Amendment to the Labour Protection Act

On 31 August 2017, the Labour Protection Act (No. 6) B.E. 2560 (“the LPA”) was published in the Government Gazette. We set below an overview of the LPA, which came into effect on 1 September 2017.

Keywords: Mazars, Thailand, Legal, LPA, Government Gazette, Department of Labour Protection and Welfare, Minimum wage, Work rules, Retirement age

16 October 2017

  • Minimum wage rate 

In order to improve the employment situation in Thailand, the LPA authorizes the Wage Committee to fix the minimum wage rate for particular types of workers or groups, such as students, disabled people, or elder workers. However, that minimum wage rate must not be lower than the minimum wage rate for each type of job based on skill level, knowledge, and capability.

For example, the general minimum wage rate is THB 300 a day for an eight-hour working day. The minimum hourly wage rate for hiring a student for the same job must therefore be fixed at no less than THB 37.50, and the employer may pay the student an hourly wage.

  • Requirement for employers to submit work rules abolished

Employers are required to have work rules in Thai, and must issue the work rules within 15 days of the date that the employer has 10 or more employees. The employer must keep a copy of the work rules at the place of business or at the employer’s office, and must post the work rules in a prominent place in the workplace for employees to read, or post them in electronic form.

Previously, employers also had to submit a copy of the work rules to the Director-General of the Department of Labour Protection and Welfare, or a person empowered by the Director-General, such as a Department of Labour Protection and Welfare officer. However, employers are no longer required to submit a copy of the work rules, but must still comply with the other rules set out in the Labour Protection Act.

  • Retirement age

The LPA states that employers may set the retirement age for employees, or an employer and employee may make an agreement on the retirement age, or employee representatives may make a collective agreement on the retirement age. Retirement at the set age will be considered termination of employment.

If there is no agreement on the retirement age, or if the retirement age has been set at more than 60 years old, an employee who is 60 or over may notify the employer of his intention to retire 30 days in advance. Retiring employees are entitled to severance pay at the same rate as for termination.

Any employer who fails to comply with this requirement to provide severance pay shall be subject to a prison sentence of no more than 6 months, or a fine of no more than 100,000 baht, or both. 

For more information, please read the Government Gazette.

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