The relationship between an employer and employees is covered under the Thai Labor Protection Act (LPA). The Thailand law comprises commercial and civil codes related to the rights and obligations of employees and employers.
Minimum Wage
The rate of the minimum wage is dependent on the area or location of the workplace and the nature of the job.
Working Hours
The maximum number of hours that employees are required to work is 8 hours per day and 48 hours per week. However, the employer and employee can mutually amend the working hours without exceeding the 48-hour limit. All employees are entitled to get a daily break for at least one hour after working for five hours consecutively.
Overtime
The law dictates that employers are not allowed to force or instruct employees to work overtime without the consent or acceptance of the employee. However, an employer can order their employees to work overtime if there is a risk of damage to the company or in case of an emergency.
National or Traditional Holidays
Employers are required to grant no less than 13 days of national or traditional holidays, including Labor Day. The announcement of these holidays should be made in advance each year.
Leave Policy
Annual Leave: Employees are entitled to up to 6 paid annual leave days each year.
Sick Leave: Employees are entitled to take as many sick leave days as necessary (provided they don’t exceed 30 days in a year).
Maternity Leave: Pregnant women are entitled to no more than 98 days of maternity leave. The employer is required to pay the staff member for 45 days out of 98 days.
Termination
If the contract does not specify the required term or duration, the employer and the employee have the right to terminate the contract after submitting a written notice before the date of payment. In case of dishonest work or malpractice, an employer is not liable to pay severance pay to the employee.
Employee Records
If an employer has 10 or more employees working at the company, written rules and regulations must be displayed at the work premises in the Thai language within 15 days from the day the number of employees reaches 10. In addition, an employer is also required to maintain a register containing the information of the holiday work, wages, overtime, and other relevant documents of each employee for at least two years, even after the termination of the employee.
Conclusion
When managing a company in Thailand, the senior management is required to follow the LPA to ensure strict compliance with the law. Any violation of the labor code will result in lawsuits, penalties, or heavy fines for the party at fault. The purpose of the labor law is to protect the rights and interests of the labor force working for a company or industry.
