An employment contract is defined under the Labour Protection Act BE 2541 (1998) as an agreement, either written or verbal, that clearly or implicitly states that the employee agrees to work for the employer and that the employer agrees to pay a wage throughout the work period. A business operator that uses an agency service for its personnel is deemed to be the employer of the agency workers if the workers work as part of the normal business of the business operator. A break of at least 20 minutes must be given if overtime work lasts more than two hours. There is no general restriction on carrying out background checks in relation to job applicants. employees who had their employment terminated could claim between 50% to 70% of their normal salary for a maximum period of up to 200 days (capped at THB15,000 per month). Employees are also entitled to form a representative body such as an employees' labour union, labour federation or employee organisation council, subject to the conditions set out in the Labour Relations Act BE 2518 (1975). Seasonal work where employment is only for a particular season. In workplace relocations (whether to a new location or to another existing location) that materially affect the ordinary course of living of an employee, the employee can refuse to accept the relocation by giving written notice to terminate the employment contract within 30 days of the relocation notice date, and is entitled to receive severance pay (equal to normal severance pay) within seven days from the employment termination date. In practice, the court has often determined compensation for unfair dismissal by multiplying the monthly last salary of the employee with the number of years of services of the employee. To fulfill these requirements, notice of a shareholders meeting must be submitted to all shareholders at least 14 days in advance, and the offering must be approved by a supermajority vote of the shareholders, which means approval by at least three-fourths of the shareholders present and, Changes Coming Soon for Vietnams Consumer Protection Law, Requirements for MIC Companies Transferring Funds Out of Myanmar, Vietnam Approves New Power Development Plan, Thailand Approves New Private Placement Rules for Listed Companies. Additionally, where an employee has an incomplete year of service (as is common), this will be treated as full year of service for the purposes of calculating special severance pay where at least 180 days of work have been completed during that year. According to information from Harvey Law Group, an international law firm specializing in corporate immigration for founders and investors, Thailand is becoming increasingly attractive as a place for foreign companies to . A brief history of work permits in Thailand for foreign employees; How do I apply for a work permit in Thailand? Throughout this course, you will learn important legal updates on employment issues. These projects represent 1,244 MW of capacity that can be added to the hydropower targets for 2030. Advice on and preparation of complete HR package for the newly incorporated entities for a business operation in Thailand. If a fixed-term employment contract is used for types of work other than those listed above, the employment contract is deemed to be for an indefinite term and all related statutory entitlements will apply on termination. Passed by the National Legislative Assembly in April 2018, the new law will restrict the number of foreign employees to a maximum of 20 percent of workforce in the industrial and services sectors. Let's see what jobs are prohibited to foreigners. In a relocation of an entire workplace that applies to all employees working at the establishment, the employer must post a conspicuous announcement at the current workplace for a continuous period of at least 30 days in advance of the relocation. The New Law has no impact on preexisting work permits until they are due for renewal, and existing work permit applications do not need to be resubmitted. Thai law requires both the employee and the employer to each contribute to a social security fund on a monthly basis, at a rate of 5% (each) of the monthly salary. Under Thai law, employees are entitled to overtime pay at the rates provided below. Where redundancies are made, employers are liable to pay severance pay to the dismissed employee(s) (see, There are generally no specific rules applicable to collective redundancies under Thai employment law, though special rules do apply to technological redundancies (. Emergency Decree on the Work of Aliens BE 2560 (2017) (setting out business visa and work permit requirements). To be able to work in Thailand legally, foreigners must have a valid visa (Non-Immigrant 'B' or Business Visa) and work permit Certain occupations are prohibited to foreigners and reserved for Thai citizens only. Where the work is detrimental to employee's health or safety, normal working hours cannot exceed seven hours per day, with a maximum of 42 hours per week. Remuneration: the contractor is paid for the result of the work done. 2559 (2016). Nature of the work: the employee is under a best-effort obligation but no specific result obligation. The Thailand Guide: All About Employment Laws, Taxes & Benefits. Understanding how all these laws affect employee and employer is our expertise. There is no general restriction on background checks being conducted on job applicants by a third party on an employer's behalf under Thai law. The New Law is designed to systematically manage the employment of foreigners, regardless of the industry in which they work. There may also be a different minimum wage that applies to different categories of workers. 1. The Thai government encourages transparent policies in the labor domain and the Employment Act is another proof of the modernity and europeanization of this country, where foreign investors find a familiar working environment. Processing times for Global Skills Strategy work permit applications have recovered after delays throughout the pandemic. Hand-weaving of . Under Thai employment law, employees must provide their consent to have their employment contract transferred to a new employer. 2551 (2008) and the Royal Decree on Recruitment of Foreigners B.E. 4. The employer can determine the working days and holidays of the employee. Employ contractors and employees in 160+ countries. insured employees who had paid at least six months of social security contributions during the preceding 15 months could claim unemployment benefit where they could not work due to force majeure (that is, circumstances caused by the pandemic), an order not to work given by their employer (for quarantine or infection monitoring purposes), or a government order to close the business. If an employee does not wish to relocate to the new workplace due to a significant impact on the employee or their family, the employee must provide written notification to the employer within 30 days of the employer's relocation announcement (or 30 days from the date of relocation itself, if the employer failed to make an announcement). Under Thai law, any transfer of an employee to a new entity (which constitutes a change of employer) is subject to the prior consent of each transferred employee. On July 4, 2017, the National Council for Peace and Order issued an executive order under section 44 of the Constitution to postpone enforcement of four penalty clauses under the New Law (marked * in the tables above) until January 1, 2018. Similar consent must be obtained by the employer to reduce the wages of, or punish and/or deny the performance of the duties of, a member of an employees' committee. The transfer of an employee within the same group of companies constitutes a change of employer as it involves different corporate entities. 5. The Department of Employments criteria for issuing work permits will remain applicable until announced otherwise. More than 20 years' service: at least 400 days' basic salary. The employee was absent without justifiable reason for three consecutive working days (regardless of whether there was holiday in between). The Thai Labour Law requires both Thai and foreign employers who employ a total of ten or more employees to arrange for their work rules and regulations in Thai to be announced in the work place within 15 days from the day they started employing 10 or more employees and send a copy of the [] Categories . At the time of writing the Ministry of Labour plans to submit a recommendation for Cabinet approval to adjust the minimum wage nationwide (which, if approved, will bring the Bangkok minimum daily wage up to THB353, or a monthly average of THB10,590). It also serves as a license to perform a job or an occupation allowed for foreigners inside Thailand. This benefit equals 50% of the employee's ordinary monthly wage (with a cap on the monthly wage of THB15,000). An employee is entitled to receive compensation benefits under the Workmen's Compensation Act BE 2537 (1994) in the case of an occupational disease or a work-related accident where the employee is unable to work for more than three consecutive days. The penalties to be imposed on employers for certain offenses have been significantly increased. However, where the changes are less favourable to the employees, the employer must obtain consent for those changes from the affected employees. Independent contractors are not entitled to these employment rights and benefits, since the relationship with the employer is governed by the Thai Civil and Commercial Code. The severance pay is applied at the standard rates outlined above, unless the employee has worked consecutively for the employer for more than six years, in which case both the standard rates of severance pay outlined above will be due together with "special" severance pay. Foreigners working in Thailand If a person who is employed by a manpower agency (that is, an agency worker) is assigned to work for a business operator in any part of its normal business operations, that person is then deemed to be employee of that business operator and must be given the same benefits and welfare provisions as a permanent employee of the business operator working in the same type of job (. In 2016, the Government of Thailand published the Royal Decree, which protects the interests of foreign laborers in the country. Now, with the effective Royal Decree (No. The Thailand law comprises commercial and civil codes related to the rights and obligations of employees and employers. Under the Thai Civil and Commercial Code, an employer can be held jointly liable with the employee if an employee causes damage to a third party whilst acting in the course of their employment. These documents, which must be addressed to the MIC chairman, include the following: Prescribed form for transfer of foreign currency; Application letter giving a specific reason for the transfer; Original board of directors resolution; Audited financial statements for the relevant financial year; Up-to-date bank statement of the company; Tax assessment confirmation letter for the relevant financial year; Tax clearance certificate for the relevant financial year, in the case of liquidated companies; and Copy of the updated quarterly performance report using the form prescribed by the MIC.
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