Employers are therefore not advised to deal with these without the assistance of an experienced and reputable labour law advisor. tax submission forms in thailand. There is a lot of misunderstanding about the Thai labour law, the labour court and teachers' rights in Thailand. But, and this is very important, a severance or ex gratia payment was not compulsory under Thai labor law before 1 September 2017. An employee who has worked for less than 120 days can be terminated without receiving severance pay. approved by the Commissioner for Labour. Previously, the law was silent on the issue and employers had discretion to set their own retirement policy. Thailand has applied the same rate of severance pay since promulgation of the LPA in 1998 until this was adjusted on 5 May 2019. Article 132 of the UAE Labour Law states: “A worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. Severance Pay. In the case where an employer relocates the place of business in Thailand which affects the normal living of an employee or his/her family, the employer shall notify the employee at least 30 days before the date of relocation. *Under the Amended LPA, an employee who works for more than 10 years but less than 20 years will continue to be paid severance pay for 300 days of the last wage rate, but if the employee works for at least 20 years, the amount of severance pay will be increased from 300 to 400 days of the last wage rate. The employer shall make the severance payment to the employee not later than two months from the receipt of such a notice. statutory severance pay at the rate set out by the Labour Protection Act 1998 (“LPA”) (which ranges from 30 to 300 days’ wages depending upon length of service) to an employee whose employment is terminated without reason or for reasons other than those set out in Section 119 of the LPA. Hours Of Work The law provides maximum working hours based on the type of work. severance pay in thailand thai labour law restricted jobs for foreigners social security in thailand double taxation agreement tips for paying taxes as a foreigner. My base salary is 90,000 a month, but in addition to that I have a housing allowance of 30,000 a month. Section 14. Retirement Age of Employees Thai Lawyers | May 10, 2013. If the employer has a retirement policy, or the employer agrees with the employee on retirement and the age of retirement, both parties are required to comply with such policy or agreement. However, under Thai Law, only employees who have worked for 120 days or more are entitled to severance pay if they are terminated without cause. Under Thai labour law, an employer may terminate an indefinite term employment contract immediately, without notifying the employee at least one payment cycle … The National Legislative Assembly has announced the new entitlements shall be effective from 24 February 2019, subject to the publication of the law in the Royal Gazette. the period prescribed under Section 70, or severance pay under Section 118, special severance pay in lieu of advance notice, or special severance pay under Section 120, Section 121 and Section 122, the Employer shall pay interests to an Employee at the rate of … business tax & tax rates in thailand. Note: If an employer ends an employee’s employment without giving written notice as set out in section 57 or 58 of the Act, the employee’s length of employment for severance pay purposes is calculated as if notice had been given. Working hours This article addresses several of the most important aspects of this Act and its Regulations. Keywords: Mazars, Thailand, Legal, Severance pay, Labour Protection Act, Wage rate. You believe what the schools tell you and you are afraid to question them so you can stay in the Land of Smiles. Amendments The amendments to the Labour Protection Act have been made to confirm the court’s rulings that retirement is considered as a termination of employment. See ESA section 57 and 58. According to Section 17 of the Labour Protection Act B.E. Retirement is deemed to be termination of employment, and the retiring employees are entitled to severance pay under Section 118. For example, you may pay less tax if you get your severance pay as a salary continuance instead of as a lump-sum payment. The provisions of section 118 (5) of the Labour Protection Act B.E. Thai labour law provides that in the event that an employee violates an employer’s work rules, regulations or orders in circumstances where the employer has previously issued a warning letter to the employee in respect of the same violation, the employer may terminate the employee’s employment without severance pay. New Rate of Severance Pay; An employee who has been terminated without cause will be entitled to, among others, severance pay; the rate of which depends on an employee’s length of service and last wage rate. All sounds fine from what I've read about Thai labour law. They are however claiming that only the 'base salary' qualifies for severance pay. 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