How does severance pay work when your notice period is say 3 months, is that factored in or kept separate?

For example a termination for an employee who has worked full-time with valid visa and WP between 1-3 years - would they be entitled to 3 months notice plus 3 months severance? The official documents are unclear on this as it seems to revolve around frequency of pay etc (Monthly in this instance).

Can anyone advise?

Edited June 26, 201610 yr by Mabbutt

According to the law, the minimum notice period (or pay in lieu of notice) that an employer or employee must give is one month from the date of termination, plus 90 days severance pay for an employee who has worked 1 to 3 years in the case where the employer terminates the employment. However, if there is a contract that requires the employee to give three months, the Labour Court would likely judge that the employer too must reciprocate and give three months to the employee, plus the three months severance pay.

In other words, it's discretionary, but any contracted arrangement that exceeds legal minimums is usually enforced by the Labour Court. You should perhaps talk to a lawyer who has experience in dealing with employment law cases, and who can represent you in the Labour Court.

Three month notice periods suck - they make it impossible to look for a new job. You should make this case when asking for three months payment in lieu of notice.

Edited June 26, 201610 yr by dbrenn

My understanding is that the compensation due is independent of and paid in addition to, the notice period given for which salary is due.

Compensation payments should be either free of tax or else a tax rebate is due.

Labour Protection Act 1998 Chapter 11 - Compensation Payments

Section 118. A boss shall pay compensation to an employee whose employment has been terminated as follows:

• (l)An employee who has worked consecutively for a full one hundred and twenty days but less than one full year shall be paid not less than thirty days the last wage rate or not less than the wages for the last thirty days of work in respect of an employee who is paid a wage on a piece work basis.
• (2)An employee who has worked consecutively for one full year but not a full three years shall be paid at least an amount equivalent to ninety days’ pay at his or her most recent wage rate or not less than the wages earned for the last ninety days of work in respect of an employee who is paid a wage on te basis of piece work.
• (3)An employee who has worked consecutively for a full three years but not a full six years shall be paid an amount at least equivalent to one hundred and eighty days’ pay at his or her most recent wage rate, or not less than the wages earned for the last one hundred and eighty days of work in respect of an employee who is paid a wage on the basis of piece work.
• (4)An employee who has worked consecutively for a full six years but not a full ten years shall be paid an amount equivalent to at least two hundred and forty days’ pay at his or her most recent wage rate or not less than the wages earned for the last two hundred and forty days of work in respect of an employee who is paid a wage on the basis of piece work.
• (5)An employee who has worked consecutively for a ten full years or more shall be paid an amount equivalent to at least three hundred days at his or her most recent wage rate, or not less than the wages for the last three hundred days of work in respect of an employee who is paid a wage on the basis of piece work.

Termination of employment under this Section means any action by which the boss does not allow the employee to continue to do work and does not pay wages to the employee, regardless of whether the cause is the cessation of the employment agreement or another cause, and the meaning also covers cases where an employee does not do work and is not paid wages because the boss is unable to continue business operations.

The provisions in paragraph one shall not apply to employees who have a fixed term of employment and whose employment is terminated in accordance at the end of the specified term.

Fixed term employment under paragraph three may be effected in respect of employment for work in specific projects which are not the normal work of the boss’s business or trade, and which must have a definite beginning and end of employment, or for seasonal work for which employment is effected during the period of such seasons, to the extent that the work must be completed within a period of not more than two years, and that the boss and the employee had made a written agreement as such upon commencement of employment.

Section 119. A boss need not pay compensation to an employee whose employment is terminated in any of the following cases:

• (1)Dishonesty in carrying out duties or deliberate commission of a crime against the boss.
• (2)Intentionally causing the boss to suffer damage.
• (3)Negligence, causing the boss to suffer serious damage.
• (4)Violation of the work rules and regulations or the boss’ lawful and legitimate regulations or orders, where the boss had already issued a written warning, except that in serious cases the boss need not issue such a warning. A letter of warning shall be enforceable for not more than one year calculated from the date on which the employee committed the offence.
• (5)Abandonment of post for three consecutive working days, regardless of whether there was a holiday in between or not, for no appropriate reason.
• (6) Imprisonment under a final judgement ordering imprisonment, unless the sentence was for an offence which was committed out of negligence or a petty offence.

So if you are a teacher with annual contract renewals and have worked consecutively for say six years for same school then that is treated as only one year when it comes to severance for non contract renewal?

According to the law, the minimum notice period (or pay in lieu of notice) that an employer or employee must give is one month from the date of termination, plus 90 days severance pay for an employee who has worked 1 to 3 years in the case where the employer terminates the employment. However, if there is a contract that requires the employee to give three months, the Labour Court would likely judge that the employer too must reciprocate and give three months to the employee, plus the three months severance pay.

In other words, it's discretionary, but any contracted arrangement that exceeds legal minimums is usually enforced by the Labour Court. You should perhaps talk to a lawyer who has experience in dealing with employment law cases, and who can represent you in the Labour Court.

Three month notice periods suck - they make it impossible to look for a new job. You should make this case when asking for three months payment in lieu of notice.

That's the plan, I just want to ensure I'll leave with what I'm owed legally if this all goes belly up after August.

Many thanks for the advice

So if you are a teacher with annual contract renewals and have worked consecutively for say six years for same school then that is treated as only one year when it comes to severance for non contract renewal?

I am also interested in an answer to this question. I am not a teacher but in a similar position with a company. Full time employee, but employed on renewal contracts.

Quick answers appreciated.

So if you are a teacher with annual contract renewals and have worked consecutively for say six years for same school then that is treated as only one year when it comes to severance for non contract renewal?

I am also interested in an answer to this question. I am not a teacher but in a similar position with a company. Full time employee, but employed on renewal contracts.

Quick answers appreciated.

The company my wife worked for two years finished that contract and then started a new contract still in Thailand for another two years in a different location.

At the end of the second contract they tried to pay severance on the second contract only. She was not the only one in the situation.

The labour court happily took her and others cases and awarded full compensation for severance based on continuous tax payments over the 4 years. Classed as continuous work with the same employer.

Renewal of contracts every year to avoid paying severance doesn't work for the employer.

Call the labour court, they are more helpful than you would imagine.

Edited June 27, 201610 yr by overherebc

Don't forget you will probably be on extensions of stay, that will be cancelled on termination of employment. You will have to apply for and get 7 more days to stay at Imm'.

This gives you a short window to get things moving re' your severence pay.

Many schools rely on this as a way of not giving you time to set things in motion, ie you will be out of the country too quickly to win your case.

You would have to start as soon as you get your notice.

Edited June 27, 201610 yr by overherebc