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Labour Minister Shows Concern for Employees and Instructs the Department of Labour Protection and Welfare to Monitor and Inspect Employers with Temporary Business Suspension on Using Article 75

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          The Labour Minister showed concern for employees who have to stop work, as employers have to temporarily suspend business. He instructed the Department of Labour Protection and Welfare to monitor and inspect employers who use Section 75, to strictly comply with the law, as well as reiterated that the Ministry of Labour’s inspectors help monitor businesses nationwide that are temporarily suspended, ensuring compliance with the Labour Protection Act 2541, Section 75.

          Labour Minister M.R. Chatu Mongol Sonakul revealed that from the rapid spread of the Covid-19 pandemic, many companies have terminated employees, shut down the business and temporarily or partially or suspended business. In the temporary or partial suspension of business, labour protection laws give employers rights that aim to protect both employers and employees simultaneously. The laws provide protection in the event that the employer encounters a problem and it becomes necessary to temporarily suspend the business; however, the employer still wishes to continue the business. It helps to resolve such a crisis and provide relief on the burden of the employers’ expenses, to alleviate some of the problems, before returning to normal operations again. The laws also support the employer to continue the business without the need for closure or the need to terminate the employment of employees, which would cause unemployment, a lack of income and suffering from the result of such incidents. Nevertheless, although the labour protection laws allow employers to temporarily suspend business to resolve the crisis, the law does not allow employers to act arbitrarily. The Ministry of Labour has therefore established control measures as follows:

          – The employer must have important reasons affecting the employer’s operations, to the extent that the employer is unable to operate the business normally.

          – The employer must pay employers at a rate of no less than 75 percent of wages on the working days, as received by employees before the employer ceases business operations. Payment must be made throughout the period that the employer prohibits the employee from working at the employee’s workplace, or other locations as agreed upon. Payment shall be made within the payment deadline in accordance with work regulations, or as agreed with the employee

          – The employer must notify the employees and labour inspectors in advance, in writing, at least 3 working days before the suspension of the business.

“If the employer must temporarily suspend its business, the employer must pay at least 75 percent of wages to the employees. The employer must notify the employees and labour inspectors in advance, for no less than 3 working days in advance. The Department of Labour Protection and Welfare including the Ministry of Labour’s inspectors will conduct an inspection on the use of Article 75 in strict accordance with the law. I attach great importance to this matter,” concluded the Labour Minister.


Division of Public Relations

27 March 2020

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