In cases where termination for cause is justified, the employer may terminate employment immediately without paying severance.
|Statutory minimum notice||None|
If an employer terminates an employee without cause (which is most often the case), the employer must:
Serve a termination notice at least one pay period in advance, or as specified in the employment contract (whichever is longer). Alternatively, the employer may terminate the employee immediately by paying the employee’s wages in lieu of the advanced notice.
Provide mandatory severance pay ranging from 30 to 400 days, depending on the length of service of the employee, as follows:
|120 days, but less than 1 year||30 days|
|1 year, but less than 3 years||90 days||3 years, but less than 6 years||180 days||6 years, but less than 10 years||240 days||10 years but less than 20 years||300 days||20 years or more||400 days|
In addition to the foregoing, the employee may file a claim for wrongful termination of employment in Thailand. If a terminated employee believes their dismissal was unfair, they can take their case to the labour courts to seek reinstatement or compensation for damages. At its discretion, the court can award compensation in addition to severance pay, payment of salary in lieu of notice, and other amounts due on termination.
The court must examine the following factors while making its decision:
|➤ The employee's age|
|➤ The length of time an employee has been with the company|
|➤ The employee's job title|
|➤ The reason(s) for the dismissal|
If the court judges a termination to be unjust, it can impose reinstatement or damages if the employee seeks it. Employers should talk with departing employees to reach an acceptable end to the working relationship to avoid charges of unjust termination of employment.
On a case-by-case basis, this is dependent on the judges’ assessment of the facts and evidence.
If the employee asks it, the court can order his or her reinstatement. If the employer and employee can no longer work together, the court will require the employer to give the employee compensation or damages.
In general, redundancies and mass layoffs are governed in the same way as other termination situations are. Employers must follow the processes outlined below if employment is terminated due to restructuring connected to the deployment of new technology or machines.
|➤ Give a 60-day notice to the labor inspector, indicating the date of termination of employment, the grounds for termination, and the names of employees|
|➤ Give affected employees 60 days' notice in advance, or pay wages in lieu of notice|
Normal severance pay is required for this form of termination of employment, and the business must also pay special severance to all employees who have worked for the company for at least six years.