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Labour Law Q&A ... Supachai Manusphaibool

As a good employer, we would like to help our staff during this time of rising living costs. Tell us about some measures that do not commit us to long-term financial expenses.



Whatever employers provide employees as compensation for work is considered part of employment conditions. To stop it, or reduce it, requires the employee's written consent. Worse, if it comes in the form of wage, it shall lead to higher payment for overtime, social-security contribution, provident fund, bonus and severance payment if termination occurs.

Some employers have announced an increase in the monthly cost-of-living allowance. This is decided time and again by the Labour Court to be "wage" in light of its definition.

"Wage is the agreed amount of money paid by an employer to an employee in return for work during regular hours."

Employers, therefore, should instead consider the following financial assistance, stating clearly that it is a temporary relief measure given as welfare support for a definite period only, and not to be taken as a permanent solution.

A flat amount of money payable to every employee up to the level of supervisors or section chiefs as subsidy for travelling expenses, stating clearly from what month to what month.

Part of year-end bonus could be brought forward as an advance payment prorated with the number of months. Part of annual raise could also be brought forward as an early increase in monthly salary.  The remaining part will be subject to performance appraisal and payable at normal time.

Apart from providing extra money, there are other measures that would be of great help to staff, in reducing their cost of living, that is.

Set up an in-house Credit Club for members to borrow quickly and cheaply from, and to replace their high-interest debt with the cheap loan.

Support and coordinate car-pool arrangements.

Arrange some part of work to be done at home to reduce the number of work days per week, thus reducing travelling costs.


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