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Workmen's Compensation Act B.E. 2537 (1994)
Workmen's Compensation Act B.E. 2537 (1994)
The information is reviewed and updated monthly against official sources.
In short
Makes employers compensate work-related injury, illness or death via a state fund of compulsory dues. Protects all staff regardless of nationality; companies must register.
Scope and coverage: Who is protected and what is covered
The Act covers employees who suffer injury, sickness, loss of an organ, disability, disappearance or death arising out of or in the course of their work, including work-related occupational diseases. Protection applies regardless of the worker's nationality, so Thai and foreign employees are treated alike. Certain categories of employer or work may be exempted by ministerial rules (for example some government bodies and specific kinds of employment), but private commercial employers are generally bound. The employer cannot contract out of these duties, and an agreement that reduces an employee's rights below the Act is unenforceable.
Compensation for inability to work: Income compensation rate and benefit periods
Where a work-related injury or illness prevents the employee from working, compensation is paid at a rate of sixty per cent of the employee's monthly wages. The wages used to calculate compensation are subject to a statutory minimum and maximum set by ministerial regulation, so the monthly benefit is capped. Compensation for the inability to work runs from the time the employee cannot work (after a short qualifying period) for as long as the incapacity lasts, but for a limited maximum period set by law. Longer-term benefits apply where the injury leads to loss of an organ or to disability, as described below.
Loss of organ and disability: Permanent partial and total disability
If the injury causes the loss of an organ or permanent partial disability, the sixty per cent compensation is paid for an extended period (up to about ten years), with the exact duration depending on the type of loss under the official schedule. Where the employee suffers permanent total disability, compensation at sixty per cent of wages is paid for a longer maximum period (up to about fifteen years). These long-term payments are in addition to medical treatment and any rehabilitation the worker needs to recover function or return to work.
Death and funeral benefits: Compensation on death or disappearance
If the employee dies or disappears as a result of work, compensation at sixty per cent of monthly wages is paid to the dependants for an extended statutory period. In addition, the Act provides funeral expenses for a work-related death, set at a multiple of the minimum monthly wage rate. Dependants entitled to receive the death compensation typically include the spouse, children and parents, and where there are several dependants the benefit is shared among them under the rules of the Act.
Medical and rehabilitation benefits: Treatment and return-to-work support
The employee is entitled to the actual and necessary medical expenses required to treat a work-related injury or illness, up to the ceilings fixed by ministerial regulation, with higher limits available for serious cases. The Act also provides occupational rehabilitation, including physical and vocational rehabilitation, to help the worker recover and return to suitable work. These benefits are provided in addition to the income compensation described above, not instead of it.
Employer liability and the Fund: Employer duty and the Workmen's Compensation Fund
The employer is primarily liable to pay compensation to an injured employee or to the dependants of a deceased employee. To secure this, the Act establishes the Workmen's Compensation Fund, administered by the Social Security Office, which pays benefits so that workers are protected even when the employer cannot. Employers must register and pay annual contributions to the Fund at a rate set according to the risk of the business (broadly in the range of 0.2 to 1 per cent of payroll), calculated on wages up to an annual ceiling per employee. An employer who fails to contribute, or whose claim exceeds the Fund, can be required to reimburse the Fund and may face surcharges and penalties.
Notice, claims and limitation: Reporting accidents and claim deadlines
The employee or a dependant must notify the employer of the work-related injury or illness, and the employer must report the accident to the labour authorities within the time fixed by the Act. A claim for compensation from the Fund must be filed within the statutory limitation period (counted from the injury, illness or death). Compensation is excluded where the injury or death is caused intentionally by the employee, or results from the employee's serious misconduct such as intoxication or the use of prohibited substances. Decisions of the labour officials can be appealed to the Workmen's Compensation Committee and ultimately to the Labour Court.