Terms
of Employment
The maximum probationary period permissible under Thai employment law is 120
days. All employers are required by labour law to provide at least 13 official
public holidays per year, and six vacation days after one full year of service.
Apart from salary, all benefits arising from employment are regarded as assessable
income subject to withholding tax at a progressive rate. Under Thailand labor
law an employee is entitled to annual sick leave of 30 working days per year,
with full pay. In addition to sick-leave, a pregnant woman is entitled to
90 days of maternity leave (inclusive of holidays), including 45 work days
at full pay.
Termination
of Employment
Employment termination with cause (in which event the employer can terminate
employment without notice and/or compensation) is governed by the provisions
of Section 583 of the Civil and Commercial Code and Section 119 of the LPA,
and includes gross negligence, willful disobedience, dishonesty or criminal
act. When there
is employment termination without cause, it is compulsory under employment
laws that the employer make severance payment (in addition to notice) to the
employee according to the length of unbroken service:
From 120 days but less than 1 year the amount is 30 days
1 year but less than 3 years the amount is 90 days
3 years but less than 6 years the amount is 180 days
6 years but less than 10 years the amount is 240 days
10 years and over the amount is 300 days
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Under Thailand labour laws employees must have the right to take sterilization leave, for which period full wage must be paid by the employer.
RELOCATION OF THE BUSINESS
Under
Thailand employment laws, material relocation of the place of work by the
employer gives the employee the right to refuse assignment and claim 50% of
the customary severance for not-for-cause dismissal.