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CESSATION OF EMPLOYEE STATUS, TERMINATION OF EMPLOYMENT AND SEVERANCE PAY

The employee status will be ceased upon the following conditions:


- Death
- Resignation
- End of employment contract
- Retirement
- Termination of employment


Resignation


a) During the probationary period, if employees voluntarily resign, they will have to notify the concerned department supervisor in writing at least one payment period in advance. All works and responsibilities will be passed back to the supervisors before the departure. The department supervisors will notify the Administration of the resignation.


b) For employees who have been confirmed of employment, if they wish to resign, they will have to notify concerned department managers in writing at least one payment period in advance. The department managers will pass the resignation letter to Administration Department for processing.


c) If employees at the level of supervisor and above wish to resign, they will have to notify the concerned department managers in writing at least 60 days in advance.  The department managers will pass the resignation letter to the Administration Department for processing.

d) The Company will not accept compensation from the employees in lieu of advance notice.


e) For employees who have not given sufficient notice for resignation, their Provident  Fund will be affected.  Please refer to Clause 8.3.


Retirement
 

a) Employees who reach the age of 60 will have to retire, unless otherwise extended in writing by the Company.


b) The date of retirement of each employee is different but it should not be later than the end of the calendar year when retirement age is reached.


c) The Administration Department will notify employees at least 3 months before they reach their retirement age.


d) The Company may consider, under its sole discretion, to allow for early retirement.  


An employee can apply when he reaches the age of 55

Termination of Employment
In case of termination, the Company will notify the employees in writing, stating the reasons of termination.  The Company will terminate employees under the following Conditions:


The Company will terminate employees under the following conditions with severance pay:


a) In case employees’ health is so deteriorated that they are not suitable to work, it is necessary for the Company to terminate their employment with severance pay as required by the Labour Protection Law.


b) In case employees become disabled due to an injury and they can no longer perform their works, it is necessary for the Company to terminate their employment with severance pay as required by the Labour Protection Law.  If such employees can still work, the Company may consider transferring to another suitable job.


c) In case of manpower surplus or work units are dissolved by the Company due to reduction of production according to the market demand, or in case of redundancy in some work units, it is necessary for the Company to terminate the employment of some employees with severance pay as required by the Labour Law. 

The Company will terminate employees under the following conditions without severance pay:


a) An employee who has violated rules and regulations under Section 10.7 will be terminated without severance pay.


b) During the probationary period, if the employees’ performance is not satisfactory, the Company is entitled to terminate their employment before the expiry of probationary period, without severance pay.

 

Severance Pay

The Company will pay severance pay to employees who are entitled to.


Termination of Employment


a) If the employment of an employee is terminated without committing any of the acts under Section 119 of the Thai Labour Protection Act B.E. 541 or as amended from time to time, they will be entitled to the following severance pay:


Length of Service                                       Last Rate of Wages


120 days – less than 1 year                     30 days
1 year – less than 3 years                        90 days
3 years – less than 6 years                      180 days
6 years – less than 10 years                    240 days
10 years and above                                  300 days


b) The period of continuous working will include holidays, leaves and the day when the Company orders to stop working.


Relocation of Business
 

a) If the place of business is relocated, which significantly affects the ordinary way of living of an employee or his family, the Company will inform the employee at least 30 days in advance.  If any employee refuses to work at the new location, the employee is entitled to terminate the employment contract within 30 days from the date of the relocation notice by the Company or the date of relocation. In this regard, the employee is entitled to a severance pay as detailed in section 11.4 a above.


b) In case of failing to inform an employee in advance per 11.4.2 a, the Company will pay a special severance pay in lieu of notice, in an amount equivalent to 30 days’ pay at the latest wage rate, or equivalent to the wage of the last thirty days for the employee who receives wage based on a piece rate.


c) The Company will pay the severance pay or the special severance pay in lieu of notice to the employee within 7 days from the date when the employee terminates the contract.  If the Company fails to do so, the employee is entitled to lodge a complaint to the Labour Welfare Committee within 30 days from the due date of the payment. 


Termination from Reorganisation


a) In the event of termination of employment as a result of reorganisation of an undertaking, production line, sale or service due to the adoption of machinery or the change of machinery or technology which causes a reduction of the number of employees, the Company will notify the Labour Inspector and the employees in advance of not less than 60 days before the date of termination, giving the date, reasons and name list of termination.


b) In case of failing to inform an employee in advance per 11.4.3 a, the Company will pay a special severance pay in lieu of notice equivalent to the employee’s last rate of wage for 60 days, or an amount equivalent to the wage of the last 60 days for the employee who receives wage based on a piece rate.

c) For termination from reorganisation, if an employee has worked for an uninterrupted period of more than 6 years, the Company will pay a special severance pay in addition to 11.4.1 a, of not less than the employee’s last rate of wage for 15 days for each year of employment, or not less than the employee’s wage for the last 15 days for each year of employment if he is paid on a piece rate basis.  The total severance pay under this section shall not exceed the employee’s last rate of wage for 360 days, or the employee’s wage for the last 360 days if he is paid on a piece rate basis.


d) For the purpose of calculation of special several pay, if the period of employment is less than one year but more than 180 days, it will be counted as one year of employment.  
 

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