2541 as amended by the Labour Protection Act (No. The provisions of section 145 of the Labour Protection Act B.E. In 1994, DFDL was built on the foundation of a unique vision: to build an integrated international standard law firm, with in-depth knowledge of the Mekong Region, while providing specialized and personalized advisory services to the international business community. An Employer, a chief, a supervisor, or a work inspector shall be prohibited from committing sexual … Table 6. The legislation was changed to become more favorable for employees throughout 2018 and is expected to … Before this amendment, such consent was not required. New Labour Protection Law. A full service law firm with multiple branches in Thailand. 2541 shall be repealed and replaced by the followings: “section 145. In the case where an employer terminates an employment contract without giving an advance notice under section 17 paragraph two, the employer shall pay compensation for the amount of wage the employee is supposed to receive as from the date the employee is dismissed until the termination of employment contract comes into effect under section 17 paragraph two and this shall be paid on the date the employee is dismissed”. German-Southeast Asian Center of Excellence for Public Policy and Good Governance (CPG) – +66 2 613 2971 – +66 2 224 8100 (Fax) The main purposes of the amendment is to provide better protection for employees, to enhance The Labor Protection Act regulates minimum standards for pay and working hours for employees. Under the current regime, the government strives to promote stronger protection for employees at large. The provisions of section 93 (5) of the Labour Protection Act B.E. Section 16. Section 20. Thailand Law Library is managed by Siam Legal International. If you require any advice or information, please speak to practicing lawyer in your jurisdiction. 2562 (2019) (“New LPA”) was published in the Government Gazette on 5 April 2019. 2019 FEBRUARY. The New Labor Code will take effect from 1 January 2021. 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. No individual who is a member, partner, shareholder or consultant of, in or to any constituent part of Interstellar Group Pte. As the Mekong Region and other emerging markets continue to thrive, DFDL is uniquely positioned to secure your access to promising international growth opportunities. 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. Leave. Naturally, many employers wanted to know more about how this affected them. 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. 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. In the case where an employer initiates a case in the court within the time period as prescribed under section 125 and has complied with the Court ruling or order, the criminal proceeding against the employer shall be ceased”. 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. The New Labor Code revises and supplements several provisions across all chapters of the current Labor Code. This constitutes a significant increase since the rate was previously set at 7.5%. Section 18. Legal News & Analysis - Asia Pacific - Thailand - Labour & Employment 5 April, 2019 The Thai Labour Protection Act, B.E. 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. The provisions of section 120 of the Labour Protection Act B.E. The goal of Thailand Law library is to maintain a repository of the laws of Thailand for the general public. 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”. Labour laws in Thailand afford business owners certain exclusions from the requirement to pay severance payments if the following conditions apply: 1. 6) B.E. Section 22. On December 13, 2018, the National Assembly of Thailand approved significant amendments to the country’s Labor Protection Act (“LPA”). In May 2019, amendments to Thailand’s Labour Protection Act broadened the scope of the workplace relocation provisions to cover an employer’s other existing work locations, such as branches. 11 April 2019. Our areas of expertise: Banking and Finance, Corporate and Commercial, Energy, Mining and Infrastructure, Mergers and Acquisitions, Real Estate and Construction, and Taxation. Thailand has one of the most exciting, fast-paced job markets in South East Asia. Client Update: Thailand. Although the amendment is silent on the form of the consent given by the employee, employers should seek to get a written consent for the sake of security. The employer and the employee may agree to arrange the period of working hours for some types of works, as stipulated by the Thai labor law, but the total number of working hours in any case must not exceed 48 hours a week. THE ORIGINAL THAI TEXT AS FORMALLY ADOPTED AND PUBLISHED SHALL IN ALL EVENTS REMAIN THE SOLE AUTHORITY HAVING LEGAL FORCE. The amendment lays down various changes pertaining to the relocation of employees to a new place of business. Expertise: Law. The main purposes of the amendment is to provide better protection for employees, to enhance Translation and copyright by Ms. Natthanicha Lephilibert, Safe and Fair National Project Coordination for Thailand, ILO, United Nations – under her own capacity. Siam Legal International does not claim any rights over the republication of Thai laws within this website. 2541 (1998) (LPA), was published in the Royal Thai Government Gazette earlier this month and is set to come into force on 5 May 2019. 2541 (1998) (“LPA”) has previously been revised from time to time. On December 13, 2018, the National Assembly of Thailand approved significant amendments to the country’s Labor Protection Act (“LPA”). Here are 3 examples: (1) Preparing company work rules and regulations in compliance with the Labour Protection Act for submission to the Thailand Ministry of Labour. 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. – contact@cpg-online.de, → Asia in Review: The weekly news review delivered to you free of charge. 2551 shall be repealed and replaced by the followings: “(5) to issue an employer to pay for special severance pay instead of a given advance notice or special severance pay under section 120/1”. An Employer shall treat male and female Employees equally in employment unless the description or nature of work prevents such treatment. 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. DFDL Lawyers April 12, 2019 0 The Thai National Legislative Assembly approved a resolution to amend the existing Labour Protection Act (the “ LPA ”) on December 13, 2018. The provisions of section 144 (2) of the Labour Protection Act B.E. Employment with a definite periodis allow… The provisions of section 59 of the Labour Protection Act B.E. On 13 December 2018, the meeting of the National Legislative Assembly (“NLA”) passed the Draft Labour Protection Act B.E. Visitor Times Posted Date 4 May 2018 facebook Expanding benefits for workers, the new law will come into effect on May 5. 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. On 20 November 2019, the National Assembly of Vietnam adopted the Labor Code No. Prior to amendment, the LPA did not require employers to pay the payment in lieu of notice on any specific date. The provisions of section 70 of the Labour Protection Act B.E. 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. 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. 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. 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. ... (an employer with 10 or more employees must prepare and announce the work rules with minimum particulars as required by Thai labor law). 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. ... (an employer with 10 or more employees must prepare and announce the work rules with minimum particulars as required by Thai labor law). New Labour Protection Law to be Effective in 2019. The followings shall be added as section 120/1 and section 120/2 of the Labour Protection Act B.E. NO RESPONSIBILITY FOR ANY LIABILITIES ARISING FROM THE USE AND/OR REFERENCE OF THIS TEXT SHALL BE ASSUMED. Section 4. 2541: “section 17/1. DFDL Expertise The provisions of section 75 of the Labour Protection Act B.E. By Florian Maier, Managing Director and Phi Ploenbannakit, Director – Antares Advisory, part of Antares Group. Working time. DISCLAIMER: THIS TEXT HAS BEEN PROVIDED FOR EDUCATIONAL/COMPREHENSION PURPOSES AND CONTAINS NO LEGAL AUTHORITY. Section 12. Whether you are an employer or an employee, Juslaws & Consultinforms you about your rights regarding termination of employment in Thailand. Full paid maternity leave remains, however, capped at 45 working days. Thailand is one of the ILO’s founding members, joining in 1919. 2541 as amended by the Labour Protection Act (No. This amendment adds significant obligations on employers in Thailand in many aspects. The provisions of section 118 (5) of the Labour Protection Act B.E. Expanding benefits for workers, the new law will come into effect on May 5. The Amended LPA is now pending publication in the Royal Gazette. Thai labor law is relatively flexible for employers. The Thai Government recently published in its Royal Gazette a set of new changes to the Labor Protection Act (LPA), effective 5 th May 2019, aiming at further improving employee’s working conditions as follows:. 5 April, 2019 The Thai Labour Protection Act, B.E. 2541 as amended by the Labour Protection Act (No. 2541: “(6) an employee who has worked for a continuous period of twenty years and more shall be paid for the amount of not less than the last rate of wages for four hundred days or of not less than his or her wages for the last four hundred days for an employee who receives wages on a piece rate basis”. 2541 as amended by the Labour Protection Act (No. Thailand's redrafted Labor Protection Act (LPA) has introduced major changes to the country's employment law. In regard to the delivery of the order of the Labour Welfare Committee, the provision of section 143 shall apply mutatis mutandis. The Labor Protection Act (No. Based on the draft Amended LPA publicly available, … © R&T Asia (Thailand) Limited | 1. The new labour law, with more benefits for workers including a higher layoff compensation rate for long-serving employees, will come into effect on May 5. Section 5. 2562 (A.D. 2019) was passed by the National Legislative Assembly (NLA) on 13 th December 2018 to amend the Labour Protection Act B.E. Section 24. It will become effective on and from 5 th May 2019. On April 5, 2019, Thailand’s new labour law, officially called the Labour Protection Act (No.7), was published in the Royal Gazette. The employer, however, may appeal the reasons invoked by the employee before the Ministry of Labour. 7) B.E. The provisions of section 9 paragraph one of the Labour Protection Act B.E. Section 8. 2541 as amended by the Labour Protection Act (No. In the event of a workplace relocation (whether to a new location or to another existing location), the employer is required to post a notice at the current workplace for a consecutive period of at least 30 days prior to the relocation. 2541: “section 57/1. Whereas it is deemed appropriate to amend the law governing labour protection. The new Labor Protection Act (No. 2) B.E. We can help with your labour law matters. The new Labor Protection Act (No. Section 120/2. Below is an English translation of the law provided by Natthanicha Lephilibert, Safe and Fair National Project Coordination for Thailand, ILO, United Nations. Section 10. When the Labour Welfare Committee considers the complaint under section 120 and is of the opinion that the employee has the right to receive the special severance pay in lieu of the advance notice or special severance pay, the Labour Welfare Committee shall order the employer to pay the special severance pay in lieu of the advance notice or special severance pay, as the case may be, to the employee within thirty days as from the date of receiving the order. The provisions of section 155/1 of the Labour Protection Act B.E. The followings shall be added as (6) of section 118 of the Labour Protection Act B.E. 2541 (1998) (“ LPA ”) has previously been revised from time to time. Accordingly, employers and HR departments should review their internal policies, employment contracts and internal HR process to ensure compliance with these provisions. The Labor Protection Act regulates minimum standards for pay and working hours for employees. An employer shall pay the wage to an employee on the leave day for necessary business under section 34 at a rate equal to the wage for working day throughout the leave period but this leave shall not be more than three working day per year”. 2562 (2019) (“New LPA”) was published in the Government Gazette on 5 April 2019. The major changes to the LPA include the followings: 2) B.E. Section 11. 2562(“ Amended LPA ”) and it will be effective on 5 May 2019. The amended LPA was published in the Royal Gazette on April 5 and took effect May 5. Male and female employees who perform work of the same type, quality,  quantity, or work of equal values must receive equal compensation, including the equality in wages, overtime payments, payments for work performed on holidays, and overtime payments for work performed on holidays. Section 23. 7) B.E. 2553 shall be repealed and replaced by the followings: “section 146. The amendments took effect on May 6, 2019. Under the amendments, employees with 20 or more uninterrupted years of service will be entitled to receive 400 days’ pay as severance. Section 3. The provisions in section 34 of the Labour Protection Act B.E. An employer shall pay wage, overtime pay, holiday pay, holiday overtime pay and other money which the employer has the duties to pay under this Act correctly and within the specified time period as follows: (1) where wage is calculated on a monthly, daily, hourly basis or at other duration of no longer than one month or on the basis of work output, payment shall be made at least once a month, unless otherwise agreed upon by the employer and employee in the interests of the employee; (2) Where wage is calculated by methods other than as prescribed in (1), payment shall be made at the time agreed upon by the employer and employee; (3) Payment of overtime pay, holiday pay and holiday overtime pay shall be made at least once a month. 2562(“ Amended LPA ”) and it will be effective on 5 May 2019. But, and this is very important, a severance or ex gratia payment was not compulsory under Thai labor law before 1 September 2017. 2551 shall be repealed and replaced by the followings: “section 9. A full service law firm with multiple branches in Thailand. Maternity leave entitlements for pregnant employees is now set at 98 days per pregnancy (increased from 90 days) and is extended to leave taken for pre-natal care, such as to attend medical appointments. 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. 2541 2541 as amended by the Labour Protection Act (No. Under the current regime, the government strives to promote stronger protection for employees at large. Section 2. Severance Pay However, termination of employment and wrongful dismissal are subject to certain rules that are important to respect in order to avoid any subsequent dispute with the employee or for the employer. About the ILO in Thailand . 2541 as amended by the Labour Protection Act (No. 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. Thailand Law Library is managed by Siam Legal International. 2541 shall be repealed and replaced by the followings: “section 53. Thailand Law Library is managed by Siam Legal International. 45/2019/QH14 ("New Labor Code") after an amendment process lasting nearly four years. However, gaps exist within the operations of the MOL that may hinder adequate labor law enforcement, including an insufficient number of labor inspectors. 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. 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