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Leave and Holiday
Under the Labour Protection Law, all employees, whether full or part-time, seasonal, casual, occasional, or contract, are entitled to weekly leave and traditional paid holidays. Employees are also entitled to paid annual holiday-leave. There are provisions for certain maximum periods of paid sick leave and military leave (if military service is required by law), and partially paid maternity leave. Maximum working hours are fixed at eight hours per days and 48 hours per week, or seven hours per day and 42 hour per week for work which is considered hazardous to health.

Severance Pay
Any employee who has worked for a continuous period of 120 days or more is entitled to severance pay if their employment is terminated without cause, and “cause” is very limited under the law.

Employees are not entitled to severance pay if they are hired for a maximum period of two years and for work that is, by its nature, seasonal, casual, or occasional, or for work under a project in respect of which the employee and the employer have executed an employment agreement in writing stipulating the commencement and termination dates of employment.

Severance pay entitlement depends on the period of employment and ranges from 30 days’ wages for service of 120 days to one year, to 300 days’ wages for service of 10 years or more.

Regardless of the amount (if any) of severance pay due to the employee, the Labour Protection Law and the Civil and Commercial Code require the employer to provide the employee with notice of termination. Such notice must be given at or before any time of payment three months’ notice is required. Payment for an equivalent length of time can be given in lieu of such notice.

Regardless of the amount (if any) of severance pay and notice or payment in lieu of notice, if the dismissal is unfair, then the employee may claim for damages or reinstatement. 

Other Regulations
Any employer with 10 or more employees must make an annual contribution to the Workmen’s Compensation Fund of the Labour Department, The amount due depends on the type of business and ranges between 0.2 – 2.0% of the employees’ annual wages.

Every employer who regularly employs 10 or more employees must establish, post, and file work regulations covering working conditions, including such matters as working days, holidays, overtime, wage payment, rules regarding leaves of absence, discipline, submission of grievances, and termination of employment.

There are minimum wages prescribed by law (except for agricultural workers), which vary by province, but currently range between Baht 122-170 per day. A penalty of 15% interest on the sum due is imposed for default of wage payment.

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