Thai Labor Law sets the ground rules with regards to Termination Of Employment Both an employee and an employer needs to be aware of the laws and how it affects them. The Laws are very employee friendly and Thai Nationals benefit from these laws AND these laws also extend to Foreign employees working in Thailand. If you have been issued a termination notice or a notice of non-renewal, you need to know your rights. This web page will focus on what you need to know. Also Employers if you need to terminate an employee we have a section dedicated to your rights as well.
Employee's Rights
Make sure that you have a copy of your employment contract. The last version is important but if you have more than one with the same employer all of them are important.
Termination Notice
Thai Law says that an employer must inform you at least 30 days in advance of the said termination and must do so on Pay Day, unless they have serious cause for termination. At which time they can terminate you immediately. Serious cause is well defined in the Thai Labor Protection Act. If they wish to terminate you and they do not have serious cause they must follow the 30 day rule unless your Employment Contract says otherwise. Some employment contracts can state that the termation notice is 60 or 90 days. It can never be less than 30 days. If there is no termination clause in your contract, Thai Law will apply (30 Days).
Termination Letter
If your employer advised you that you will be terminated you need to get a termination letter from them. If you get a call and you are informed that you are terminated or you are invited into a meeting and advised verbally, this is not proper notice. We suggest you ask for your written termination notice and continue to work until someone informs you in writing.
Your employer can terminate you by email, so long as the email comes from an individual that has the power to terminate you.
Contents of A Termination Letter
- Effective Date Of Termination
- Reason For Termination:
- If there is no reason given, the employer will usually give the employee a more than fair serverance package to prevent litigation
- Termination / Severance Pay:
- The Thai Labor Act has a set of standard articles related to severance pay and the employer must respect those and not offer less but if there is an employment contract and the employment contract offers more than Thai Law provides for, the Employer must respect the contract.
- Conditions of Termination;
- This section usually outlines any conditions related to the termination for example; The Employer can make a request to the employee to return company property, and or request that the employee takes garden leave until the effective date of the termination, the conditions are set by the employer.
PCS strongly suggests that if you are presented with a termination letter and are not sure you like the terms, please DO NOT SIGN IT. This is where you should take advantage of us. Email or call us and get a FREE consultation. We will be happy to advise you as to your next move.
Employer's Rights
Notification of Dismissal or Termination Letter is issued by the employer when they feel that they no longer wish to employ an employee. The notice of dismissal must be carefully drafted. It will serve as a basis for any possible litigation should the employee decide to take the matter to the Thai Labor Board or Court. An Employer needs to carefully review every aspect of the termination. If they don't they may even be liable for more damages, like law suits for Wrongful Dismissal. We strongly advise that employers contact a Thai Labor law expert to get informed before issuing the termination letter. Here are some points for the content of the Termination Letter;
- Delivery Date Of Termination Letter - This is very important; The employee should receive the letter on or slightly before Pay Day. If the letter is delivered the day after Pay Day the employee has legal recourse to collect an additional month's salary.
- Date Employment Started - This sets the employment period.
- Effective Date of Termination - Check the employment contract to insure it complies with the termination article in the employment contract. The contract will state the notice period required. If it does not Thai Labor Law takes into effect which states that the Employer must give the Employee 30 days written notice.
- Reason For Termination - If the reason for termination is a violation of company rules the company has the right to terminate an Employye's contract immediately and they do not have to pay any severance pay. BUT the Company's rules and Thai Law may be different so the employee may have a case in Thai Labor court.
- Settlement Agreement - In most cases the Company will declare their intention to pay Severance. But in some cases they may not offer any settlement.
- Authorized Signatory - The person who signs the Termination Letter must have the power to terminate an employee. The Employer should make the settlement offer very reasonable and get the employee to accept the offer. The Employer should ask the employee to sign that they understand the terms of the Termination.
Summary - Termination of Employment in Thailand
Termination of Employment and specifically the Termination Notice / Letter requires carefull attention. We strongly advise employees to demand this letter and we just as strongly suggest to employers that in the event they want to terminate an employee they should contact Thai Labor Law experts before they issue any letters.
Professional Corporate Services (PCS) has extensive knowledge of the Thai Labor Protection Act and can help both employers and employees with any labor or employment issues. At PCS your 1st consultation is always totally FREE so don't hesitate to contact us. Please use the contact form below. We are looking forward to hearing from you!
Contact PCS
Our Address
253 Sukhumvit 21 Road (Asoke), 25th Floor
Email Us
contact@pcsthai-1.com
Call Us
+66 2 109 5160