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Thailand Law Update

Being a foreign teacher in a private school, does the school have to provide you with severance pay?
Author : M & S Law Office 2006
Issued : 18-Mar-2013

Section 118 of the Labour Proectection Act B.E. 2541 (1998) states that 

“An Employer shall pay Severance Pay to an Employee who is terminated as follows:  (5) if the employee has worked for an uninterrupted period of ten years or more, he or she shall be entitled to receive payment of not less than his or her last rate of Wages for three hundred days, or if not less than his or her Wages for the last three hundred days for an Employee who receives Wages on a piece rate basis. The provisions of paragraph one shall not apply to an Employee whose employment is for a definite period and the employment is terminated at the end of that period.”

Examination of the relevant Judgment of the Supreme Court Judgment of the Supreme Court of Justice No. 1207/2531 states that 

“The Employer and the Employee agreed to enter into an employment contract with 1 year term. Once the term thereof has been completed, both parties will renew the contract on a yearly basis. The Employer and the Employees renewed the contract several times. The last contract was made in April 1987 with 1 year term. Under such contract, the Employer agreed to employ the Employee as a teacher in the college of the Employer from 1 April 1987 – 31 March 1988 and the Employee agreed to work for the Employer for such period of time. Such contract is considered a contract with a definite period of employment specifying the commencement date and the expiry date. The period of employment is determined on a yearly basis. As a result, the severance pay shall not be provided.”

Judgment of the Supreme Court of Justice No. 8402/2550 states that

“In 2007, the Defendant employed the Plaintiff to work as a teacher in the Plaintiff’s school under a yearly employment contract. Once the contract term had been completed, both parties thereto would renew the contract on a yearly basis. The last salary was 157,676 THB. The last contract was for the academic year 2004 – 2005. The expiry date thereof was May 2005. The Defendant did not extend the term of employment or renew such contract made with the Defendant. Therefore, the severance pay shall not be provided.”

According to the above law and precedent cases, if their cases are similar to your situation, it is likely that Court will not rule to provide you with the severance pay if you bring the case to the Labour Court.
Does the Labour Protection Act protect the rights of the teachers in a private school?

Section 86 of the Private School Act B.E. 2550 (2007) states that
“The affairs of a Formal School only on the part of the Director, teachers and educational personnel shall not be subject to the law on labor protection, the law on labor relations, the law on social security and the law on compensation. However, the Director, teachers and educational personnel of a Formal School shall receive remunerations not less than those prescribed in the law on labor protection.
Working protection, the adoption of Working Protection Committee and the minimum remunerations of the Director, teachers and educational personnel of the Formal Schools shall be in accordance with the rules prescribed by the Commission”
According to the above law, the general labour law including the Labour Protection Act B.E. 2541 (1998) shall not be applied to your employment, which means that your rights are not protected by the Labour Protection Act and not entitled to the compensation given thereby.

Contact us for further information in relation to legal implication of your employment.



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