Under Section 118 of Labour Protection Act of 1998, as administered by the Ministry of Labour, an employer should pay severance pay to an employee who is terminated after the employee has work for a consecutive period of 120 days or more.
Hence, Section 119 states that an employer may not pay severance pay to an employee when employment is terminated upon any of the following conditions:
- Performing his/her duty dishonestly or intentionally committing a criminal offence against the employer;
- Willfully causing damage to the employer;
- Committing negligence causing serious damage to the employer;
- Violating work rules, regulations or orders of the employer which is lawful and just and after written warning having been given by the employer, except for a serious case with no requirement for the employer to give warning. The written warning shall be valid of not exceeding one year from the date when the employee commits the offence;
- Neglecting his/her duty without justifiable reason for 3 consecutive working days regardless of whether there is holiday on between or not;
- Being sentenced to imprisonment by a final court judgment except for offences committed by negligence or petty offences
The employer must specify the cause of termination in a letter and inform the employee at the time of termination of employment.
Thai Lawyers has a vast knowledge about the Thai Labor Law, hiring and termination of employees. We can review employment contracts before you give it to your employees to make sure it is in accordance with the Thai laws.