Section 118 of Labor Protection Act B.E. 2541 states that the employer must pay severance pay to the employee who is terminated. Termination of employment is defined as follows.
1. Any act which an employer refuses to allow an employee to work without paying wages on expiry of contract of employment or any other causes
2. The employee cannot work and has not been paid because the employer is unable to operate the business.
Severance pay is an amount of money paid to an employee by an employer upon termination of employment except for the following cases.
1. The employee quits the work voluntarily.
2. The employment contract specifies the fixed period of employment and the agreement is terminated at the end of that period. For work which must be completed within two years and the employer has made a written contract with the employee at the beginning of the employment, and that work is temporary which can be finished in a short time such as the followings:
2.1 Employment in a specific project which is not the normal business or trade of the employer which requires a definite date to commence and end the work such as research experiment or pioneering research.
2.2 An occasional work with a definite ending or completion.
2.3 Work which is seasonal and the employment is made during the season.
Otherwise, the employer has to pay the severance pay in every case that stops the employee from working unless the employee has done any of the misconducts according to Section 119 as follows:
1. Performing his or her duty dishonestly or intentionally committing a criminal offence against the Employer;
2. Intentionally causing damage to an employer
3. Causing serious damage to the Employer as a result of negligence
4. Violating work rules or regulation or orders of the Employer which are lawful and just, and after written warning has been given by the Employer, except in a serious case where the Employer is not required to give warning.
Such written warning shall be valid for not more than one year from the date of commission of the offence by the Employee;
5. Neglecting his or her duty without justifiable reason for three consecutive working days regardless of whether there is holiday in between or not; or
6. Being imprisoned by a final judgment of imprisonment except for offenses arising out of negligence or petty offenses.