An Employer shall pay Severance Pay to an Employee who is terminated as follows: Termination of employment under this Section means any act where the Employer refuses to allow an Employee to work without paying Wages on expiry of Contract of Employment or any other cause and includes where the Employee does not work and receives no Wages on the grounds that the Employer is unable to continue the undertaking. Therefore, the workers at Kabinburi are also entitled to an additional one-month salary in lieu of notice pay. Whereas the Employer fails to notify the Employee in advance regarding the relocation of the place of business under paragraph one, the Employer shall pay Special Severance Pay in lieu of advance notice at a rate equivalent to the Employee’s last rate of Wages for thirty days, or equivalent to the Wages of the last thirty days for an Employee who is paid on a piece-rate basis. Thailand labour law. Need someone to talk to? Severance pay is often granted to employees upon termination of employment. Thailand Labour Law – Severance Pay What is Severance Pay? 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. posted by msna-admin. Under Thai labor law no. 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. Such work shall be completed within a period not exceeding two years and the Employer shall make a written contract with the Employee at the beginning of the employment. Effective 1 September 2017 , the LPA was amended to address situations where there was no express retirement age in the Work Rules of an employer company or in the applicable employment contract by introducing a “default or deemed retirement age” of 60 years old. performing his or her duty dishonestly or intentionally committing a criminal offence against the Employer; intentionally causing damage to the Employer; causing serious damage to the Employer as a result of negligence; neglecting his or her duty without justifiable reason for three consecutive Working Days regardless of whether there is Holiday in between or not; or. 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. BHUMIBOL ADULYADEJ, REX. In Thailand, retirement is deemed to be a termination of employment, entitling employees to a severance payment. December 4, 2010. If the employer terminates me, am I entitle of any severence pay atleast 240 days since I have been there for 8 years. 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. 2557. The decision of the Labor Welfare Committee shall be final unless the Employer or the Employee appeals against the decision to the Court within thirty days as from the date of receipt of the decision. Whereas an Employer contemplates termination of employment as a result of the reorganization of an undertaking, production line, sale or service due to the adoption of machinery or the change of machinery or technology which causes a reduction of the number of Employees, Section 17 paragraph two shall not be applied, and the Employer shall notify the Labor Inspector and the Employees in advance of not less than sixty days before the date of contemplated termination, giving the date of the contemplated termination, the reasons for termination and a name list of the Employees. 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). The termination because of improvements to the working unit, production, distribution or service processes arising from the utilization of machinery or a change of machinery or technology, and which is the cause of the reduction in the number of the employees. Employees’ severance pay rights and legal loopholes Thursday, December 17, 2020 Severance pay is a matter of agreement between an employer and an employee (or the employee's representative). Notify the employee of the relocation not less than 30 days prior to the date of relocation. For this purpose, if the Employee refuses to go to work in the new location, the Employee is entitled to terminate the Contract of Employment and receive Special Severance Pay of not less than fifty percent of the rate of Severance Pay he or she entitled to under Section 118. Whereas the Employer terminates the employment of an Employee under Section 121 and such Employee has worked for uninterrupted period of more than six years, the Employer shall pay Special Severance Pay in addition to Severance Pay under Section 118 of not less than the Employee’s last rate of Wages for fifteen days for each year of employment or of not less than the Employee’s Wages for the last fifteen … According to Thai labour law an employee must be given notice of termination at least one pay period or one month in advance of termination. If employed more than one year, but less than three years, employees are entitled to severance pay equal to three months' salary. 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