warning. At its discretion, the court can award compensation in addition to severance pay, payment of salary in lieu of notice, and other amounts due on termination. Employment Contracts offense that causes damage to the employer. ection 67 of the Labour Protection Act states that if the employer dismisses the employee without a statutory cause, the employer has to be compensated for the unused annual leave of the employee. We suggest you ask for your written termination notice and continue to work until someone informs you in writing.Your employer can terminate you by email, so long as the email comes from an individual that has the power to terminate you. Termination of Employment in Thailand - Lexology E.g. Login cookies last for two days, and screen options cookies last for a year. According to Section 17 of the Labour Protection Act, the dismissal notice must be sent to the employee in advance at least one cycle of wage payment. Wills and Trusts who have worked for 120 days or more are entitled to receive Personal Data any information relating to an identified or identifiable data subject. We also store the personal information you provide in a user profile. Thailand EMPLOYMENT & LABOUR LAW - CHANDLER MHM 24 February 2021. We/Us (either capitalized or not) - PCS and https://professionalcorporateservices.com. This is required in order for the termination to be effective on the day of the next and final wage payment for the employee. According to Section 17 of the Labour Protection Act B.E. dismissal are not specified, an employer is obligated to make This notice should be provided in written form and contain all the termination details, the reason for termination and the date of dismissal. It will effective to be a notice on 29 April and employment will terminate on 29 May. An employee shall not be dismissed for reasons of pregnancy or labour union activities. Procedural requirements to terminate an employee, Reduced tax rates for foreigners in Thailand. It means that the dismissal notice from the employer must be sent to the employee in advance at least one cycle of wage payment. Due to the Labour Protection Act, employees are protected. Does the law in your jurisdiction allow employers to impose a mandatory retirement age? Some employment contracts can state that the termation notice is 60 or 90 days. Termination of an employees employment without a statutory cause may lead to an unfair dismissal claim being made against the company. Your consent is required in order for you to submit your inquiry to us. These cookies will last for one year. The written warning shall be valid for not exceeding one If there is no termination clause in your contract, The following procedures are preliminary undertakings of the employer under the Thai law, but this is not an exhaustive list. If the employee has not worked for the company for a year yet but has worked for more than 160 days so far, they are considered to have been employed one year for special severance pay calculations. This web page will focus on what you need to know. In a scenario where the employment is terminated without any legal cause, there is a high chance that the terminated employee will bring a claim against the employer to the labour court seeking an unfair termination compensation, which is a unique and not so well-defined concept under Thai labour law. Data Processing any operation or set of operations which are performed on Personal Data or on sets of Personal Data. Must notice of termination be given prior to dismissal? Regulation (EU) 2016/679 - General Data Protection Regulation (GDPR), Copyright 2006 - 2023 Law Business Research. If the imprisonment is for otherwise stated in the employment contract. employee is being dismissed due to the reasons stipulated in 400 days' wages. This requires an employment termination letter to inform the employee that he/she has been terminated, inform him/her of the next steps to be taken and explain the benefits or compensation to be received. Termination of Employment Unfair dismissal cases can be brought before the Labour Court even though the employer has made all the required payments, i.e. May an employer dismiss an employee for any reason or must there be cause? This article will lay out some essential considerations for employers in Thailand regarding termination of employment for poor performance. pariyapol.k@kap.co.th, Kongwat Akaramanee For example: If the wage payment is made every month on the 26th day of the month, the employer must notify the dismissal to the employee before or on 26 January 2022 and request the employee to leave his job on 26 February 2022. We need this to enable us to match you with other users from the same organisation. According to Section 17 of the Labour Protection Act, the dismissal notice must be sent to the employee in advance at least one cycle of wage payment otherwise the employee has to compensate with the payment in lieu of the advance notice. the employer. Termination of employment contract Normal severance pay is required for this form of termination of employment, and the business must also pay special severance to all employees who have worked for the company for at least six years. But it is actually legally possibleif employers have the right approach and take specific precautionary measures. 1. the cause of dismissal and the compensation the employee is Lets find out more about this important work-related issue. If they don't they may even be liable for more damages, like law suits for Wrongful Dismissal. An employer who wishes to terminate an employees employment without legal cause must pay severance pay to an employee, as per the requirement provided by the LPA. However, should the dismissal be made without a statutory cause, as provided under the Labour Protection, wilfully disobeys or habitually neglects the lawful commands of the employer,. Some employment contracts can state that the termation notice is 60 or 90 days. Contact us, Vasu 1 Building, Unit P01, Sukhumvit 25 Road, Khlong Toei, Watthana, Bangkok, Thailand. required to provide advance notice of dismissal, and he/she is not (Labour Protection Act, Section 119), The length of time an employee has been with the company, Give a 60-day notice to the labor inspector, indicating the date of termination of employment, the grounds for termination, and the names of employees, Give affected employees 60 days' notice in advance, or pay wages in lieu of notice. 1. Which employees are being terminated and their roles, Severance Pay in Thailand: Final thoughts, 7 Creative Ways to Onboard Top tech Talent For Your Start-up Company in Bangkok, The Best Software Development Tools For Thailand Developers. Termination of an employees employment without a statutory cause may lead to an unfair dismissal claim being made against the company. 2562 became effective. An Employer needs to carefully review every aspect of the termination. Conversely, Assists employers to discharge their duty and meet their obligations under the sexual harassment framework. Cases of wrongful dismissal include: Due to the fact that section 49 of the Labor Court Establishment Otherwise, there will be a knock-on effect in terms of reputation but also in finances. without payment of the unused annual leave. agreement without serious cause nor severance pay. the dishonest performance of professional duties; intentionally causing damage to an employer; serious violation of the companys work rules; absence from work for three consecutive days without sufficient reason; or. The Data Controller shall fulfill the request without delay, but shall not exceed 30 days from the date of receiving such request. 2. At PCS your 1st consultation is always totally FREE so don't hesitate to contact us. The court will impose penalties when employers demonstrate blatant disregard for their legal obligations to their employees. result in the employer receiving a fine of between 5,000 and 2541 (the Labour Safeguard Act) If you log out of your account, the login cookies will be removed. If you have questions, you can contact us at: info@pcsthai-1.com or visit us at 219/2 Asoke Towers Building, 2nd Floor, Sukhumvit 21 Road or call us at +66 2 120 9480, This page was updated on May 14th 2022 @ 13:45. Some circumstances require government approval or notification to the authority before the termination. The employee committed negligent acts entitled to receive severance pay. specify a reason for dismissal. employers by defining the working hours, welfare funding, holidays, Notwithstanding whether or not an employment is terminated with or without any legal cause, pursuant to the new section 70 of the LPA, which will become effective later in 2019, most termination payments, including the balance of the previous months salary, overtime pay, unused annual vacation and severance pay, must be paid to the employee within three days of the date of termination. Special circumstances that pay special severance pay. In general, redundancies and mass layoffs are governed in the same way as other termination situations are. Legal consultation can be conducted in English, French or Thai, Legal consultations are handled by experienced lawyers from the relevant fields of practice, Letter to inform staff of employee termination, Notifying the employee of the termination in advance. Do the main laws that regulate the employment relationship apply to: Foreign nationals working in your jurisdiction? By using our website you agree to our use of cookies as set out in our Privacy Policy. If your employer advised you that you will be terminated you need to get a termination letter from them. Visa and Work Permit According to Section 17 of the Labour Protection Act, the employer who would like to terminate the employment must send the dismissal notice to the employee in advance before or on the day of wage payment so as to serve the dismissal and to be effective on the day of next wage payment. employee without any prior warning. Should the dismissal be made without a statutory cause, the company could be liable for a statutory payment to be made to the employee. Ending employment Once the employee is terminated in Thailand without cause, the employer is required to provide the Thai Labor Protection Act of 1998 ("LPA") (amended Yes. Become your target audiences go-to resource for todays hottest topics. Partner with us uniform, ID card, health insurance etc., they are subject to the employment contract. 310 client reviews (4.8/5) . If you need more information about employment law in Thailand, why not talk with one of our experts right now? Company Secretary, Marriage Thailand legislative amendments for public limited companies, Corporate compliance requirements in Thailand. Only authorized Website administrators can see and edit that information. notice period of over 3 months, the employer must comply with such Thailand: Employment & Labour Law - Rajah & Tann To our newsletter for all the latest legal news This section focuses on termination without statutory causes for which the dismissal procedure is more complicated than termination with statutory causes. By contrast, if an employee is hired for an indefinite period, a notice of termination must be provided to the employee at least one full payment cycle in advance (but not more than three months in advance) or a payment in lieu of such advance notice must be provided to the employee, unless the employee is terminated with legal cause. A look at the key legal provisions governing the termination of employment in Thailand, including grounds for dismissal, notice requirements and severance pay, Associate Changes and clarifications will take effect immediately upon their posting on the website. Data Processor - Professional Corporate Services Co., Ltd. Alternatively, the employer may terminate the employee immediately by paying the employees wages in lieu of the advanced notice. Once the employees employment has been terminated, either with or without statutory causes, the employee will be entitled to statutory payments. Here are the circumstances with which an employee would receive special severance pay in Thailand. There are several Supreme Court judgments ruling that a fixed-monthly payment to the employee would be deemed as part of the employees wages. Should an employer terminate an employee using a statutory cause, the employer is required by the law to notify the reason for the termination through the issuing of a letter of termination of employment. Simply click on the close button below and tick on "Accept Personal Data Protection Policy". All Rights Reserved. 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The employer has to inform the dismissal to the fund manager as the funds manager will pay out the fund to the employee according to the Articles of Association of the fund within a period of 30 days after the date of membership termination, as stated in Section 23 of Provident Fund Act, unless the employees notifies otherwise to the fund manager. This means the employee is allowed to receive special severance pay. severance pay if they are dismissed without cause. We reserve the right to modify this privacy policy at any time, so please review it frequently. Transfer of Undertakings (Protection of Employment) Regulations 2006 (UK), Equal Employment Opportunity Commission (USA), At a glance: hiring employees in Thailand, At a glance: termination of employment in Thailand, Checklist: Responding to an Equal Employment Opportunity Commission (EEOC) charge (USA), How-to guide: How to investigate workplace harassment complaints (USA), Checklist: Developing an Equal Employment Opportunity Commission (EEOC) compliant policy (USA). A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project. Under Section 118 of the Labour Protection Act, both compulsory and normal retirement at the statutory retirement age are considered termination of employment by the employer. Regarding the employers belongings i.e. 2522 (1979) states that in the dismissal case if Our consultations last for a period of up to 1 hour and are conducted by expert Lawyers who are fluent in English, French and Thai. to compensate the employee, receiving a fine of between 5,000 and Here are the employee entitlements with regards to severance pay: Exceptions to Severance Pay Rules in Thailand Section 119 of the Labour Protection Act states that a Mazars is known to offer tailored solutions to all its clients, major corporations, small and medium companies, and high net worth individuals alike. We are open: If the employee was dismissed due to causes Data Controller - Professional Corporate Services Co., Ltd. The following salary payment date would then be the effective date of termination. If the work rules or employment agreement have not set the retirement age or have set the retirement age at above 60 years of age, the employee, when reaching 60 years of age, has the right to retirement and will be entitled to severance pay in line with the number of his or her years of service. discretion of the Court to decide whether or not such dismissal is This notification must be delivered to the employee before or on the day of their wage payment. This means that if a company relocates its place of business and this affects the employees ordinary course of living, the employee must be given notice of 30 days or more of the relocation. k. Chrysostomides Advocates & Legal Consultants. Contents of A Termination Letter. The World Investment Report 2022 presents a telling picture. This article looks at when to notify an employee in the event of termination. Based on our experience, the court, normally, will grant a compensation for unfair termination by determining the service years of the employee at the rate of one month per one service year of the terminated employee. If you have an account and you log in to this site, we will set a temporary cookie to determine if your browser accepts cookies. Privacy Policy | Terms of Service 2022 RECRUITdee. In principle, there are no special provisions for mass terminations under Thai law. 2. Termination of Employment in Thailand - In-House Community Data Protection Officer - Benoit and Partners Company Limited Have you implemented all necessary changes, including updates to policies, procedures and employment contracts? This is so we can recognize and approve any follow-up communications with you. If you leave a comment on our website you may opt-in to saving your name, email address and website in cookies. In Thailand, it is possible for an employer to terminate an employees employment at its discretion. The content of this article is intended to provide a general guide to the subject matter. A class action lawsuit is available in Thailand. Company A can notify the termination of employment to the employees on 30 September 2009 and ask the employees to leave their jobs on 30 October 2009. You may find that some parts of the site will not function properly if you have refused cookies. Termination of Employment The minimum notice period for the dismissal of employees must Key minimum employment rights Leave Section 118 of the Labor Protection Act states that employees This section usually outlines any conditions related to the termination for example; The Employer can make a request to the employee to return company property, and or request that the employee takes garden leave until the effective date of the termination, the conditions are set by the employer. We will collect and use your personal information solely with the objective of fulfilling those purposes specified by us or for purposes related. Make business contracts According to Thai labour laws, an employer is empowered to terminate an employees employment at its will, except for members of the Employee Committee which requires a court order for dismissal. Thus, each employee may not receive the equivalent severance pay, pay in lieu of notice or other compensations from an employer. This is where you should take advantage of us. Thailand requires giving at least one months notice before termination. for reasons other than those stipulated in Section 119 of the The fund manager will then pay out the fund to the employee according to the Articles of Association of the fund within a period of 30 days after the date of membership termination. Please note that this article is for information purposes only and does not constitute legal advice. entitled to receive. Download your Employment Termination Letter. wages until the last working day, severance payment, payment in lieu of advance notice, and wage for unused annual leave. However, if the labor court thinks that such When the data subject completely object the Personal Data which is collected without consent under the exemption to consent requirements under Section 26 (4) (5)) and the Data Controller fails to prove the exception of such exemption (mentioned above). Further, this also covers the cases where an employee does not work and is not paid wages for the reason that the employer is unable to carry on with the business operations. DeBenedetti Majewski Szczesniak Kancelaria Prawnicza Sp. Keep a step ahead of your key competitors and benchmark against them. If we make material changes to this policy, we will notify you here that it has been updated, so that you are aware of what information we collect, how we use it, and under what circumstances, if any, we use and/or disclose it. In general, if an employee is hired for a definite period, the employment shall cease at the end of the agreed period without any party taking any action. and Dispute Procedure Act B.E. Understand your clients strategies and the most pressing issues they are facing. regardless of whether there is a holiday in between. employee and employer cannot work together, it shall fix the amount The employee has been sentenced to imprisonment. Themis Partner provides information and software only. Employment The court must examine the following factors while making its decision: If the court judges a termination to be unjust, it can impose reinstatement or damages if the employee seeks it. Office: +66 2 109 5160 Child - a natural person under 16 years of age. equal to at least 1 payment period but does not need to be longer If you get a call and you are informed that you are terminated or you are invited into a meeting and advised verbally, this is not proper notice. If they wish to terminate you and they do not have serious cause they must follow the 30 day rule unless your Employment Contract says otherwise. wages until the last working day, severance payment, payment in lieu of advance notice, and wage for unused annual leave. So as to be legal evidence, the dismissal notice should be provided in a written form with the termination details, reason and date of dismissal. shall take into consideration the age of the employee, the working According to Thai manpower laws, an employer is empowered toward cancel a employees employment at its will, except since members on the Employee Committee which needed an court order for dismissal. Termination of employment without cause is only permitted in limited circumstances. uniform, ID card, health insurance etc., returning such items is subject to the employment contract. 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