Firms accused of ignoring new labour act

Firms accused of ignoring new labour act

Bosses 'refuse to pay retirement benefits'

Elderly workers have complained that their bosses are reluctant to pay them retirement benefits despite being required to do so by an amendment to the Labour Protection Act which came into effect last year.

The amendment for the first time sets the retirement age at 60 for organisations and businesses which never had a specified retirement age for employees.

The new law also gives the workers the right to receive retirement benefit and early retirement entitlements.

Under the law, employees having put in more than 10 years service can expect 10 months' salary when they retire. A lesser amount is applicable for less than 10 years worked.

The amendment has received praises from elderly workers. In the past, employees continued to work past what would be considered retirement age and not receive retirement benefits.

Udomsak Buraphanimit, of the Confederation of Thai Labour, said the new law boosted workers' morale.

With regard to employers who make clear that their compulsory retirement age is 55, they are required to provide retirement benefits at that age, he said. They also cannot extend the retirement age to 60 on a whim.

If employers want their workers to continue working, they must pay them the retirement benefits first and then draw up new contracts, Mr Udomsak said.

Despite these rules being enshrined in law, some employers are reluctant to follow the new labour codes. A textile worker in Samut Sakhon said the law encouraged 20 employees older than 60 in her company to retire in the hope of getting retirement benefits. The boss, however, refused to pay them, claiming the firm could not afford to do so.

This has angered all the workers, she said, adding she was advised to petition the provincial Labour Protection and Welfare Office to force the firm to comply with the law.

The worker said many of her colleagues in the textile factory are 75-80 and had worked for the firm for a long time.

"I would like to call on our employer to abide by the law and give us what we are entitled to," the worker said.

A 74-year-old worker, who has been working in the same restaurant since she was 22, said her employer has not specified any retirement age. Workers have quit the job when they are old without receiving any benefits.

They would be better off still working, then at least they would still receive a salary, she said.

"I could try talking with my employer about the benefits if I think the job was getting too much for me," the worker said.

Labour Minister Adul Sangsingkeo said 16 labour rights protection issues were raised by workers' groups on Labour days between 2015 and 2017.

He said 10 have been addressed, including the recent 5-22 baht increase in daily minimum wages, which took effect on April 1. This was a 5% wage rise, the biggest hike in years.

The government also helped former social security fund members regain their memberships after they had them cancelled for failing to contribute to the fund for three consecutive months, according to the minister. It benefits more than 700,000 people, he said.

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