Fact Sheet #48: Application of U.S. Labor Laws to Immigrant Workers: Effect of Hoffman Plastics decision on laws enforced by the Wage and Hour Division … These rules must be published in both Thai and English for the benefit of foreign workers. With... Dezan Shira & Associates helps Termination of employment is defined as follows. Probationary agreements are considered "indefinite-term." In practice, therefore, it is advisable for employers to set out written terms and conditions of employment to avoid legal disputes or liability with regards to remuneration. Labour rules, laws and regulation in Thailand, 3. It sets the rights and obligations of the employers towards its employees and vice versa. Both employers and employees are required to contribute to the Social Security Fund at the rate of 5 percent of the employee’s income, up to a maximum of THB750 (US$23) per month. Further, a provident fund is managed wherein both employer and employee make equal monthly contribution ranging between two to 15 percent of the monthly remuneration. Other laws include the Labor Relations Act, the Social Security Act, the Act establishing the labor court and labor court procedure, the State Enterprise Labor Relations Act, the Workmen’s Compensation Act, and the Foreign Employment Act. Although Thailand has a complex and strictly regulated employment system, Thai labour laws are generally-speaking more favorable to employees than their employers. Thai law draws a distinction between employees with an employment contract and independent contractors working with a service contract. However, it does impose strict labor regulations with regards to working terms and conditions. In practice, therefore, it is advisable for employers to set out written terms and conditions of employment in order to avoid legal disputes at a later date or liability with regards to remuneration. Under Thai laws, the following financial compensations are required to be paid in order to terminate the employment contract. Notice (Please also see our comment in Q4-5) Under the LPA, unless a longer notice period is provided for in an employment agreement, an employee is generally entitled to receive one full pay period’s If an employment agreement is made in writing, an employer must provide a copy to the employee immediately after it has been signed. Special While there is a general recognition of freedom to contract, it is not possible to contract around the minimum standards imposed by applicable Thai labor law. This covers areas such as working hours, holidays and leave, notice, overtime, sick pay, where summary dismissal is permitted without severance pay or notice, and the calculation of severance pay in a case … As a result, to avoid paying severance, many employers in Thailand set probation periods of up to 119 days. Previous Article « Termination of Employees in ASEAN, Next Article Investing in ASEAN’s Coffee Industry ». According to Section 17 of the Labour Protection Act B.E. The main Thai labour law consists of the Civil and Commercial Code on contracts relating to the Hire of Services (Book III, Title VI), the Labour Protection Act 1998, the Labour Protection Act (No.2) 2008, the Labour Protection Act (No.3) 2008, the Labour Relations Act 1975, the Act on Establishment of Labour Courts and Labour Court Procedures 1979, the Social Security Act 1990 and the Compensation Act 1994. 189) and protections offered to other workers under Thai Law. 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