On December 13, 2018, the National Assembly of Thailand approved significant amendments to the country’s Labor Protection Act (“LPA”). – contact@cpg-online.de, → Asia in Review: The weekly news review delivered to you free of charge. The provisions of section 41 of the Labour Protection Act B.E. 2541 (A.D. 1998) (LPA). Through extensive tripartite consultations, Thailand government and social partners have developed Thailand’s first Decent Work Country Programme (DWCP) covering the period 2019-21, which provides the overall framework for collaboration with the ILO. Ministry of Labor, Khon Kaen jointly launched a unit for the treatment of suffering, to create a smile to the people. Thai labor law is relatively flexible for employers. 2541 as amended by the Labour Protection Act (No. Prior to the amendment, this timing requirement for payment applied to wages, holiday pay, overtime pay, and holiday overtime pay, but not to other types of remunerations or other statutory payments, such as severance. The Thai labor law stipulated that the maximum number of working hours of employees in Thailand is 8 hours a day and not more than 48 hours a week. Section 5. The new Labor Protection Act (No. Naturally, many employers wanted to know more about how this affected them. Pornography: How Legal is it in Singapore? This amendment adds significant obligations on employers in Thailand in many aspects. Prior to this amendment, personal business leave were granted to employees in accordance with their employment agreements or the company work rules. The amended LPA was published in the Royal Gazette on April 5 and took effect May 5. On 13 December 2018, the meeting of the National Legislative Assembly (“NLA”) passed the Draft Labour Protection Act B.E. The amendment aims to promote and enhance gender equality through the concept of “work of the equal values” as part of the new condition for equal pay. Employees are now statutorily entitled to personal business leave of 3 working days per year. The provisions of section 59 of the Labour Protection Act B.E. 2541 (1998) (“LPA”) has previously been revised from time to time. Severance Pay A pregnant female employee is entitled to maternity leave of not more than ninety eight days for each pregnancy. Naturally, many employers wanted to know more about how this affected them. This amendment to the LPA has been published in the Government Gazette on April 5, 2019, and will come into effect on May 6, 2019. Prior to amendment, the LPA did not require employers to pay the payment in lieu of notice on any specific date. Section 10. It should not be regarded as a comprehensive statement of the law and practice in this area. 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 provisions of section 93 (5) of the Labour Protection Act B.E. We know that every situation is unique, therefore it is essential to seek a consultation with someone who is specialized in Thai Labor Law to fully underst… No individual who is a member, partner, shareholder or consultant of, in or to any constituent part of Interstellar Group Pte. The Thai National Legislative Assembly approved a resolution to amend the existing Labour Protection Act (the “LPA”) on December 13, 2018. 2551 shall be repealed and replaced by the followings: “section 75. 2553 shall be repealed and replaced by the followings: “Any person who fails to comply with an order of a labour inspection under section 124 shall be liable to imprisonment for a term not exceeding one year or to a fine not exceeding twenty thousand Baht or to both”. The followings shall be added as section 125/1 of Chapter 12, the submission of complaints and consideration of complaints, of the Labour Protection Act B.E. 2551 shall be repealed and replaced by the followings: “section 124/1. The major changes to the LPA include the followings: On 13 December 2018, the draft amendment to the Labor Protection Act (LPA) was approved by the National Legislative Assembly and is expected to come into force soon. 6) B.E. Siam Legal International does not claim any rights over the republication of Thai laws within this website. Yes, the employer is required to provide employment terms and conditions to meet the minimum standards set out under Thai law, such as the minimum wage (as of February 2019, a national minimum wage rate is between THB 308–330 per day based on the location of work), working days and hours of work, leave entitlements, public holidays, welfare, termination of employment, etc. The provisions of section 155/1 of the Labour Protection Act B.E. A full service law firm with multiple branches in Thailand. In regard to the delivery of the order of the Labour Welfare Committee, the provision of section 143 shall apply mutatis mutandis. The order of the Labour Welfare Committee is final except in the case where the employer or employee wishes to appeal the order to the Court within thirty days as from the date of receiving the order. Sick leave. Whether you … 2541 (1998) (“Amended LPA”). If the relocation materially affects the ordinary course of living of an employee, the employee may refuse to relocate by giving a written notice to the employer within 30 days of the relocation notice date. 2541 shall be repealed and replaced by the followings: “where there has been a change of employer or where the employer is a juristic person and there is a registration of change, assignment or merger with any juristic person resulting in an employee having a new employer, the employee shall grant consent to being under such new employer and the new employer shall assume the rights and duties, entitled to from their previous employer, and in connection with those employees in all respects”. 2541 (1998) (“ LPA ”) has previously been revised from time to time. The amendment increases the amount of statutory severance pay for employees having worked for an uninterrupted period of 20 years or more by raising it to 400 days of the employee’s last wage (approximately 13.3 months). A Royal Decree on Labour Protection Act No. In the case where the employer is the plaintiff of the court case, the employer shall place the guarantee to the court for the amount he or she shall pay in accordance with the order before initiating the case. The Amended LPA is now pending publication in the Royal Gazette. Table 6. Our areas of expertise: Banking and Finance, Corporate and Commercial, Energy, Mining and Infrastructure, Mergers and Acquisitions, Real Estate and Construction, and Taxation. The New Labor Code revises and supplements several provisions across all chapters of the current Labor Code. 2541 as amended by the Labour Protection Act (No. 7) B.E. DISCLAIMER: THIS TEXT HAS BEEN PROVIDED FOR EDUCATIONAL/COMPREHENSION PURPOSES AND CONTAINS NO LEGAL AUTHORITY. The provisions of section 75 of the Labour Protection Act B.E. Any employer who fails to submit or notify a form stating employment conditions and working conditions under section 115/1 shall be liable to a fine not exceeding twenty thousand Baht”. Section 3. The leave under paragraph one shall include holidays that occur during the leave period. Section 24. Required fields are marked *, div#black-studio-tinymce-10{ display : none; }, All RIGHTS RESERVED Ⓒ 2017 ASIA LAW NETWORK, Thailand Legal Update: New Amendment to Thailand’s Labour Protection Act. An employee is entitled to a sick leave as long as he/she is actually sick. 2) B.E. 2541 as amended by the Labour Protection Act (No. 2541 as amended by the Labour Protection Act (No. Section 12. Section 16. It will become effective on and from 5 th May 2019. Thailand Law Library is managed by Siam Legal International. The new Labor Protection Act (No. A well written employment contract can prevent and settle disputes which may arise in the future. Your email address will not be published. In the case where the Labour Welfare Committee considers and is of the opinion that the employee has no right to receive the special severance pay in lieu of the advance notice or special severance pay, as the case may be, the Labour Welfare Committee shall notify the employer and employee of such order. In-depth local and cross-border experience in complex and sophisticated transactions across a wide geographical front; 2541: “section 57/1. Section 2. 2562 (2019) (“New LPA”) was published in the Government Gazette on 5 April 2019. This Act shall come into force after the expiration of thirty days from the date of its publication in the Government Gazette. In the case where the employer disagrees with the reason of the employee under paragraph tree, the employer shall submit a complaint to the Labour Welfare Committee within thirty days as from the date of receiving the written notice”. An employer shall pay the wage of an employee on maternity leave under section 41, at a rate equal to the wage for a normal working day, for the entire period of time the leave being taken but not exceeding forty five days”. Any employer who fails to comply with section 15, section 27, section 28, section 29, section 30 paragraph one, section 45, section 53, section 54, section 56, section 57, section 58, section 59, section 65, section 66, section 73, section 74, section 75 paragraph one, section 77, section 99, section 108, section 111, section 112, section 113, section 114, section 115, section 117 or without advanced notice, section 121 paragraph one or section 139(2) or (3) shall be liable to a fine not exceeding twenty thousand Baht”. Ltd. accepts or assumes responsibility, or has any liability, to any person in respect of this article. 2541 as amended by the Labour Protection Act (No. We can help with your labour law matters. German-Southeast Asian Center of Excellence for Public Policy and Good Governance (CPG) – +66 2 613 2971 – +66 2 224 8100 (Fax) Section 14. The employee is entitled to special severance pay not less than the rate of severance pay he or she would be entitled to under Section 118. 2541 (1998) (“ LPA ”) has previously been revised from time to time. 2551 shall be repealed and replaced by the followings: “section 155/1. New Labour Protection Law to be Effective in 2019. 2541 as amended by the Labour Protection Act (No. The days of maternity leave referred to in this section shall include leave for pregnancy check-up before delivery. In case of work detrimental to employee's health or safety, normal working hours cannot exceed seven hours per day, with a maximum of 42 hours per week. An employee has served the company for less than 120 days. In this post, we'll help clarify some of the basics when it comes to Thailand labor law. In the case where the employer has appealed the order of the Labour Welfare Committee to the Court within the time period as prescribed under section 120/1 paragraph four and has complied with the court ruling or order, the criminal proceeding against the employer shall be ceased”. 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. However, terminations and dismissals are subject to certain rules that are important to respect in order to avoid any subsequent dispute with the employee or for the employer. Following this notice, the employment contract will be deemed to be terminated on the date of relocation and the employee will receive special severance pay (the amount of which equal to the statutory severance pay) within 7 days from the termination date. Section 13. 2562 (2019) (Amendment Act No. The latest manifestation was revision to the Thai LPA was in 2010. 2541 shall be repealed and replaced by the followings: “section 70. The amendments took effect on May 6, 2019. Keywords: Mazars, Thailand, Legal, Labour Protection Act, Royal Decree However, gaps exist within the operations of the MOL that may hinder adequate labor law enforcement, including an insufficient number of labor inspectors. This amendment to the LPA has been published in the Government Gazette on April 5, 2019, and will come into effect on May 6, 2019. In case of termination, all remunerations (including pro-rata bonus, premium and other benefits) and other statutory payments (including, in our reasonable interpretation of the severance pay) must be paid within 3 days following the effective date of termination. Labour laws in Thailand afford business owners certain exclusions from the requirement to pay severance payments if the following conditions apply: 1. The provisions of section 151 paragraph two of the Labour Protection Act B.E. In the case where the complaint is considered and an order is issued by the Labour Welfare Committee, this shall be completed within sixty days as from the date of receiving the complaint and the order shall be notified to the employer and employee within fifteen days as from the date of issuance of order. The Amended Labor Protection Act will be effective on 5 May 2019 On 5 April 2019, the Government Gazette has published the Labor Protection Act (Issue 7) B.E. Prior to this amendment, the statutory severance pay for employees with 10 years of seniority or more in the company was capped at 300 days of pay. DFDL Expertise It was published in the Government Gazette on 5 th April 2019. The provisions of section 53 of the Labour Protection Act B.E. 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