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The rights and duties of the employer and the employee are generally governed by the Labor Protection Act ("LPA") and the Civil and Commercial Code ("CCC"). Generally, under Tailand employment laws an agreement between the employer and the employee cannot be less than the minimum standards or requirements set by law. A "non-competition" clause agreed between the parties is governed by the Unfair Contract Terms Act. A written employment agreement is highly recommended, and Thai employment agreements must be carefully drafted.

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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SPECIAL LEAVE

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.

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