Severance Payment - Employer Must Pay?

[ihightower]

Say I am an employee of a company working with them for 5 years with THB100K per month salary.

I read here: Severance payment is 180 days pay for a 5-Year employee

http://www.business-in-asia.com/thai_labor_law.htm

Say, my company is ending my employment with no problems in my part.. but just purely due to lay off or some economic downturn problems...

My employer has to pay THB100,000/30 x 180 = THB600,000.

They MUST pay?? or they can get away with it through some other conditions. like giving me 3 months notice before they ged rid off me etc.

Actually, my contract says both parties must give 3 months notice before termination. So, if they give me 3 months notice... they do not have to pay severance. Or, do they have to give both 3 months notice and severance.

Please let me know.

[Mario2008]

Moved from visa section to business for better responses.

Note that there is also a thread on this in the teaching section.

[Soutpeel]

Say I am an employee of a company working with them for 5 years with THB100K per month salary.

I read here: Severance payment is 180 days pay for a 5-Year employee

http://www.business-in-asia.com/thai_labor_law.htm

Say, my company is ending my employment with no problems in my part.. but just purely due to lay off or some economic downturn problems...

My employer has to pay THB100,000/30 x 180 = THB600,000.

They MUST pay?? or they can get away with it through some other conditions. like giving me 3 months notice before they ged rid off me etc.

Actually, my contract says both parties must give 3 months notice before termination. So, if they give me 3 months notice... they do not have to pay severance. Or, do they have to give both 3 months notice and severance.

Please let me know.

Basically Yes....notice period doesnt really come into it, based on the info given...THB 600,000 owed under the law...

[thaihome]

Actually I think it will come 591,780 baht.

(100,000 x 12)/365 x 180

TH

[Soutpeel]

Actually I think it will come 591,780 baht.

(100,000 x 12)/365 x 180

TH

True....another thing occured to me...if someone is paid out serverance, do they have to pay tax on this amount..???

[singa-traz]

Actually I think it will come 591,780 baht.

(100,000 x 12)/365 x 180

TH

True....another thing occured to me...if someone is paid out serverance, do they have to pay tax on this amount..???

There is a certain amount that is Tax Free.