– The reform is expected to increase pension costs by 25-30% for companies that don’t offer any other defined benefit plans. The increase must be recognized as past service costs under international accounting standard IAS19R.
– Pension expenses should be updated, calculated on market conditions as of the valuation date. For plans with a fiscal date after 4 May 2019, the amended law must be used to make the valuation.
– Employers should assess the impact of the change on the duration of pension plans and yield references.
– Employers won’t have to make any retrospective adjustments.
- Maternity leave is increased to 98 days, up from 90 days, and covers prenatal and postnatal leave.
- Employers must give employees at least three days' paid personal or business leave. Previously, the duration and payment for this type of leave was specified in employers' workplace rules.
- When an employment contract is transferred to a new employer — for example, in the event of a merger or acquisition — the employee must consent to the transfer before it takes effect. Employees refusing to consent will be entitled to severance pay.
- Employees who don’t want to transfer to another location in Thailand can choose to either relocate or terminate employment and receive severance pay.
- Sanctions are increased for employers who breach workplace rules, including those governing (i) the payment of wages in place of providing advance notice to employees; (ii) the payment of wages and overtime, including for work performed during an employee's vacation; (iii) severance and special severance pay; and (iv) the payment of wages during the temporary cessation of an employer's business.