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Thailand - Compensation & Benefit Legislation

CAPITAL

Bangkok

 

CLIMATE

Tropical climate; rainy, warm, cloudy southwest monsoon (mid-May to September); dry, cool northeast monsoon (November to mid-March); the southern isthmus is always hot and humid.

 

LANGUAGES

Thai, English (secondary language of the elite), and ethnic and regional dialects.

 

LEGAL SYSTEM

Thailand’s legal system is based on civil law system, with influences of common law. Thailand has not accepted compulsory ICJ jurisdiction.

 

CURRENCY

Thai Baht (1 USD = 42.39800 THB as of June 1, 2002).

 

THAILAND - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

THAILAND - EMBASSY/CONSULATES

U.S. Embassy at Bangkok

120 Wireless Rd.

APO AP 96546

Bangkok, Thailand 10330

Telephone: [66] (2) 205-4000

Fax: [66] (2) 254-1171

http://usa.or.th/

 

U.S. Consulate General Chiang Mai

387 Wichayanond Road

Chiang Mai, Thailand 50500

Telephone: [66] (53) 252-629

Fax: [66] (53) 252-633

http://usa.or.th/consulcm/consulcm.htm

 

Royal Thai Embassy at Washington D.C.

1024 Wisconsin Avenue N.W., Suite 401

Washington D.C. 20007

Telephone: (202) 944-3600

Fax: (202) 944-3611

Email: thai.wsn@thaiembdc.org

http://www.thaiembdc.org/

 

THAILAND - HOLIDAYS

 

THAILAND – LEAVE

Annual Leave: Minimum six days vacation days each year.

 

Maternity Leave: 90 days – 100% of pay for 45 days, 50% of pay for 15 days (45 days paid by employer, then social security).

 

THAILAND - MINIMUM AGE

The legal minimum age for employment is 15 years of age. The law permits the employment of children between the ages of 15 and 18 only in "light work," where the lifting of heavy loads and exposure to toxic materials or dangerous equipment or situations is restricted. The employment of children at night (from 10 p.m. to 6 a.m.), or in places in which alcohol is served, is prohibited by law.

 

(Section 6.d. Acceptable Conditions of Work, Thailand – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

THAILAND - MINIMUM REMUNERATION

The minimum wage ranges from 133 to 165 baht per day (approximately $3.01 to $3.71), depending on the cost of living in various provinces.

 

(Section 6.e. Acceptable Conditions of Work, Thailand – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

THAILAND - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

THAILAND - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

The 1975 Labor Relations Act grants freedom of association to all private sector workers, who have the right to form and join unions of their choosing without prior authorization. However, no law explicitly protects from discrimination workers who have participated in organizing new unions that have not been registered officially. Union leaders reported that employers often discriminate against workers seeking to organize unions. During the year, employers used loopholes in the Labor Relations Act to fire union leaders prior to government certification of new unions. The Government had not amended this legislation by year's end.

 

In 2000 the International Confederation of Free Trade Unions criticized a draft revision of the Labor Relations Act, because of its limits on the right to strike in "essential services." The Department of Labor's subsequent revisions, which are designed to protect workers from dismissal because of union organizing activities and to prohibit the employment of replacement workers during strikes, awaited presentation to the new Parliament at year's end.

 

The State Enterprise Labor Relations Act (SELRA) provides public sector employees in state enterprises the same rights to organize as exist in the private sector. SELRA prohibits lockouts by employers and strikes by state-enterprise workers.

 

Less than 2 percent of the total work force, but nearly 11 percent of industrial workers, are unionized. Cultural traditions, unfamiliarity with the concept of industrial relations, efforts by the Government to diminish union cohesiveness, and the share of total employment that is agricultural often are cited as reasons for low rates of labor organization.

 

State enterprise unions do not have the right to join private sector federations. However, unofficial contacts between public and private sector unions continue, and the Government has not interfered with these relationships.

 

The Government has the authority to restrict private sector strikes that would affect national security or cause severe negative repercussions for the population at large; however, it seldom invokes this provision and did not do so during the year. Labor law also forbids strikes in "essential services," which is defined much more broadly than in the International Labor Organization (ILO) criteria, and includes sectors such as telecommunications, electricity, water supply, and public transportation as essential services. The law also prohibits termination of employment of legal strikers; however, some employers use unfavorable work assignments and reductions in work-hours and bonuses to punish strikers. No strikes were disapproved during the year, and five legal strikes were held.

 

Some corrupt private sector union leaders have been exploited by politicians or employers, but public unions generally operate independently of the Government and other organizations. Internal conflicts, corruption, and a lack of influential leadership continued to weaken the labor movement.

 

Unions are free to associate internationally with other trade union organizations, and they maintain a wide variety of such affiliations.

 

b. The Right to Organize and Bargain Collectively

 

The Labor Relations Act recognizes the right of private sector workers to organize and bargain collectively; to decide on the constitutions and rules of these associations and unions; to express their views without government or employer interference; to confederate with other unions; to receive protection from discrimination, dissolution, suspension, or termination by any outside authority because of union activities; and to have employee representation in direct negotiations with employers. The Labor Relations Act defines the mechanisms for collective bargaining and for government-assisted conciliation and arbitration in cases under dispute. In practice genuine collective bargaining occurs only in a small fraction of workplaces and in most instances continues to be characterized by a lack of sophistication on the part of worker groups and autocratic attitudes on the part of employers. Wage increases for most workers come as a result of increases in the minimum wage, rather than as a result of collective bargaining. The process of setting minimum wages locally through provincial tripartite committees may further limit union influence; many of these provincial committees have excluded labor representatives and have placed factory managers on the wage committees to represent worker interests. The Government sets wages for both civil servants and state-enterprise employees under SELRA.

 

The law prohibits antiunion actions by employers; however, it also requires that union committee members be full-time employees of the company, which makes them vulnerable to employers seeking to discipline workers who serve as union officials or who attempt to form unions.

 

A system of labor courts exercises judicial review over most aspects of labor law for the private sector. Workers also may seek redress for grievances through the Tripartite Labor Relations Committee. Redress of grievances for state-enterprise workers is handled by the State Enterprise Relations Committee. Labor leaders generally were satisfied with the treatment that their concerns received in these forums, although they complained that union leaders who are dismissed unjustly usually are awarded only monetary compensation.

 

In February, 23 staff members of the iTV television station were fired after the employees formed a union and publicly complained of political interference in editorial content. The station's management cited breach of company regulations and restructuring as the basis for the firings. The employees were ordered reinstated by the Labor Relations Committee. The television station, partially owned by the Prime Minister's family, appealed the decision to the Labor Court, where a decision was pending at year's end. In May the ILO's Committee on Freedom of Association accepted the case (see Section 2.a.).

 

No separate labor legislation applies in the nine export processing zones, in which wages and working conditions often are better than national norms because of the preponderance of foreign-based multinational firms.

 

c. Prohibition of Forced or Compulsory Labor

 

The Constitution prohibits forced or compulsory labor except in the case of national emergency, war, or martial law; however, while these provisions generally are enforced in the formal sector, forced labor in the informal sector remains a problem. The law specifically prohibits forced or bonded labor by children; however, such labor is known to occur (see Section 6.d.). During the year, there were reports of sweatshops in which employers prevented workers from leaving the premises. There are no estimates of the number of such sweatshops, but the growing number of illegal aliens from Burma, Cambodia, and Laos increases the opportunities for such abuse. Trafficking in women and children for the purpose of prostitution also remains a serious problem (see Section 6.f.). Allegedly thousands of underage boys and girls are trafficked into the country for labor other than prostitution, including to work on farms and in sweatshops. Also, begging gangs in Bangkok use very young children.

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The legal minimum age for employment is 15 years of age. The law permits the employment of children between the ages of 15 and 18 only in "light work," where the lifting of heavy loads and exposure to toxic materials or dangerous equipment or situations is restricted. The employment of children at night (from 10 p.m. to 6 a.m.), or in places in which alcohol is served, is prohibited by law. It is estimated that approximately 1 million children nationwide work on family farms. NGO's report that 2 to 4 percent of children between the ages of 6 and 14 work illegally in urban areas; such children are at risk of becoming victims of other abuses of labor laws. Most underage workers in urban areas work in the service sector, primarily at gasoline stations and restaurants. Underage workers also are employed as domestic servants. Child labor is not evident in larger foreign-owned or domestic export-oriented factories. However, no comprehensive survey of child labor in smaller enterprises exists, since NGO's do not have access to shop house factories.

 

The Department of Labor employed 803 full-time inspection officers during the year. Enforcement of child labor laws is not rigorous, and inspectors usually respond only to specific public complaints, reports of absences by teachers, or reports in newspapers. Their inclination when dealing with violators is to negotiate promises of better future behavior, rather than to seek prosecution and punishment. The law prohibits all forms of child labor and implicitly includes forced or bonded labor by children (see Section 6.c.). The Government attempted to address the problem of child labor in August 1999 by promulgating the National Education Act. The Act raised the compulsory educational requirement from 6 to 9 years, and offers 12 years of free education. Enforcement of the new provisions is to begin in August 2002 (see Section 5). Observers believe that the problem of child labor in industry has diminished due to enforcement of recent laws and increased public scrutiny. However, according to local NGO's and the ILO, the problem of street children (often foreign) working as beggars for organized gangs appears to be increasing (see Section 6.c.).

 

The Government ratified ILO Convention 182 on the Worst Forms of Child Labor in February; however, the worst forms of child labor are a problem. The 1998 Labor Protection Act codifies the worst forms, and in October, under the auspices of ILO-IPEC, the Government committed to a "time-bound" project to eradicate the worst forms of child labor by an, as yet, undetermined date.

 

The law specifically prohibits forced or bonded labor by children; however, forced child labor is a problem (see Section 6.c.).

 

The country is both a source, transit point, and destination for trafficked children (see Section 6.f.).

 

e. Acceptable Conditions of Work

 

The minimum wage ranges from $3.01 to $3.71 (133 to 165 baht) per day, depending on the cost of living in various provinces. This wage is not adequate to provide a decent standard of living for a worker and family. With extended family members' financial contributions, the minimum wage provides the basis for a marginally adequate overall standard of living. The Ministry of Labor is responsible for ensuring that employers adhere to minimum wage requirements; however, nationwide, more than half of workers receive less than the minimum wage, especially those in rural provinces. Despite encouragement of employees to report violations to labor inspectors, the enforcement of minimum-wage laws is mixed.

 

Unskilled migrant workers as well as illegal aliens often work for wages that are significantly lower than the minimum wage. Many labor laws, including the minimum wage, do not apply to undocumented workers, primarily hilltribe members and illegal aliens.

 

The Government mandates a uniform maximum workweek of 48 hours, with a limit on overtime of 35 hours per week. Employees engaged in "dangerous" work, such as in the chemical, mining, or other industries involving heavy machinery, legally may work a maximum of 35 hours per week. The petrochemical industry is excluded from these regulations.

 

Working conditions vary widely. The rate of injury from industrial accidents has remained relatively constant over the last 10 years at 4.5 percent of the total work force. The MOL stated that the average annual rate of work-related deaths was 15 per 100,000 workers. Occupational diseases rarely are diagnosed or compensated, and few doctors or clinics specialize in occupational diseases. In medium-sized and large factories, government health and safety standards often are applied, but enforcement of safety standards is lax. In the large informal sector, health and safety protections are substandard.

 

Provisions of the Labor Protection Act include expanded protection for pregnant workers with prohibitions on working night shifts, overtime, or holidays, as well as for those working with dangerous machinery or on boats.

 

The Ministry of Labor and Social Welfare promulgates health and safety regulations regarding conditions of work. Labor inspectors are responsible for enforcement of health and safety regulations; the maximum penalty for violations is 6 months' imprisonment. Provisions in the Labor Protection Law include the establishment of welfare committees, which include worker representatives, in factories employing over 50 persons. These committees are to set and review health and safety conditions in each factory. There is no law affording job protection to employees who remove themselves from dangerous work situations.

 

Courts continued to hear testimony in the case of the 1993 Kader Toy Factory fire.

 

Work permits for immigrant laborers initially are granted for 1 year, and routinely are extended for a 2nd year. The Government deported 211,729 illegal workers during the year, most of them to Burma. The press criticized this program as ineffective, and NGO's reported that a large number of those deported return soon thereafter. In September the Government undertook a registration campaign directed at the estimated 800,000 illegal Burmese, Cambodian, and Lao workers already present in the country. Registration would allow the workers to remain for up to 1 year, after which a review would be conducted to determine if citizen workers were available for the migrant's position. Those who registered were to be protected by labor law regulations and be given limited health insurance benefits. Restrictions on vocations and geographic areas open to foreign laborers also were lifted.

 

f. Trafficking in Persons

 

The law prohibits trafficking in women and children; however, trafficking in persons is a serious problem. The country is a source, transit, and destination for trafficking in women and children for a variety of purposes, including indentured servitude, forced labor, and prostitution (see Section 5). Some local officials, immigration officers, and police reportedly either are involved in trafficking directly or take bribes to ignore it.

 

Government and NGO estimates of the number of women and children engaged in prostitution in the country vary widely. Many NGO's and government departments report a figure of 200,000 persons, which is considered a conservative estimate. This figure includes children under the age of 18 and foreigners. The number of victims of trafficking not involved in prostitution and including men, women, and children is unknown but believed to be substantial.

 

The Government faces severe budgetary limitations on its ability to fight trafficking and to aid its victims. Nevertheless, it maintains shelters for trafficked women. Two national committees are directed and empowered to combat trafficking, and these committees coordinate and cooperate with NGO's, as well. The National Committee on Trafficking in Women and Children (NCTWC) is primarily concerned with counter-trafficking efforts within the country, while the National Project Committee on Trafficking in Women and Children in the Mekong Subregion focuses on regional efforts. Local enforcement officers are sometimes ignorant of new laws and regulations designed to protect victims and ignorant of the special requirements of antitrafficking work. Also, police officers do not view antitrafficking as a path to advancement because their superiors do not emphasize it. Narcotics and serious crime are the preferred career concentrations, while the attitude that trafficking also qualifies as serious crime is only slowly developing. Another barrier for stricter enforcement is the court system, which can be cumbersome and time consuming.

 

THAILAND - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

THAILAND - STANDARD WORKWEEK

The Government mandates a uniform maximum workweek of 48 hours, with a limit on overtime of 35 hours per week. Employees engaged in "dangerous" work, such as in the chemical, mining, or other industries involving heavy machinery, legally may work a maximum of 35 hours per week. The petrochemical industry is excluded from these regulations.

 

(Section 6.e. Acceptable Conditions of Work, Thailand – Report of Human Rights Practices, 2001, U.S. Department of State.)