Severance benefits

[frosty999]

Hi

I have been working in various countries for a single us company for the last 20 years. I have been transferred to Thailand on a local contract that does not reference my hire date. They refuse to include it in the contract.

Am I entitled to 20 years severance under Thai law? I am told verbally by the company that I am and have an email that I am being transferred so my employment is continuous. However there is nothing in writing regarding severance and I'm concerned that when I do finally get laid off they will be able to refuse. I have been told by more than one person that by Thai law if service is continuous then they have to pay the full 300 days.

Does anybody have experience with this?

Cheers.....

[regedit]

My guess would be that entitlement to severance started from the date you joined the Thai payroll.

[dinga]

Severance pay is prescribed under Thai Labour Law - your Day 1 for severance pay purposes is the start day of your Thai Work Permit. Got nothing to do with how long you've been employed by any company(ies) outside of Thailand. Sorry - perhaps there is some 'group' condition of service that might offer you something - but it won't be the Thai company that recently employed you

[frosty999]

Thanks for the replies. I have been referred to a section 13 which I'm looking at now which states "where there has been a change of employer due to transfer or merger with another jurisdiction entity, employees shall have all the rights which they had against the previous employer". Also as my first job after school was in Thailand, this would show continuous employment with the same entity.

Guess I may be grasping at straws here, but has anybody seen a case like this before?

Cheers...

Edited November 25, 2015 by frosty999

[AlexRRR]

I would think that 20 years service for the one company no matter were you served is where you were hired, say in Australia then you would more or less fall under AU labour laws, being transferred would mean your still employed by the same company if thats not the case you should contact your relevant government labour watchdog because your entitled to something.

[dinga]

Thanks for the replies. I have been referred to a section 13 which I'm looking at now which states "where there has been a change of employer due to transfer or merger with another jurisdiction entity, employees shall have all the rights which they had against the previous employer". Also as my first job after school was in Thailand, this would show continuous employment with the same entity.

Guess I may be grasping at straws here, but has anybody seen a case like this before?

Cheers...

Actual translation is "juristic entity" - which is a Thai entity - and the context relates to changes re. registration/transfers/mergers of entities in Thailand. Good luck, but I fear you're buggered

[blackcab]

Severance from day 1 of your work permit in Thailand.

If you were transferred from the US with continuous employment by the same company perhaps you could look at US law instead.

[regedit]

. Also as my first job after school was in Thailand, this would show continuous employment with the same entity.

My second guess is that you would need to have remained employed by the same Thai entity (or merged entity), so if you went abroad for a number of years you would need to have been seconded by the Thai company to, for example, a sister-company, but remained employed by the Thai entity, for continuous service to apply.

[frosty999]

Cheers once again ans appreciate the advice...It is a difficult one.

What to do you make of this? It's a very large multinational.

http://www.employmentlawalliance.com/Templates/media/files/Misc%20Documents/Thailand-Supplement.pdf

Hot Tip. For severance pay and damages calculation purposes, doubt can arise – particularly in multinational corporate organizations – as to the commencement date of employment. The Thai courts may be disinclined to consider that employment commenced only upon the employee starting to work for the currently-employing entity in Thailand which conducts the business there. In such cases, particularly with highly remunerated individuals of long service, it can sometimes be useful for the employer to consider rotation of the employee out of Thailand, before proceeding with a termination shortly thereafter.

[frosty999]

Guys ... As a follow up on this , been to see a lawyer. Turns out it is a grey area and they claim that more often than not Thai courts will rule in favour of the expat if he can show that there was no continuous break and was not required to serve a period of probation. There is a stipulation in law that if an employee is moved or a work break is created to prevent payment then the employee is still entitled payment based on continuous service which helps.

Key issue is to show that it is a transfer as opposed to a new position. An email is required agreeing that this is the case and preferably also agreeing that your seniority is continuous. If you have this email agreement and the percentage of contributions made to your pf are based on this period of service you have a decent chance of winning the court case if the full severance is not paid. While it is not confirmed, you do however have a very good chance.

This is however the opinion of 1 ( very expensive!) lawyer, and for peace of mind I am however thinking of cross checking with another...

[blackcab]

Did you ask what your maximum severance benefit will be? Under Thai law, the most you will receive is the equivalent of 300 days pay if it is found that you have been employed for more than 10 years.

What sort of severance pay would you get in the US?

[frosty999]

Yes.. It is capped at 300 days.