Severance Pay Thailand

[jossthaifarang]

Hoping someone has had experience with this? According to the Thai severance pay system, you should get 1 month salary for every year worked, if dismissed without misconduct and so on.

 

If you look at the table below it explains it, but my main question is. What happens if you are in the 8 years but less than 10 category?

 

Period Of Service Rate Of Severance Pay
120 days but less than 1 year = Not less than last wages for 30 days’ wages
1 year but less than 3 years = Not less than last wages for 90 days’ wages
3 years but less than 6 years = Not less than last wages for 180 days’ wages
6 years but less than 8 years = Not less than last wages for 240 days’ wages
10 years or more = Not less than last wages for 300 days’ wages

 

Useful and on topic replies will be much appreciated. 

[ezzra]

 

Your best place for up to date and correct information relating to your predicament

will be the Thai labor department, they can answer all you queries, providing you

communicate with them in Thai....

[Don Mega]

8 to 10 years pays 240 days.

 

good luck getting that though as the"days" are typically convert to months.... so you get 8 months salary

[jossthaifarang]

Yes Don, that's right It's converted to months, but if you get nothing more from 8 to 10 than you get from 6 to 10, then why would they even have a 6 to 8 period? It should just go 6 to 10 and be done with it. It makes no sense? TIT though.. 

[SteveB2]

An interesting review of the various bits of Thai law that refer to the OP's question is given here http://www.interactivethailand.com/labour/severance-pay-in-thailand/

 

Note though, that for these rules to apply:-

 

• The employee must be in good standing (For an instance of gross misconduct, the employee receives nothing)
• The company should also give 60 days notice (Else the company has to add another 60 days of salary to the severance pay)

For a company employing several staff these monies can quickly add up to many hundreds of thousands of Baht.

 

Thus any company in LOS should make financial provision for making these severance payments to all staff by means of an internal escrow fund, and should do so from the start - our company does, and the appropriate severance payments for all staff (60 days) are already set aside in case we need to close up shop for whatever reason.

 

The severance payments escrow fund is audited once per year when we do our annual books to ensure the amount held is fully sufficient to meet the companies legal obligations.

 

I (as the manager of the company) am not going anywhere should we close up shop, I would not want to fall foul of the labor courts judgment of who has to actually pay these monies     The courts generally side with the employees in these instances.

 

A drinking buddy had to quickly uproot and leave LOS last year over just such severance payment liabilities.