Changes to Thailand's Labor Protection Act (Thai), including increased statutory severance for employees with at least 20 years' service, will take effect on 5 May 2019. Employees cannot waive their rights to severance or retirement pay. The amount of statutory severance pay for an employee who has worked for at least 20 years has been increased to 400 days at the employee’s last wage rate (from 300). We will get back to you very shortly. 2. An employee who has completed one-year of service but less than three years is entitled to severance pay equivalent to ninety-days of current wage/basic only. For severance pay under the LSA, severance pay will be equal to one month of average wages for each year of service for an employee who has been continuously employed by the same entity. The multiple is: - less than 120 days of service, zero; 121 LPA), an employee with at least 6 years of continuous service shall receive in addition to severance pay, a special compensation equal to 15 days' wages for every year of employment, with a maximum amount equal to 360 days' wages. Employers must grant pregnant employees 98 days’ maternity leave, which includes leave taken for pre-natal exams before the delivery date, and holidays that fall during the maternity leave period. Such retirement shall be effective within 30 days from the date of such expression, and the employer shall pay severance to the employee in accordance with Section 118.” Section 118/1 can be summarized as follows: Retirement is deemed to be termination of employment, and the retiring employees are entitled to severance pay under Section 118. 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 … Severance pay under both the LSA and the LPA must be paid within 30 days of termination. The Labor Protection Act regulates minimum standards for pay and working hours for employees. The maximum severance pay rate will be adjusted from 300 days of the latest wage rate for the employee working for 10 years or longer to 400 days of the latest wage rate for the employee working for 20 years or longer. 2. Business Leave. Relocation of the employer's place of business Increased to 400 days of wage for terminating an employee with an employment period of 20 years or more. Business leave of at least 3 days per year with pay has now been set as the minimum number of business leave days for all employees. Severance payment varies from 30 days to 400 days depending on the length of the employee’s working with the employer, as following: • 30 days’ wages where the employment is at least 120 days but less than one year • 90 days’ wages where the employment is at least one year but less than three years Under the Thai Labor Protection Act of 1998, companies are required to pay legal severance payments (‘LSP’) to employees who leave employment at their retirement age, or … The employer must pay a special severance pay amounting to 15 days of the employee's wage per year of employment (for example, ten years of uninterrupted employment gives rise to special severance pay of 150 days of the employee's wage). 400 days of the most recent pay rate If you wish to discuss/share your proposal with us, please do not hesitate to leave your enquiry at contact@orbis-alliance.com . “To be eligible for the severance pay, candidates must sign their termination contract soon so the money can be paid along with July’s salary,” he said. Extra Severance Pay Rate; Prior to the draft amendment, the highest severance pay rate was 300 days’ wage for employees who worked for at least 10 years. Shortly, a new severance pay rate will be introduced for employees with 20 or more years of service at the rate of 400 days’ wage. 3 working days per year (with pay). Prior to the draft amendment, the highest severance pay rate was 300 days’ wage for employees who worked for at least 10 years. Working hours Redundancy payment: • See art. Employment transfer New personal leave. ... he/she is entitled to receive a severance pay equal to wages of 400 days. However, the total amount of this additional special severance pay is limited to the equivalent of 360 days’ wages. Recent Key Updates in Thailand Labour Protection Law The Labour Protection Act BE 2541 (1998) (the “LPA”) has been periodically amended.The recent key amendments were made by the Labour Protection Act (No.6) BE 2560 (2017) and the Labour Protection Act (No.7) BE 2562 (2019), which became effective from 1 September 2017 and 5 May 2019, respectively. 2541 (A.D. 1998) Labour Protection Act B.E. 3. Increased to 98 days (with 45-day pay) for each female employee. A look at the key legal provisions governing the termination of employment in Thailand, including grounds for dismissal, notice requirements and severance pay, among other things. As a result, to avoid paying severance, many employers in Thailand set probation periods of up to 119 days. Amendment to Thai Labour Protection Law. A new maximum severance rate has now been capped at 400 days of the employee's latest wage and applies to employees with 20 or more years of service. The basic presumption of Thai Labor Law is that the Employer is in a superior position in relation to the Employee therefore Employees require the law to equalize the imbalance of power. The employee can take a personal business leave with pay for at least 3 working days per year. Read the official version of the Thai Labor Law: Labour Protection Act B.E. A new maximum severance rate will now be capped at 400 days of the employee's latest wage and apply to employees with 20 or more years of service. Severance pay Except in cases of serious wrongdoing, any employee that is terminated in Thailand is entitled under the Act to receive severance pay. The Thai Labor Protection Act. Maternity leave. Redundancies in Asia and the Pacific – South Asia Session – Thailand Supplement . severance pay Increased from 300 days to 400 days of wage for terminating an employee with an employment period of 20 years or more New personal leave 3 working days per year (with pay). *Under the Amended LPA, an employee who works for more than 10 years but less than 20 years will continue to be paid severance pay for 300 days of the last wage rate, but if the employee works for at least 20 years, the amount of severance pay will be increased from 300 to 400 days of the last wage rate. Download EPLex legal data. Maximum maternity leave Increased from 90 days to 98 days (with 45day pay) for - each female employee. Extra Severance Pay Rate. The special severance pay is capped at 365 days of the employee's wage. 3. In addition, this legal information has been quantified by ILO lawyers and economists, to produce a series of synthetic, or aggregate, indicators of employment protection. The latest manifestation was revision to the Thai LPA was in 2010. Business leave of at least three days per year with pay has now been set as the minimum number of business leave days for all employees. Severance Pay. China • Employees may only be unilaterally terminated on narrow statutory grounds. days from the date of termination of employment. 1. • a minimum statutory redundancy/severance pay of 4-16 weeks. Severance pay is based on length of service, and is a multiple of “basic wage”, which essentially means salary exclusive of most benefits and allowances. Severance pay. 2. • One of the statutory grounds, a "major change in objective circumstances," requires 30 days' notice (or pay in lieu) and statutory severance. Key revisions include the following: 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. “Those terminated will also receive compensation as stipulated by law, that is those who have worked for more than 20 years will get 400 days’ wages, while those who have been here less than 20 years will get 300 days. Severance Pay Rates. Severance pay; Less than 120 days: No severance pay: 120 days - 1 year: Wages for at least 30 days: 1 year - 3 years: Wages for at least 90 days: 3 years – 6 years: Wages for at least 180 days: 6 years – 10 years: Wages for at least 240 days: 10 years – 20 years: Wages for at least 300 days: More than 20 years: Wages for at least 400 days 122 LPA: In the event of termination for economic reasons (those listed in art. Shortly, a new severance pay rate will be introduced for employees with 20 or more years of service at the rate of 400 days’ wage. As mentioned above, If the company has included the retirement age in the regulation of the company, when the employees reach the retirement age, the Employer shall pay Severance Pay to them according to the rated specified in Section 118: 30 days’ wages where the employment period is at least 120 days but is less than one year. The amount required to be paid is based on the duration of employment, as follows: Length of Service Severance Pay Entitlement Maximum severance pay . Under the bill, employees who have worked for their employers for more than 20 years and who are laid off will be entitled to compensation amounting to 400 days of their pay instead of 300 days. The Labor Protection Act (No. Employment transfer. Maximum wage rate of 400 days for more than 20 years length of service. However, it does specify severance pay for employees who have worked for 120 days or more and are terminated without cause. Maximum wage rate of 300 days for more than 10 years length of service. An employee who has completed 90-120-days of service (probation) but less than a year is entitled to severance pay equivalent to thirty-days of current wage/basic only. (No.2) 2551 (A.D. 2008) But, and this is very important, a severance or ex gratia payment was not compulsory under Thai labor law before 1 September 2017. 2) Dismissal based on business reasons: In Thailand, all employers, and employees, ... he/she is entitled to statutory severance pay of from 30 days’ wages to 400 days’ wages. 7) B.E. Thai law does not explicitly mention probationary period in employment relationships. The maximum cap on severance pay has been increased to 400 days of the employee's latest wage rate for 20 years or more of continuous service—previously 300 days … All legal information contained in the EPLex database can be downloaded by theme. Termination of Employment and Severance in Thailand Country. 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