Thailand Board of Investment North America

Employers should be aware of the following labor protection laws per the Labor Protection Act B.E. 2541:

Work Hours and Holidays: The maximum number of work hours is 8 hours a day or 48 hours a week in total. Employees are entitled to no fewer than 13 national holidays a year and a minimum of 6 days of annual vacation after working consecutively for one full year. Employees have the choice of whether they wish to work overtime or on holidays. A female employee is entitled to maternity leave for a period of 90 days including holidays, but the amount of paid leave shall not exceed 45 days.

Age Requirements: The minimum age for employment is 15 years old. Workers below the age of 18 are banned from dangerous and hazardous jobs and are prohibited from working overtime, on holidays, or between the hours of 10 p.m. and 6 a.m. Pregnant employees are also prohibited from working overtime, on holidays, or between the hours of 10 p.m. and 6 a.m.

Sick Leave: Employees can take as many days of sick leave as necessary. If an employee takes 3 months of sick leave, the employer is required to pay only one month’s wages.

Severance Pay: Employees who have worked more than 120 days but less than one year are entitled to 30 days severance pay. For personnel employed between 1-3 years, the severance pay should be no less than 90 days pay. Employees with 3-6 years of service will receive 6 months’ salary, those with more than 6-10 years service will receive 8-month salary, and employees with more than 10 years service will receive 10 months’ salary.

Employee Welfare Fund: For companies with at least 10 employees that do not have a provident fund, an Employee Welfare Fund will be established to compensate employees who resign, are laid off, or die in service. Employers and employees will be required to contribute to this fund

Workmen’s Compensation: The Compensation Act requires  an employer to provide the necessary compensation benefits for employees who suffer injury or illness or who die as a result or during the performance of their work at the rates prescribed by law. The compensation benefits can be grouped into four categories: the compensation amount, the medical expenses, work rehabilitation expenses, and funeral expenses

Minimum Wages: These regulations apply to all businesses and rates depending largely on the location of the workplace. The minimum wage per day effective January 1, 2010 are ranges from 151 to 206 Baht depending on areas. 

Social Security: The Social Security Act requires that all employers with 10 or more employees withhold social security contributions from the monthly wages of each employee.  The maximum monthly wage base on which the rates are applied must not exceed 15,000 baht. The employer is required to match the contribution from the employee. Both contributions must be remitted to the Social Security Office within the 15th day of the following month. Employees with social security registration may file claims for compensation in case of injury or illness, disability or death that is not due to the performance of their work, and for cases of child delivery, child welfare, old age pension and unemployment.

© 2013 The Board of Investment of Thailand. All rights reserved.