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Work Permit Laws And Their Effect On Your BusinessBy Gregory Smyth Thailand's laws regarding the employment of illegal aliens have recently been updated, after a period of stasis lasting 30 years. In order to protect Thailand's national interests, there have been several updates to the Thai business law of employing illegal aliens. Fines for both employees that work without the appropriate permit, and employers that continue to employ them, have been increased. Minor administrative matters that were once a major disturbance to the business of employing aliens have been changed, and most importantly, there are additional withholding obligations with this new Thai business law. Business legal services in Thailand have been advising that while many of the regulations have made the Thai law more liberal, they also impose heavier penalties for non-compliance. This serves to account for inflation, as the old business law in Thailand was in currency values 30 years old. Much of the increase in fines and penalties have been directed at the employee, with a new penalty of up to 100,000 baht for both the employer and the employee that work together without a proper work permit. The minimum fine for employees is 2,000 baht, while for employers it is 10,000. However, where there was once a provision for three years imprisonment of the employer, this has been scrapped. Labor officials are now empowered to arrest, without a warrant, any person who is suspected of working without a valid permit. However, should you be visited by labor officials, it is always recommended that you contact your business legal service prior to providing them any information. One of the most significant changes is that the maximum work permit duration that can be provided is two years, doubled from the old limit of one year. The new Thai business law also removes the tie between an alien's duration of stay stamped on the passport, and the work permit duration. Prior to the new Thai law's inception, many workers had to leave Thailand and return on the well-known 'visa-run', to obtain a new duration of stay and work permit. This will make it easier and simpler for businesses to employ aliens, where there are not the necessary skills available locally. There will also be a new 10,000 baht fee per alien that an employer wishes to employ, who is not deemed skilled or expert. This fee is payable on application, and your business legal service in Thailand will advise you that not all applications are granted. You should be reasonably sure that your worker will be considered 'expert' under the new Thai law, to avoid unnecessary expense. Employers must now also withhold, in addition to the personal income tax and social security withholding obligations, an amount which will be contributed to a fund for sending aliens out of the Kingdom. Check with your business legal service for the full details of these obligations, as well as your accountants. The details have not been set down yet, but will be distributed to related professionals like Thailand lawyers as they are available. About the author For nearly 30 years, Bamrung Suvicha Apisakdi Law Associates (BSA Law) has focused on providing reliable legal advice and services to the Thai and foreign business community in Thailand. We provide international standards of legal services while retaining the customs of the Thai business culture |
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