Equal Opportunity Workplace? Not Under Thai Labor Laws!
http://www.lawsays.net/articles/10265/1/Equal-Opportunity-Workplace-Not-Under-Thai-Labor-Laws/Page1.html
Gregory Smyth
For nearly 30 years, Bamrung Suvicha Apisakdi Law Associates (BSA Law) has focused on providing reliable legal advice and services to the Thai and foreign business community in Thailand. We provide international standards of legal services while retaining the customs of the Thai business culture. By Gregory Smyth
Published on 10/20/2011
It may come as a surprise to western workers but in Thailand it is not illegal to discriminate against a job applicant on the basis of age or gender. While this south-east Asian nation's approach to labor management is considerably more relaxed than western nations, Thai and foreign firms need to be familiar with Thai labor law or risk getting caught out.
Peruse the personnel ads in Thailand and it may seem finding work is not just a case of what and who you know, but what you look like!
It's not uncommon for jobs advertisements to list age, appearance and gender requirements. An employer may be looking for a "male, less than 35 years, not a member of the labor union and at least 150cm in height".
In many countries this type of narrow search would be regarded as blatant discrimination and as such illegal.
Yet under Thai labour law it is not illegal to discriminate against a job applicant on the basis of age or gender.
Despite this relative freedom in labor management, western firms looking at starting a business in Thailand or Thai companies with a local workforce still need to meet certain legal obligations. Consulting with a legal service in Thailand makes sound sense.
Leading Thai law firm BSA Law are experts in Thai labor law and regularly advise both employers and employees on labor issues, including Thai work permits and visa services.
While a controversial bid by the Yingluck Government to raise minimum wages has dominated recent Thai labor law debate, BSA's Thailand lawyers warn working hours, leave entitlements, compensation and severance pay are all covered by Thai law.
Regulations
Workers in Thailand are protected under the Labor Protection Act and Labor Relations Act, as well as other related laws. These Thai labor laws apply to any business with at least one employee, regardless of whether they are in full-time, part-time, seasonal, casual or contract positions.
One notable exception is domestic workers (household staff), who are not defined as 'employees' under these Thailand laws.
Working hours and holidays
The maximum nine-hour working day applies for jobs classified as 'non-hazardous' and holiday leave includes 13 public holidays per year and six days annual vacation.
Overtime is payable at penalty rates and special conditions exist for vulnerable workers, including those aged under 18 and pregnant women.
Severance pay
Under Thai labor law, employees are entitled to receive severance pay. This is calculated according to their length of service, ranging from:
- 30 days severance pay for an employee who has worked more than 120 days but less than one year;
- 90 days severance pay for someone who has worked for between one and three years;
- Six months' salary for someone who has worked between three and six years;
- Eight months' salary for an employee who has served between six and 10 years and;
- 10 months' salary for an employee who has served more than 10 years.
Ceasing operations temporarily
Section 75 of Thailand labour law's Labor Protection Act provides an option for companies to avoid paying out severance pay if they need to temporarily scale-back operations.
'Ceasing Operations Temporarily' is a measure which can be adopted during tough economic times provided the employer meets certain conditions. It allows employers to pay workers at a reduced rate during this period.
Failing to comply with requirements under Section 75 of the LPA can lead to court proceedings so consultation with an experienced Thai law consulting firm is recommended.
Thailand may not be considered an 'equal opportunity' workplace, but Thai labor laws carry penalties for employers who fail to meet their obligations.
It's not uncommon for jobs advertisements to list age, appearance and gender requirements. An employer may be looking for a "male, less than 35 years, not a member of the labor union and at least 150cm in height".
In many countries this type of narrow search would be regarded as blatant discrimination and as such illegal.
Yet under Thai labour law it is not illegal to discriminate against a job applicant on the basis of age or gender.
Despite this relative freedom in labor management, western firms looking at starting a business in Thailand or Thai companies with a local workforce still need to meet certain legal obligations. Consulting with a legal service in Thailand makes sound sense.
Leading Thai law firm BSA Law are experts in Thai labor law and regularly advise both employers and employees on labor issues, including Thai work permits and visa services.
While a controversial bid by the Yingluck Government to raise minimum wages has dominated recent Thai labor law debate, BSA's Thailand lawyers warn working hours, leave entitlements, compensation and severance pay are all covered by Thai law.
Regulations
Workers in Thailand are protected under the Labor Protection Act and Labor Relations Act, as well as other related laws. These Thai labor laws apply to any business with at least one employee, regardless of whether they are in full-time, part-time, seasonal, casual or contract positions.
One notable exception is domestic workers (household staff), who are not defined as 'employees' under these Thailand laws.
Working hours and holidays
The maximum nine-hour working day applies for jobs classified as 'non-hazardous' and holiday leave includes 13 public holidays per year and six days annual vacation.
Overtime is payable at penalty rates and special conditions exist for vulnerable workers, including those aged under 18 and pregnant women.
Severance pay
Under Thai labor law, employees are entitled to receive severance pay. This is calculated according to their length of service, ranging from:
- 30 days severance pay for an employee who has worked more than 120 days but less than one year;
- 90 days severance pay for someone who has worked for between one and three years;
- Six months' salary for someone who has worked between three and six years;
- Eight months' salary for an employee who has served between six and 10 years and;
- 10 months' salary for an employee who has served more than 10 years.
Ceasing operations temporarily
Section 75 of Thailand labour law's Labor Protection Act provides an option for companies to avoid paying out severance pay if they need to temporarily scale-back operations.
'Ceasing Operations Temporarily' is a measure which can be adopted during tough economic times provided the employer meets certain conditions. It allows employers to pay workers at a reduced rate during this period.
Failing to comply with requirements under Section 75 of the LPA can lead to court proceedings so consultation with an experienced Thai law consulting firm is recommended.
Thailand may not be considered an 'equal opportunity' workplace, but Thai labor laws carry penalties for employers who fail to meet their obligations.