Thailand Labor Management QA

LRC – Thailand Labor Regulations

LRC-CA-20.10
What must be included in the contents of a labor contract in Thailand?

Evershine RD:

According to Labor Protection Act, 1998 (as amended), B.E. 2541, SS 5.
Thai law does not specify the content of an employment contract.
Under Thai law, a foreign employee is entitled to have a contract in English, but a Thai copy should be made available if requested by the Department of Employment for a work permit to be issued.

LRC-CA-20.11
Does Thailand arrange labor contract in fixed term?
What should be the length of the labor contract in Thailand?

Evershine RD:

Fixed-term contracts can only be used for the below:

• A special project that is unusual for the business or trade of the employer, and where the schedule for commencement and completion of the project is fixed and no more than 2 years.
• Work of a temporary nature that has a fixed schedule for its commencement and completion.
• Seasonal work where employment is only for a certain season.

LRC-CA-20.20
What is the minimum age for hiring new employees in Thailand?

Evershine RD:

According to Labor Protection Act, 1998 (as amended), B.E. 2541, SS 44.
Employers may not hire youths under the age of 15.
Workers under 18 must be given an hour’s break for every four hours worked, cannot work between 10 p.m. and 6 a.m. unless permission has been received from the Department of Labor Protection and Welfare or the child is employed as an actor, may not work overtime or on holidays, and cannot work in hazardous workplaces or in slaughterhouses, gambling houses or places of recreation.

LRC-CA-20.40
Is it a requirement for employer in Thailand to conduct a pre-employment background check?

Evershine RD:

There are constitutional and statutory privacy protection in Thailand, so an employer is best advised to obtain written consent from an employee or job applicant before conducting a background check and to keep any information obtained confidential.

LRC-CA-20.50
Is the Non-Competition indemnity clause in labor contract in Thailand has legal effect?

Evershine RD:

According to Unfair Contract Terms Act, 1997, B.E. 2540, S 4.
A noncompetition agreement is enforceable only to the extend it is fair and reasonable and does not cause an employee to bear more of a burden than could reasonably have been anticipated.

LRC-CA-40.05
What are the regulations on Gender Discrimination in employment specifically for female workers in Thailand?

Evershine RD:

According to Labor Protection Act, 1998 (as amended), B.E. 2541, SS 15-16.
Employers, company officials, supervisors, and work inspectors are prohibited from committing sexual abuse or harassment, although employment law fails to define what constitutes harassment.
An employer may not terminate a female employee because she is pregnant.

LRC-CA-50.10
Can the employer in Thailand collect, or process data transmitted by employees over the internet?

Evershine RD:

Thai law does not address employee monitoring and surveillance.

LRC-CA-60.10
What are the regulations on working hours in Thailand?

Evershine RD:

According to Labor Protection Act, 1998 (as amended), B.E. 2541, SS 23-25, 27-29.
Thai law establishes regular working hours of 8 per day and 48 per week.

LRC-CA-60.30
What are the regulations on overtime hours in Thailand?
What is the overtime premium rate in Thailand?

Evershine RD:

According to Labor Protection Act, 1998 (as amended), B.E. 2541, SS 61-63.
Overtime is generally voluntary.
An employee who works overtime on a regular workday is entitled to 1 ½ times regular pay.
Supervisors or salesmen paid by commission are not entitled to overtime or holiday overtime pay.
The total amount of overtime and holiday work must not exceed 36 hours per week.

LRC-CA-60.50
Is it common to pay 13^th month’s salary in Thailand?

Evershine RD:

There is no requirement under Thai law that employers pay bonuses.
Some employers voluntarily offer annual employee bonuses, which may be tied to employee performance or may be automatic, the latter often in the form of a month’s salary at the end of the year.
The trend is toward performance-related bonuses.

LRC-CA-70.10
What are the regulations on general leave policy for employee in Thailand?

Evershine RD:

According to Labor Protection Act, 1998 (as amended), B.E. 2541, SS 30, 56.
After 1 year of employment, an employee is entitled to take at least 6 days per year of paid annual leave.
Employers may grant additional vacation time in subsequent years.
Unused vacation can be accumulated from year to year.
Employers may grant vacation on a pro rata basis to employees who have not completed a full year of service.

LRC-CA-70.20
What are the public holidays in Thailand?
What is the overtime premium rate during public holiday in Thailand?
Evershine RD:

According to Labor Protection Act, 1998 (as amended), B. E. 2541, SS 29, 56, 61-63.Employees are entitled to a minimum 13 paid holidays per year, and the government often provides more.
The principal holidays, many based on the lunar calendar with varying dated year-to-year, are:

•  Jan. 1: New Year’s Day

•  Makha Puja Day

•  Apr. 6: Chakri Day

•  April 13-15: Songkran Festival (Thai New Year)

•  May 1: Labor Day

•  May 4: Coronation Day

•  Jun 3: Her Majesty the Queen’s Birthday

•  Visakha Puja Day

•  Asanha Puja Day

•  Jul 28: His Majesty the King’s Birthday

•  Aug. 12: Her Majesty the Queen’s Birthday

•  Oct. 13: His Majesty King Bhumibol Adulyadej Memorial Day

•  Oct. 23: King Chulalongkorn Day

•  Dec. 5: Anniversary of His Majesty King Bhumibol Adulyadej’s Birthday

•  Dec. 10: Constitution Day

•  Dec. 31: New Year’s Eve

Work on a holiday is paid at twice the normal rate, overtime work on a holiday at 3 times the normal rate.

LRC-CA-70.30
What is the maternity leave policy for female employee in Thailand?

Evershine RD:

According to Labor Protection Act, 1998 (as amended), B.E. 2541, SS 41, 59, 65; Social Security Act, 1990, B.E. 2533, S 67.
Women are entitled to take up to 98 days of maternity leave for each pregnancy.
The employer provides full pay for 45 days, and women who are eligible may receive a lump sum from the social security system that is equivalent to full pay for the remaining days.

LRC-CA-70.40
What is the paternity leave policy for male employee in Thailand?

Evershine RD:

There is no provision for mandatory paternity leave for private-sector employees.

LRC-CA-70.50
What are the provisions on sick leave, bereavement leave and personal leave for employees in Thailand?

Evershine RD:

Sick Leave
According to Social Security Act, 1990, B.E. 2533, S 64; Labor Protection Act, 1998 (as amended), B.E. 2541, SS 32, 57.
Employees are entitled to unlimited sick leave but only 30 days of paid sick leave per year.
If an employee is out sick for 3 consecutive days, the employer can require a doctor’s certificate.

Bereavement leave
Bereavement leave is up to an agreement between the employer and the employee and depends on a company policy.

Personal leave
Employees are entitled to 3 days’ paid leave for essential errands in accordance with the employer’s work rules and regulations.
Employees may take more than 3 such days but they will not be paid.

LRC-CA-70.60
What are the regulations on pension benefits and social security insurance benefits for employee in Thailand?

Evershine RD:

According to Social Security Act, 1990, B.E. 2533, SS 33, 46, 54, 73-77.
The legal retirement age is 60 unless the employer has set another age.
Old-age benefits consist of either a lump-sum payment or a monthly pension, the amount of which depends on the length of time the insured person contributed to the fund.
The Social Security Act of 1990 established a fund to provide benefits for death, disability, injury or sickness, maternity, old age, and unemployment. Funding comes from the government, employers, and insured persons.

LRC-CA-70.70
What are the regulations on Workers’ Compensation for employee in Thailand?

Evershine RD:

According to Workmen’s Compensation Act, 1994, B.E. 2537, arts. 15-18, 22.
Thailand’s workers’ compensation scheme is funded entirely by contributions from employers, which range from 0.2% to 1% of annual payroll depending on the business’s degree of risk.Employees who suffer a work-related injury or illness are entitled to compensation for medical expenses, as well as monthly payments from the Compensation Fund.

LRC-CA-80.05
Can the employee in Thailand join labor union?

Evershine RD:

According to Labor Relations Act, 1975, B.E., 2518, SS 10, 86-89.
Labor unions must be registered with the Department of Labor Protection and Welfare.
To register a union, at least 10 employees who have a right to establish a labor union must submit a written application plus three copies of the union’s draft regulations.
To be eligible to establish a union, individuals must be of Thai nationality and be either employees of the same employer or employees in the same line of work.

LRC-CA-80.06
How to handle labor dispute in Thailand?

Evershine RD:

According to Labor Relations Act, 1975, B.E., 2518, SS 21-23.
In situations not addressed by collective labor agreements, employment disputes may be taken to the labor courts.
Employers, employers’ associations, groups of employees representing at least 15% of the total number of employees, and unions representing at least 20% of the total number of employees involved have the right to submit a demand for a new employment agreement or to amend conditions of an existing agreement, which triggers a duty to begin negotiations within 3 days.
If a settlement cannot be reached, for most employers, the parties may agree to appoint one or more labor dispute arbitrators, the employer may institute a lockout, or the employees may go out on strike.
At the end of the arbitration proceedings, the arbitrators issue a written decision containing the date of the award.
Within 15 days of issuing the award, the arbitrators must register it with the Department of Labor Protection and Welfare.

LRC-CA-90.10
What are the regulations on workplace safety and health for employees in Thailand?

Evershine RD:

According to Labor Protection Act, 1998 (as amended), B.E. 2541, SS 96-98.
The Minister of Labor has the authority to issue regulations setting standards for workplace safety, occupational health, and environmental conditions.
Whenever a labor inspection officer discovers that an employer is in violation of the regulations, the officer may issue a written order requiring the employer to rectify the situation or order the employer to cease operations until the situation is rectified.
All employers with more than 50 employees must have a welfare committee including at least 5 employee representatives, 5 employer representatives, and 4 professionals appointed by the Minister of Labor.
The welfare committee is required to meet with the employer at least once every three months to discuss proposed and existing employee welfare benefits and arrangements.

LRC-CA-100.10

What are the circumstances that an employer can terminate an employee in Thailand?

Evershine RD:

• dishonesty or deliberate commission of a crime against the employer• intentionally causing the employer to suffer damage

• negligence resulting in serious damage to employer property

• serious violation of a work rule, regulation, or order of the employer

• a less serious violation of a work rule, regulation, or order of the employer when the offender has received a written warning within the previous year

• absence from work for three consecutive working days without justifiable reason; or

• being sentenced to imprisonment by a final court judgment, although if the imprisonment is for negligence or a petty offense, the offense must have been against the employer.

LRC-CA-100.11
What is the notification period for terminating an employee in Thailand?
How much is the severance pay?

Evershine RD:

Employment may be terminated by the employer by giving one pay period’s advance notice in writing.
Advance notice of termination is not required when the employee is terminated for cause, however.
The employer may also terminate an employee immediately upon payment of the wages that otherwise would have been due during the notice period.
If not terminated for cause, the employee also is entitled to payment on a pro rata basis for vacation earned in the year of termination and to severance pay in an amount determined by the employee’s length of service as follows:

• 120 days of continuous service to one year: 30 days’ wages

• 1 to 3 years: 90 days’ wages

• 3 to 6 years: 180 days’ wages

• 6 to 10 years: 240 days’ wages

• 10 years or more: 300 days’ wages

• 20 years or more: 400 days’ wages

The employee is not entitled to severance payments if the employment relationship is terminated due to their serious misconduct.
To terminate an employee for just cause and avoid paying severance, the employer must specify the reason for termination no later than the date of termination.
Employers that fail to pay severance to their retiring workers face a potential fine of up to 100,000 baht and/or imprisonment of one or more company directors for up to 6 months.

LRC-CA-100.12
What is the reporting requirement for employer in Thailand to notify the termination of employees to the competent authority?

Evershine RD:
When an employment contract is terminated, the employer must notify the termination to Social Security Office.
When they terminate a foreign employee, the employer must notify the Department of Employment of the Ministry of Labour, and the Immigration Bureau.

LRC-CA-100.2
What are the regulations on mass layoffs in Thailand?

Evershine RD:

If an employer decides to terminate employees as a result of business restructuring due to automation or changes in machinery or technology, the Labor Inspection Office and affected workers must be given at least 60 days’ notice.
If the employer fails to provide 60 days’ notice, terminated employees are entitled to 60 days’ pay in lieu of notice in addition to their regular severance.

LRC-CA-100.30
What is the time limit for employer in Thailand to pay employees upon termination?

Evershine RD:

According to Labor Protection act, 1998 (as amended), B.E. 2541, SS 118-120.
When an employee is terminated, the employer must pay within 3 days all accrued wages, overtime, holiday pay, holiday overtime pays, and compensation for vacation time accrued prior to the year of termination but not yet taken.

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