Employer reducing hours and salary

[mirtl]

Is an Employer permitted under the labour law to reduce the hours and salary of  employee.  Is there a penalty or any severance pay due under the law?

[jackdd]

A few days ago somebody posted this link in some other topic:

https://brslawyers.com/news/coronavirus-covid-19-update-for-employers-in-thailand/

Under the Thai Labor Protection Act, if an employer is incapable of operating its business as normal for whatever reason (other than a force majeure event), then the employer is permitted to temporarily suspend its business either in whole or in part. The employees who are affected by the suspension, however, remain entitled to 75% of their normal wage for the duration of the suspension. Employees also need to be informed about the duration of the suspension.

I don't know how accurate this is, the article is lacking proper sources, but it might be a starting point for you.

[DrJack54]

OP, first of all I hope you can obtain some support. 

However have you read what's going on in the world. Both my sons stood down instantly in Australia. I'm currently giving some assistance.

The government maybe something in future. 

Bottom line is currently very little support.

So your working in foreign country when there is one in hundred year event and asking about reduced hours??

Please not say your teaching. 

Edited April 13, 2020 by DrJack54

[elliss]

 

        The employment contracts set by many employers in the UK . 

       Zero hour, contracts . Sadly the new norm , post virus effect.

       Life as we once knew it , is changed forever, be prepared .

        Pensions , dream on ..

 

 

Edited April 13, 2020 by elliss

[steven100]

OP ... as indicated ,  things have changed and to be perfectly honest, you can whinge till the cows come home but it won't alter anything.  If your hours have been reduced then that's what's happening .... not just here but world wide. I am sure your company has looked into what they can do .... 

sadly, the world is not as it was. So best to accept it and be thankful you have a job.

[Eibot]

Depends what's in your contract in regards to working hours. Even then it depends if special circumstances are mentioned in your contract. 

 

Basically, we cannot give you advise without seeing your contract. 

What is your profession if I make ask?

[ubonjoe]

Not visa related moved to here.

[jumbo]

10 hours ago, jackdd said:

A few days ago somebody posted this link in some other topic:

https://brslawyers.com/news/coronavirus-covid-19-update-for-employers-in-thailand/

 

 

I don't know how accurate this is, the article is lacking proper sources, but it might be a starting point for you.

Here is the link from the ministry, which has a PDF where you can search for 'suspension'

https://www.labour.go.th/attachments/article/47756/Labour_Protection_Act_BE2541.pdf

 

[wmlc]

For some industries employers are allowed and some they are not. It depends on the impact. Section 75 of the labor protection act states the employer is still responsible for 75% of salary for temporary closures. This wouldn’t apply to acts of nature such as covid 19 and or a tsunami. Therefore, if the business is related to entertainment or it is a school and was forced to close due to convid 19, they would not need to pay this as the temporary closure was due to force major. The employees would immediately claim from SSO if applicable. On the other hand, if the business was a law firm, they were not forced to close by the the government. Therefore, if the law firm temporarily shut down due to a loss of business,  they would have to follow section 75 and pay 75% of salary. In both cases severance would not apply due to the business only being temporarily shut down or hours reduced as you stated. 
 

Section 75

Whereas it is necessary for an Employer to temporarily suspend business, in part or in whole, for whatever cause other than a force majeure, the Employer shall pay to an Employee not less than seventy five percent of the Wages of a Working Day received by the Employee before the suspension of business throughout the period which the Employer does not require the Employee to work.

The employer shall inform the Employee and a Labor Inspector in advance before the commencement of the suspension of business under paragraph one.

 

The only time the above would not need to be followed is if the employee agreed to something different in their employment contract.

Edited April 14, 2020 by wmlc

[natway09]

You need to understand what is going on around you.

If you are one of the lucky ones even getting 30% of your salary,,,,,,,, be grateful

[firemans35]

My lady friend works in an office. Her salary was 20% less this last paid cycle yet she worked a full schedule. Apparently some of the employees have been sent home. So it seems to me the employer is twisting the law. Since they have had a partial shutdown and paying some employees to stay home they feel the employees working full time can be paid less. I guess she's lucky to be employed. 

[digger70]

Life as we knew it Before the Wuhan Flu Won't  return to that . Get used to it ,things change maybe not for the better but hey one can't change what happens in the big wild world. Some people Will suffer , but not the Hi So .It's Always the same The Poor will always suffer no matter what.  ????

[timendres]

4 hours ago, wmlc said:

Section 75

Whereas it is necessary for an Employer to temporarily suspend business, in part or in whole, for whatever cause other than a force majeure, the Employer shall pay to an Employee not less than seventy five percent of the Wages of a Working Day received by the Employee before the suspension of business throughout the period which the Employer does not require the Employee to work.

I do not believe that COVID-19 has been classified as a "force majeure" event by the government, yet.

[Iron Tongue]

10 hours ago, timendres said:

I do not believe that COVID-19 has been classified as a "force majeure" event by the government, yet.

The government does not invoke force maneure. 

 

Parties in contract do.  Oftentimes, it is the action of governments that is the cause of force majeure -such as war.  

 

The other invokable part is "natural disaster", but one has to examine their contract to see how this is defined.  Some, not all contracts whether employment, business, insurance include "diseases, epidemics, health emergencies", and some may not and only consider weather/geologic events like storms, tsunamis, earthquake, volcanic eruption, so you'd have to examine the contract.

[smccolley]

 

3 hours ago, Iron Tongue said:

The government does not invoke force maneure. 

 

Parties in contract do.  Oftentimes, it is the action of governments that is the cause of force majeure -such as war.  

 

The other invokable part is "natural disaster", but one has to examine their contract to see how this is defined.  Some, not all contracts whether employment, business, insurance include "diseases, epidemics, health emergencies", and some may not and only consider weather/geologic events like storms, tsunamis, earthquake, volcanic eruption, so you'd have to examine the contract.

Interesting article on this, it seems this could be used as a force majeure  condition...

 

https://www.shearman.com/perspectives/2020/03/covid-19--force-majeure-event

 

[wmlc]

20 hours ago, timendres said:

I do not believe that COVID-19 has been classified as a "force majeure" event by the government, yet.

The government does not need to classify anything. This is a legal term. It means:  an event or effect that cannot be reasonably anticipated or controlled. 

[timendres]

3 minutes ago, wmlc said:

The government does not need to classify anything. This is a legal term. It means:  an event or effect that cannot be reasonably anticipated or controlled. 

 

I only mentioned it because of this statement:

Quote

 

From our discussions with the Thai labor authorities, COVID-19 is not currently regarded as a force majeure event that would allow employers to suspend their business without being required to pay wages.

 

by this law firm:

https://brslawyers.com/news/coronavirus-covid-19-update-for-employers-in-thailand/