Changes to employee leave and severance pay

On 15 August 2017, the Council of Ministers accepted in principle a draft amendment of the Labour Protection Act proposed by the Ministry of Labour.

Keywords: Mazars, Thailand, Legal, Ministry of Labour, Labour Protection Act

29 September 2017

The following are the main changes:

  • Personal business leave

Employees will be allowed at least 3 days a year for this type of leave.

  • Maternity leave

Leave for prenatal care will be included in the 90 days’ maternity leave. However, the wages to be paid during this leave (equivalent to the wages for a working day throughout the leave period, but for no more than 45 days) will not change.

  • New severance pay grade

The draft amendment also states that an employee who has worked for twenty consecutive years or more, and is terminated, shall be entitled to receive severance pay of not less than his last wage rate for 400 days.

However, it is unclear at this time whether or not the content of the draft amendment will change during the consideration process.

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