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PM admits new labour law penalties too tough

BANGKOK: Prime Minister Gen Prayut Chan-o-cha has instructed the Labour Ministry to come up with urgent measures to soften the impact of the executive decree on foreign workers as the stringent new labour law has raised concern about manpower shortages in some businesses.

economics, construction, Myanmar, crime, corruption, tourism,


Bangkok Post

Friday 30 June 2017, 09:10AM


The prime minister has told the ministry to find ways to mitigate the labour law fallout. Photo: Prawarit Musika
The prime minister has told the ministry to find ways to mitigate the labour law fallout. Photo: Prawarit Musika

Varanon Peetiwan, Director-General of the Department of Employment at the Labour Ministry, said on Thursday that the prime minister has told the ministry to find ways to mitigate the labour law fallout.

Gen Prayut also stressed the need for authorities to avoid exploiting legal loopholes when the law is first enforced to demand benefits from entrepreneurs and foreign workers.

Any officials found guilty of wrongdoing will be severely punished, Mr Varanon said, adding that the government is expediting efforts to limit the negative impact of the new regulation.

Also Thursday, representatives of the Joint Standing Committee on Commerce, Industry and Banking handed a letter to National Legislative Assembly (NLA) president Pornpetch Wichitcholchai seeking solutions to reduce the impact of the new law.

They asked that the government resume registering illegal migrant workers and that the private sector be allowed to offer opinions and feedback on the law to help improve it.

Mr Pornpetch said the executive decree was issued by the government and must be forwarded to the NLA for endorsement. It will become law if it is approved, he said, adding that this will be put on the NLA’s agenda next week.

He said the decree may be improved to comply with the government's wishes and that it could include provisional clauses to grant employers or workers temporary reprieves.

PM Prayut on Thursday chaired a meeting of chiefs of ministerial agencies to lay down labour policies considered urgent, particularly those aimed at tackling human-trafficking problems.

Mr Varanon admitted the executive decree on foreign workers would lead to labour shortages in construction and housekeeping if properly enforced, as well as on small and medium-sized enterprises over the next few months.

As an initial solution, employers can hire Thai workers who have registered to seek jobs, Mr Varanon said, adding that 6,000-7000 Thais register each month.

However, during the early stages of enforcement, employers and foreign workers will be given a temporary reprieve so they can have time to properly comply with the new law.

Employers must arrange for migrant workers to go back to their home countries to seek passports and visas and undergo proper registration and verification processes before they can seek a permit to work here legally, Mr Varanon said.

They can use brokers if they are prepared to pay their fees of around B20,000, he added.

The Labour Ministry has also reached MoUs with Laos, Cambodia and Myanmar to tackle illegal migrant labour – a process which will take a few months before legally registered workers can come back to work in Thailand, Mr Varanon said.

Thailand has 1.3 million migrant workers who are being allowed to work temporarily without a work permit until March 31 next year. They will have to undergo a verification process before they can seek a permit to work here legally.

The executive decree on the recruitment of foreigners, which took effect on June 23, imposes tougher punishments on those who illegally hire migrant workers or who violate the basic rights of migrant workers. (See The Phuket News story here.)

British International School, Phuket

According to the decree, the aim is to raise the standards of recruitment and management of labour and avoid accusations of abuse or even human trafficking by the international community.

The law contains harsher punishments for both civil and criminal wrongdoing, with fines ranging as high as B400,000-800,000.

The fines are imposed at progressive rates: the more migrant workers the employer has, the higher the fine.

Any migrant workers found guilty of engaging in employment without the proper permit or who does a job that is prohibited will face a maximum jail sentence of five years or a fine of between B2,000 and B100,000.

While migrant workers will be sent back to their countries to undergo legal registration, employers who run short of labour can seek help from the Employment Department, which runs a database of Thai workers.

About 6,000-7,000 register with the department each month.

According to Mr Varanon, the executive decree on foreign workers eases regulations on workers changing workplaces, though those who change their employer must notify the department of this and pay a B100 fee.

But he insisted the government would no longer register illegally documented migrant workers.

He said the executive decree will not only legalise migrant workers but also help curb public health problems.

Over the past five years, the Public Health Ministry has had to provide medical health services to undocumented migrant workers. Unpaid bills now amount to B8 billion, Mr Varanon said.

Once the migrant workers are legalised under the new labour law, they will be covered by the social security system.

The private sector has also cried foul over the new labour law.

Critics say local companies, particularly SMEs, are likely to be hurt by the new executive on foreigners as it could hurt their competitive advantage.

The Thai Chamber of Commerce sent an open letter to the Labour Ministry asking state agencies to seek ways of softening the blow.

 

Read original story here.

 

 

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Jor12 | 01 July 2017 - 16:17:07

Paully44..."imbeciles running this place" ... please elaborate as it would be interesting to read your views on this.
similarly how you arrive at your conclusion, "...if their bureaucratic process to work legally wasn't so draconian & farcical" provided of course you know anything about Thailand bureaucracy and governance to service some 68 million people. Also, "might actually have people following the law"...surely you're not suggesting 68 million people don't follow the law? Do you have any notion about buddhism and the culture of Thailand, or is your view from European based notion of the "rule of law."

"incredibly insecure?" I fail to follow the logic in that comment in relation to Thailand, however it is not surprising given it's a Eurocentric view. 

"Many businesses in Phuket in particular have been established by foreigners employing many locals year round yet they continually discourage any form of involvement which affects their people." I take that to mean you are not in favour of the Kingdom of Thailand's governance? 

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Capt B | 01 July 2017 - 12:46:04

Dear Pauly44,

I note where you have written "don't want foreigners owning their land".
I do not really think that there is anything wrong with that.
Thailand should be owned by Thailand. Not Foreigners. Just take a look at the idiot Australian Government, selling out Australia to the Communist Chinese. Even though the AU Govt has just put an extra tax on Foreign Land purchasers, they will still keep flooding in and the only thing that will slightly reduce this is the Chinese Government "money out" restrictions.
Sure, there are a lot of bad things about Thai Nationalism. You have the option "Deal with it, or leave".

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Capt B | 30 June 2017 - 11:45:19

...........& it is not just a Labour Shortage, there is also a severe shortage of SKILLED workers in jobs reserved for Thais only.

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Capt B | 30 June 2017 - 11:21:50

As I have always maintained "There's More Than One Way to Skin A Cat".
Indian Flagged Vessel with 100% Foreign Crew.
.......& I do not even have to Employ A Thai Captain.
So much for the 600 Thai Nationals that would have been employed as an end result of my efforts.

Panama also looks good, as an Australian National, you only have to invest over USD$ 200,000 & they'll even issue you with a Panama Passport.
Maybe all the advertisements by the Thailand Board Of Investment on Bloomberg TV should warn everybody about this first.
Fake News ?
Long Live The Well Managed & Sustainable Japanese Southern Ocean Whaling Industry. Greens Cost Jobs 

The Phuket News

Pauly44 | 30 June 2017 - 10:53:53

Bit like the death penalty for visiting Maikao beach to look at the planes landing, absolute imbeciles running this place, if their bureaucratic process to work legally wasn't so draconian & farcical they might actually have people following the law but then I guess they actually really don't want foreigners owning their land or working in Thailand as they are so incredibly insecure. Many businesses in Phuket in particular have been established by foreigners employing many locals year round yet they continually discourage any form of involvement which affects their people, shooting themselves in the foot once again, mind boggling really...

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