Basic Employment Laws

It is important for foreigners setting up a business in Thailand , managing one or working for one to familiarise themselves with the Kingdom’s basic business laws.

 Here are some of the key points to bear in mind. It would also be wise to keep a comprehensive copy of employment laws at hand in the event a situation or dispute arises.

Working hours

In general, the working day should not exceed 8 hours per day and should not exceed 48 hours per week.

The exception to this is for those employees working in an environment that is prescribed by Ministerial Regulations as being potentially harmful to their health or safety. These employees should not exceed 7 hours work per day or more than 42 hours per week.

Holidays

An employee is entitled to at least one day off per week. The interval between weekly holidays shall be no longer than 6 days

The specific day for weekly holiday can be agreed in advance between the employee and employer.

There are exceptions to this rule for those working in the hotel, transport, and forestry sectors as well as those working in remote areas or other work prescribed in Ministerial Regulations. In these instances, with an agreement between employer and employee, weekly holidays can be accumulated and taken at a later time, but over no longer a period than 4 consecutive weeks.

National holidays

An employee is entitled to not less than 13 days national holiday per annum and when a national holiday falls on a weekend the following working day shall be granted as a holiday. Basic pay shall be given for these holidays

Annual vacation

Any employee who has worked continuously for 1 full year is entitled to an annual vacation of not less than six working days. They are also entitled to full basic pay during this vacation.

Any employer can grant an annual vacation on a pro-rata basis for any employee who has worked for less than one year.

Sick Leave

As for sick leave under Section 32, employees are entitled to leave as long as they are actually sick. If they are sick and take leave for 3 or more days that is a working day, a medical certificate must be presented. If in the event that it cannot be shown, the employee shall explain to the employer. The employer pays wages on sick days equal to wages on working days, throughout the leave period, but not more than 30 days/year

Under Section 57, any employer who fails to comply with Section 57 shall be liable to a fine of not more than 20,000 baht under Section 146. Therefore, sick leave must also be made legal labour law. In some cases, we still receive the same wages.

Maternity Leave

Under Section 41, a pregnant female employee Have the right to maternity leave of not more than 98 days/year. Submit an application for maternity leave in advance with a medical certificate requiring employers to pay wages on maternity leave equal to wages on working days throughout the leave period, not exceeding 45 days (Section 59 ) Any employer who fails to comply with Section 59 shall be liable to a fine not exceeding 20,000 baht (Section 146).

Severance Pay

Severance pay will be due to an employee who has worked for at least 120 days and has been made redundant.

If an employee is fired with cause, with appropriate warnings and notices issued then no severance pay is due.

• Work for 120 days but less than 1 year, receive 30 days of severance pay
• Work for 1 year but less than 3 years, receive 90 days of severance pay
• Work for 3 years but not for 6 years, receive 180 days of severance pay
• Work for 6 years but not 10 years, receive 240 days of severance pay
• Work for 10 years but not complete 20 years, receive 300 days of severance pay
• Work for more than 20 years and receive 400 days of severance pay

Laws should be adhered to

It is important that both employer and employees understand the basic employment laws and abide by them. But, to use an analogy: A happy ship is an efficient ship.

Keep your employees happy, make it clear to everyone who is boss and treat colleagues as you would expect to be treated. By achieving this balance, it will surely produce a more productive working environment and encourage everyone to go that extra mile for the good of the company.

In conclusion, labour laws are beneficial to workers and employers so that neither side can take advantage of each other. Especially in the department of employees who may risk working for free. If any company does not comply with the labour law, it is considered an offence and will be punished appropriately. Therefore, everyone should be aware of the law. When something happens, employees are able to visit the department of labour who will, if appropriate, support the employee in receiving any compensation or salaries that they are entitled to.