Termination of employment
The Labour Protection Act BE 2541 (1998) (the "Act") applies to all companies in Thailand. The employment relationship is governed by Thai law, including issues related to the termination of an employee.
Thailand
The main reason why Thailand is considered an employer cuts wages by the end of the staff in as short a cheap, poor performance or behavior are summarized.
E 'in the legal context of Thailand, the municipalityLabour Court tends to favor the workers, and therefore it is crucial that entrepreneurs in Thailand to adopt appropriate procedures for termination of its employees.
Compensation calculation summary
The following is a summary of the quantum of compensation to be paid in accordance with Thai law by the employer to an employee, whether § 118 of the Act is applied. This is consistent with workers' representatives of the calculated time of service.
120 days but less than1 year – 30 days pay
1 year but less than 3 years – 90 days pay
3 years but less than 6 years – 180 days of pay
6 years but less than 10 years – 240 days pay
more than 10 years – 300 days of pay
Exclusions for the payment of compensation
A. short-term or working
Employment in Thailand to provide entrepreneurs with some exceptions from the obligation to pay severance pay, if the following conditions:
An employee has served the company for less120 days.
An employee whose work is provided in a contract for a specific period and ends the work at the end of this period, when this form of employment in accordance with the Thai labor market laws and regulations (§ 118 of the Act).
Exploring a certain period is allowed only for the following categories;
Employment in a specific project that is not the normal working hours of the employer;
Employment of temporary or casual work;and
seasonal work.
A written contract is required for the above provisions defining the beginning and the end. In addition, all tasks are completed within two years.
B. Termination for Cause
According to § 119 of the Act, there are some exceptions to allow an employer, for compensation to employees to avoid and which are as follows: –
An employee of hidden or intentionally commits a crime againstthe employer;
The employee intentionally caused the employer to incur a loss;
The employee has caused serious damage to the employer due to negligence;
The employee violates the rules of the employer or regulations or orders of the employer, the legal and proper, if the employer has already given the employee a written warning, shall, except in a situation of serious if the employer is not required, a warning to spend
The employee was unable to complete its task bynot to participate, to work without a valid reason for three consecutive days, and
The employee has spent time in prison in force, except for crimes of negligence or petty crime.
The exceptions, the employer liable for compensation in section 119 (1) – (6) of the Act.
If the employer announces an employment contract with the worker for reasons other than the employee is entitled to receive severance pay.
However, in orderThe employment of a worker on the ground in § 119 of the Act, the employer must provide a letter of dismissal to the employee the reasons for termination. Note that in accordance with Thai law, the reasons must be given real or consult efforts to end the employment relationship.
Special handling
Where an employer transfers its registered office in Thailand, which has affected the normal life of a worker or his family, the employercommunicate to the employee with at least 30 days before the date of transfer. Thai law may refuse to move the worker and the right to receive severance pay. Failure to comply may report the worker in a special allowance, instead of notice, result in 30 days.
With regard to the termination of employment on the basis of the reorganization of business processes Thailand, production, sales or services, the introduction of machinery or technology in a rowReducing the number of employees must inform the employer the duty, in accordance with Thai law (§ 121 of the Act) to the worker and the labor inspector at least 60 days before the date of expiry. Otherwise, a special allowance, instead of 60 days notice of severance pay paid in addition to the normal.
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