How Companies in Thailand Can Shut Down Temporarily During COVID-19 泰國企業如何在COVID-19期間暫停營業
During COVID-19, many Thai companies are struggling to survive. Some decide to lay off employees, and some decide to close its business temporarily or permanently. It is important for Thai employers to understand required legal steps when shutting down companies temporarily in Thailand.
According to Section 75 of the Thai Labor Protection Act, if a Thai employer is necessity to stop its business temporarily or permanently which is not considered a force majeure event, the Thai employer shall pay employees not less than 75% of the wages within the prescribed time. Also, the employer shall notify the employees and Labor Inspector in writing in advance of not less than three working days prior to the inception date of the business cessation. Please also refer to our earlier article “Termination of Employee” at https://0rz.tw/OrlqY for more detail of the advanced notice and severance pay.
Even though Labor Protection Act does not indicate the definition of “necessity” under Section 75 of the Act, the Supreme Court provides some guidance. Generally speaking, the situation should be serious and has significant impact on employer’s business.
On the other side, we can explain that if a business is closed due to force majeure, employer does not need to pay employees wages. For example, on July 13, 2021, a Cabinet meeting approved compensation measures for COVID-19, as a measure to compensate for the lockdown resulting from the order to close the place of business issued in accordance with Section 9 of Emergency Decree No. 27 by paying compensation to people affected by lockdown orders and curfews in dark red areas.
另一方面，我們解釋當企業因不可抗力停業，雇主不需要支付員工薪資。舉例來說，2021年7月13日的內閣會議通過COVID-19的補助措施，因應根據第 27 號緊急命令第 9條發布的關閉營業場所的命令而導致的封城，並補償給收到封鎖令的深紅色區域和宵禁影響的人。
Currently only Ministry of Labor announces that COVID-19 is considered as force majeure. For more information, please refer to our earlier article “Can COVID-19 be Taken as Force Majeure For Contracts Performance” at https://0rz.tw/lIlPc.
The Thai Supreme Court has ruled that the following events which cannot be taken as force majeure:
Ø The flooding of a factory 工廠淹水;
Ø A factory fire 工廠大火;
Ø A violent seasonal storm 嚴重的季節性暴風;
Ø A seasonal wildfire for which the party takes no preventive action
In summary, if a business wants to close temporarily or permanently to survive during COVID-19, it is important to be aware of the relevant regulations.
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