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Employee benefits in Thailand: all you need to know | Remote A temporary employment contract is drawn up for an employee to carry out a specific assignment in a company for the duration of the assignment. (6) Imprisonment as provided by law. In any case, we recommend that you seek legal advice in drafting employment contracts for your employees, especially for managerial and executive positions, in order to protect the companys databases, customers and resources. Place of work: If the place of work changes depending on the employees duties, a mobility clause should be attached to the contract. Occasional delay is not sufficient grounds for termination. By notice from the employer if there is a reason for it. These are designed to prevent you from poaching or employing staff from your former place of employment. Use of Themis Partner is subject to our Terms and ConditionsandPrivacy Policy. It protects the interests of the company by prohibiting the employee from disclosing certain essential details. Intellectual Property, About us When drafting an employment contract, you should include information about the employees collective rights, including: This information is usually supplemented by one or more optional clauses or agreements negotiated between the employer and the employee, such as a competition or confidentiality agreement. Thai employment law applies to all employees working in Thailand, regardless of nationality. The main responsibilities of the employer are: 1. It can also protect the employer from unfair competition, through a non-competition clause, or against the disclosure of confidential information related to his or her business or working methods. This includes a person who works for the employer or as a companys agent. Clear, well-written contracts and policies are essential for any business. The Supreme Court ruled that such a contract was not a fixed-term employment contract. Defines job duties:Clearly outlines the job duties and responsibilities of the employee. The worker and the company must pay social insurance contributions to finance the national social security system. Outlines compensation:Includes information on salary, benefits, and other forms of payment. Another important feature of fixed-term contracts is termination. In Thailand, there are four different types of employment contracts: An open-ended contract is the standard and general form of the relationship with your employer. Some of the details typically mentioned in the written employment contract in Thailand include: Themis Partner is not a lawyer referral service and does not provide legal advice or participate in any legal representation. In Thailand, employment is a regulated work organization; therefore, an employee has a protected status under labor law. In addition, all the elements underlined in our agreement must be modified according to your situation, such as the date, the partys name, workplace, or salary. Therefore, no employer may provide workers with fewer rights and benefits than those provided by law, even if they agree. The place where it will carry out the work. At Asia-Agreement, you can get all the templates you need to manage your employees, such as employment contracts, warning letters, and confidentiality agreements. Both the employer and the employee must agree on the changes to the employment contract. However, they have strong influence on lower courts. What should be included in an employment contract? A precise geographical area must be indicated, The non-competition clause is limited to a certain position, A compensatory indemnity must accompany the non-competition clause. Standard Employment Contracts for Domestic Workers in Thailand The published rules must include information about the following: In addition, a workplace with 20 or more employees must also provide a written agreement about working conditions as part of an employees contractual employment terms. AI typically learns inductively by training on examples and historical data. Once in force, the employer cannot enter any contract that does not comply with the agreement, unless it is beneficial to the employee. Compliance with working hours: Working hours are defined as the arrival and departure times from the company as well as the break times for each working day. The employee has a duty to render service. Your employer may include a restrictive covenant to protect his business when you leave your position. Open-ended employment contract An open-ended contract is the standard and general form of the relationship with your employer. An employee who frequently arrives late or leaves too early is at fault. Thai law generally does not allow changes to an employees salary without his consent. Employment Contract in Thailand | Download (EN/TH) document Working on a public holiday (weekly holiday), Working on a public holiday (public holiday), Remove or Appoint the Company Director(s), Agreements to Rent a Property in Thailand. In addition, ensuring that the ending is carried out with notice is essential. In employment law, a supplementary agreement is required when one or more essential elements of the employment contract (salary, qualifications, duration, and employment place) are changed or a clear and precise clause is added (non-competition clause, mobility, on-call obligations). The difference in wages for work on a public holiday is that the law assumes that an employee receiving a monthly salary has already received a weekly salary as compensation. Fixed-term contracts do not require an advance notice of termination, Probation periods are permitted but usually do not exceed 119 days, as employees are entitled to severance pay once they have worked for 120 days, Once a workforce reaches 10 employees the employer has 15 days to publicize workplace rules (in hard copy or electronically) detailing workdays, hours and breaks, vacation regulations, overtime, pay rates and schedules, disciplinary procedures, termination, and severance terms. Usually, an employer may not unilaterally change the mutually agreed upon compensation. Only the modification of the constituent elements of the initial contract (assimilated to an adaptation of the contract itself) requires the conclusion of a rider. The employer may terminate the agreement immediately. The employment contract creates obligations for both the employee and the employer. Under Thai law, the remuneration can only be in the form of money or valuable items and has to be paid in a fixed period (daily, weekly, monthly, or at the time of service). Scope of work: In this provision, you must specify the employees duties and responsibilities. If the employee is dismissed through no fault of his own, the employee may be owed severance payment. After five consecutive hours of work, workers must have a one-hour break. Occupational Safety and Health Act B.E. Several paid holidays and rest days, usually on weekends. Employer terminates the contract without employee's default - also including the case that the employer terminates the employment due to critical situation of its business) 2.) There are two types of minimum wage: the bare minimum and the minimum wage for skilled workers. You must first conduct a recruitment process to decide what type of contract you want to offer: permanent, temporary, full-time or part-time. The employee has a duty to render service. This obligation includes making the workplace accessible, providing a workplace, and providing the tools, equipment, and other facilities necessary to perform the work. However, neither the employee nor the employer can change your employment contract without either agreement. The company must prove that many employers and employees are of Chinese descent or that it is a traditional holiday in the area. The Occupational Safety and Health Act section 108 requires employers to post these rules in the workplace. Your contract may also contain information regarding payroll deductions. In general, Thai law does not allow changes to be made to an employees salary without their agreement. We recommend you seek the attorneys assistance when drafting employment contracts for your employees, especially in management and administrative positions, to protect the companys database, customers, and resources. It restricts its advertising for a certain period because they are not allowed to advertise in the workplace. However, failing to take these precautions can mean that an employer is either stuck with an incompetent employee or on the losing end of a lawsuit for unfair termination. Neither the employer nor the employee can terminate a fixed-term contract before the specified period ends. Termination: This clause describes all the instances in which it may terminate the lease. He also has a duty of loyalty, which the non-competition clause can reinforce. The Thai labour courts are generally employee friendly and . This must be determined according to objective and precise criteria that do not depend exclusively on the employer or at least can be determined. A clause is a provision stipulated in the employment contract that defines the rights and obligations of the employee and the employer. (Supreme Court Precedent 888/1984), Where a supposedly fixed-term contract contains a clause entitling either party to terminate the employment contract prior to its termination date. Under Thai law, an employment contract is not mandatory. Work Accident Compensation Act B.E. Be sure to consult our property lawyers before doing so. An important consideration is that employment contracts are ultimately abstract legal rules and the application of those . The employee must claim compensation from the employer for damages caused by the employers fault or negligence. Reduced tax rates for foreigners in Thailand. It will come into effect on April 18, 2023. Maintains confidentiality:Includes clauses to protect the employers confidential information. The employee confidentiality agreement obliges the employee to retain certain information that may come to his or her knowledge in the course of employment. In addition, there must be a clear indication that employment will terminate at the end of the period. For more details on the WFH legislation, or on any aspect of employment law in Thailand, please contact Tilleke & Gibbins at, Many companies have moved to Southeast Asia to benefit from the advantages of this vibrant and diverse market. However, in order to protect your company, a written contract including protective clauses is essential to limit damages, loss of data, loss of customers in case of a dispute with an employee. Prices range from 330 baht to 308 baht and vary from province to province. Divorce Foreign Business Ownership Employers may compel employees to work on public holidays in some sectors, such as the hotel and service industries. Both employers and employees must contribute to the SSF at a rate of 5% of the staff members income, up to a maximum of THB750 (US$23) per month. There are two types of employment agreements. In Thailand, it is not mandatory to have a written employment contract between the employer and the employee. While Thailand does not mandate a written agreement between employers and staff, it does impose strict labour regulations with regards to working terms and conditions. Occasional lateness is not sufficient to justify dismissal. Step1. Property Due Diligence It is possible to incorporate a clause about the change in the employment contract if it does not bring the income below the legal minimum. Unfortunately, AI is modeled on human thinking, so it may amplify our own prejudices and errant conclusions while giving the appearance of providing a fair and clean process. Employers are recommended to put contracts in writing as they include the working conditions, but this is not legally required by the Civil and Commercial Code or the Employment Protection Act. Compensation must be determined according to objective and specific criteria that are not solely dependent on the employer. The employer has a duty to pay remuneration for such service. Fixed-term contracts cannot include a probationary period. A fixed-term employment contract is an employment agreement for a fixed period. Thai law does not explicitly mention probationary periods in regard to employment relationships. For the employee, our agreement guarantees that he is working in a professional environment where the job terms and obligations are clearly defined and accepted. Under Thai law, if no notice period is agreed upon, the employer must terminate the employees contract no later than the wage payment date, effective upon the next wage payment. In the employment contract, the employee undertakes to perform work (provide a professional capacity) for the employer in exchange for a defined remuneration. It should make a distinction between overtime work on regular days and overtime work on holidays. 3. Improvising the drafting of an employment contract means taking a lot of risks for the uninitiated. The frailties of artificial intelligence (AI) systems in recruitment and hiring could transform our workforces in unpredictable ways. Subject to laws of public order, including the Labour Standards Act, the employer must pay the employee the amount and frequency agreed upon. Before the calendar year start, employers must notify employees of the days they will be off. His application requires the employees consent. What is an employment agreements purpose? The contract can be written or verbal. Employers may select 12 other public holidays from the list of public holidays published by the Thai government. Fixed-term contracts do not require an 'advance notice' of termination Commencing employment Structuring the employment relationship Secondly, according to the Labor Protection Act Article 13, in a companys merger or acquisition, or a change in salaried employees due to succession or other similar change, the employment relationship is not systematically transferred to a new legal entity, but only with the last salaried employee express consent. Legal guides Moreover, a business owner who hires people to employ people in his business or production process is considered the workers employer. Concerning payroll, there are often separate documents to cover bonus or commission programs, which may not be contractual in nature, allowing an employer more flexibility to make changes to their terms. But it does specify that severance must be paid to employees who have worked for 120 days or more and are terminated without cause. The consent of both parties is also necessary as to the compensation nature. They cannot be terminated before the end date unless there is due cause. PDF Thailand EMPLOYMENT & LABOUR LAW - CHANDLER MHM In other words, the prohibition must not be excessive (generally 2 years), The non-competition clause is limited in space. This contract is governed by the Labor Protection Act, a Thai law. If the worker and employer agree, the break may spread throughout the workday, but the total time cannot be less than one hour. Instead of the typical dystopian scene of flames, wastelands of shattered buildings, and robotic overlords policing the remaining humans, our actual dystopian future may be a workplace filled only with men named Jared who once played lacrosse in high school. It should note that this obligation can be modified by agreement. It should also describe any periods of the year that are not available for vacation, for example if you work in the hotel industry, the Christmas period may not be available. Two Pacific Place Building, 18th Floor, Unit 1806, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 Thailand, freehold, nor sor 3 gor, nor sor 3, possessory right. An employment contract creates a relationship between an employer and his employee. Avoid certain practices prohibited by Thai law. It automatically ends on the date or at the end of the period fixed at the time of hiring. However, an employer may be forced to freeze or reduce earnings for severe financial reasons. The agreement of both parties is required in order to modify the amount of the remuneration but also the mode of the latter. Managers must know and understand the employment contracts main terms to protect the company, which can help the company avoid costly legal disputes. Rent a Commercial Property In any case, it is strongly recommended to formalise any employer-employee relationship in writing to avoid any conflicts. Remove or Appoint the Company Director(s), Agreements to Rent a Property in Thailand. At. In a workplace with more than 20 employees, the workplace agreement forms part of the employees contract. The employees signature constitutes consent and acceptance of the clauses. The employee agreed to this when he signed the employment contract. The Working Time Regulations 1998 also entitle employees to a minimum daily rest period between each day or shift worked (i.e., 11 hours in a 24-hour period) and a minimum weekly rest period (i.e., 24 hours of uninterrupted time off work each week). Social Security Act, which established the labour court and its procedure; Rules concerning overtime work and working over holiday periods; When and where the payment of basic, overtime, holiday and holiday overtime pay will take place; Termination of employment, severance pay and special severance pay. In addition, it does not appear that the employer was biased when giving ratings or scores for the employees work performance. Themis Partner provides information and software only. Themis Partner is not a lawyer referral service and does not provide legal advice or participate in any legal representation. This article was first published on ASEAN Briefing. For a non-compete clause to be enforceable in Thailand, it must meet a few specific and cumulative conditions determining its validity. Civil and Commercial Code B.E. However, Thailand's labor law does not require that all employment contracts be in writing. Employment and HR Any changes to the employment contract must be agreed between the employer and the employee. For instance, Amazon experimented with mechanized recruitment in 2014, but abandoned these efforts prior to implementation after the AI tool selected a predominantly male workforce. Download your employment contract in Thai and English with Asia-Agreementand, if necessary, get advice from an employment lawyer when drafting the agreement. Working hours: weekly, minimum working hours, and any overtime. However, a written agreement is highly recommended to avoid problems in a dispute with an employee and protect your business. Contractors are responsible for paying all their subcontractors social security contributions and salaries. Otherwise, the employer cannot rely on these reasons in legal proceedings. Labour and Employment Comparative Guide - - Thailand - Mondaq Human recruiters do not have a great track record; for example, in France, discrimination in recruitment has posed such a serious problem that the government submits false work biographies with ethnic names to identify and punish employers that unreasonably reject qualified ethnic applicants. Similar provisions apply to work on public holidays. Our contract template applies to fixed-term and permanent employment by Thai labor laws obligations. If the end date is exceeded, it can be deemed to have become open-ended. If you hire a subcontractor, you must consider the financial risks. How To Terminate Employees In Thailand | Acclime Thailand The region is already a manufacturing hub for a multitude of industriescomputer and automotive products in Thailand, textiles in Cambodia, and footwear and electrical goods in Vietnam, to name a fewand an increasing number of companies worldwide are reconfiguring their supply chains to include regional suppliers. The Thai Supreme Court ruled that if the contract includes provisions for it being terminated prematurely, it becomes an open-ended contract. The employment contract is legally binding for both the employee and the employer and defines the subordination of the employee to the employer in the performance of his or her work. However, there are exceptions for domestic workers, seasonal agricultural work, workers loading materials onto cargo ships, and other types of work. Finally, you can easily edit this employment contract yourself or with the help of our lawyers after downloading your employment agreement in word format. In an employment contract, the employee agrees to provide work for the employer for a fixed fee. And he/she can be sanctioned, or even dismissed, if he/she opposes it. Legal updates, insights, and opinions on laws and law suits in Thailand written by our lawyers. Company Secretary, Marriage It can apply to all types of contracts: open-ended contracts, fixed-term contracts, temporary work, etc. In Thailand, the employer-employee relationship is governed by a series of laws and regulations, the chief ones of which are the Thai Labour Protection Act B.E.2541 (LPA) and the Thai Civil and Commercial Code. It must follow the following rules to terminate an employment contract properly: The Labour Protection Act provides for two types of employment contracts in the Kingdom of Thailand: permanent contracts and fixed-term contracts. This is because, in case of a dispute with an employee who does not have a written agreement, the court must determine all terms and conditions between the employee and the employer. If the employee continues to be late, the manager can initiate a disciplinary procedure. Regarding the rules on public holidays, workers are willing to work overtime because the pay is higher. Employment in Thailand | How to draft an employment agreement? Protect your business with a non-disclosure agreement, Protecting Your Company with a Non-Compete Agreement. In Thailand, an employment contract can be either in writing or verbal. Thai Labour Law and Employment Contracts - Thailand - Angloinfo By Vasundhara Rastogi, editor, Dezan Shira & Associates. On the other hand, it can only be validly inserted in a part-time employment contract if it is essential to the protection of the legitimate interests of the company, justified by the nature of the task to be performed and proportionate to the aim sought. In the case of fixed-term contracts, notice is not required for the contracts termination. Paying the employee a salary: The employer must pay the employee as agreed. If the employee is dismissed through no fault of their own and has worked for the employer for 120 days or more, they have a right to severance payment from the employer. Company Secretary, Marriage There are many illegal clauses. This Thailand law firm offers comprehensive legal services in Thailand to both local and foreign clients for Litigation such as civil & criminal cases, labor disputes, commercial cases, divorce, adoption, extradition, fraud, and drug cases. Employment documents An employment agreement is a legally binding document outlining the terms and conditions of the employment relationship, including job duties, compensation, confidentiality, and termination clauses.. Protects the employer: Outlines the terms of the employment relationship, protecting the employer from potential legal issues. However, the employer may also pay the remaining wages and terminate the employee immediately. The following are the rates mentioned in section 118 of the Occupational Health and Safety Act. 2. With Themis Partner, our employment contract sample ensures that the employee is fully informed of his or her obligations and has agreed to the employers terms. How to write a minutes of meeting in Thailand? In Thailand, there exist fours different types of employment contracts: 1. Confidentiality clause: The confidentiality clause, or discretion clause, obliges the employee to keep certain information that he/she may have knowledge of in the course of his/her duties. The minimum notice period must be at least one week and not more than three months, But in certain circumstances, employers may dismiss staff members without providing prior notice or due compensation, for example, if an employee intentionally causes them to suffer losses, does not perform their duties honestly or commits a crime against them or another employee. Before drafting an employment contract, gather the following information to be incorporated into the employment contract: The contractual terms of an employment contract may vary depending on the type of agreement. Free lawyer consultation on each new matter. In that case, the employer must specify the reasons in detail in the notice of termination. Finally, it is also not legal to include a unilateral change clause in the employment agreement. August 24, 2015 Fixed-Term Employment Contracts in Thailand Informed Counsel Employers often believe that fixed-term employment contracts provide advantages over indefinite-term agreements because of the complexity of terminating workers under Thai law.

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