Employee Rights Upon Termination

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Severance Pay

Severance pay, as defined by the Labor Protection Act (No. 7) B.E. 2562, refers to the money paid by the employer to the employee upon termination, excluding other types of payments. The employer agrees to pay severance based on the employee's length of service, with the employee having the right to receive severance pay when working for a minimum of 120 days. However, employees are not entitled to severance pay under the following circumstances:

1. Resignation by the employee.
2. Dishonesty or committing criminal offenses intentionally against the employer, such as embezzlement or fraud.
3. Intentionally causing harm to the employer.
4. Causing intentional harm to the employer resulting in significant damage.
5. Violation of work regulations or orders of the employer, provided that the employee has been warned in writing, except in cases of serious misconduct where a warning is not required.
6. Abandonment of duties for three consecutive working days without justified reasons.
7. Imprisonment according to a final court judgment.
8. Cases of fixed-term employment, such as project-based work, seasonal work, and work aligned with the seasons.

Severance Pay Rates

Employees are entitled to severance pay based on their length of service, provided that the employer terminates their employment without any fault on the part of the employee. The rates are as follows:

If the employee has worked continuously for at least 120 days but less than 1 year, they are entitled to severance pay equal to 30 days of the last wage.

If the employee has worked continuously for at least 1 year but less than 3 years, they are entitled to severance pay equal to 90 days of the last wage.

If the employee has worked continuously for at least 3 years but less than 6 years, they are entitled to severance pay equal to 180 days of the last wage.

If the employee has worked continuously for at least 6 years but less than 10 years, they are entitled to severance pay equal to 240 days of the last wage.

If the employee has worked continuously for at least 10 years, they are entitled to severance pay equal to 300 days of the last wage.

If the employee has worked continuously for at least 20 years, they are entitled to severance pay equal to 400 days of the last wage.

In addition to severance pay, employees also have the right to receive "notice pay" if they are terminated without advance notice. Notice pay is equivalent to one installment of the regular wage, and the employer must notify the employee in writing at least 30 days in advance or pay notice pay for one month.

Termination for Organizational Improvement, Downsizing, or Business Relocation

If the termination is due to organizational improvement, downsizing, or business relocation, the employer must provide notice at least 60 days in advance. If the employee is not notified, they are entitled to compensation equal to no less than the last wage for 60 days.

Termination due to Business Relocation

If the termination is due to business relocation, the employer must provide notice at least 30 days in advance. If the employee is not notified, they are entitled to compensation equal to no less than the last wage for 30 days. Additionally, if the employee decides not to relocate for the new job, they have the right to receive compensation not less than 50% of the entitled severance pay.

Payment Period for Severance Pay

The employer must pay severance pay to the employee on their last working day. If the employee does not receive the payment, they can file a complaint with the Department of Labor Protection and Welfare, as it is considered unfair termination.

Unemployment Benefits

If the employee is covered by social security and has paid contributions for at least 6 months within the last 15 months before becoming unemployed, they are eligible for unemployment benefits. These benefits can be claimed at the Social Security Office within 30 days of resignation or termination. Additionally, if the employee is not registered for new employment within 30 days, they are entitled to receive compensation not less than 50% of the severance pay they would have received.

It's essential for employees to be aware of their rights, seek legal advice if needed, and ensure fair treatment in accordance with Thai labor laws.