7 things that shop owners must not do, which is against labor laws

If an employee makes a mistake, can they deduct money? Can they be fired without paying compensation? Should they hire cheap part-time workers to save money? Or should they hire foreign workers? Let's take a look at the labor laws with 7 prohibitions when managing employees in a shop.

1. Deducting money from employees who come late
It cannot be done because Section 76 of the Labor Protection Act of 1998 states that employers are prohibited from deducting wages, overtime pay, holiday pay, and overtime pay on holidays, unless it is a deduction for..
1. Pay income tax in the amount that the employee must pay or make other payments as required by law.
2. Pay labor union maintenance fees in accordance with labor union regulations.
3. Repayment of debts of savings cooperatives or other loans that are employee welfare, with prior consent from employees.
4. Damage insurance or compensation for damages to the employer with the employee's consent from time to time.
5. Savings according to agreement or provident fund
From the law, it can be seen that employers cannot deduct money from employees in the case of being late or committing a mistake. If the employer fails to comply, they will be subject to imprisonment not exceeding 6 months, a fine not exceeding 100,000 baht, or both.

2. Resigning suddenly without prior notice. Solve the problem by deducting the salary of the subordinates.
It cannot be done because when an employee works for an employer and the wages are due according to the agreement, the employer has a duty to pay the employee the correct wages and on time according to Section 70 of the Labor Protection Act B.E. 2541. In this case, if the business is damaged because of the employee's resignation, the employer may sue the employee for damages as appropriate, but must still pay the actual wages.

3. Dismissing employees without paying legal compensation
Remember that employees are entitled to severance pay if the employer terminates them without the employee’s “fault.” The severance pay will be based on the employee’s length of service, except in the following cases:
1. Employees resign on their own.
2. Employees are dishonest in their duties or violate criminal laws against their employers.
3. The employee intentionally or negligently causes damage to the employer.
4. The employee violates the work rules and regulations and has been warned in writing by the employer.
5. The employee abandons his/her duties for 3 days without notice, regardless of whether there is a holiday in between or not.
6. The employee was sentenced to prison.
If it falls under these 6 cases, the employer “does not have to pay compensation” to the employee.

4. Working more than 8 hours a day without paying OT.
Illegal! Because the law specifies that the general working hours are not more than 8 hours/day or as agreed upon by the employer and employee, and not more than 48 hours/week. If it is dangerous work or special work, the law specifies that the working hours are not more than 7 hours/day and not more than 42 hours/week.
and stipulates that the total hours of overtime work, work on holidays and overtime work on holidays must not exceed 36 hours/week, and if the employer and employee agree to work overtime, the employer is required to pay overtime wages of not less than 1.5 times the hourly or unit rate of wages on working days and at a rate of not less than 3 times the hourly or unit rate of wages on holidays.

5. If an employee accidentally damages equipment in the store, can they deduct money?
It depends on each case. Although Section 76 of the Labor Protection Act of 1998 prohibits employers from deducting wages, overtime pay, holiday pay, and overtime pay on holidays, there are exceptions in cases where the employee occasionally agrees to compensate the employer for damages. Many places deduct as a damage deposit from the beginning of employment, which can be used to compensate. However, it would be better to try to find a solution together between the employee and the employer. If the equipment is not damaged too much, or if the damage is too much to affect the operation of the shop, you may have to terminate the employee and sue for damages instead.

6. Hire part-time employees but pay them less than the minimum wage.
No, because the minimum wage rate under the law applies to all types of employees, whether they are daily, weekly, monthly, hourly, piecework, temporary, permanent, full-time, part-time, or other types of employees, regardless of whether they are employed under a continuous contract as specified in the Employment Act or not. There are exceptions for employees who are not required to be paid the minimum wage, including workers who live with their employer, student trainees, and contract trainees under the Apprenticeship Act.

7. Hiring foreign workers without work permits
Illegal! Because foreign workers who want to work in Thailand must be properly registered, including business operators who must apply for permission. Employers who hire foreigners without work permits or allow foreigners to work outside of what they are entitled to do are subject to a fine of 10,000 - 100,000 baht per foreigner employed. If the offense is repeated, the penalty is imprisonment not exceeding 1 year or a fine of 50,000 - 200,000 baht, or both, and a ban on hiring foreigners for 3 years.

People management is a delicate matter. In addition to understanding labor laws, you also need to know the art of taking care of your subordinates. If you are not satisfied, continue your studies in the course “People Management in the Restaurant Business” by Ajarn Peerapat Kongthong, Human Resource Development Manager and guru with over 30 years of experience in the restaurant business. Free! Only for Makro members. Click here => https://bit.ly/3NdDHDO (Sign up in the upper right corner before entering the lesson)