Many businesses are reviewing costs and one of the measures under consideration may include reduction of the workforce. In accordance with Thai Labour Laws, making staff redundant owing to financial reasons or as a result of the recession is considered to be “termination without cause” and therefore subject to severance payments as follow: -
The Labour Protection Act B.E. 2541 (1998) (“the Act”) applies to all businesses operating in Thailand. The employer/employee relationship is regulated under Thai law, including matters relating to the termination of an employee.