Severance Pay under Thai Labor Protection Act

English Publications

Severance Pay
If you are employer and you terminate employment agreement with your employee, pls be aware that you shall have to pay the severance pay to the employee upon the termination of employment as follows:

(1) if the employee has worked consecutively for one hundred and twenty days but less than one year, the final wage rate of the employee shall be paid for not less than thirty days or not less than the total amount of wage paid for the last thirty days for the employee who agrees to receive wage upon piece-work basis;

(2) if the employee has worked consecutively for one year but less than three years, the final wage rate of the employee shall be paid for not less than ninety days or not less than the total amount of wage paid for the last ninety days for the employee who agrees to receive wage upon piece-work basis;

(3) if the employee has worked consecutively for three years but less than six years, the final wage rate of the employee shall be paid for not less than one hundred and eighty days or not less than the total amount of wage paid for the last one hundred and eighty days for the employee who agrees to receive wage upon piecework basis;

(4) if the employee has worked consecutively for six years but less than ten years, the final wage rate of the employee shall be paid for not less than two hundred and forty days or not less than the total amount of wage paid for the last two hundred and forty days for the employee who agrees to receive wage upon piece-work basis;

(5) if the employee has worked consecutively for ten years or more, the final wage rate of the employee shall be paid for not less than three hundred days or not less than the total amount of wage paid for the last three hundred days for the employee who agrees to receive wage upon piece-work basis.

The termination of employment under this section means any act of the employer to refuse the employee to continue working and refuse to pay wage, irrespective of the end of the employment contract or otherwise, including the case where the employee has not worked and has not received wage on account of the employer is unable to continue the undertaking.

The provisions of paragraph one shall not apply to the employee whose employment is subjected to the specific period and the employment is terminated at the end of such period.

The employment which is subjected to the specific period under paragraph three shall be the employment under the specific project which is not an ordinary business or trade of the employer having the definite commencement and ending date, work to be done occasionally with the definite ending date or the completion of work or seasonal work which the employment has been done during such season. In this case, these works shall finish within the period of two years and the employer and employee has concluded the employment contract at the commencement of the employment.

However, should there are the below situations, the severance pay shall not be paid to the employee whose employment is terminated upon any of the following grounds:

(1) being dishonest in the discharge of duties or commit a criminal offense against the employer intentionally;

(2) willfully cause damage to the employer;

(3) do any negligent act which cause serious damage to the employer;

(4) violate the working regulations or any legal and just regulations or order of the employer and the written warning has been given by the employer. In the case where there is serious situation, the giving of written warning by the employer is not required. Such written warning shall be valid for not more than one year as from the date the violation has been made;

(5) absent from service for three consecutive days, irrespective of whether there is a holiday in-between;

(6) having been sentenced by a final judgment of the Court to a term of imprisonment, except for an offence committed through negligence or a pretty offence.

Should you are unsure whether you can terminate employment agreement with or without severance, you may leave the question here or to have more information at nitithornlaw@gmail.com or our hotline (099) 456-9782 or visit us at http://www.thaisummitlaw.com

By: Ekkapon Yuangnark