Thai Labor Protection Act of 1998

The Labor Protection Act of 1998 deals with the minimum rights of employees in Thailand. It includes working hours, overtime, holidays, sick leave, maternity leave, severance and other employee rights.

H. Toosi’s advice concerning employer and employee definitions:

The definitions of employer and employee are quite difficult and not always clear. Before becoming an employer or an employee, learn what both terms mean in your situation.

Working Hours

Normally employees can be asked to work up to eight (8) hours per day and a maximum of 48 hours a week. If the work is dangerous, the maximum is seven (7) hours per day and 42 hours a week. An employee working at least five (5) hours in a day must be given at least a one-hour (1) break and at least one (1) day off a week.

Overtime

Normally, employees cannot be required to work overtime. Instead, overtime is subject to tacit consent from an employee. However, if the work is urgent or must be finished to prevent damage, such consent from employees is not needed. Overtime pay is one (1) and one-half (1.5) times the normal rate.

Some employees do not need to be paid overtime. These include employees who can hire and fire other employees and any employee who does not usually work at the workplace.

However, Thai Labor Law does require that overtime pay be given to some skilled and white-collar employees.

H. Toosi’s advice concerning overtime pay:

As an employer in Thailand, ensure that you understand and follow overtime requirements for all your employees.

Place of Payment of Wages and Salaries

Employers must pay employee wages or salaries at their place of work, unless the employee agrees to receive their pay elsewhere, or through a different payment method. For example, direct payment into employees' bank accounts must have these employees’ consent.

Public Holidays

Employers must grant employees a minimum of 13 paid public holidays each calendar year. If a public holiday is a normal day off, the next working day is a paid holiday. Public holidays must include Labor Day (May 1). The other twelve (12) holidays are chosen from a list of 16 holidays set by the Thai government. Employers must inform employees which days will be public holidays before the beginning of the calendar year.

Annual Leave

Employees who have worked at least one (1) year are entitled to at least six (6) days paid annual leave each calendar year.

Sick Leave

Employees must be allowed at least 30 days paid sick leave each year. Employees taking sick leave for three (3) consecutive working days must produce a certificate from a doctor to confirm illness.

Maternity Leave

A woman about to have a baby must be given a minimum of 98 days maternity leave. Such an employee must be fully paid for 45 of these days, with the remaining days not requiring payment.

Change of Work Place

If a company intends to relocate its business and if this causes significant changes to employees’ normal lives, the employer must let employees know at least 30 days before the move. If employees do not want to work at the new location, the employer must pay 'special severance'.

Work Rules

An employer having ten (10) or more employees must provide employee work rules written in Thai. These rules must specify, workdays, working hours and rest periods, weekly and public holidays, overtime and holiday work, date and place of salary payment, sick leave and maternity leave, disciplinary system, grievance procedures and conditions for termination and severance pay.

Welfare Committee

An employer with 50 or more employees must organize a welfare committee having at least five (5) employee members. The employer shall hold a meeting of the committee at least once every three (3) months.