Severance Pay

[singa-traz]

"In addition, if an employer enters into multiple, back-to-back, fixed-term contracts with the employee, the court may believe that the employer actually intended to hire the employee on a permanent basis. The court may, by its discretion, invalidate the provisions of the contract that establish a fixed term of employment."

Labor court are known to be pro-employee.

@ajarnsiam: The issue is not with a 12 months contract, but with continous renewal of it for the same position.

In every company that I worked for, where they had contract staff that were renewed on a yearly basis (for head count purpose), it was very clear they would receive the same benefits as permanent employement in case of termination, to avoid any litigation.

If you really want to be sure, go to one of the MOL branch and ask. There is one near Sathorn, and when I visited them, I have been impressed with their capability to explain Thai Labor Law and their dedication to ensure employees get a fair treatment, Thai or Foreigner.

But as the saying goes: "You can lead a horse to water but you can't make it drink!"

[ajarnsiam]

@singa thanks again for your insights and experience.

Of course a "court may, by its discretion" do many things; the key word being "may".

It's not an issue of fair treatment, but rather an issue of treatment according to contract and according to law. For example, Thai teachers on one year contracts have different terms than Thai teachers on permanent contracts; Farang teachers on one year contracts definitely do no not have the same terms as Thais on permanent contracts. Please ask your local MOL about this if you have any doubt.

On a practical point, rather than a theoretical one, it would be rather inconvenient to litigate when one has returned home to the other side of the world through lack of a work permit and visa; of course it would not be impossible, but the costs could easily outweigh the benefits.

To get back on topic, I'm sure the OP has enough input now to decide for himself whether litigation is a sensible course of action or not, cheers.

[culicine]

This is a previous posting from sunbeltasia (mostly relating to private schools)

Another update concerning the non renewal of a teacher's employment contract.

The clause previously mentioned that teachers are entitled to the same protection as the minimum requirement and entitlement of labor protection and social welfare.

Previously, the Ministry of Education Regulation in relation to the Work Protection of Head Masters and

Teachers of Private Education Institute B.E. 2542 (1999 A.D) (Article 35) stated that teachers are entitled to severance. However, this issue has been amended and superseded by:

Ministry of Education Regulation in related to the Work Protection of Head Masters and Teachers of Private Education Institute (Second Amendment) B.E. 2547 (2004 A.D) states that Teachers shall not be entitled to severance from the following incidents:

(1) Voluntary resignation; or

(2) Foreign Teacher worked to the conclusion of the employment period; or

(3) Employment termination in accordance with Article 34 (which is related to misconduct issues); or

(4) Teacher's License has been revoked; or

(5) School terminates the contract due to the failure or inability to perform or pass the probation period.

So we can conclude that this person will not be receiving his severance from the school in accordance with this Announcement and Regulation.

[paulfr]

Severance Pay

Employees are entitled to severance pay in accordance to salary, based on the duration of employment (working period) as follows.

• 120 days ˂ Working Period ˂ 1 year 30 days severance pay

• 1 year ≤ Working Period ˂ 3 years 90 days severance pay

• 3 years ≤ Working Period ˂ 6 years 180 days severance pay

• 6 years ≤ Working Period ˂ 10 years 240 days severance pay

• 10 years ≤ Working Period 300 days severance pay

According to the widely accepted interpretation of the law, the above regulation does not apply to private schools. There is a private school's Act which exempts them from certain laws and regulations.

Again, it is ALWAYS a good idea to check with the labor department because there are a large number of variables which may affect the case.

Culicine, in your example, some people have argued that it is continuous employment, but the school may have been exempted because it is private.

Scott

There is a Private School Act, but I have read that The Labor Act superceeds this act

and thus teachers at private schools are indeed covered by Labor Law regarding severance.

Do you know of any teachers at a private school who have gotten severance pay ?

Thanks

[Scott]

I know of no teachers at any private schools that have gotten severance pay. The Private School Act does not supersede the Labor laws, it is an exception to the laws.

There is some confusion about the law and it's applicability. There are numerous threads, but I have never gotten a clear or definitive understanding of the law. I would suggest that anyone who has questions see the Labor Ministry.

Laws and regulations are always tricky, there are a lot of different circumstances that are involved in different situations.

[Scott]

You might want to check out this thread:

http://www.thaivisa.com/forum/topic/648807-severance-at-private-school/

(Oops, I see that is your thread, Paulfr)

Edited June 24, 2013 by Scott