Thai Employment Law And Expats On Work Visas

[MissStick]

Am trying to sort out HR issues for British owned/Thai based company.

At present we have a set of company regulations agreed by the Labour Office that stipulate all the terms and conditions for employees.

My query is about British nationals working for the company and employed here in Thailand.

1.Do the company regulations apply exactly the same to Expats as to Thai nationals? For example, expats are routinely offered more holiday, but do not get the company cover for sick pay. Is this legal? Can the compnay make separate contracts with expat staff that over ride the company regulations?

2.Does Thai employment Law in general apply the same to Expats with work visas as it does to Thai nationals? Is there a separate set of regulations/employer responsibilities?

3.What is the status of income tax payments made during employment. Can a foreign national leaving the country to go back to UK claim any tax back?

Many thanks from harrassed HR person

[Casanundra]

Am trying to sort out HR issues for British owned/Thai based company.

At present we have a set of company regulations agreed by the Labour Office that stipulate all the terms and conditions for employees.

My query is about British nationals working for the company and employed here in Thailand.

1.Do the company regulations apply exactly the same to Expats as to Thai nationals? For example, expats are routinely offered more holiday, but do not get the company cover for sick pay. Is this legal? Can the compnay make separate contracts with expat staff that over ride the company regulations?

2.Does Thai employment Law in general apply the same to Expats with work visas as it does to Thai nationals? Is there a separate set of regulations/employer responsibilities?

3.What is the status of income tax payments made during employment. Can a foreign national leaving the country to go back to UK claim any tax back?

Many thanks from harrassed HR person

Ok I am going to have a stab at this one.

1. Company regs should apply as much to Expats as they do to Thai nationals, however certain aspects of the company regulations can be over ridden by individual employment contracts. i.e. all benefits in kind, such as holidays, pension, salary, sick pay etc...

2. Some expats have sued companies quite successfully on the basis of the company applying different employment regs for Thai nationals compared to Expats. However in most of these cases it is because the company forgot to put an exclusion clause in the Expat contract that took away that protection. Basically, the Expat contract should have a specific and implied set of legal terms and conditions that preclude and exclude any other terms and conditions and make it clear what applies to their contract compared to standard company regulations.

3. Not sure, but I believe someone 'could' offset their tax obligations in Thailand on a tax return back in the UK based on their taxable allowance. The UK does have a dual tax agreement with Thailand but apart from this I cannot shed any more light on it.

[Martin_F]

I think Casanundra has given a good reply for the first two items and he is basically correct in item 3.

An expat will be taxed in Thailand on the reumeration that he receives in Thailand for work performed in Thailand as specified in his contract of employment and amendments thereon for such things as pay rises etc. If the expat has an arrangement for splitting the income it is upto the parent company or the Thai comapny to consider the cost and the legal situation.

If the expat has an arrangement with the company whereby the company is responsible for all taxes then the company will calculate the final tax payment and submit that as the final payment should settle the tax for the employee.

Do not forget that the taxable income includes all housing and school fees etc and holidays etc that may be given to the employee and it is up to the company to workout the benefit.

Also don't forget that these benefits should be grossed up.

So if the employee gets a rented house for THB100K/mth then this cost is THB100K * 100/63 or about THB159K/month assuming highest rate tax and so therefore the tax is THB59K/month on the house.

Regarding the UK income the rules are complex and I suggest that company seeks advise from the UK payroll Dept of the parent company.