Covid-19 & Labor Law

During this time of COVID-19 crisis, even though the situation seems to be better, we know that lots of businesses are affected from this crisis, especially in regard to the business’s financial flexibility, huge amount of salary employees was laid off, some companies temporarily suspended their business.

The most popular questions will be how will employees be compensated from this unemployment situation?

Q: Lay off employees when the company is affected by COVID-19 situation, are employees eligible to receive any compensation from the Company?

ANS: Yes, under the Thai Labor Law, an employee is able to receive a “severance pay” according to his/her work period, details as follows;

• The employee who have completed uninterrupted 120 days of employment but less than 1 year,
  shall receive a severance pay for not less than his/her last rate of wages for 30 days.
  
• The employee who have completed uninterrupted 1 year of employment but less than 3 years,
  shall receive a severance pay for not less than his/her last rate of wages for 90 days.
  
• The employee who have completed uninterrupted 3 years of employment but less than 6 years,
  shall receive a severance pay for not less than his/her last rate of wages for 180 days.
  
• The employee who have completed uninterrupted 6 years of employment but less than 10 years,
  shall receive a severance pay for not less than his/her last rate of wages for 240 days.
• The employee who have completed uninterrupted 10 years of employment but less than 20 years,
  shall receive a severance pay for not less than his/her last rate of wages for 300 days.
• The employee who have completed uninterrupted 20 years or over 20 years of employment
  shall receive a severance pay for not less than his/her last rate of wages for 400 days.
  
  
  

Q: In the event of unemployment due to the effects of COVID-19, how much compensation will social security pay?

ANS: Compensation for employees in each group is varies, according to the following conditions:

• An employee who has an employer and contribute money to the Social Security Fund for not less than 6 months

ANS: In the case of employment termination because of the economic conditions impact,
the Social security shall compensate for 70% of the daily wage not more than 200 days. (2 years applicable)

In the case of resignation or termination of the employment contract with definite period,
the Social security shall compensate for 45% of the daily wage not more than 90 days. (2 years applicable)

• Those who contribute money to the Social Security Fund less than 6 months,
  daily employees, self-employed.

ANS: He/She will be able to receive a remedy from the Ministry of Finance, 5,000 baht for a period of 3 months during April to June 2020.

There are more legal matters and concerns in regard to the Covid-19 crisis situation, in both aspects of employer and employees, should you have any more queries, please contact us for more information and further assistance.

Avanta & Co