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  Redundancies in Asia and the Pacific – South Asia Session – Thailand Supplement . Maximum wage rate of 400 days for more than 20 years length of service. Employees cannot waive their rights to severance or retirement pay. We will get back to you very shortly. All legal information contained in the EPLex database can be downloaded by theme. 1. 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. 122 LPA: In the event of termination for economic reasons (those listed in art. 3. The Labor Protection Act regulates minimum standards for pay and working hours for employees. 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 . 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 Thai Labor Protection Act. Read the official version of the Thai Labor Law: Labour Protection Act B.E. Termination of Employment and Severance in Thailand Country. Severance Pay. Maximum maternity leave Increased from 90 days to 98 days (with 45day pay) for - each female employee. 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 … As a result, to avoid paying severance, many employers in Thailand set probation periods of up to 119 days. “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. Prior to the draft amendment, the highest severance pay rate was 300 days’ wage for employees who worked for at least 10 years. Employment transfer. Thai law does not explicitly mention probationary period in employment relationships. 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 … However, it does specify severance pay for employees who have worked for 120 days or more and are terminated without cause. The multiple is: - less than 120 days of service, zero; 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). 2541 (A.D. 1998) Labour Protection Act B.E. 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 days from the date of termination of employment. 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. 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. 2. Business Leave. Amendment to Thai Labour Protection Law. Working hours 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 … • One of the statutory grounds, a "major change in objective circumstances," requires 30 days' notice (or pay in lieu) and statutory severance. 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. 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. The amount required to be paid is based on the duration of employment, as follows: Length of Service Severance Pay Entitlement 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. Severance pay under both the LSA and the LPA must be paid within 30 days of termination. 3 working days per year (with 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). 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. New personal leave. 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. Employment transfer Download EPLex legal data. But, and this is very important, a severance or ex gratia payment was not compulsory under Thai labor law before 1 September 2017. The latest manifestation was revision to the Thai LPA was in 2010. 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. 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