FAQs: Commercial
and International Trade
Labor Law
Q: What
are the basic labor laws a new company in Thailand needs to be
aware of?
A: The
Labor Protection Act specifies requirements on wages, working
hours, holidays, sick pay, procedures for termination and other
aspects of working conditions. There are also other laws governing
labor matters, i.e. the Civil and Commercial Code of Thailand
on Hire of Services, the Labor Relations Act, the Social Security
Act, the Workmen's Compensation Act, the Provident Fund Act, and
the Act on the Establishment of the Labor Court and Labor Court
Procedures.
Q:
What law governs employer and employee relations?
A: The
Labor Relations Act, the Labor Protection Act, the regulations
and notifications adopted under the said Acts, and the Civil and
Commercial Code of Thailand on Hire of Services, regulate employer
and employee relations.
Q:
What is the maximum daily and weekly working hours?
A:
With some exceptions, the normal working hours shall not
exceed 8 hours per day and 48 hours per week for any type of work. In certain
industries where the work is considered detrimental to the health and body of
the employee, the normal working hours shall not exceed 7 hours per day and 42
hours per week.
Q: What is the minimum age of employment?
A: 15 years. Furthermore,
no child under the age of 18 can be engaged without informing the Labor Inspector.
Q:
What is the maximum age of employment?
A:
There is no statutory retirement age under Thai law. The retirement age depends
on each employer's policy.
Q:
Is there a minimum number of weekly holidays?
A:
The employer must arrange a weekly holiday for all employees of at least 1 day
per week. Weekly holidays must have an interval of not more than 6 days.
Q:
Is there a minimum number of traditional holidays?
A:
A minimum of 13 days per year must be set aside as traditional holidays (including
National Labor Day).
Q:
Is there a minimum wage?
A:
Yes. However, the wage varies among the different regions
of the country and is adjusted periodically to accommodate inflation and cost
of living increases.
Q:
What is the statutory notice period required in terminating an employment agreement?
A: The
notice period for termination of employment is at least one pay period, unless
a longer period was agreed upon.
Q:
What is the statutory compensation required in terminating the employment
of an employee?
A:
An employee can be terminated without cause with payment of severance pay,
unused annual leaves and any other payments due under the employment agreement
and the employer's work rules and regulations. The severance payment varies according
to the length of service of the employee.
Q:
Are unions recognized?
A:
Unions are recognized, and there are many labor unions established in Thailand.
Q: Who can form a union?
A:
Employees working for the same employer or engaged
in the same type of work may form a union.
(October 4, 2007)
The above is intended to
provide general information only. The contents do not constitute
legal advice and should not be relied upon as such. If legal advice
or other expert assistance is required, the services of competent
professionals should be sought.
For
further information, please contact Ms.
Pimvimol (June) Vipamaneerut, Partner & Head of Transportation
& Insurance Group
(june.v@tillekeandgibbins.com).
