Severance Payment For Thai Staff.

[mojo]

Dear All,

I have a friend who is the care taker of a non profit organization. At this point they need to let one of the staff (maid) to go (due to downsizing the operation). They have been treating her very well, money wise and with some fringe benefits such as medical insurance etc.

The staff, who has accepted the termination of her "contact" (There is nothing written, though), have heard from someone, that she is entitled to get a “8 -months salary- bye bye - package". She has been working there for six years.

My friend thinks it sounds a bit fishy. They will of course treat her fair, but they would not like to be played upon, if this is the case here.

So, any feedbacks on this would be very helpful.

Thanks in advance.

Mojo

l

[singa-traz]

Dear All,

I have a friend who is the care taker of a non profit organization. At this point they need to let one of the staff (maid) to go (due to downsizing the operation). They have been treating her very well, money wise and with some fringe benefits such as medical insurance etc.

The staff, who has accepted the termination of her "contact" (There is nothing written, though), have heard from someone, that she is entitled to get a “8 -months salary- bye bye - package". She has been working there for six years.

My friend thinks it sounds a bit fishy. They will of course treat her fair, but they would not like to be played upon, if this is the case here.

So, any feedbacks on this would be very helpful.

Thanks in advance.

Mojo

l

Do a seach for "Labour Protection Act (1998)": (add "Thailand")

#

Severance Pay

Employees who have worked more than 120 days, but less than 1 year, are entitled to 30 days severance pay. For employee employed between 1 and 3 years, the severance pay is not less than 90 days' pay. Employees with 3 to 6 years of service will receive 6 months salary, those with more than 6 to 10 years service will receive 8 months salary, and employees with more than 10 years of service will receive 10 months salary as Severance Payment.

[Indo-Siam]

The rules are laid out at http://www.boi.go.th/english/how/labor_iss...t_addresses.asp

An employee with more than six, but less than 10 years service is entitled to eight months severance pay. And - the way it works is, if an employer terminates employment without notice, employer must first pay the current month's salary, and the following month's salary - and THEN severance kicks in.

Cheers!

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

[email protected]

www.thaistartup.com

[markuk]

Dear All,

I have a friend who is the care taker of a non profit organization. At this point they need to let one of the staff (maid) to go (due to downsizing the operation). They have been treating her very well, money wise and with some fringe benefits such as medical insurance etc.

The staff, who has accepted the termination of her "contact" (There is nothing written, though), have heard from someone, that she is entitled to get a “8 -months salary- bye bye - package". She has been working there for six years.

My friend thinks it sounds a bit fishy. They will of course treat her fair, but they would not like to be played upon, if this is the case here.

So, any feedbacks on this would be very helpful.

Thanks in advance.

Mojo

l

I think your better off paying, you could argue the contract issue however i think a Thai court would take the employees side as it is 6 years of employement.

[mojo]

Dear All,

I have a friend who is the care taker of a non profit organization. At this point they need to let one of the staff (maid) to go (due to downsizing the operation). They have been treating her very well, money wise and with some fringe benefits such as medical insurance etc.

The staff, who has accepted the termination of her "contact" (There is nothing written, though), have heard from someone, that she is entitled to get a “8 -months salary- bye bye - package". She has been working there for six years.

My friend thinks it sounds a bit fishy. They will of course treat her fair, but they would not like to be played upon, if this is the case here.

So, any feedbacks on this would be very helpful.

Thanks in advance.

Mojo

l

I think your better off paying, you could argue the contract issue however i think a Thai court would take the employees side as it is 6 years of employement.

Thanks for all the info. Will pass this on to my friend, so he knows what to do.

[Gary A]

Separation payment is a fact. I personally know two people who have collected it. One was a Thai female and the other a farang male. Both worked for their employers (different) for more than eight years. It was a sizable payment in both cases.