Tuesday, October 27, 2020

Cabinet okays compensation for employees of suspended hotel, lodging businesses

Apr 09. 2020
Minister of Tourism and Sports Pipat Ratchakitprakarn
Minister of Tourism and Sports Pipat Ratchakitprakarn
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By THE NATION

The Cabinet has approved compensation for employees of hotel and lodging businesses who are under the social security scheme for their loss of income either due to the government’s shutdown order or their employer’s decision to suspend operations.

Minister of Tourism and Sports Pipat Ratchakitprakarn said on Wednesday (April 8) the Cabinet "agreed that a shutdown by either reason is a result of the Covid-19 situation, which is considered a force majeure, making the employees eligible for compensation under Section 79/1 of the Social Security Act,” said Pipat.

The Act stipulates that those under the social security scheme who have become unemployed due to force majeure will be eligible for compensation at 62 per cent of daily wages until the business can resume its operations, but not exceeding 90 days.

Pipat also added that next week his ministry will propose to the Cabinet to consider granting similar compensation to employees working as tour guide and other tourism related businesses who are under social security scheme and affected by the Covid-19 situation.

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