Paid Holidays For Contractors...

[jayinoz]

We have always prefered contracts and left it up to the Thai staff to take care of own tax. I saw a survey that reported over 95% of businesses do this in Thailand to either avoid paperwork or tax. Yet recent incentives for foreign firms may make it worthwhile to report the incomes of Thai staff on a full time basis. What are other business owners thoughts... having been in hotel industry before the IT industry I found the Labor law and taxation system a pain in the neck- pay offs here and there. So to avoid the pain in the neck issues we now employ primarily contractors. That are supposedly meant to take care of own tax- ye right. Some making near 100K bt pm as sales guys, so not pocket change amounts like 10K bt.

Overall would love to hear pros and cons of employ contractors over full timers. Plus are employees classed as full timers if they work over a certain number of hours pm. As a business mate tells me several staff could leave then class there contracts of 150 hrs pm work is classed full time and essentially sue me for all associated benefits (Unpaid leave, medical insurance, etc). Yet they do not pay tax, so I would gather not in their best interests. As a open contract society I would have thought the contractor agreements that clearly state these will not be paid would be suffiient coverage. Naturally the 2 lawyers I deal with state completely differing things, whatever will gain them more work essentially. So I always take Thai lawyers advice with a grain of salt.

In the IT Development field it is fairly to highly skilled with good level Master degree and degree rated people for good pm prices. Monthly fees do vary greatly in the region the developers work. The CMai branch typically earns 30% less than BKK. Several staff have asked to move to BKK branch for greater pay, only to ask to return to CMAI as they cannot save as much anyway.

Recently a couple of contractors thought it unfair they do not get paid for Song Kran, so I said 'Work this weekend 20 hours' and I will pay the 3 days for Song Kran. This was very much appreciated.

As I read the many issues we do have in cultural differences in the workplace. I have found some books very helpful, as the mentality for living now is very prominent, as opposed to saving for the future or gaining extra skills for career advancement.

Also it is very common that THAI IT professionals and sales professionals do wish to enter their own business in the future. It can be very hard to keep the very ambitious, as they are more risk takers and will sacrifice a 50K bt pm job to work 16 hrs a day and very probably make a loss. Then come back in a couple of years time is common. With a large debt to pay off on a business failure- but HEY as I say at least they gave it a good shot. It is one thing to be a great manager, sales profesional, IT professional, etc.... completely different in being a business owner. Aywhere in the world.

In general most in BKK are found to be more ambitious I find... thus the CMains going to BKK returning to CMAI. IMO.

Anyway my 2 cents from 3 years as a small Hotel Director for 3 years then Mid level Director in IT firm for last 4 years.

[haveaniceday]

I know nothing about this, so this is not advice, The 150hrs a month you mention, could you have a 'HR' Company where they work for that for 120hrs a month and another where they work for that one for 120hrs a month?

[chesternim]

I know nothing about this, so this is not advice, The 150hrs a month you mention, could you have a 'HR' Company where they work for that for 120hrs a month and another where they work for that one for 120hrs a month?

That is highly impractical - and fraught with danger!

A time bomb is what you are sitting on. Technology around the world is revolutionizing even 3rd world economies. All it takes is a wiff to cause a sniff - and you are caught in a jiff.

It does not matter whether you call a duck a frog - if it walks talks and squawks like a duck.

Do you really think you can convince a Thai Court that the contractors were not really employees? All it takes is a few of them to squeal on you. Or alternatively they might prefer to ask you for more to keep silent. And then ultimately you will still be exposed to potential heat from authorities.

As you are a farang then you can not win against the Government regulators or their courts. If you prefer to bribe corrupt officials then you are plain dumb. You might get away with it for awhile but one of 2 things will happen: either the heavy hand of corruption will hit harder and harder - bleeding you of profits; or the law in its full force will find you out and then you will pay both financially and in a Thai prison as a result of offense number 1 and the bribery - offense number 2.

There are ways to protect yourself legally - which you should be doing asap - and you may even end up being able to save on income/ payroll taxes. But don't expect that it can happen overnight with the wave of a wand - or that it comes Free (professionals do charge).

The trouble with the underground economy is that sooner or later its head appears above ground. You really are in a mess and you better bite the bullet sooner rather than later and pay for professional advice (from an expert). Someone I recommend you contact is [email protected]