Labor laws are worth knowing , but many bosses and business owners pretend not to know or do not want to know. It may be because it is difficult to understand or may be seen as unimportant. But let me tell you, you can’t not know!
Believe it or not, there are many companies, especially SMEs, which are medium and small, that are unknowingly breaking labor laws. This may be due to lack of knowledge or lack of understanding about labor laws. If the entrepreneurs are negligent or neglectful in these matters, they may be fined or imprisoned easily.
Labor law is therefore an important issue that every new or experienced entrepreneur needs to know. Here are 9 important things related to labor law that entrepreneurs need to know.
1. Regarding the rights to leave, sick leave, personal leave, vacation leave, maternity leave, how many days can be taken:
Every employee has the right to take various types of leave, such as sick leave, personal leave, maternity leave, according to the Labor Law, as follows:
- Sick leave , according to the Labor Protection Act of 1998, Section 32 in conjunction with Section 57, stipulates that employees have the right to take sick leave as long as they are actually sick, and will receive wages equal to wages on a normal working day for the entire leave period, but not exceeding 30 working days per year. For sick leave starting from the 31st day onwards, employees are not entitled to receive wages.
- Annual leave or vacation days, according to the Labor Protection Act of 1998, Section 30 in conjunction with Section 56, stipulate that employees who have worked continuously for one year have the right to an annual vacation of not less than 6 working days per year, receiving wages equal to wages on normal working days.
- Sick leave, according to the Labor Protection Act of 1998, Section 34, in conjunction with Section 57/1, stipulates that employees can take leave for necessary business for no less than 3 working days per year, with the right to receive wages equal to wages on normal working days throughout the leave period, but not exceeding 3 working days per year.
- Maternity leave , according to the Labor Protection Act of 1998, Section 41 in conjunction with Section 59, stipulates that pregnant female employees can take maternity leave for no more than 98 days per pregnancy. The leave days will be counted from the day of pregnancy check-up, the day of delivery, and will also include other holidays during the leave days. For maternity leave, the employer must pay the employee wages in an amount equal to the most recent rate paid, and pay no more than 45 days.
In summary, this means that the company must maintain the employee’s leave rights, which must not be less than what is stipulated by law.
2. Employees who arrive late will not be entitled to a deduction:
If an employee is late for work, the employer cannot deduct the employee’s wages on the grounds that he/she is not able to come late because it is against the Labor Law. Referring to the Labor Protection Act B.E. 2541, Section 76 states that “The employer is prohibited from deducting wages, overtime pay, holiday pay, and overtime pay on holidays.”
But there are some cases where some employees really do have a habit of being late, whether for personal reasons or other problems. If this is the case, the employer or company can proceed with the following steps: if it is the first time being late, give a verbal warning. If being late again occurs, give a written warning. And if the same mistake is repeated, which is being late, the employer can terminate the employment. In this case, the employer does not have to pay any compensation for termination.
In summary, this point is that if an employee is late, the company cannot deduct their salary. However, if the employee repeatedly makes mistakes, the company can terminate the employee without paying compensation.
3. Employees resign suddenly and without prior notice. Salary cannot be deducted and they cannot be forced to resign:
If an employee suddenly resigns, even though it is stated in the employment contract that they must give 30 days’ notice, and the employer deducts the wages, this is considered a violation and cannot be done because when the employee works for the employer and the wages are due, they must be paid according to the agreement. The employer has a duty to pay the employee the correct wages and on time according to Section 70 of the Labor Protection Act B.E. 2541.
If an employee has submitted a formal resignation letter, the employee is legally considered to have done so and is effective immediately. The employer cannot refuse the employee’s resignation because the labor law does not specify how many days in advance the employee must give notice of resignation, nor does it specify that the resignation must be approved by the employer. Therefore, the employer has no right to force the employee not to resign.
In summary, this point is that employees always have the right to resign. The company cannot force them to stay or deduct their salary.
4. If the employee is really on sick leave, their salary cannot be deducted and they cannot be fired:
Every employee has the right to take sick leave if they are truly sick, but it must be done in accordance with the law, referring to the Labor Protection Act of 1998, Section 32. If within 1 year of employment, we are not in good health and truly sick, we can use the right to take sick leave as is. Throughout the period that we are sick, we must receive wages (or salary) throughout the sick leave period, but within one year it must not exceed 30 days.
However, if the employee is sick for more than 30 consecutive days, the employee will not receive wages (or salary) for the days exceeding 30 days. And if the employee is sick and on sick leave for more than 3 consecutive days, the employer has the right to request to see a medical certificate. The employee must present a first-class medical certificate or a medical certificate from a government hospital to confirm.
However, if it is a false sick leave, what will be the result? For example, a political sick leave or a fake sick leave, it is considered that the employee has abandoned his/her duty and may be considered as having dishonest intentions towards the employer or company. In this case, the employer can terminate the employment without having to pay any compensation if the employer or company can prove that the employee did not falsely say that he/she was sick.
In summary, if the employee is truly sick, then we must understand him. However, if he is politically sick, then we can terminate him.
5. Dismissing employees without paying compensation is illegal:
Every employee has the opportunity to be terminated at any time. But the termination must be fair according to the law and must be compensated. That is, if the employer terminates the employee without the employee being “at fault”, the compensation will be set at a rate based on the employee’s length of employment.
Except in the following cases, employers are not required to pay compensation to employees when employees commit an offence under Section 119 of this Act for the following reasons:
- Corruption in office or intentionally committing a criminal offense against the employer
- Intentionally causing damage to the employer
- Negligence causing serious damage to the employer
- Violating work regulations and the employer has already given a written warning, except in serious cases where the employer is not required to give a warning.
- Abandoning duty for three consecutive working days without reasonable cause and
- Sentenced to imprisonment according to the final judgment. However, if the employee commits an offense for the reasons mentioned above, when the employer terminates the employee, they do not have to pay compensation to the employee, but must specify the reason for the offense in the termination letter.
In summary, this point means that the company can terminate any employee if he is not at fault, and must pay compensation.
6. Not paying overtime to employees is illegal:
Overtime work means work outside or beyond normal working hours or beyond the working hours each day that the employer and employee agree upon according to Section 23 on working days or holidays, which are detailed as follows:
- Overtime pay means money that employers pay to employees in return for working overtime on a working day.
- Holiday pay means the money that the employer pays to the employee in return for work done on a holiday.
- Overtime pay on holidays means the money that employers pay to employees in return for overtime work on holidays. The criteria for overtime payment are: overtime pay on working days is 1.5 times the wages. If the employer lets employees work overtime after normal working hours for more than 2 hours, they must rest for at least 20 minutes before starting overtime work.
- Overtime pay on weekly holidays, traditional holidays or annual holidays, employees receive 3 times the wages.
Therefore, employers who do not pay overtime or OT to their employees are considered to be violating labor laws. The Labor Protection Act of 1998 stipulates that the penalty is a fine not exceeding 20,000 baht. In addition, Section 63 of the Labor Protection Act of 1998 stipulates that employers must pay overtime in cash only and cannot exchange it for holidays.
In summary, if employees work overtime and do it for free, employers must pay as required by law.
7. Hiring temporary or part-time employees but paying them wages lower than the minimum wage is illegal:
Many businesses need to hire temporary or part-time employees to help during peak hours. However, if the hiring is done at an unfair wage rate, it is against the law because the minimum wage rate as defined by law applies to all types of employees, such as daily, weekly, monthly, hourly, piecework, temporary or permanent employees, full-time employees, part-time employees, or other types of employees, regardless of whether the employment is under a continuous contract as specified in the employment law or not.
However, there are exceptions for employees who are not required to pay the minimum wage, such as workers who live with the employer, student trainees, and contract trainees under the Internship Act, etc.
In summary, this point means that no matter what type of work is employed, the wages must be paid no less than the minimum wage as stipulated by law.
8. Hiring foreign workers without a permit is illegal:
Many businesses need to hire foreign workers because it may be difficult to find Thais to do the work, or it may be a job that Thais do not want to do. This can be done, but foreign workers who want to work in Thailand must be properly registered, and the business owner must also apply for permission. If the employer hires foreigners without a work permit or allows foreigners to do work outside of what they are entitled to do, they will be fined 10,000 – 100,000 baht per foreigner hired. If it is found that the offense is repeated, they will be imprisoned for no more than 1 year or fined 50,000 – 200,000 baht, or both, and will be prohibited from hiring foreigners for 3 years.
In summary, this point is that you can hire foreign workers, but you have to do it correctly.
9. Bad behavior of the boss or business owner risks criminal liability:
Bosses or business owners who bully or harass their employees, do you know that you are at risk? Because your behavior and what you are doing may be illegal. Here are some examples of bullying behaviors that risk violating the criminal law, such as:
- Severely scolding and warning in front of everyone in the office
- Threatening to reduce salary or benefits
- Delegating tasks that cannot be done or delegating tasks that are not valuable
- Unfair performance evaluation
- Intruding into personal matters or revealing personal secrets to others in the workplace
- Gossip about our mistakes behind our backs.
Referring to Section 397 of the Criminal Code, it states: “Whoever acts in any way to another person in a way that is a form of bullying, intimidation, threatening, or acts in a way that causes embarrassment or annoyance shall be punished with a fine not exceeding 5,000 baht. If the offense under paragraph one is committed in a public place or in front of the public, or is committed in a manner that suggests sexual harassment, the punishment shall be imprisonment not exceeding one month, or a fine not exceeding 10,000 baht, or both. If the offense under paragraph two is committed because the perpetrator has power over the victim due to the relationship as a commander, employer, or other person with authority, the punishment shall be imprisonment not exceeding one month and a fine not exceeding 10,000 baht.”
For the offense under Section 397, it will be considered a minor offense, which means that it is an offense that can actually be settled at the investigation officer level. However, if the victim, which is the officer, wants to fight until the end, they can also file a complaint to proceed to the next step of the court case.
In summary, this point is that business owners or bosses must be careful about their behavior. Anything bad may be illegal and could lead to jail time.
Conclusion
The 9 labor laws that are presented above are important because they are issues that often occur between employees and employers. Knowing labor laws or related matters is essential and very important for employees at the supervisory level and business owners because it is considered a protection against risks that arise from ignorance or actions that exceed the scope of the law. Of course, if this happens, the punishment may be both imprisonment and fines, and it may also cause the organization to have a bad reputation.
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