Employers now required to compensate retirees
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THE CABINET Wednesday approved an amendment to the Labour Protection Act, which requires employers to provide compensation to retiring workers, Kobsak Phutrakul from the Prime Minister’s Office said.
In a move to deal with Thailand’s ageing society, the draft sets retirement age at 60 and deems it as job termination, therefore requiring that the retiree be compensated, Kobsak said. This was in response to many retirees suing their companies for compensation, he added.
According to the amendment, the compensation rate would be 10 months of the last salary for workers who have been at the company for 10 years, and eight months salary for those working for six to 10 years.
The approved amendment also has more groups such as youths, disabled persons and senior citizens covered by the minimum wage.
