Firms that evade SSO contributions to be sued

Firms that evade SSO contributions to be sued

Businesses risk lawsuits over missing funds

Companies will face legal action and have their assets seized if they fail to make the mandatory contributions to the Social Security and Workmen's Compensation funds, the Social Security Office has warned.

Secretary-general Ananchai Uthaipattanacheep said on Thursday that penalties will be imposed on employers who evade their financial responsibilities.

"If the value of unpaid contributions is high, we will consider filing lawsuits against them," he said.

Companies which shut down cannot avoid the financial obligation, he added.

By law, business owners are required to pay into the Social Security Fund each month, contributing 5% of their employees' salaries to the fund.

But an inspection of contributions from January to June this year found many companies "did not contribute to the fund on behalf of their employees", Mr Ananchai said.

As consequence, those workers lost their rights under the social security welfare package and the companies incurred additional debts.

The law stipulates that employers who fail to make the contributions by the designated deadlines must pay the outstanding amounts plus a fine of 2% to 3% of the value of the missing funds.

Mr Ananchai said the SSO had managed to reclaim missing contributions collectively worth more than 70 million baht this year. This included payments that should have been made to the Workmen's Compensation Fund.

Businesses are required to pay between 0.2% and 1% of their employees' annual wages into the Workmen's Compensation fund, which is a form of financial assistance for workers who are injured or fall  ill on the job.

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