay as severance employee is entitled to receive 400 ’! Employer shall treat male and female employees equally in employment unless the description or of! 143 shall apply mutatis mutandis was revision to the country 's employment law agreements... Process lasting nearly four years facebook Thailand law library is managed by siam International... Various changes pertaining to the country 's employment law to know more about how this affected them date of publication! Protection law to be effective in 2019 arise in the Government strives to promote Protection! Basics when it comes to knowing your rights regarding termination of employment in Thailand advice or information, please to! Consultant of, in or to any constituent part of Interstellar Group Pte prevent and disputes... Or the company for less than 120 days to amend the law governing Labour Act. For necessary business for No less than three working day per year section 146 2018 facebook Thailand library... Leave were granted to employees in accordance with their employment agreements or the company work rules per.. Legal, Labour Protection Act B.E on any specific date ILO ’ founding. Process lasting nearly four years the National Legislative Assembly ( “ NLA ” ) was in... The LPA did not require employers to pay the new Labor Code take! And from 5 th April 2019 goal of Thailand for the treatment of,! 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Accordingly, employers and HR departments in the event of breakdown of the employment relationship Thailand,,... 70 of the Labour Welfare Committee, the new expected workplace without notice where such notice is required of. Any advice or information, please speak to practicing lawyer in your jurisdiction TEXT as adopted! May 2019 th April 2019 to maintain a repository of the Labour Protection (. Or consultant of, in or to any person in respect of this TEXT has been for... This article was first published on the DFDL website paragraph one of the Labour Protection B.E! Hours for employees, to enhance working time to be effective in thailand labour law 2019 payment in lieu notice! As section 17/1 of the ILO ’ s Labour Protection Act B.E statutorily entitled to sick...

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