Redundancy pay as per law for Thai employee in a Thai owned company

[bbi1]

If a Thai company wishes to reduce Thai staff due to the coronavirus effect on the economy, by law what is the minimum redundancy they must pay? I was told this is 3 months (13 weeks) even if working for only a year. Is this correct? Is there any possibilities that a Thai company can get away without paying a redundancy?

[VocalNeal]

That is my understanding.

[digbeth]

There's a grey area of how to avoid paying

They can try firing the employee for breach of various workplace rules/performance to avoid paying redundancy

If the business have multiple branch/locations, the business is entitled to move employee around as they see fit, if the employee don't show up to the new location... fire them for insubordiantion/absenteeism, failing that the business can manufacture some charge of performance issues in multiple warnings to cover their ass before firing.

If the employee know their rights, they can try to take their case to labor court, and usually the court will find in favor of the employee. 

 

other avenues such as less pay or working hours or less benefit have to be negotiated and re-signed with the employee, what was previously given cannot be taken away. Many business now are renegotiating less pay or leave without pay period, if the employee don't agree, then they can take their three months redundancy and leave.

[anthony0339]

For redundancy, you

must follow the normal guidelines for severance pay.
 

Employees with more than 120 days, but less than one year employment are entitled to severance pay equal to one month's salary.

If employed more than one year, but less than three years, employees are entitled to severance pay equal to three months' salary.

If employed more than three years, but less than six years, employees are entitled to severance pay equal to six months' salary.

If employed more than six years, but less than ten years, employees are entitled to severance pay equal to eight months' salary.

If employed more than ten years, employees are entitled to severance pay equal to ten months' salary.

 

This does not apply to non-profit organizations unless they promise severance in their HR policy or the employee contract. 
 

The issue here is whether or not the employee can sue for wrongful termination. As per a Supreme Court ruling decision number 1808-BE2557 in Thailand, redundancy must be something that the employer has to prove by giving notice to employees that the company will be undergoing a restructuring on multiple occasions, and must be able to prove that this is necessary to improve the company. In short. Therefore, if the position redundancy happens suddenly with no warning and there was no documented employee performance issues, you can sue and will most likely win. Hope that helps. 

Edited March 1, 2020 by anthony0339

[bkk_bwana]

It does not matter whether the company is Thai or foreign owned.  The protection give to employees is the same.