Hi I been working for thai company for 14 years and now they let me go coz they are downsizing I get paid 4000 US$ but they are giving me severance pay for the official salary that they submit to labor department which is 35,000 baht * 10 month.

Do i have a case here?

Do you have any paperwork stating your real salary??? If so you might have a case, but also be prepared to have to pay the back taxes on the unstated salary.

Yes I do have a contract with the real salary, but its signed by the old owner not the new one does it matter but its in the company name?

NO problem paying the taxes

So you want to pay tax on about 90,000baht per month over 14 years or around 15 million Baht, which you and your company have illegally kept from the tax man?

I would take the money and say thanks.

Good point. never thought of that...

Thanks for your reply...

So you want to pay tax on about 90,000baht per month over 14 years or around 15 million Baht, which you and your company have illegally kept from the tax man?

I would take the money and say thanks.

Actually tax on 90k a month is 12,375, thats 148,500 a year over 14 years is 2,079,00bht. You are entitled to 300 days severance which is 125,00bht divided by 30 days = 4,166bht times that by 300 days = 1,249,999bht approx.

So you would have to pay more than you got. Thats if you go that route. Try negotiating first after all they will be in big trouble if the tax man hears about it.

madz - even if reported salary is 35,000 per month, you should be getting 350,000 Baht (less tax) so that should be more than 8000USD

So you want to pay tax on about 90,000baht per month over 14 years or around 15 million Baht, which you and your company have illegally kept from the tax man?

I would take the money and say thanks.

Actually tax on 90k a month is 12,375, thats 148,500 a year over 14 years is 2,079,00bht. You are entitled to 300 days severance which is 125,00bht divided by 30 days = 4,166bht times that by 300 days = 1,249,999bht approx.

So you would have to pay more than you got. Thats if you go that route. Try negotiating first after all they will be in big trouble if the tax man hears about it.

Would not the company also have a problem too?

If your contract states NET salary and that contractually they will pay your tax, and only paying you offshore (singapore?) so they don't actually have to pay this, then you might indeed have a leg to stand on. Check your contract, because if they are responsible for paying said tax, hit them for the full amount.

If you've been working 14 years why is the severance only for 10 years? Isn't it 1 month per year?

I guess 10 years and above you only get 10 month severance...

I think the best option here is to take the 10 month official salary which sux..

I'd recheck the entitlements, but labour law and more importantly, the labour court is on your side on this one. If they don't pay your full entitlement, very easy to take them to court in Thailand. Don't believe the hype that because you are a foreigner you have to bend over and smile.

yes Thai labour law states a maximum of 10 months salary as severance pay

but as said, even if your salary was reported at 35k Baht, 10 months of that rate should still be more than 4000 USD

if i were you i wouldnt state the exact figures yet, but start the negotiation with 'i would like to know how the 4000 USD was calculated given my 14 years service with the company'

see what they say and then take it from there

does your contract state that it is governed by Thai labour law? or does it mention some other jurisdiction

PS. samran is right about thai labour court being more in favour of employee rather than employer. regardless of nationality. but the key is - your contract needs to be under thai laws.

if the contract doesnt state what law....then it can be interpreted from the location of your company (registered address), your own locale of work, and your residency + work permit. (but these are my rough ideas, you should of course double check with a lawyer)

I'd recheck the entitlements, but labour law and more importantly, the labour court is on your side on this one. If they don't pay your full entitlement, very easy to take them to court in Thailand. Don't believe the hype that because you are a foreigner you have to bend over and smile.

They want to pay the official only which is 350,000 I consulted a lawyer he said I have no case Coz the unofficial salary us not taxed and cant present it