Severence pay

[overherebc]

Not sure if the correct forum.

A Thai friend will finish work in about 3 or 4 months and will get full severence pay.

His company have told him they want to reduce his salary by 10% for those remaining months.

Anyone out there know if it is legal or otherwise to do this in Thailand.

[Koosdedooes]

I would say its not legal, he is on notice by the looks of it, and they cant start changing his T&Cs in a pathetic attempt to reduce his severance

But like a lot of things always 2 sides to the story what is the companies rational for reducing his base by 10%

Edited May 21, 2016 by Koosdedooes

[overherebc]

Not on notice yet, working on a long term contract, over 40 months so far.

The work will be coming to an end in approx' 4 months.

I'm not sure 100% on the company's thinking. They will be paying 6 months severance, he has that in writing so maybe they are looking at reducing the severance payment basing it on last paid monthly rates.

My feeling is that it is against TLL but trying to find out for sure.

By the way it is a friend, not me. I retired a couple of years ago.

[overherebc]

Not on notice yet, working on a long term contract, over 40 months so far.

The work will be coming to an end in approx' 4 months.

I'm not sure 100% on the company's thinking. They will be paying 6 months severance, he has that in writing so maybe they are looking at reducing the severance payment basing it on last paid monthly rates.

My feeling is that it is against TLL but trying to find out for sure.

By the way it is a friend, not me. I retired a couple of years ago.

Got my answer from a friend who runs his own company.

As he explained the company cannot enforce it otherwise all companies who are due to pay severance could reduce the employees salary for 3 months at the end and reduce their financial obligation to the employee in terms of severance or is it severence, whatever.

[blackcab]

The company can do what they want. Fortunately the Labour Court is fast and effective.

The company will have to pay what is owed.

[overherebc]

Six months in severance? My accountant has told me the rule is one month's severance if they have worked for you for less than a year and three months if over a year. J

Over 36 months goes to the max of 6 months pay and if the timing is right also one months notice .

[overherebc]

Six months in severance? My accountant has told me the rule is one month's severance if they have worked for you for less than a year and three months if over a year. J

Over 36 months goes to the max of 6 months pay and if the timing is right also one months notice .

They quote 180 days if over three years

240 days if over 6 years

And I think 300 or 360 days if over 10 years.

[overherebc]

Six months in severance? My accountant has told me the rule is one month's severance if they have worked for you for less than a year and three months if over a year. J

Over 36 months goes to the max of 6 months pay and if the timing is right also one months notice .

They quote 180 days if over three years

240 days if over 6 years

And I think 300 or 360 days if over 10 years.

In addition if the employee is terminated without notice then one months salary should be paid on top of the severance days.

Even if the company asks you to sign a new contract every year the labour court will most likely ignore that and base their decision on the fact that you have tax records covering the full length of time with the company.

My company running friend has been very helpful as you will notice.

[orientalist]

I had an employer try and reduce my salary by an amount "to be determined by my achievements in the past year" when I had worked there 15 years, was 2 years away from retirement, and with a good chance of being laid off within a year. I flat-out refused, and put it on record by writing a letter to the CEO explaining my reasons. I was indeed laid off a year later, but all was done according to the law and I got full severance pay.

[overherebc]

I had an employer try and reduce my salary by an amount "to be determined by my achievements in the past year" when I had worked there 15 years, was 2 years away from retirement, and with a good chance of being laid off within a year. I flat-out refused, and put it on record by writing a letter to the CEO explaining my reasons. I was indeed laid off a year later, but all was done according to the law and I got full severance pay.

Once an employer becomes aware you know about your protection under labour laws here they will back down.

I found out last night that a company can lower your position in the company but cannot reduce your pay/salary.

Even large overseas companies who employ people in Thailand must conform to all labour laws.

This was my first experience ref the reduction in salary, I have never heard of it happening before.

It seems that if you seek the help of the labour court the severance figure in question must be paid to the court by the employer and after the court decides it is either paid to the employee or returned to the employer.

Can anyone confirm?

[MyFriend You]

Six months in severance? My accountant has told me the rule is one month's severance if they have worked for you for less than a year and three months if over a year. J

Over 36 months goes to the max of 6 months pay and if the timing is right also one months notice .

You sir are correct, and those that try to cheat their employees at the end of their contract - shame on them - they will find the Labor Courts will rule in favor of the employee and they will get what is due to them, and maybe be fined in the process...............has happened to many expat Cheap CharlieExpat bar owners in LOS who thought they could get away with anything .

Edited May 22, 2016 by TunnelRat69

[bubba1]

Severance pay is for people without skills or confidence to move on and make a better future.

Don't sit around and worry do something positive with your life and get a new source of income

[blackcab]

I had an employer try and reduce my salary by an amount "to be determined by my achievements in the past year" when I had worked there 15 years, was 2 years away from retirement, and with a good chance of being laid off within a year. I flat-out refused, and put it on record by writing a letter to the CEO explaining my reasons. I was indeed laid off a year later, but all was done according to the law and I got full severance pay.

Once an employer becomes aware you know about your protection under labour laws here they will back down.

I found out last night that a company can lower your position in the company but cannot reduce your pay/salary.

Even large overseas companies who employ people in Thailand must conform to all labour laws.

This was my first experience ref the reduction in salary, I have never heard of it happening before.

It seems that if you seek the help of the labour court the severance figure in question must be paid to the court by the employer and after the court decides it is either paid to the employee or returned to the employer.

Can anyone confirm?

Payment is made after the judgement is delivered. Payment is not made into Court in advance.

The last company I worked for had to pay over 100k to a dreadful worker. I was his manager, so I speak from experience.

[overherebc]

Severance pay is for people without skills or confidence to move on and make a better future.

Don't sit around and worry do something positive with your life and get a new source of income

Can you explain that a bit more?