Thailand

The amendment to the Labour Protection Act No. 6

The amendment to the Labour Projection Act No. 6 (the “Amendment No. 6”) came into force on 1 September 2017 with the following significant changes:

  • Filing requirement for work rules has been cancelled

From 1 September 2017, employers will have to keep their work rules at their place of business only, without having to file such work rules with the Labour Protection and Welfare Office as previously required.

  • 60 becomes the default retirement age

60 years old is the default retirement age. However, it is possible for the employer and the employee to contractually agree a different retirement age which could speed up or delay the retirement age from the 60-year default without any minimum or maximum age.

  • Retirement has been listed in the Labour Protection Act as a dismissal entitling employees statutory severance payment

The Thai court has long endorsed the view that retirement is considered to be a dismissal which entitles the retiree to a statutory severance payment. Amendment No. 6 means that this position is now set out in the Labour Protection Act.

Key proposed developments in 2018

The two following amendments were expected to become effective in late 2017. However, they are still being discussed by the relevant authorities and the new timeline is not yet known.

  • Increase of statutory severance payment for employees with 20 years of service

The draft amendment to the Labour Protection Act proposes to increase the amount of statutory severance payment from 300 days’ wages to 400 days’ wages for employees who have at least 20 years of service.

  • Proposal for improved employees’ rights

The following improvements to employees’ rights have been proposed in the draft amendment to the Labour Protection Act:

  • Up to 3 days’ additional paid leave days;
  • A clear provision allowing the existing 90 day-maternity leave to include leave days for medical check-ups prior to labour.