2494 (1951) stipulates that 60 years of age is the retirement age for civil servants, although extensions are permitted under certain conditions. previous law mean that the retirement age of any employee in the Albert Hui Orbis News, Thailand. Relocation of At this point, the employee can choose In contrast, the previous Labour Protection Act B.E. 2560 (2017) seems to be a codification of the Supreme Court’s judgements and states the following: “Retirement, according to the agreement between the employer and the employee, or as predetermined by the employer, shall be deemed as a termination of employment, in accordance with Section 118, paragraph 2. Whether you are an employer or an employee, Juslaws & Consultinforms you about your rights regarding termination of employment in Thailand. 2560 (2017) was published in the Government Gazette on August 31, 2017, and came into effect on September 1, 2017, amending the previous Act. Thailand has applied the same rate of severance pay since promulgation of the LPA in 1998 until this was adjusted on 5 May 2019. Retirement is deemed a dismissal under Thai labour laws. THAILAND – Retirement regime for Thai private sector. It is not compulsory, but optional, for those employees who are 60 years of age or more to exercise their right of retirement. The Thai government's changes to the (see chart below) Also under the new law, employees are … 240 days' wages where the New Rate of Severance Pay; An employee who has been terminated without cause will be entitled to, among others, severance pay; the rate of which depends on an employee’s length of service and last wage rate. policies and employment contacts. Your best bet is to work with a tax accountant to file your taxes. ... Retirement … In the case where an employer relocates the place of business in Thailand which affects the normal living of an employee or his/her family, the employer shall notify the employee at least 30 days before the date of relocation. Employers who fail to pay severance pay to retirees shall be subject to a maximum six-month imprisonment or maximum fine of Bt100,000, or both. This includes all domestic and international income. Severance Pay is the compensation that an employer provides to a laid off or terminated employee, whose job has been eliminated, who through mutual agreement, decided to leave the company or left the company because the company can no longer operate its business, or for other reasons. Taking care of your staff is just as important as New amendments to Thailand’s Labor Protection Act have addressed this issue by introducing a retirement regime for the Thai private sector employees, placing severance obligations on employers, enhancing protection for employees, and creating a more effective framework for enforcement of labour laws. The content of this article is intended to provide a general New amendments to Thailand’s Labor Protection Act have addressed this issue by introducing a retirement regime for the Thai private sector employees, placing severance obligations on employers, enhancing protection for employees, and creating a more effective framework for enforcement of labour laws. The same goes for other taxable income on your final paycheck, including unused vacation time, commissions, bonuses, etc. Not only can it take several weeks (or months) to complete the paperwork, but once your claim has been submitted to OPM, it can take an additional 6 – 14 months to receive a decision. Employment transfer. years. An employee who has worked for less than 120 days can be terminated without receiving severance pay. Shortly, a new severance pay rate will be introduced for employees with 20 or more years of service at the rate of 400 days’ wage. Previously, the law was silent on the issue and employers had discretion to set their own retirement policy. The amendment to the Labour Protection Act does not stipulate This is the case in Thailand where both expats and residents are entitled to severance pay upon termination. Hours Of Work in Thailand in September 2017, there was no law stipulating the 2541 (A.D. 1998)), he or she is entitled to severance pay under Section 118. Moreover, employers may also need to securely set aside sufficient internal reserve funds in preparation for employee retirement. retirement age for private sector employees in the country. notice), they're entitled to severance pay. Employers should see if their retirement policy, work rules, employment contracts and any other document related to retirement needs to be drawn up and/or amended to comply with this new law. 60 they'd like to continue working. If your Thai company has no retirement policy, we can However, the law does not prohibit both parties from agreeing otherwise, such as an extension for retirement or a renewal of employment. Whereas the Employer terminates the employment of an Employee under Section 121 and such Employee has worked for uninterrupted period of more than six years, the Employer shall pay Special Severance Pay in addition to Severance Pay under Section 118 of not less than the Employee’s last rate of Wages for fifteen days for each year of employment or of not less than the Employee’s Wages for the last fifteen … But awareness of this still payroll experts is recommended. Therefore, if retirement policies were not implemented by the employer, this meant that  employees could potentially work for life, unless and until they voluntarily resigned or were terminated. However, under Thai Law, only employees who have worked for 120 days or more are entitled to severance pay if they are terminated without cause. The NLA voted 179 in favour with five abstentions to pass the bill to increase the severance pay from 300 days to 400 days for workers serving … Under the previous law, an employee would only be entitled to severance pay if terminated without cause. All Rights Reserved. Prior to the draft amendment, the highest severance pay rate was … Thailand • Severance pay • Notice of at least one pay period, on or before any payday, so that the termination of the employment contract will take effect on the next payday, or a longer period if specified under the employment agreement, or payment in lieu. Failure to notify the employee may result in a special severance payment in lieu of the advance notice of 30 days. Licensed to do business in Cambodia, Indonesia, Laos, Myanmar, Thailand, and Vietnam. Even if you can file the taxes on your own, everything is in Thai. severance pay reserve fund, so they're never caught short. 180 days' wages where the Thai law allows the employee to refuse to move and become entitled to receive severance pay. You’ll only need to do it once, and readership information is just for authors and is never sold to third parties. The benefits are highly valued by employees and the benefit terms are approximately one month of final pay for every year of service - … 2541 (1998) includes the fact that the retirement of employees is a termination of contract of employment. Severance pay amounts are as follows: Employees with more than 120 days, but less than one year employment are entitled to severance pay equal to one month's salary. Section 118/1 can be summarized as follows: Under Section 118/1, employers still have the freedom to unilaterally determine and implement their retirement polices, or alternatively, to negotiate and mutually agree on retirement with their employees. 2560 (2017), the law did not stipulate provisions pertaining to the retirement of employees in the private sector. 2560 came into force Those who do not do comply face a fine of up to 100,000 Baht, or even the imprisonment of the company director/s for up to six months. Employees cannot waive their rights to severance or retirement pay. In addition to codifying the court judgments, the new amendments to the retirement regime provide substantial benefits for employees in terms of the right to retirement, and the right to severance pay upon retirement. Provide employer’s duty to pay 15% interest per annum for some more cases, e.g. Retiring civil servants are also automatically eligible for state pension benefits, as prescribed by law. need to pay severance to their retiring employees. Severance pay; Less than 120 days: No severance pay: 120 days - 1 year: Wages for at least 30 days: 1 year - 3 years: Wages for at least 90 days: 3 years – 6 years: Wages for at least 180 days: 6 years – 10 years: Wages for at least 240 days: 10 years – 20 years: Wages for at least 300 days: More than 20 years: Wages for at least 400 days A system of mandatory Severance Pay also operates in Thailand. Thailand Labour Law – Severance Pay What is Severance Pay? The following retirement severance pay rates now apply to all We need this to enable us to match you with other users from the same organisation, it is also part of the information that we share to our content providers ("Contributors") who contribute Content for free for your use. employment period is 10 years or more. Employers should see if their retirement policy, work rules, employment contracts and any other document related to retirement needs to be drawn up and/or amended to comply with this new law. Specialist advice should be sought In cases where the retirement age has not been stipulated, or it has been stipulated so that it exceeds 60 years of age, the employee, who is 60 years old, may express their intention to retire to the employer. employment period is at least six years but less than 10 Previously, the law was silent on the issue and employers had discretion to set their own retirement policy. This system pays lump sum benefits to employees on retirement or involuntary termination. An employee who has worked for less than 120 days can be terminated without receiving severance pay. You have spent decades planning for retirement. Severance Pay and FERS Disability Retirement If you are currently in the process of applying for FDR, then you are probably aware of the time frames involved. For example, the Government Pension Act B.E. New Retirement Regime for Private Sector Employees. Taxes in Thailand. Increased from 90 days to 98 days (with 45-day pay) for each female employee. Prior to the draft amendment, the highest severance pay rate was 300 days’ wage for employees who worked for at least 10 years. imprisonment of the company director/s for up to six months. regulations and other business requirements through our HR and rules and policies to ensure they are compliant with the new To print this article, all you need is to be registered or login on Mondaq.com. no longer the case. employees and in particular, agree how many years beyond the age of Those who do not do comply face a fine of up to 100,000 Baht, or even the imprisonment of the company director/s for up to six months. The employee who reaches the age agreed between the employer and employee, or as prescribed by the employer as being eligible for retirement, is entitled to receive the severance pay. © 2018 Tilleke & Gibbins International Ltd. All rights reserved. 3, if the employer has a retirement policy, whereby the age of retirement is set at more than 60 years of age, those employees who are 60 years of age or more, may inform the employers of their intention to retire. 6), B.E. It is not compulsory, but optional, for those employees who are 60 years of age or more to exercise this right of retirement. or until they voluntarily resigned. years. - Retirement to be treated as employment termination: Under the amended Act, the retirement shall be treated as a case of the employment termination which an employer shall pay a severance pay to a retiring employee. severance pay entitlements and help employers to establish a Mondaq uses cookies on this website. meant that employees were free to work for as long as they could, penalties, including jail time. If the employer does not have a retirement policy, employees who are 60 years of age or more may inform the employers of their intention to retire. employment period is at least one year but less than three Thailand labour law December 4, 2010 An employee terminated without a valid cause as stipulated by law is entitled to receive the following severance pay: 30 days’ wages where the employment period is at least 120 days but is less than one year. Hours Of Work E: [email protected], T: +66 2056 5510 However, terminations and dismissals are subject to certain rules that are important to respect in order to avoid any subsequent dispute with the employee or for the employer. The Labor Protection Act of 1998, Section 118, (LPA) requires all employers in Thailand to pay severance to employees who are “terminated” by the employer without legal cause (as described in LPA Section 119). You need to pay taxes even if you don’t have a work visa. POPULAR ARTICLES ON: Employment and HR from Thailand. This is because employers no longer permitted employees to work, and also halted payment of wages to employees. Consequently, retirement policies may be agreed on and remain incorporated in the employment agreement or work rules of the employer. The Thai Cabinet has endorsed a proposal to amend the Labour Protection Act, setting a statutory retirement age for the first time and entitling retirees to statutory severance pay. Prior to the enactment of the new Labor Protection Act (No.6) B.E. The new Labor Protection Act (No. The Social Security Code, 2020 ("SS Code") has been passed by both houses of the Parliament and received Presidential assent on September 28, 2020. If an employee is terminated by his or her employer without any grounds (as provided under Section 119 of the Labour Protection Act B.E. 300 days' wages where the Section 118/1 of the new Labor Protection Act (No. Even though Thailand’s labour law does not set the retirement age of employees, the interpretation of the Thai Labour Protection Act B.E. Retirement is deemed to be termination of employment, and the retiring employees are entitled to severance pay under Section 118. Extra Severance Pay Rate. Need more information? Under the circumstance of normal termination of employment where “termination of employment” means: The company prevents an employee from continuing to work and receive his basic pay thereof, whether due to the termination of an employment contract … to continue working. Retirement is deemed a dismissal under Thai labour laws. Before Labour Protection Act (No. Published On - 30 October, 2019. Similar to no. provide consultancy on how to add this to your existing regulations, Code on Wages, 2019 – Key Features And Highlights, Thailand's New Labour Protection Act Increases Employee Benefits, Termination Of Employment: Part III – Lay-Off Termination, Deemed Retirement Age Now 60 – Right To Statutory Severance, Employer's Role During The Covid-19 Outbreak, © Mondaq® Ltd 1994 - 2020. Therefore, in the case where the employer has no retirement policies in place, or there is no retirement agreement between the employer and employees, those employees who wish to leave their employment had no alternative but to voluntarily resign. The Thai government has set a clear red line in that employers need to pay severance to their retiring employees. Contact us today. Also, the legal implications relating to the obligations of employers the rights of retiring employees remained unclear until the Supreme Court handed down several precedent rulings on retirement issues. For severance pay under the LSA, severance pay will be equal to one month of average wages for each year of service for an employee who has been continuously employed by the same entity. You have spent decades planning for retirement. If you lost your job through no fault of your own, such as the phasing out of your particular functions or a layoff due to economic downturn, you may receive a severance or retirement package offer. employment period is at least 120 days but less than one year. Published On - 30 October, 2019. The definition of ‘wages' varies across labour legislations in India. If the employer has a retirement policy, or the employer agrees with the employee on retirement and the age of retirement, both parties are required to comply with such policy or agreement. An employee who has served 20 years or more will be compensated at a rate equivalent to 400 days of pay. Just when you think you have everything figured out and a concrete retirement plan in place, you’re thrown a curveball – Your employer has offered you an early retirement or voluntary separation package. This is the case in Thailand where both expats and residents are entitled to severance pay upon termination. The Labor Protection Act (LPA) requires all employers in Thailand to pay severance pay to employees whose employment is “terminated” without cause of serious misconduct. Severance pay is a benefit for terminated employees that helps to ease the transition to a new job, and most countries set the terms and rates of severance by statute. The intention of the employee to retire will become effective 30 days after the date on which the employee informs their employer. Discover how we help our global clients adapt to foreign rules and Exemption for severance pay not exceeding 300,000 Baht and not exceeding ‘10 months’ salary If an employee is terminated by his or her employer without any grounds (as provided under Section 119 of the Labour Protection Act B.E. In response to the new amendment, employers should review their employment agreements and work rules, to ascertain whether the requisite retirement policies have been implemented, and to ensure those policies conform to the law. The Thai Cabinet has endorsed a proposal to amend the Labour Protection Act, setting a statutory retirement age for the first time and entitling retirees to statutory severance pay. taking care of your business. By using our website you agree to our use of cookies as set out in our Privacy Policy. The NLA voted 179 in favour with five abstentions to pass the bill to increase the severance pay from 300 days to 400 days for workers serving … about your specific circumstances. How to Evaluate a Voluntary Separation Package or Early Retirement Offer. If employed more than one year, but less than three years, employees are entitled to severance pay equal to three months' salary. T: +66 2056 5588 New Rate of Severance Pay; An employee who has been terminated without cause will be entitled to, among others, severance pay; the rate of which depends on an employee’s length of service and last wage rate. years. Legally, employers in Thailand must pay a severance to their Employers who fail to pay severance pay to retirees shall be subject to a maximum six-month imprisonment or maximum fine of Bt100,000, or both. SEVERANCE PAY/RETIREMENT INCENTIVE. The maximum severance pay rate is set at 400 days of the employee’s latest wage rate for an employee who has worked for 20 consecutive years or more. The Thai government has set a clear red line in that employers company they work for. TMF Thailand helps companies navigate the country's labour Severance pay is taxed by the IRS the same as wages—you’ll have to pay employment (FICA) tax and income tax withholding at your usual rate. Generally, in the case of voluntary resignation, the employee who resigns would not be entitled to severance pay. As employment regulation can be fast-changing and is specific to 6) B.E. Discover how we help our global clients adapt to foreign rules and Severance pay in Thailand. 2541 (A.D. 1998)), he or she is entitled to severance pay under Section 118. With respect to the termination of the employment on the basis of reorganising the T… private sector employees in Thailand, regardless of the size of the 15% interest . The employer who fails to give severance pay to the retiring employee may be subject to a maximum of six months imprisonment and/or a fine of up to THB 100,000. Exemption for severance pay not exceeding 300,000 Baht and not exceeding ‘10 months’ salary . In Thailand, retirement is deemed to be a termination of employment, entitling employees to a … Employers with offices in Thailand should review their workplace The severance pay (Section 118) The maximum severance pay rate is set at 300 days of the employee’s latest wage rate for an employee who has worked 10 consecutive years or more. Thailand has applied the same rate of severance pay since promulgation of the LPA in 1998 until this was adjusted on 5 May 2019. Labor reforms in India have been a long-pending demand of foreign investors, a majority of which consider the country's labor and employment laws responsible for limiting investment interest by forcing private employers ... Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. The Labor Protection Act (LPA) requires all employers in Thailand to pay severance pay to employees whose employment is “terminated” without cause of serious misconduct. guide to the subject matter. payroll, bookkeeping and corporate secretarial services. do comply face a fine of up to 100,000 Baht, or even the As a result, the retiring employees were entitled to statutory severance pay. Thai Law does not specifically address trials or probationary periods. The new amendments, among others, introduced a retirement provision in Section 118/1, which prescribes the rights and obligations of the employer and employees in respect to retirement. regulation. In addition to ensuring that retiring employees have the right to receive statutory severance pay upon retirement, the provision also provides employees, who are 60 years old or more, the right to choose to retire with full severance pay. regulations. As mentioned above, If the company has included the retirement age in the regulation of the company, when the employees reach the retirement age, the Employer shall pay Severance Pay to them according to the rated specified in Section 118: 30 days’ wages where the employment period is at least 120 days but is less than one year. resign, they were not entitled to severance pay. Severance pay under both the LSA and the LPA must be paid within 30 days of termination. 6) B.E. Albert Hui Orbis News, Thailand. country is now 60 years-old. relatively-new stipulation is low, putting companies at risk of 30 days' wages where the 2541 (1998), which governed relationships between employers and employees in the private sector, and which provided protection for employees, did not mention retirement. Several Supreme Court judgments havelong treated retirement – whether stipulated in the employers’ work rules or in employment agreements – to be termination of employment without cause. each country in which you operate, partnering with local HR and But when they do cease (with 30 days' All Rights Reserved. Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms, Articles tailored to your interests and optional alerts about important changes, Receive priority invitations to relevant webinars and events. individual employee retirement negotiations, the calculation of With a view to reform the archaic labour laws and to facilitate the ease of doing business in India, the Government of India had decided to consolidate twenty nine (29) central labour laws ... On September 28, 2020, three new labour law codes namely, the Industrial Relations Code, 2020, the Occupational Safety, Health and Working Conditions Code, 2020 and the Code on Social Security, 2020. Just when you think you have everything figured out and a concrete retirement plan in place, you’re thrown a curveball – Your employer has offered you an early retirement or voluntary separation package. Shortly, a new severance pay rate will be introduced for employees with 20 or more years of service at the rate of 400 days’ wage. How to Evaluate a Voluntary Separation Package or Early Retirement Offer. Those who do not no payment in lieu of advance employment termination notice, etc. These Supreme Court judgments have assumed precedence over retirement issues. Employers can still negotiate with their Such retirement shall be effective within 30 days from the date of such expression, and the employer shall pay severance to the employee in accordance with Section 118.”. THAILAND – Retirement regime for Thai private sector. This However, this is Benjamas Kullakattimas, a tax partner at KPMG in Thailand. It was interpreted that the old law placed the onus for determining and implementing retirement policies in private sector companies in the hands of the employer, or that retirement was dictated by agreement reached between the employer and employee. employees when they retire. Thai Law does not specifically address trials or probationary periods. By SPECIAL TO THE NATION The Labour Protection Act was recently amended to entitle retirees to severance pay and set the retirement age. 6.4 Are there any categories of employees who enjoy special protection against dismissal? The new law clearly requires an employer to pay severance pay in the following the cases. Special severance pay Working for life could be beneficial for some employees, but conversely, this arrangement would be disadvantageous for those employees who wished to end their employment at a certain age. © Mondaq® Ltd 1994 - 2020. 90 days' wages where the Retirement Age of Employees Thai Lawyers | May 10, 2013. 2. Once you live in Thailand for six months you will need to pay income taxes. Significantly, employees are no longer faced with the possibility that they may need to work for life without the right to severance pay, as under the new amendments, they are entitled to conclude their professional lives, with the comfort of knowing that they have the right to severance pay simply by exercising their right to retire under the employers’ retirement policies, and in accordance with the law. Severance pay is a benefit for terminated employees that helps to ease the transition to a new job, and most countries set the terms and rates of severance by statute. Traditionally, retirement regimes have only been formally set out for public sector employees. However, under Thai Law, only employees who have worked for 120 days or more are entitled to severance pay if they are terminated without cause. Under the Thai Labor Protection Act of 1998, companies are required to pay legal severance payments (‘LSP’) to employees who leave employment at their retirement age, … The Thai government has set a clear red line in that employers need to pay severance to their retiring employees. We can also assist with Key revisions include the following: Employees with at least 20 years of service are entitled to 400 days of statutory severance, up from 300 days for employees with at least 10 years' service. Each employee’s consent is required for any change of employer. The employee who reaches the age agreed between the employer and employee, or as prescribed by the employer as being eligible for retirement, is entitled to receive the severance pay. And once the employee did We know that every situation is unique, therefore it is essential to seek a consultation with someone who is specialized in Thai Labor Law to fully underst… Severance Pay - Severance pay will be paid upon retirement, at the employee’s daily rate of pay, in the amount of … As Thailand gradually transforms into an ageing society, the potential economic and social burden of retiring workers is one issue that is likely to be on the minds of many employees, employers, and policymakers. E: [email protected], Bangkok Post, Human Resources Watch Column. employment period is at least three years but less than six Technology, Media, and Telecommunications. Thai labor law is relatively flexible for employers. Extra Severance Pay Rate Prior to the draft amendment, the highest severance pay rate was 300 days’ wage for employees who worked for at least 10 years. all aspects of retirement. 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Only been formally set out for public sector employees under Thai Labour.... Least six years ) B.E than 10 years resignation, the law was silent on the and! The cases six years but less than 120 days can be terminated receiving. To statutory severance pay of employer your business on retirement or involuntary termination agree to our use of as. 118/1 of the new regulation against dismissal would not be entitled to statutory severance under. Never sold to third parties, as prescribed by law retirement severance pay in thailand be registered or login on.... Can be terminated without cause this article, all you need to pay taxes even if you don t. Policies may be agreed on and remain incorporated in the country is now 60 years-old not prohibit both from! A result, the law was silent on the issue and employers discretion... Under Section 118 as an extension for retirement or a renewal of.. Employee who has served 20 years or more will be compensated at a equivalent... The employer to move and become entitled to severance pay employee ’ s duty to severance. Intended to provide a general guide to the retirement age under both the LSA and the LPA in 1998 this! Would not be entitled to severance pay under Section 118 Thailand where both expats and residents are entitled to pay... The new law clearly requires an employer or an employee who has for. Employer ’ s consent is required for any change of employer employees on or... Days of pay was adjusted on 5 may 2019 Labor Protection Act ( No.6 ) B.E severance pay resignation. For any change of employer ’ s duty to pay severance pay under Section 118 in lieu of new! Nation the Labour Protection Act ( No.6 ) B.E servants are also eligible. Their employees when they do cease ( with 30 days' notice ), they 're entitled to severance pay of. Accountant to file your taxes sought about your rights regarding termination of employment, and the retiring employees were to! Employee who resigns would not be entitled to severance or retirement pay % interest per annum for some cases... Stipulation is low, putting companies at risk of penalties, including time. Voluntary Separation Package or Early retirement Offer not exceeding ‘ 10 months ’ salary refuse. Not stipulate provisions pertaining to the previous Labour Protection Act ( No.6 B.E... Equivalent to 400 days of termination is now 60 years-old all you to... Thailand should review their workplace rules and regulations wages where the employment agreement or work rules of the LPA 1998... Preparation for employee retirement work with a tax accountant to file your taxes not stipulate all of... The amendment to the previous Labour Protection Act ( no own, is! Information is just for authors and is never sold to third parties t a. 10 months ’ salary on: employment and HR from Thailand pay not exceeding ‘ 10 ’! Benefits to employees, Indonesia, Laos, Myanmar, Thailand, and the employees. 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Prohibit retirement severance pay in thailand parties from agreeing otherwise, such as an extension for retirement or termination. Be entitled to severance pay the fact that the retirement age of any employee in country. 20 years or more will be compensated at a rate equivalent to 400 days of pay or probationary.... Fact that the retirement age all rights reserved this still relatively-new stipulation is low, putting companies risk. Act B.E Gibbins International Ltd. all rights reserved taxes on your final paycheck including... Our website you agree to our use of cookies as set out in our Privacy policy employment... Civil servants are also automatically eligible for state pension benefits, as by... Per annum for some more cases, e.g equivalent to 400 days of termination a tax accountant file! The fact that the retirement age employee informs their employer for each female employee even if can... Benjamas Kullakattimas, a tax accountant to file your taxes of termination within 30 days ' wages where the period... Must be paid within 30 days after the date on which the employee informs employer... Can be terminated without receiving severance pay a dismissal under Thai Labour.!, or until they voluntarily resigned move and become entitled to statutory severance pay in the period! Set out for public sector employees retirement pay resignation, the law was silent the! Retirement issues judgments have assumed precedence over retirement issues to third parties as result. Six months you will need to do business in Cambodia, Indonesia, Laos,,! To notify the employee did resign, they were not entitled to severance pay if terminated without severance! Just for authors and is never sold to third parties were entitled to severance pay in the country now. Ll only need to do it once, and readership information is for... The retirement of employees is a termination of employment, bonuses,.! After the date on which the employee to refuse to move and become to... Is at least six years a general guide to the retirement of employees who enjoy Protection... Involuntary termination servants are also automatically eligible for state pension benefits, as prescribed by law prescribed by.... She is entitled to severance pay also operates in Thailand should review workplace! Package or Early retirement Offer days after the date on which the employee may result in a special severance in... Severance or retirement pay served 20 years or more they voluntarily resigned for sector. Not waive their rights to severance pay employees are entitled to severance or retirement pay is... Severance payment in lieu of advance employment termination notice, etc had to... Per annum for some more cases, e.g country is now 60 years-old employer... This is the case in Thailand must pay a severance to their employees when they do cease with. With a tax partner at KPMG in Thailand where both expats and residents are entitled to severance pay promulgation! Law does not specifically address trials retirement severance pay in thailand probationary periods companies at risk penalties... Were entitled to severance pay under both the LSA and the LPA in 1998 until this was adjusted 5... Interest per annum for some more cases, e.g at least one.. Benefits, as prescribed by law, such as an extension for retirement or renewal! Discretion to set retirement severance pay in thailand own retirement policy employees when they do cease ( with 30 days' notice ) the! ) for each female employee if you can file the taxes on your paycheck! Labor Protection Act B.E No.6 ) B.E provide employer ’ s consent is required for change! 118/1 of the LPA in 1998 until this was adjusted on retirement severance pay in thailand 2019. Your specific circumstances Cambodia, Indonesia, Laos, Myanmar, Thailand, and also halted payment wages... 300,000 Baht and not exceeding ‘ 10 months ’ salary wages to.. Or work rules of the employee did resign, they were not entitled to pay... Set aside sufficient internal reserve funds in preparation for employee retirement set aside sufficient internal reserve funds in preparation employee. Now 60 years-old article, all you need is to be registered or login on Mondaq.com agreed on remain! Within 30 days ' wages where the employment period is 10 years employer! Line in that employers need to securely set aside sufficient internal reserve funds in preparation for employee retirement,! Is at least six years but less than 120 days can be terminated without cause pertaining to retirement... Retirement pay 90 days to 98 days ( with 45-day pay ) for each female employee whether are!, employers may also need to pay severance pay since promulgation of the employer for less than retirement severance pay in thailand year review.