Understanding the local labor laws and regulations in Thailand will help you avoid employment risks.

Understanding local labor regulations in Thailand can help you better avoid employment risks

Labor and Employment Laws and Regulations

Core Labor (Employment) Laws

The Labor Protection Act (LPA) currently in force in Thailand was enacted in 1998. The Act defines the rights and obligations of both employers and employees, and establishes minimum standards for general labor, employment of women and child labor, wages and compensation, termination of employment, and employee relief funds. At the same time, the Labor Protection Act also empowers the government to intervene and regulate to ensure a fair and healthy relationship between employers and employees. In addition, relevant legislation includes the Labor Relation Act (1975), the Act on Establishment of Labor Courts and Labor Courts Procedures (1979), the Social Security Act (1979), and the Labor Protection Act (1979). Social Security Act (1990), and the Workmen's Compensation Act (1994), among others.

The main contents of the above laws and regulations are:

Minimum Wage

Thailand has different minimum wage levels depending on the region. in 2019, the national minimum daily wage is 313 baht (about 9.7 USD); the highest is 336 baht (about 10.4 USD) in Chonburi and Phuket provinces, 331 baht in Bangkok city and 335 baht in Rayong.

Working hours and leave

Working hours are standardized to be no more than 8 hours per day and 48 hours per week, and the daily working hours may be extended in special industries, but the total working hours per week must not exceed 48 hours. For work harmful to the employee's health and dangerous work, the daily working hours may not exceed 7 hours and the weekly working hours may not exceed 42 hours. Employees shall be entitled to at least one day of vacation per week, the employer may not require employees to work overtime unless the employee agrees to do so, and the employee must be paid overtime at a rate of one and a half (for working days) to three (for holidays) times the normal wage for the hours worked. Employees may not work more than the maximum working hours of 48 hours per week.

Employees may take sick leave (work-related injuries and maternity leave are not considered sick leave) according to their medical condition, but the number of days of paid sick leave shall not exceed 30 working days, and the employer may ask for a doctor's certificate if the employee takes more than 3 days of sick leave. Employees who have worked continuously for the same employer for one year are entitled to not less than six days of paid vacation per year in addition to the national statutory holidays. Female employees are entitled to a total of 98 days of maternity leave (the definition of maternity leave includes a series of prenatal checkups before giving birth), including holidays, but only 45 of these days are paid leave.

Employee Record

Employers employing 10 or more employees are required to make a labor regulation statute and publicize it within 15 days from the date the number of employees reaches 10. Employers are required to keep a copy of the labor regulation in their office, and the labor regulation is required to be displayed in a public place or electronically for the convenience of employees.

Use of Female Workers

It is stipulated that employers shall not use female workers for the types of work, and that employers shall not use pregnant women for the types of work. It is stipulated that an employer shall not dismiss a female worker due to her pregnancy.

Use of child labor

The types of work in which employers are prohibited from using child laborers (15-18 years old) are stipulated. Employers are only allowed to employ child laborers over the age of 15 and must report the employment of child laborers to the Labor Inspection Department. Employers are not allowed to use child laborers to work overtime or on holidays, and in general, they are not allowed to use child laborers to work from 10:00 p.m. to 6:00 p.m.

Worker's Pension

Employers are required to provide pensions for injuries, illnesses, and deaths of employees arising out of or in the course of work, which can be categorized into four types: pensions, medical expenses, rehabilitation expenses, and funeral expenses. The rate of the pension depends on the severity of the incident, and in general the employer is obliged to pay 60% of the employee's original salary per month as a pension, and in the case of loss of organs, disability or death, the employer is obliged by law to pay a pension for a certain period of time. All employers are required to contribute to the Workers' Pension Fund administered by the Social Insurance Office by January 31st of each year, at a rate set by the Ministry of Labor.

Social Insurance

All employers are required by law to deduct from the employee's monthly salary a contribution to the social security fund, which is currently set at 5% of the employee's monthly salary (with a maximum benchmark of 15,000 baht per month), and the employer is required to contribute the same amount to the social security fund on behalf of the employee. Employers and employees must remit the social security fund to the Social Insurance Office by the 15th of the following month. Employees registered with the Social Security Fund can apply for compensation for injury, illness, disability, or death outside of work, as well as child benefits, pensions, and unemployment benefits.

Termination of employment

In the case of an employment contract without a time limit, both the employer and the employee may terminate the employment relationship on the next payday by giving written notice to the other party on or before the payday. An employer may dismiss an employee without prior notice and without severance pay, except in cases where the employee intentionally commits a crime against the employer or uses his/her position to gain an improper advantage, or negligently causes great damage to the employer, or is absent from work for three consecutive days without a reasonable explanation, regardless of whether or not there is a holiday in between the three days, or where the employee has been sentenced to imprisonment by a final court of law, which is required to be caused by the employer in the case of a crime of negligence or a misdemeanor. An employee who is dismissed through no fault of his/her own is entitled to severance pay, the amount of which depends on the number of years he/she has worked for the employer.

If an employer lays off employees for reasons such as restructuring of departments and operations, or technological renovation of facilities, the employer shall notify the employees and labor inspectors of the list of dismissed employees and the reasons for dismissal not less than 60 days in advance, or pay the employees 60 days of wages as severance pay (this paragraph applies to those who fail to give 60 days of advance notice). In addition, employees who have worked for the same employer for six consecutive years are also required to pay additional severance pay, which is calculated as 15 days of wages for each additional year of service, up to a maximum of 360 days of wages, starting from the seventh year of service.

On April 5, 2019, the announcement of the 10th King's Royal Assent to the promulgation of the Labor Protection Act (7th Edition 2019) was published on the website of the Official Gazette of Thailand, and the new version of the Labor Protection Act came into effect 30 days after its publication. It provides for a number of measures that significantly increase labor benefits, including severance pay for dismissal and maternity leave for women who give birth to a child.

Website link: https://www.labour.go.th/index.php/en/labour-laws/47756-labour-protection-act-b-e-2541.