The Labour Minister ordered agencies to accelerate assistance to employees of a factory that lost financial liquidity and terminated the employment of workers in Samut Sakhon, to ensure employees receive rightful benefits. The order also asked that labour inspectors explain to employers and employees to strictly comply with the law.
On September 22, 2019, Labour Minister M.R. Chatumongol Sonakul closely monitored the labour situation and showed concern about the news on social media about a large factory in Sinsakorn Industrial Estate which laid off many employees. The Labour Minister ordered the Department of Labour Protection and Welfare to visit the area to investigate and assist employees in receiving rightful benefits and to strictly abide by the law.
M.R. Chatumongol further said that the investigation by labour inspectors from the Office of Labour Protection and Welfare in Samut Sakhon, found that the factory is Apex Circuit (Thailand) Company Limited. The company operates an electronic circuit board manufacturing business in 2 locations; the first is the head office located at 39 / 234-6 Moo 2 in Samut Sakhon Industrial Estate, Bang Krachao, Mueang Samut Sakhon, Samut Sakhon, which employs approximately 2,977 people, and the second is a branch office located at 30 / 101-102 Moo 1, Sinsakhon Industrial Estate, Khok Kham, Mueang Samut Sakhon, Samut Sakhon, with approximately 3,208 employees. Both sites are facing a lack of financial liquidity. The impact of trade problems between China and the US have had an impact on trading partner countries’ orders. Therefore, the company took measures to reduce the production volume and immediately terminated factory workers in Sinsakhon Industrial Estate. On September 20th, it terminated the employment of 147 employees who had not completed 120 days of work, currently under probation and employed daily, with immediate effect. The company will pay wages to the employees until September 30. In addition to this, the factory in Samut Sakhon Industrial Estate will further layoff 70 employees with a tenure under 120 days on September 30.
The Ministry of Labour by the Office of Labour Protection and Welfare in Samut Sakhon, explained the rights and responsibilities of the employer to the company. After the explanation, it was found that the group of employees did not pass probation, combined with the impacts from the economic war between China and the US, and Japan and Korea, which caused the factory to reduce production capacity. It thus decided that employees in the probationary period would be dismissed first, effective immediately on this coming October 1. The Ministry of Labour by the Office of Labour Protection and Welfare in Samut Sakhon will coordinate the provincial Employment Office and the Social Security Office to find vacancies for employees and provide them with appropriate benefits in accordance with the law. In cases where employees have contributed to the Social Security Office for no less than 6 months, the employee can file an application to claim insurance benefits in the event of unemployment. Employees will just need to register for unemployment at the Employment Office in Samut Sakhon The Social Security Office will then check the rights to pay benefits to employees at 50 percent of wages for no more than 180 days. In addition, the Department of Employment will find job vacancies and match employees to new positions, for employees who wish to improve their skills in order to enhance their knowledge to applying for new positions. The Department of Skill Development will continue to develop skills to meet the needs of employees as well.
In this case, the employees were not entitled to any legal benefits. For help, contact the provincial Office of Labour Protection and Welfare, the Bangkok Office of Labour Protection and Welfare Area 1-10 or call the Ministry of Labour’s hotline on 1506, press 3.
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Division of Public Relations/
News by Chaninthorn Phettab/
Information by Department of Labour Protection and Welfare/
22 September 2019
