Severance Pay for Fixed Period Employees
Under the Thai Labour Protection Act, when employment is terminated by dismissal without gross misconduct (as prescribed in the Labour Protection Act B.E. 2541, Section 119), the employer shall be liable for statutory severance pay to the employee. But what statutory rights does an employee working under a fixed period contract have?
Keywords: Mazars, Thailand, Labour Protection Act, Legal, Employee, Fixed Contract, Supreme Court
05 April 2013
An employee working under a fixed period contract is also covered by statutory severance pay unless one of the following conditions is met:
1) Specific project which is not the normal business of the employer with a fixed commencement and end date; or
2) Infrequent work with a fixed commencement and end date; or
3) Work is seasonal in nature and the employee only works during that season.
However, the employment must be completed within a period not exceeding two years and the employer must enter into a written employment contract with the employee at the beginning of the employment.
For instance, an employee works for a fixed period but in the normal business of the employer. When the employment is terminated at the end of the fixed period, the employer is still responsible for the severance pay according to the Supreme Court judgement No. 2403-2430/2543.
Read Supreme Court judgement for more information.
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