Thai bill proposes 15% interest on unpaid compensation for homeworkers
A Thai labour bill would impose 15% annual interest on unpaid compensation, expand protection for homeworkers and strengthen safeguards for children.
Thailand is moving to strengthen protections for homeworkers, with proposed legislation requiring employers who fail to make payments on time to pay annual interest of 15% and imposing tougher penalties for hazardous child labour.
Deputy Government Spokesperson Capt Patdarasm Thongsaluaykorn said on Thursday (October 22) that Labour Minister Julapun Amornvivat had submitted a new draft Homeworkers Protection Act to the House of Representatives.
The legislation would update the existing law, in force since 2010, to reflect changing forms of work and address problems including unpaid compensation, failure to return security deposits and inadequate workplace safety protections.
Unpaid compensation could carry 15% annual interest
Under the draft, homeworkers performing work of the same nature and quality as that carried out at an employer’s business premises would have to receive compensation of no less than the applicable rate under labour protection law or the rate set by the relevant committee.
Employers who fail to pay compensation, return security deposits or provide payments to which workers are entitled, including medical, rehabilitation or funeral expenses, would face default interest of 15% a year.
If an employer deliberately withholds payment without reasonable grounds for more than seven days after it becomes due, the draft would also require an additional payment equal to 15% of the outstanding amount for every seven-day period, subject to conditions specified by law.
Where a homeworker refuses or is unable to receive payment, the employer could deposit the money with the director-general of the Department of Labour Protection and Welfare under prescribed conditions to stop further interest or additional charges from accumulating.
The legislation would also set out procedures for payments to heirs or other people legally entitled to receive the money.
Protection expanded beyond industrial work
The proposed law would broaden the definition of homework beyond its traditional focus on industrial activities.
It would allow protection to be extended to commercial, agricultural and service-sector work as specified by royal decree, reflecting the wider range of jobs now performed away from employers’ business premises.
Electronic documents would also be recognised in accordance with Thailand’s electronic transactions law, allowing employment records and inspections to be handled more consistently with digital working practices.
Children under 15 barred from homework
The bill would prohibit children under 15 from undertaking homework and raise the minimum age for work considered hazardous to health or safety to 18.
Employers would also be prohibited from assigning hazardous work to pregnant women.
Where prohibited hazardous work involving a person under 18 or a pregnant woman results in physical or psychological injury or death, offenders could face up to four years in prison or a fine of up to THB2 million, depending on the circumstances.
The draft would also revise the composition and responsibilities of the Homeworkers Protection Committee, taking account of representation by women and men as well as gender considerations.
Penalties would be adjusted according to the seriousness of offences, while less serious breaches, such as failures involving required documentation, could be dealt with through administrative fines.
Patdarasmi said the amendments were intended to ensure homeworkers receive appropriate compensation, have greater protection when payments are delayed and can work under safer conditions.
The bill is now under consideration by the House of Representatives, with the Labour Ministry prepared to consider further proposals during the parliamentary committee stage.
