Most labour dispute in Thailand occurs during employment and after the termination of employment. All issues are always related to both parties’ rights and duties, such as unfair dismissal, termination of employment, prior notice, and severance pay.
Practice
In practice, the employer will provide the employment contract for the employee and specify the rights and duties of both parties according to Thai Law to protect the benefit and damage that may occur during the employment. However, the employer cannot determine any employment contract clause contrary to Thai Labour Law (Labour Protection Act, B.E. 2541 (1998).
Dismissal
Dismissal or termination of employment means any act where the employer refuses to allow an employee to work or continue to work on expiry of the contract of employment or any other cause, and includes if the employee does not work and receives no wages due to the employer is unable to continue the business operation. If an employer dismisses an employee with a serious clause that may occur damage to the employer, then the employer is entitled to dismiss the employee without severance pay.
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Dismissal without severance pay
- Performing his/her duty dishonestly or intentionally committing a criminal offence against the Employer;
- Willfully causing damage to the Employer;
- Committing negligent acts causing serious damage to the Employer;
- Violating work rule, regulation or order of the Employer which is lawful and just, and after written warning having been given by the Employer, except for a serious case with no requirement for the Employer to give warning;
- Absenting himself/herself from duty without justifiable reason for three (3) consecutive working days regardless of whether there is a holiday in between;
- being sentenced to imprisonment by a final court judgment.
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Dismissal with severance pay
- Employer terminates employment because it is necessary or is by the law;
- Employer terminates employment according to the work regulation;
- Employer terminates employment cause of inefficiency of work;
- Employer does not allow the employee to work and does not pay any wages etc.
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Severance Pay Rate
- Employee has worked for a consecutive 120 days but less than 1 year, the employer shall pay 30 days (1 month) of last wages;
- Employee has worked for a consecutive 1 year but less than 3 years, the employer shall pay 90 days (3 months) of last wages;
- Employee has worked for a consecutive 3 years but less than 6 years, the employer shall pay 120 days (6 months) of last wages;
- Employee has worked for a consecutive 6 years but less than 10 years, the employer shall pay 240 days (8 months) of last wages;
- Employee has worked for consecutive 10 years but less than 20 years, the employer shall pay 300 days (10 months) of last wages;
- Employee has worked for a consecutive 20 years or above, the employer shall pay 400 days of last wages.
Unfair Dismissal
Unfair dismissal refers to an employer dismissing an employee without any cause or even if there is some reason but it’s not an appropriate reason to dismiss an employee. Whether the dismissal is fair or not, must be considered based on the cause of termination. If an employer dismisses an employee without prior notice or severance pay is not considered an unfair dismissal due to the prior notice or severance pay is not the cause of termination but the consequences after termination.
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Unfair Dismissal Cases
- Dismissal because the employee tore the warning letter
- Dismissal without any causes
- Retirement ages of male and female employees are different.
- Dismissal cause of the first mistake of an employee
- Dismissal because the employee disobey not the serious command of the employer
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Consequences of unfair dismissal
- The court may order the employer to accept the employee back to work again or
- The court may order the employer to pay the unfair dismissal damages
Dismissal without prior notice
For example
The employment contract is not specified the certain term of employment and the employee obtains the wages as a monthly salary. If the employer desires to dismiss the employee, the employer shall give the employee the notice in writing in advance for at least 1 month otherwise the employer must pay 1 month’s salary instead of prior notice.
Our Services
- Draft and Review Employment Contract
- Draft and Review Termination Letter
- Compensation and Severance Pay Negotiation
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- Draft and Review Work Regulations
- Prior Notice of Dismissal
- Labour Dispute Consultancy
- Power of Attorney
- Translation
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