Legal Updates: Recent Legal Changes Affecting Business
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.