1. LAWPLUS
American Chamber of Commerce
HR Committee and Legal Committee
www.lawplusltd.com
19 January 2018
The Westin Grande Sukhumvit, Bangkok
Annual Labour Law Updates
Kowit Somwaiya
Managing Partner
LawPlus Ltd.
2. LAWPLUS 1
Presentation Topics: Annual Labour Law Updates
• Amendment No. 6 to the Labour Protection Act B.E. 2541 (A.D. 1998)
• Emergency Decree on Foreign Employment Administration B.E. 2560 (A.D.
2017)
• Visa and Work Permit for Employees of BOI Promoted Companies
– Skilled employees
– Single Window System for skilled employees
– Unskilled employees
• Smart Visa
3. LAWPLUS 2
Amendment No. 6 to the Labour Protection Act B.E. 2541 (A.D. 1998)
• Effective on and from 1st September 2017.
• The work rules and any of its amendment must be distributed and published
at the work place or made available to employees electronically (Sections
108 and 110).
• If retirement age is contractually agreed or pre-determined by the employer,
retirement is deemed termination (Section 118/1, first paragraph).
• If retirement age is not contractually agreed or not pre-determined by the
employer or if it is agreed or pre-determined beyond 60 years of age, the
employee who turns 60 or older can give a 30-day retirement notice and the
employer must pay severance (Section 118/1, second paragraph).
• Court used to grant retirement severance pays to retired employees if
retirement age was contractually agreed or pre-determined by the employer
(Supreme Court Judgments No. 1617/2547, No. 4732/2548 and No.
3196/2551).
4. LAWPLUS 3
Emergency Decree on Foreign Employment Administration
B.E. 2560 (A.D. 2017) (“ED2017”)
• Effective on and from 23rd June 2017.
• Foreigner Employment Administration Policy Committee (20 members
from the public sector and 8 members from the private sector) is
established to:-
- prepare policy and strategy for foreign employment administration
- supervise implementation of policy and strategy for foreign
employment administration.
• Employer who employs unskilled foreign employees from CLMV (MOU
countries) must:
- obtain a permission from the Department of Employment (“DOE”);
and
- place a guarantee with the DOE at THB1,000 per foreign employee
(but not more than THB100,000 for all employees).
5. LAWPLUS 4
Emergency Decree on Foreign Employment Administration
B.E. 2560 (A.D. 2017) (“ED2017”)
• Employer who hires a foreigner without a work permit or hires a foreigner to work
on a prohibited or restricted work is subject to a fine between THB400,000 and
THB800,000 per employee (Sections 102 and 122).
• Foreigner who works in Thailand without a work permit is subject to
imprisonment up to 5 years or a fine from THB2,000 to THB100,000 or both
(Section 101).
• Foreigner who works on a necessary and urgent work basis without notifying the
DOE is subject to a fine of THB20,000 to THB100,000 (Section 119).
• Enforcement of Sections 101, 102, 119 and 122 was postponed by the NCPO
Order No. 33/2560 dated 4th July 2017 until 1st January 2018.
• Further postponement to 1st July 2018 by an order of the NCPO is likely.
6. LAWPLUS 5
Visa and Work Permit
for Skilled Employees of BOI Promoted Companies
• Skilled Employees: President, Managing Director, General Manager, Factory
Manager, CFO, Production Engineer, etc.
• Must have education backgrounds and experiences required by the BOI, e.g. at
least 5 year-experience in the same business as the promoted business of the
company.
• Terms of visa and work permit vary per types of promoted businesses, e.g.
- 4 years for IHQ and ITC
- 2 years for software business
- 1 year for call center business.
• BOI promoted companies can employ foreigners without complying with the
requirements of
- the 4:1 Thai - foreign employee ratio (work permit)
- the THB2 million registered capital for each foreign employee (visa)
7. LAWPLUS 6
Visa and Work Permit for Skilled Employees
of BOI Promoted Companies
Major steps and procedures for obtaining visa and work permit:-
No. Procedures By From
Timeframe
(Working Days)
1. Obtaining a Non-Immigrant B visa
from abroad
Employee Thai embassy
located outside
Thailand
Variable
2. Obtaining a username and a
password for using the BOI e-
Expert System
Employer One Start One
Stop Investment
Center (OSOS)
3-5
3. Obtaining an approval from the
BOI for positions of skilled
employees
Employer BOI e-Expert
System (online)
5-20
4. Obtaining an approval from the
BOI for appointment of each skilled
employee in the approved position
Employer BOI e-Expert
System (online)
3-5
5. Obtaining a visa and a work
permit
Employee OSOS 1
8. LAWPLUS 7
Single Window System (“SWS”) for Skilled Employees
of BOI Promoted Companies
• SWS will replace the e-Expert System and issue digital work permit and visa.
• SWS will consist of BOI, DOE and IMM teams.
• Each new BOI promoted company must obtain a username and a password for
SWS from OSOS.
• Each existing BOI promoted company can use the username and password of
the e-Expert System with SWS but the company must first attended the SWS
training workshop and the existing username and password must be reactivated
by OSOS.
• After SWS approves applications for position and employee filed by the
company, the employee must attend SWS and pay official fee and obtain digital
work permit and visa on the same day.
9. LAWPLUS 8
Visa and Work Permit for Unskilled Employees
of BOI Promoted Companies
• Unskilled Employees: Persons not having required skills or expertise (factory
workers, fishery labours and housemaids, etc.).
• Visa and work permit are valid for 2 years, renewable for another period of 2
years.
• BOI promoted company can employ unskilled employees until 31st December
2018.
• From 1st January 2019, BOI promoted company can employ only unskilled
labours and housemaids from CLMV to work at BOI projects located in Special
Economic Zones (10 provinces) and Songkhla, Pattani, Yala and Narathiwas.
10. LAWPLUS 9
Visa and Work Permit for Unskilled Employees
of BOI Promoted Companies
Major steps and procedures for obtaining visa and work permit
No. Procedures By From
Timeframe
(Working Days)
1. Obtaining a quota for employment
of unskilled employees
Employer Bangkok Employment Office
(“BEO”) or Provincial
Employment Office (“PEO”)
3
2. Obtaining approval to bring
unskilled employees into Thailand
Employer BEO or PEO 1
3. Obtaining an approval to bring
selected unskilled employees to
work in Thailand
BEO or PEO CLMV relevant authorities Variable
4. Obtaining an approval for selected
unskilled employees to work in
Thailand
Employer BEO or PEU 1
5. Obtaining a Non-Immigrant L-A
visa
Employee Thai embassy located in
CLMV
Variable
6. Attending a training workshop Employee Post-Arrival and Employment
Termination Center
1
7. Health check-up Employee Hospital in Thailand 1
8. Obtaining a work permit Employee BEO or PEO 7
11. LAWPLUS 10
Smart Visa
• Smart Visa principles were approved by the Cabinet on 29th August 2017.
• May be implemented from February 2018.
• Eligible foreigners:-
(1) Highly skilled persons (executives and technical experts) working for
companies in 10 S-curve industries
(2) Investors investing in 10 S-curve industries.
• 10 S-curve industries:-
12. LAWPLUS 11
Smart Visa
• Holder of a Smart Visa, his/her spouse, children and dependents can reside in
Thailand up to 4 years.
• Holder can work in Thailand without holding a work permit.
• Holder reports to the Immigration Office only once a year.
• Smart Visa principles are also included in the draft of the EEC Act.