Our Thai staff dont want to join the social security scheme

[ubonr1971]

We have a small business and employ 2 ladies aged in their 30's. 

 

They are fast approaching the end of the 3 month probationary period. They indicated they would prefer to be deemed as part time employees. One said she is on the 30 baht health scheme and doesnt want the hastle of being a permanent employee and being subjected to the standard social security scheme. 

 

If you have a thai business and can advise on this matter it would be appreciated. My knowledge on the legalities of this is minimal. What are the pros / cons from our point of view

 

many thanks

[scorecard]

I don't have a full reply however can I suggest you read the Thai labour law (it's available in English) and check the law about part-time / full-time employment because there maybe some limits on how-long staff can be employed part-time, as in other countries.

 

 

[scorecard]

18 hours ago, scorecard said:

I don't have a full reply however can I suggest you read the Thai labour law (it's available in English) and check the law about part-time / full-time employment because there maybe some limits on how-long staff can be employed part-time, as in other countries.

 

 

 Further, not changing staff to full-time employment is strongly frowned on by the labour laws of many countries, include Thailand, and attempts to get around that are strongly frowned on, including Thailand. 

 

Good luck.

[Faikham]

I don't know a whole lot about this, but do know that extending 90 days temporary contract to staff, while common Thai practice, is clearly an effort to avoid the law.

 

Thai companies do this all the time. It is why the staff at restaurant and a certain book store all have name tags that say "Trainee". In those cases, i assume it is because they don't want to be staff severance and insurance costs.

 

I suspect that if after say 1 year, you tried to fir one of the two staff members, there is a good chance that they could act like victims and bring a complaint.

 

I wouldn't do it

[Jimbo1964]

Part time or full time employee doesn't matter. 3 months probation means after which your liable for termination pay. In the first year it's one month of their normal monthly pay. Also it's irrelevant what they are PT or FT you have to deduct social at 5%.

 

Either that or deduct 3% WT and don't have them on your payroll then they are not employees they are contractors. All ypu need is copy of their ID card and give them copy of WT form.

Edited October 31, 2018 by Jimbo1964

[Alanthebuilder]

Hi guys Alan the builder here.
I pay 3 % for all my workers I don't deduct it from there wages I pay it for them .
My workers are also classed as part time as we go from one contract to another and normally we have a break between each contract .
I'm told if full time it's 5 % .
Also I'm told the % age can change depending on the economy.
I'm no expert but this is what I'm told .



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[Genmai]

We had someone with the same request. Our lawyer explained to us that this is a way for them to evade outstanding loan payments, in particular student loans - if the government knows they are working and are in the social security system then they come for their money. Or something to that effect anyway. As others have said here if things ever turn sour they can always claim you refused to pay them social security and forced them onto extended probation to **** you. Do you get on well with them? Have a sit down and explain that you have to enroll them into the scheme because it is the law. Ask them if they have some loans they're not paying. If you trust them then negotiate some kind of situation where you help them pay it back (advanced salary pay or something like that). 

[Sydebolle]

You need to insure staff only from one company. Provided, the staff signs a paper confirming, that they are covered by another company's contribution to the Social Security Insurance (SSI)  then you are fine off.

On the other hand it was, in my case in the past, non-negotiable. I insured everybody, incl. part-timers and if they were covered elsewhere I told them to stop that coverage. I had regular screenings by the SSI simply because a non-Thai was running the company. The maximum salary you can cover is THB 15'000, 5% contributions clock THB 750. Money for some, but non-negotiable; do you think a bigger corporation, airline, hotel etc. ask around if their staff would like to pay?

Confirms the old attitude problem, benefits without contributions .......