One of our clients is faced with an employment issue. In the company’s work rule, it provides 15 days of annual leave which is much more beneficial than the Thai Labor law requirement which is only 6 days per year. There is no restriction that the employee must take all annual leave within the year. This company allows its employee to accumulate and postpone any annual leave that has not yet been taken in a year to be included in the following years. It seemed to be smooth until a few employees claim the payment for their unused leave that they have been accumulating for many years. Their salary is 60,000 Baht and they claim for 30 days of annual leave which is costs 60,000 Baht per person. It is an unexpected cost to the company. Now the company wants to reduce the annual leave from 15 days to 10 days and the employees must use all the annual leave within the same year. The solution is the company has to amend the work rule, but, since this change lessens the employee benefit, the company shall announce to the employees and get their consent before it can do so. If the company’s work rule is registered at the Department of Labour Protection and Welfare, the company needs to submit the amended work rule attached with the employees’ letter of consent.
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