Update on Amendment of Labor Protection Act
The National Legislative Assembly (NLA) has accepted the draft amendment of the Labor Protection Act on 20th September 2018 for consideration, and to work on any suggested changes within 30 days. According to the accepted draft, a number of key points covered in the proposed amendment includes:
- Fixing interest rate at 15% of payment in case of overdue payment of remuneration
- Employer must obtain consent from Employee in order to change Employer
- Employer must pay wage in lieu of advance notice to Employee on the date of termination in case of dismissal with immediate effect.
- Employee is entitled to take business leave of at least 3 working days per year with pay.
- Female employee is entitled to 98 days of maternity leave including pregnancy checkup.
- Equal remuneration for male and female employees in work of equal value.
- Determine the term of office relocation to include a new office location or other location that the Employer may already have.
- Employee who has worked with Employer for at least 20 consecutive years, shall be entitled to severance pay at the last wage rate of 400 days.
Three service businesses proposed to be removed
The Foreign Business Commission under the Ministry of Commerce has recently proposed to remove three service businesses from List 3 Attached to the Foreign Business Act B.E. 2542, namely:
1) Providing loan to local subsidiary and affiliate companies,
2) Renting office building, including providing utilities, to local subsidiary and affiliates companies, and
3) Providing consulting services to subsidiary and affiliates companies under four scopes of activities: management, marketing, human resources and technological consulting.
The removal of these businesses does not cause any adverse affect on the Thai businesses because the foreign companies are able to do these businesses by obtaining the Foreign Business License already and the businesses are limited to the affiliate and subsidiary companies only.
This proposal will have to be proposed to the Minister and the Cabinet for approval.