Amendment to the Labour Protection Act Effective May 2019

A Royal Decree on Labour Protection Act No. 7, 2562 B.E. (2019), which was published on 4 April 2019, and which became effective on 5 May 2019, addressed the following key issues.

Keywords: Mazars, Thailand, Legal, Labour Protection Act, Royal Decree

07 June 2019

Key issues


1. Severance pay

Length of service: 20 years or more

Payment: Payment for not less than 400 days at the individual employee’s latest wage rate

2. Transfer of employment due to a change of employer

The prior consent of the employee is required.

3. Business leave

Employees must be given a minimum of 3 days’ business leave a year, and given full pay for a maximum of 3 working days a year while on business leave.

4. Maternity leave

Female employees must be given a maximum of 98 days of maternity leave per pregnancy, and given full pay for a maximum of 45 working days while on maternity leave.

5. Relocation of the employer’s business

- An employer must post an announcement at a prominent place on the current business premises at least 30 days before relocation.

- An employee whose normal living conditions will be affected by the relocation is entitled to refuse to work at the new location by giving written notice to the employer within 30 days of the relocation being announced.

- An employee is entitled to special severance pay equal to the normal amount of severance pay for termination, and employment will be considered terminated as of the relocation date.

6. Payment in lieu of notice

Payment in lieu of notice must be made on the date that the employee is dismissed.

7. Interest to be imposed on an employer failing to make payment

An interest rate of 15% will be imposed for failing to make payment in lieu of advance notice and when temporarily ceasing business.