Work Permit Changes

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Paul
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Work Permit Changes

Post by Paul » July 23, 2008, 10:14 pm

Courtesy of the 'Baht and Sold' website

Take note all those who work - legally or otherwise

Understanding the new work permit law
source: TILLEKE & GIBBINS/Bkk Post July 18 2008

Most foreigners working in Thailand are well aware that they need a visa and work permit to stay and work in the country. Yet, they find the law and regulations rather complicated and difficult to comprehend, especially with immigration rules dramatically evolving in the past few years and posing a challenge to the status of many expatriates. Unfortunate expats who either lacked knowledge or failed to keep track of developments in immigration and labour laws and practices have paid a price for their oversight or negligence.

On Feb 23, 2008, the law governing work permits (Working of Aliens Act) generated much attention when it emerged to replace its 30-year-old predecessor. Although the implementation of the major part of this new law has been delayed pending the issuing of several ministerial regulations, it would be prudent for working aliens to familiarise themselves with some key changes.

The greatest point of interest is the punishment imposed on both employer and employee for an employee working without a work permit. The new Act imposes a heavy fine ranging from 2,000 to 100,000 baht upon a violating [alien] employee, significantly increased from 5,000 baht, and/or a five-year term of imprisonment, increased from three years. An employer hiring an alien without a work permit will face high fine of 10,000 to 100,000 baht, although the former three-year imprisonment has been eliminated.

Labour officials are now empowered to arrest (without a warrant) any alien suspected of working without a work permit.

Depending on one's point of view, the penalties seem to be harsher for employees and lighter for employers. The new law will allow any alien worker who pleads guilty and voluntarily leaves Thailand within 30 days to be fined without a trial.

Under the new law, a work permit of up to two years may be granted instead of one year under the old law. The most welcome change is that a work permit will no longer be tied to the duration of stay that is stamped on an alien's passport. In other words, work permit holders who do not have a one-year duration of stay will not need to keep extending their work permits by leaving and returning to Thailand on a "visa run" to get a new duration of stay. Nevertheless, work permit holders will still have the duty under immigration laws to maintain a valid duration of stay while in Thailand. This new development awaits implementation in the near future.

The new work permit fee is 20,000 baht. Renewal will cost the same price. In addition, an employer applying to hire alien employees who are not deemed skilled or expert will be charged a 10,000-baht fee per alien. The Department of Employment has not applied these new fee rates as yet.

Employers or employees are no longer obligated to report to the Department of Employment and return a work permit when employment has ended. Under the old law, those who failed to comply would have to pay a fine of 1,000 baht at a police station, which was quite unnecessary and inconvenient.

Nonetheless, labour officials still encourage both parties to report the cessation of employment, otherwise their system would not permit the employee to get a new permit with another employer or the old employer to fill the vacant position.

The Immigration Bureau has reacted to this development. The usual seven-day period of stay after the cessation of work will no longer be automatic but will be granted upon request and payment of 1,900 baht. Most importantly, a further temporary stay while a new work permit application is under consideration will not be given anymore.

As a result, aliens switching jobs would be compelled to process their new work permit within seven days or leave Thailand to get a new business visa from a Thai consulate.

Several provisions dedicated to a fund for sending aliens out of the Kingdom have been added. In addition to the existing personal income tax and social security withholdings, the employer will soon be obligated to contribute to the fund by withholding a certain amount from the income paid to work permit holders. The criteria and conditions relating to the contribution are to be set forth later. The fund is intended to relieve the government of the high cost of deporting guilty working aliens and illegal immigrants.

In general, the major changes in this law seem to be positive and more liberal. It is hoped that they will help resolve the enduring problems that have troubled both aliens and the Thai government in the past.

Written by Kobkit Thienpreecha, Attorney, Commercial Department, Tilleke & Gibbins International Ltd. Please send comments or suggestions to Marilyn Tinnakul at marilyn.t(at)tillekeandgibbins.com
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Post by rickfarang » July 24, 2008, 12:57 am

Labour officials are now empowered to arrest (without a warrant) any alien suspected of working without a work permit.

Maybe this is not new, but chilling. It puts aliens in a special category -we can be arrested without warrant, and therefore without the burden of proof or reasonable cause. I don't like that a bit.

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Post by Aardvark » July 24, 2008, 6:39 am

Sounds like a good way for Labour Officials to increase thier monthly earnings!

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Post by Paul » July 24, 2008, 7:45 am

See the new fee - 20,000 baht for applications AND extensions (where most of the paperwork is already registered)

Currently it is tiered - depending on the length of permit but even the 1 year permit is only about 20% of the new proposed fee - bloody scandalous !

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Post by lee » July 24, 2008, 11:55 am

I'm currently on a multi entry non-B which requires me to leave Thailand every 90 days. When I re-enter I then have to visit the labour office to extend my work permit. This usually costs around 800bt each time (3,200bt per year).
Under the new rules I can apply for a 2 year work permit (20,000bt) which equates to 10,000bt per year. It's good news that I no longer have to visit the labour office every 3 months with copies of the same copies I presented them with time and time before. However the fee increase of 215% does seem a little ridiculous and unfair.

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Post by rickfarang » July 24, 2008, 11:58 am

I noticed the increased fees. OUCH - that's got to hurt, especially for those who are self-employed.

Its sure to encourage people to continue to remain under the radar. Maybe their focus is on discouraging foreigners from working here, rather than building the economy or increasing the tax base.

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Post by lee » July 24, 2008, 12:05 pm

rickfarang wrote:Maybe their focus is on discouraging foreigners from working here, rather than building the economy or increasing the tax base.
Exactly. Our company pays taxes, provides employment for locals and contributes to the local economy. Surely they should encourage foreign businesses rather than penalize them with higher fees.

It may discourage overseas workers from working here. In my opinion it's more a step back than step forward.

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Post by alby » July 24, 2008, 5:58 pm

is it the new fee 20.000 baht for a year or two?

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Post by Paul » July 24, 2008, 6:25 pm

the 2 year option is currently only a proposal.
Its not clear whether the 20,000 baht will still apply even if the 2 year proposal doesn't take off.
It just makes it a darn sight more difficult especially as visas are still for one year but a work permit may possible be for 2 years ???? Doh !!!

Lee:
I don't know how but my visa is good until May 2009, I don't have to leave every 90 days - work permit also, same date.
obviously it is possible to get one without 90 days visa runs - not sure how though, mine was done for me.(and thankfully paid for as well - but they will cough at 20,000 baht :( )

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Post by Ricohoc » July 24, 2008, 6:48 pm

That fee will hit teachers very hard. Don't most English teachers make in the neighborhood of 30,000 B per month?

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Post by lee » July 24, 2008, 7:01 pm

Paul wrote:I don't have to leave every 90 days - work permit also, same date.
obviously it is possible to get one without 90 days visa runs - not sure how though, mine was done for me.
If you apply for a B visa extension within the country you get 1 full year without the need to leave every 90 days. However B visa's issued outside the country are normally muliple entry requiring you to leave every 90 days. Anyway I will look into this as I will be applying for one soon in Malaysia.

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Post by Paul » July 24, 2008, 9:52 pm

I got a 3 month single entry in Penang and then it was extended in Chonburi to 1 year so that must be it then.

It gets more confusing by the day :(

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Post by Zidane » July 25, 2008, 8:42 pm

lee wrote:
If you apply for a B visa extension within the country you get 1 full year without the need to leave every 90 days. However B visa's issued outside the country are normally muliple entry requiring you to leave every 90 days. Anyway I will look into this as I will be applying for one soon in Malaysia.
Lee,
If you try Malaysia I believe that Kuala Lumpur is currently the better option than Penang.
If you have the correct paperwork you should be able to get a one year multi entry B visa.Even an O visa you should be able to get 2x90 days,at present.
Penang,I believe is just issuing single entry 90 days,at present.
Check it out on Thaivisa.com

Zidane

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Post by Paul » July 26, 2008, 1:30 am

Zidane wrote:
Penang,I believe is just issuing single entry 90 days,at present.
Check it out on Thaivisa.com

Zidane
Correct

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Post by lee » July 26, 2008, 11:26 am

That's news I didn't want to hear, if I'd have known this I would have just popped over to Laos for a 3 month B visa and save time and money. Oh well I could always hop over to Kuala Lumphur to apply for the visa in hope that they issue a 1 year visa.

It feels like there's no end to the bad news. Firstly they changed the rules for B visa extensions within Thailand to make it almost impossible for small/new businesses to fulfill all the requirements. So I decided to apply for the business visa outside the country where the rules are more in favour of smaller enterprises. Vientiane only issues 3 month visas so I looked elsewhere. After research on the internet I learned that Penang was the favourite option. Providing you had a work permit and all the required paperwork a 1 year multi B would be issued. I know of one chap in Udon that successfully received one in Penang this year. So I booked my ticket to Malaysia and am due to fly our shortly.
Now, as per usual, the rules change yet again and (rumor or not) Penang only issue 3 month B visas.
Oh and to add salt to the wound work permits are due to increase to 20,000bt from 800bt. :( :(
Sometimes I wonder about doing business in Thailand.

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Post by Zidane » July 26, 2008, 12:07 pm

If you decide to fly from Penang to Kuala Lumpur bear in mind the visas are not issued the same day so you would need an overnight stop.
I think you have to put in your application before 11.30am on day 1 and pick up on day 2.
Not exactly sure of the times but it will be on the Thai Consulate Kuala Lumpur website.
I found this out as my Non O expires September.I've never done an extension and thought maybe avoid Nong Khai and take the family for a holiday in Penang and pick up another Multi Non O.
But for just 90 days its not worth it so if we did Malaysia then Kuala Lumpur is the only real option.

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Post by lee » July 26, 2008, 12:58 pm

I've just been digging around for information and come up with the following:

Multi entry B Visa's are issued to holders of work permits valid for 1 year. Anything less, i.e. work permits issued to contract workers with less than 1 year work period on page 5 of their permit are only issued a 3 month single entry.

My work permit is valid for 1 year and I'm a company shareholder so there is a good chance that I will qualify for a 1 year multi B. In any case I will call both KL and Penang to confirm this monday morning.

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Post by Paul » July 26, 2008, 3:42 pm

You might be correct Lee
All the people in my group were new applicants and only half of them got the visa anyway. Now you have to have a receipt from the labour dept. to show that you have logged an application for a WP. Once you have your visa then they will issue the work permit.
Many just assumed that they got a visa first then got the work permit after, which is technically correct except without the receipt to prove you have actually intended to apply for the WP - they will not issue you a visa

Perhaps the post above should have read 'penang only issues 3 month visas' TO NEW APPLICANTS

Nothing is certain though and as most of my group found out - you only know whats really happening once you arrive there !
(As those applying for tourist visas without onward air tickets also found out)

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Post by isaanlawyers » July 27, 2008, 4:14 am

It is not applied in Korat yet. We did a work permit this week and it was the same old fees.

Teachers working in public school won't have a problem. The schools will pay their work permit. It's the government money going to the goverment. For private schools, I believe they will lost many teachers if they want them to pay. The immigration also enforced the law about the teacher's certificate, required under the new visa rules for private school of October 2006, but only applied recently in Korat. Many teachers got a 2 years delays...without this certificate.

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Post by Paul » July 27, 2008, 5:19 pm

isaanlawyers wrote:It is not applied in Korat yet. We did a work permit this week and it was the same old fees.
From the OP


"The Department of Employment has not applied these new fee rates as yet."

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