Le­gal Up­dates: Re­cent Le­gal Changes Af­fect­ing Busi­ness

Thai-American Business (T-AB) Magazine - - Contents -

On June 29, the Na­tional Leg­isla­tive As­sem­bly ( NLA) voted to pass the pro­posed amend­ments to the La­bor Pro­tec­tion Act which shall be en­acted into law af­ter its pub­li­ca­tion in the Gov­ern­ment Gazette and shall be ef­fec­tive on the fol­low­ing day af­ter the pub­li­ca­tion into the Gov­ern­ment Gazette. In this con­nec­tion, there are four key is­sues of these amend­ments to the La­bor Pro­tec­tion Act as fol­lows:

Min­i­mum Wage Rates for Spe­cific Work­ers

– The wage com­mit­tee may de­ter­mine dif­fer­ent min­i­mum wage rate for spe­cific types of work­ers such as stu­dents, dis­abled and el­derly work­ers from a min­i­mum wage rate for gen­eral work­ers. How­ever, such min­i­mum wage rate for spe­cific work­ers shall not be less than the rate of those gen­eral work­ers.

Elim­i­nat­ing an Em­ployer’s Obli­ga­tion to Sub­mit a Copy of the Work Rules – Ac­cord­ing to the Order of the Na­tional Peace and Order Coun­cil No. 21/ 2560 dated April 4, 2017, the obli­ga­tion of an em­ployer to sub­mit a copy of the work rules to the rel­e­vant au­thor­ity has been re­lieved. More­over, this amend­ment also al­lows an em­ployer to cir­cu­late such work rules via elec­tronic sys­tem for ac­cess by em­ploy­ees.

Re­tire­ment Age and Sev­er­ance Pay

– The re­tire­ment age of an em­ployee can be ex­plic­itly de­ter­mined be­tween an em­ployee and an em­ployer. When an em­ployee reaches the re­tire­ment age as spec­i­fied, the em­ploy­ment agree­ment shall be deemed ter­mi­nated. If there is no agree­ment on the re­tire­ment age be­tween an em­ployer and an em­ployee or the re­tire­ment age of an em­ployee has been spec­i­fied over 60 years old, an em­ployee who reaches 60 years old shall be en­ti­tled to re­tire­ment by ex­press­ing an in­ten­tion to the em­ployer. Such in­ten­tion of re­tire­ment shall be ef­fec­tive within 30 days from date of in­ten­tion and the em­ployer is obliged to pay a sev­er­ance pay to the re­tired em­ployee.

If the em­ployer fails to make a sev­er­ance pay­ment to the re­tired em­ployee, the em­ployer is li­able for ei­ther a fine or im­pris­on­ment or both.

For more in­for­ma­tion con­tact Bangkok Global Law at picharn@ bglob­allaw. com.

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