
Employees, on the verge of parting with their jobs, are concerned with three issues.
Social-security benefit - If they resign, the Social Security Office will give them 30 per cent of their wage during their unemployment for up to 90 days only. But if they are terminated without fault, they will receive 50 per cent of their wage for 180 days.
Wage in this case is based on a stipulation of Bt15,000 a month, the maximum when calculating the monthly contribution to the Social Security Fund.
Personal income-tax burden - Employees expect to enjoy smaller tax payments from the severance payment but that is for employees losing their jobs after five years of continuous employment.
Possibility of compensation for damage - Even if the severance payment is correctly paid in accordance with section 118 of the Labour Protection Act, wage in lieu of advance notice is given in line with section 17 and the unused annual vacation compensated for in cash, the employees may feel that it is an unfair dismissal. A termination letter that does not clearly spell out the reason, for example, redundancy or disciplinary measure, may become a solid evidence for a complaint of "unfair dismissal" (Section 49 Labour Court Act), which means termination without sufficient reason. If so, the unfairly dismissed workers may be awarded one-month salary for each service year as compensation for damages, on top of the severance payment.
What should employers do then to convince employees to agree to tender their resignations?
The convincing has to be performed by the people who command respect and trust, ones who care for future employment and well-being of the employees.
Try to offer them a resignation that is effective three to six months away. During such time employees are not required to report to work but can go and negotiate a job somewhere else with credibility and bargaining leverage. Explain to them the fact that many employers treat job applicants who are laid off or dismissed with suspicion.
Once a resignation letter is obtained, there is no worry about potential litigation on unfair dismissal during the validity period of 10 years.
Supachai Manusphaibool is managing director of MR&TS, a cross-cultural management consultancy. Send your questions to mrts@ksc.th.com.