Thailand has recently been facing the worst flood in decades. More than 50 provinces have been inundated by the great floods and a number of business operators in various industries as well as economy of the country as a whole have been impacted. One of the most affected provinces is Ayutthaya which is a home of many major industrial estates, such as Rajana Industrial Estate, Saha Rattana Nakorn Industrial Estate, Ban Wa (Hi Tech) Industrial Estate and Bang Pa-in Industrial Estate and there are approximately 300 business operators in different manufacturing industries located in those industrial estates were inundated.

          Under Thai laws, in the event that the working premises are inundated and employees are not able to work, inundation could be considered “Force Majeure” under Thai law. As a result, the employers who suspend the operation would not have to pay wages to employees during that period. Certain employers who temporality suspend their business due to inundation but it could not be considered a Force Majeure (for example, inundation is due to regular high tide), the employers would still have obligation to pay wages not less than 75% of wages that the employees received prior to business suspension for the entire suspension period pursuant to Section 75 of the Labour Protection Act B.E. 2541. The employers also have obligations to inform the employees and labour inspection officer in writing not less than 3 working days prior to the suspension.

           If the employers terminate the employees for it business is severely affected, the employers are required to give an advance notice of termination by specifying the cause of termination. A termination notice must be given on or before the time of payment to give effect on the following time of payment, unless the employers agree to make payment in lieu of notice to immediately effect the termination.

           In any event, termination of employment due to any other reasons than the faults of the employees, the employers are still required to make severance payment to employees according to the rates provided under Labour Protection Act.