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Thai labor law stipulates special rules for any company that hires at least ten Thai employees. There are the standard rules that you’ve come to expect from any labor law: vacation time, sick leave, overtime pay are some of the rules specified. But beyond that, employers must consider the fine print.
The clock begins ticking immediately upon hiring your 10th Thai employee. Thai labor law requires that you announce the new working rules within 15 days of that hire. That includes distributing and posting the new rules “in a prominent position at the employees’ workplace”. Those rules, of course, must be in Thai.
It’s important to read the fine print so that you don’t get burned. For example, let’s say you hired ten Thais. You complied with Thai labor law by providing the work rules in Thai, submitted a copy of the rules to the Bangkok Metropolitan Area Offices of Labor Protection and Welfare, etc. You’ve obeyed the law and protected your employees. Then, one of your employees takes another job, leaving you with only nine Thai employees. You may think that you’re off the hook, right?
No. You’re still required by law to keep the very same rules in effect. Fail to do so and you’re looking at a fine of 20,000 Thai Baht.
The work rules are designed to protect employees. But it’s not all penalties and paperwork for you, the employer. On the contrary, the Work Rules can be drafted to meet each specific employer’s own requirements to some extent, so long as they do not violate the Thailand labor laws. For example, minimum retirement age, office hours and work location are some ways you can create rules specific to the needs of your business.
In addition, the work rules clearly state the penalties for any employee who fails to meet his obligations or, even worse, decides to brawl with peers in the workplace. Indeed, it’s not only the employees who benefit from having these rules in place, but also the employer.
We can help you remove the confusion of Thai labor law and ensure your compliance. Moreover, with our profound understanding and lengthy experience of Thai labor practices, we will find any advantages that labor laws might hold for you and your business.