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April 19, 2011

Temporary Cessation of Operations

Bangkok Post, Corporate Counsellor Column

If an employer needs to temporarily cease operations wholly or partially for any reason other than force majeure, Thailand’s Labor Protection Act allows for the possibility of cessation of operations as an alternative to layoffs. By exercising this option, the employer is obliged to pay the affected employees 50% of their normal wages prior to the cessation of operations and must give notice to the employees and the labor inspection officer in advance. This article describes the requirements under the law and the potential benefits for both employers and employees.

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