Thailand: Thailand Sets New Standards for Employment Law in 2019.
On December 13, 2018, the National Legislative Assembly of Thailand approved the draft amendment to the Labor Protection Act (“Amendment LPA”), and it has been awaiting endorsement of the King since. The Amendment LPA is expected to be effective in early of 2019.
The Amendment LPA is intended to provide more rights and benefits to the employee, and the key amendments are as follows:
- The maximum severance pay will be increased to 400 days at the latest wage rate for an employee who has been working for at least 20 years.
- The consent of employee is required in the case of change of employer, merge with another business, or any other change which will result in the same outcome i.e. the employee will become the employee of the new employer.
- In the event that the employer will relocate the place of business, the employer is required to notify the new address and the effective date of relocation to the employee at least 30 days in advance. If such relocation of place of business will materially affect the ordinary course of living of the employee and the employee is not willing to be relocated, the employment contract shall be deemed terminated on the date of relocation, and the employee is entitled to the special severance pay which is equivalent to the ordinary severance pay.
- The maternity leave period will increase from 90 days to 98 days, and the female employee is entitled to receive a 45-day pay during the leave.
- The employee will be granted 3 days business leave a year with full pay while on business leave.
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