The Automotive Focus Group (AFG) continued its informative lecture series with a short seminar focusing on Thai Labor Laws, given by Pramote Srisamai and Douglas Mancill of the PriceSanond group.
Douglas Mancill opened the evening by asking how many Americans were in the audience, since the automotive industry world-wide had a high percentage of Americans in managerial positions. He explained his reasons for asking were that the American Labor Laws are quite different from the Thai Labor Laws, and in some cases diametrically opposed.
Douglas Mancill.
Whilst American laws tend to be designed to assist the employer, the Thai laws are prescriptive in nature and are more designed to assist the employee. For example, severance pay in Thailand is a minimum of 180 days, and if paid less than this, the employer is liable to a jail sentence of six months. The laws in Thailand must be obeyed!
Pramote and Douglas spoke on the Labor Protection Act which has been subject to changes in 1998, 2008 and most recently 2010. Twenty six regulations are involved in these amendments.
It was of interest that any warning letter given to an employee and signed by a foreigner, that person has to be the holder of a standard work permit.
The various outcomes that can occur when terminating an employee were discussed, from a resignation, to a mutual separation agreement, to a termination which in itself can be verbal! Senior management should never lose their temper and exclaim “You’re fired!” as this can be taken as an unlawful dismissal in the Labor Courts.
The subject was deemed to be so important that discussions with Pramote Srisamai and Douglas Mancill continued well after the meeting and into the fellowship which was held in the Amari Tower’s Ice Bar.
The AFG has become one of the leading groups representing the automotive industry in Thailand. Contact can be made with the President Frank Holzer by email [email protected].
Pramote Srisamai.
