Amendment of the Labour Protection Act

A draft amendment of the Labour Protection Act, 2541 B.E. (1998 A.D.) (“the Draft”), was approved by the National Legislative Assembly on 13 December 2018. After the Draft is approved by His Majesty the King, it will be published in the Royal Gazette and become effective 30 days later.

Keywords: Mazars, Thailand, Legal, Severance Pay, Business Leave, Maternity Leave, Labour Protection Act, Royal Gazette

09 January 2019

The key differences between the current and new Labour Protection Act are summarized below:

Subject Current New
Severance pay Length of service Payment Length of service Payment
120 days, but less than 1 year For not less than 30 days at the individual employee’s latest wage 120 days, but less than 1 year For not less than 30 days at the individual employee’s latest wage
1 year, but less than 3 years For not less than 90 days at the individual employee’s latest wage 1 year, but less than 3 years For not less than 90 days at the individual employee’s latest wage
3 years, but less than 6 years For not less than 180 days at the individual employee’s latest wage 3 years, but less than 6 years For not less than 180 days at the individual employee’s latest wage

6 years, but less than 10 years

 

For not less than 240 days at the individual employee’s latest wage 6 years, but less than 10 years For not less than 240 days at the individual employee’s latest wage
More than 10 years For not less than 300 days at the individual employee’s latest wage 10 years, but less than 20 years For not less than 300 days at the individual employee’s latest wage
    More than 20 years For not less than 400 days at the individual employee’s latest wage
Transfer of employment due to a change of employer Prior consent of the employee not required. Prior consent of the employee required.
Business leave Not required, but can be granted in the work rules.

A minimum of 3 days’ business leave a year with full pay for a maximum of 3 working days a year while on leave

Note:

The Department of Labour Protection and Welfare may issue a ruling to determine what sort of leave is considered ‘business leave’.

Maternity leave A maximum of 90 days per pregnancy with full pay for a maximum of 45 working days

A maximum of 98 days per pregnancy with full pay for a maximum of 45 working days

Note:

Leave taken for prenatal care is considered part of maternity leave.

Relocation of the employer’s business

Method of notifying employees of relocation:

Giving notice at least 30 days before relocation.

Method of notifying employees of relocation:

Posting an announcement at a prominent place on the current business premises at least 30 days before relocation.

Employee’s right to refuse to work at the new location:

An employee whose normal living conditions will be affected by the relocation is entitled to refuse to work at the new location by giving notice of termination of employment to the employer within 30 days of the relocation being announced.

Employee’s right to refuse to work at the new location:

An employee whose normal living conditions will be affected by the relocation is entitled to refuse to work at the new location by giving written notice to the employer within 30 days of the relocation being announced.

Consequences of such a refusal:

Entitled to special severance pay equal to the normal amount of severance pay for termination.

Consequences of such a refusal:

Entitled to special severance pay equal to the normal amount of severance pay for termination, and employment will be considered terminated as of the relocation date.

Payment in lieu of notice When payment in lieu of notice should be made is not set out clearly. Payment in lieu of notice must be made on the date that the employee is dismissed.
Interest to be imposed on an employer failing to make payment An interest rate of 7.5% will be imposed for failing to make payment in lieu of advance notice and when temporarily ceasing business. An interest rate of 15% will be imposed for failing to make payment in lieu of advance notice and when temporarily ceasing business.

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