Thailand Archives

IMPACT – MEDIUM

What is the change? The Board of Investment’s Single Window System will no longer automatically cancel a job position when the employer files for cancellation of a visa and work permit that remain valid for more than 90 days. But if the position remains valid for less than 90 days, it will be canceled automatically.

What does the change mean? BOI companies may hire a foreign national for the same title and position as that of the canceled work permit without needing to file for a new job position approval, thus reducing the relocation time of the new employee from six to eight weeks to three to four weeks.

Implementation time frame: Immediate. The change took effect Sept. 3.
Visas/permits affected: Visas and work permits under BOI.
Who is affected: All BOI-registered companies.
Impact on processing times: Companies will save time when refilling a canceled work permit with a new employee as they will not need to file a new “pre-position” approval application, which takes approximately three weeks.

Background: Previously, once a BOI company submitted an application to cancel a visa and work permit, the position approval was automatically removed from the system and the company would need to reapply for approval before filling the position with a new employee.

Companies should note that foreign engineers who are nominated for a job position must possess an engineering degree, and that software, programmer or other IT professionals must submit all certificates related to their field in addition to the educational certificate related to the BOI job title.

Analysis & Comments: The change will ease job mobility by reducing the steps that BOI companies need to take when replacing a former employee and shortening the relocation time for new employees. However, the replacement employee’s work permit and visa will be valid for the same period as the previous position and need to be renewed before its expiration date.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change? Following the issuance of an Emergency Decree on Managing the Work of Foreigners, authorities in Thailand have issued new rules for obtaining extensions of urgent work permits.

What does the change mean? Employers and foreign workers intending to extend an urgent work permit beyond its initial 15-day validity period will be required to apply for an extension through the Employment Department before the initial validity period ends. When doing so, they must submit a new application and provide a letter from the sponsoring company explaining why the extension is needed. Exact procedures may vary, depending on where in Thailand an extension is sought.

Implementation time frame: Immediate and ongoing.
Visas/permits affected: Urgent work permit extensions.
Who is affected: Employers and foreign nationals who need to extend an urgent work permit beyond the initial 15-day period.
Business impact: Businesses should take note of the new rules in order to avoid the risk that employees may lose their work authorization.

Background: The emergency decree, issued in late March, contains significant changes to the rules for companies hiring foreign employees. The decree specified that foreign nationals entering Thailand for urgent work must notify the registrar and, absent an extension, must complete their work within 15 days. Regulations detailing the procedures to apply for an extension have now been published.

Procedures may vary from office to office; for instance, some provincial offices may require extension requests to be submitted at least three days before the initial work permit ends, whereas requests submitted at the One Stop Service Center will take applications up until the day on which the initial permit expires.

Foreign workers will be allowed to request two extensions and then will be required to leave Thailand for a 45-day cooling-off period before applying for another urgent work permit. However, authorities will consider requests on a case-by-case basis as to whether foreign workers have sufficient necessity to return to Thailand within 45 days.

BAL Analysis: Employers should be sure that they submit requests for extensions of urgent work permits in a timely manner and that they provide an adequate explanation for the reasons the work must continue. Applicants are encouraged to work with BAL, especially when submitting requests outside of Bangkok, because of the likelihood that procedures may vary from office to office.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? An Emergency Decree on Managing the Work of Foreigners, issued March 28, contains significant changes to the rules for companies hiring foreign employees.

What does the change mean? While the regulations are pending, many of the changes have not taken effect and implementation has been delayed. Some of the provisions, including the use of new filing forms by applicants, have already been implemented.

Implementation time frame: Ongoing. Some of the provisions have delayed effective dates. See details below.
Who is affected: Thai companies employing foreign nationals and foreign national employees. Currently, only the One Stop Service Center, not the Employment Department, is implementing the changes. BOI and IEAT companies are not currently affected.
Business impact: Employers should prepare for the changes and take advantage of the grace period to review their records and ensure that their foreign workers are in compliance with work permit regulations in order to avoid penalties
Next steps: Implementing regulations are expected to provide greater clarity in coming days.

The following is a summary of key changes:

Work permit exemptions. Specific exemptions from work permits apply to certain categories, including individuals entering Thailand to organize, set up, participate or lecture at a conference, including providing training or seminars for designated purposes to be set by the Cabinet. Also exempt are foreign nationals who register with the Ministry of Commerce as a representative of a branch office, representative office, or regional office that has received a foreign business operation license. Details on how these exemptions will apply are expected in coming weeks.
Notification requirements. The employer and the foreign employee must notify the registrar of the Employment Department within 15 days of the employee’s work start date. An employer is also required to notify the registrar within 15 days of the termination of employment. Failure to register on time will result in a monetary penalty of up to 20,000 baht (about US$622). The notification requirements are currently in effect but the penalty provisions are delayed until July 1. Furthermore, employers who were employing foreign workers before the emergency decree must notify labor authorities of the employees’ names, nationalities and job roles within 60 days of March 28; these notification procedures will be announced by the director general of the Employment Department.
Extension of Urgent Work Permit. A foreign national who enters Thailand to perform urgent work must notify the registrar and complete the work within 15 days. If the work is not completed within that time, the employee may request an extension of no longer than 15 days, but the request must be made before the end of the original 15 days. Ministerial regulations are expected to detail the procedures to apply for an extension.
Change of work details. An employee who changes or adds a work location with the same employer is not required to notify the registrar as long as the location is the place where the employer is registered with the Ministry of Commerce or is legally obliged to work (such as under a contract to work at a client site). An employee may change or add job title or job duties for the same employer without notifying the registrar as long as the change is permitted under the emergency decree, i.e., is not one of the 39 prohibited professions.
Penalties. The emergency decree has lowered the maximum fines that were initially set to take effect in January; however, the fines for employer and employee noncompliance will still be increased from current amounts. Employers who engage a foreign employee in a prohibited occupation is subject to a fine of 10,000 to 100,000 baht per employee, and the employee is subject to a fine of 5,000 to 50,000 baht. Employers who hire foreigners without a valid work permit are subject to fines of 10,000 to 100,000 baht per employee, and an employee is subject to a fine of 5,000 to 50,000 baht. An employer who is a repeat offender will be liable for fines of 50,000 to 200,000 baht per employee and up to one year of imprisonment, and prohibited from employing foreigners for three years from the date of a final court judgment. These new penalties take effect July 1.

BAL Analysis: Businesses should prepare for the changes, perform the new notification requirements for foreign workers, and wait for additional details on the exempt categories. Regarding the new fine schedule, the Thai government has taken into consideration concerns and complaints from the business community by reducing the maximum fines and introducing a grace period to allow companies to file appropriate work permit applications and to allow time for authorities to adjudicate them.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

IMPACT – MEDIUM

What is the change? Government offices in Thailand will close for five days beginning Thursday for the Songkran New Year holidays.

What does the change mean? Applicants should anticipate longer processing times for applications submitted this week and following the holidays.

Implementation time frame: April 12-16.
Visas/permits affected: All immigration-related government services.
Who is affected: Applicants seeking visas, work permits or other services from Thai government offices.
Impact on processing times: Applicants should expect delays in the issuance of visas and permits following the holiday period.

BAL Analysis: Companies and individuals applying for visas and work permits should factor the holiday break and associated delayed into their plans. Those applying abroad should contact the relevant Thai consulate for specific holiday schedules.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

IMPACT – HIGH

What is the change? The Thai government is introducing a SMART visa for foreign experts, executives, entrepreneurs and investors in 10 “S Curve” industries.

What does the change mean? Among the benefits, SMART visa holders will be exempt from having to apply for work permits, and their spouses and children are eligible for resident permits during the length of the primary visa holder’s stay.

Implementation time frame: Estimated Feb. 1, pending implementing guidelines.
Visas/permits affected: SMART visas.
Who is affected: Foreign experts in 10 designated industries.
Impact on processing times: The process, including issuance of relevant endorsement letters, is expected to take 30 business days.
Business impact: The visas are intended to attract foreign talent and investment in targeted industries.
Next steps: Implementing guidelines are still being finalized. Applicants will be required to apply for a letter of endorsement from the SMART Visa Unit of the Thai Board of Investment (through the One-Stop Visa Center) and then another endorsement of their qualifications from the designated certifying government agency for their professional field.

Background: There are four categories of SMART Visas. Applicants must work in one of the following 10 targeted industries and meet the qualification for their category.

Next-Generation Automotive
Smart Electronics
Affluent, Medical and Wellness Tourism
Agriculture and Biotechnology
Food for the Future
Automation and Robotics
Aviation and Logistics
Biofuels and Biochemicals
Digital
Medical Hub

SMART Visa category	Qualifications	Duration	Other Benefits
T – Highly Skilled Experts (Talents)	Expertise in science/tech in a relevant target industry, minimum salary of 200,000 baht, and minimum 1-year contract with a Thai entity that is certified by relevant government agencies.	4 years maximum, but not exceeding duration of contract.	No work permit required, no re-entry permit required, spouses and children over 18 granted work authorization.
I – Investors	Direct investment of at least 20 million baht in a Thai company that uses technology as the basis for goods or services; business must be certified by a relevant government agencies.	4 years maximum.	No work permit required, no re-entry permit required, spouses granted work authorization.
E – Senior Executives	Minimum salary of 200,000 baht, hold a bachelor’s degree or higher and minimum 10 years of experience in relevant field, hold a senior management position such as chairman or managing director, and hold a minimum 1-year contract with a Thai entity certified as using technology as a basis for goods and services in a targeted industry.	4 years maximum, but not exceeding duration of contract.	No work permit required, no re-entry permit required, spouses and children granted work authorization.
S – Startups, Entrepreneurs	Participating in an incubator or accelerator program (or receiving joint venture funding) that is endorsed by a relevant government agency. Applicant must set up the company within one year and hold at least 25 percent ownership or be a director. Applicant must have fixed savings of at least 600,000 baht, at least 180,000 baht for spouse and each child, and have a health insurance policy.	1 year initial, and renewal for up to 2 years if requirements are met.	No work permit required, no re-entry permit required, spouses granted work authorization.

BAL Analysis: The SMART visa program is a positive development aimed at attracting science and technology experts by providing work-permit exemptions for qualifying senior executives, highly skilled talents, investors and start-ups. BAL is following this development and will report additional information when the guidelines are available.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

IMPACT – MEDIUM

What is the change? Thailand has instituted a requirement that marriage and birth certificates be legalized for all foreign nationals (non-Board Of Investment companies only).

What does the change mean? Foreign nationals applying for and renewing long-term dependent visas should account for the additional time to officially legalize marriage and birth certificates.

Implementation time frame: Immediate. The new policy took effect Monday.
Visas/permits affected: Long-term dependent visas.
Who is affected: Foreign employees of non-BOI companies applying for family members.
Impact on processing times: The legalization process can vary from several days to several weeks, depending on location and rules of individual embassies.
Business impact: The new requirement adds another step and additional time to the application process for long-term dependent visas. Visa applicants must complete the legalization process before they are able to file the in-country visa extension application.

Background: To fill the requirement, marriage and birth certificates must either be:

Officially legalized by the home country’s embassy in Thailand; or
Officially legalized by the relevant country’s foreign affairs ministry and subsequently authenticated by the Thai embassy in the country where the documents were first legalized.

Previously, the legalization requirement applied to foreign nationals of 21 countries, including India and most countries in Africa and South Asia. Authorities have expanded the requirement to all nationals because of the recent discovery of fraudulent filings.

BAL Analysis: The announcement will lengthen overall timelines for long-term dependent visas filed on and after July 17. BAL is contacting affected clients to make sure they complete the required legalizations.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

IMPACT – MEDIUM

What is the change? Employers are required under a new law to notify authorities within seven days of the end of a work permit holder’s employment.

What does the change mean? The requirement is part of a broader immigration law that targets work permit abuse. Additional provisions targeting employers and employees for work that is not permitted, activities that are not covered in employees’ work permit booklets and work that is done without a valid permit will be enforced starting Jan. 1.

Implementation time frame: Ongoing. The notification requirement took immediate effect, but the government will delay enforcing other portions of the law until Jan. 1 to give employers time to comply.
Visas/permits affected: Work permits.
Who is affected: Employers and foreign nationals working in Thailand.
Business impact: The law adds a new notification requirement at the end of a work permit holder’s employment. Businesses should also take note that Thailand is moving to increase the penalties for employers and employees who misuse their work authorization.

Background: Though the Emergency Decree on Managing the Work of Foreigners B.E. 2560 (2017) primarily targets abuse of migrant workers and human trafficking, most of the law’s provisions will apply to all foreign workers.

Among key changes:

Employers must notify authorities within seven days of an employee’s termination or departure from the employer’s company. Failure to properly notify authorities when an employment relationship ends will result in fines of up to 100,000 baht (about US$2,930). This requirement took immediate effect.
Employers and employees alike will face steep fines in cases where work permit holders are found to have engaged in work on prohibited lists. Employers will face fines of between 400,000 and 800,000 baht per employee for these violations, while employees will face fines ranging from 20,000 to 100,000 baht. This change will be enforced Jan. 1.
Employers and employees will also face fines for conducting work activities other than those that are permitted in the employee’s work permit booklet. Employers will face fines of up to 400,000 baht per employee for these violations, while employees will face fines of up to 100,000 baht. This change will be enforced Jan. 1.
Employers and employees will both face stiff penalties in cases where an employee is working without a valid work permit. Employers will face fines of between 400,000 and 800,000 baht per employee for these violations, while employees could face up to five years’ imprisonment, fines ranging from 2,000 to 100,000 baht, or both. This change will not enforced Jan. 1.

BAL Analysis: While some of the law’s provisions will not be enforced until the new year, employers are encouraged to take steps as soon as possible to make sure that foreign employees’ activities are permissible under Thai law and the terms of the employee’s work permit. Employers should further note that the notification requirements for when an employment relationship ends have taken immediate effect and should make sure that internal procedures are adjusted to ensure compliance. Those with questions should contact BAL.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Thailand’s One-Stop Service Center has announced a new requirement for non-Board of Investment companies applying to renew foreign employees’ long-term visas.

What does the change mean? In addition to submitting official tax documents, employers must also submit original receipts showing that they paid for official certifications of such documents by the Department of Revenue.

Implementation time frame: May 1.
Visas/permits affected: Long-term visa.
Who is affected: Non-BOI companies applying for long-term visa renewals.
Business impact: Companies should retain their original receipts when certifying tax documents.
Next steps: Companies and individuals submitting tax documents in support of long-term visas must also submit the original receipt showing payment for certifications of those documents.

Background: The One-Stop Service Center announced the additional requirement Tuesday, citing cases of fake certifications of tax documents as the reason for the new rule.

BAL Analysis: As BAL reported recently, Thai authorities are closely scrutinizing applications to renew long-term visas. The new requirement follows that policy and helps authorities ensure that companies are submitting proper tax documents and paying their taxes. While it initially seemed likely that only visa extensions submitted through the regular process would receive extra scrutiny, it now seems clear that, in the future, non-BOI companies using the One-Stop Service Center will be more closely monitored as well.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

IMPACT – MEDIUM

What is the change? Thailand has changed the One-Stop Service Center eligibility requirements for non-Board of Investment companies filing long-term visa extensions for work permit holders.

What does the change mean? In order to be eligible to use the OSSC, companies must (1) have 30 million baht (about US$850,000) in registered capital fully paid up, or (2) be able to show on their most recent audited financial statement that they have 30 million baht in assets remaining after current liabilities are deducted from current assets. Under the old rules, companies using the second option only had to show that they had 30 million baht recorded as total assets.

Implementation time frame: Immediate and ongoing. The change took effect this week.
Visas/permits affected: Long-term visa extensions for work permit holders.
Who is affected: Non-BOI companies using the OSSC to file long-term visa extensions for work permit holders.
Impact on processing times: The change could lead to significantly longer end-to-end processing times for companies that are no longer eligible to use the OSSC for long-term visa extensions.
Business impact: Companies should assess whether they are eligible to use the OSSC under the new rules.

Background: The change took effect this week without advance notice. Authorities have communicated the shift in policy to applicants verbally, however, as applications are submitted and processed.

BAL Analysis: Companies that are no longer eligible to use the OSSC for long-term visa extensions can submit applications at the Chaeng Wattana Immigration Office Immigration Center. There are drawbacks to this option, however, including additional documentation requirements, more scrutiny in the review process and longer end-to-end processing times. BAL is available to assist companies in determining whether they will be affected by the OSSC’s rule change and, if so, determining what their best options are for obtaining long-term visa extensions.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

IMPACT – MEDIUM

What is the change? New procedures have been put in place for foreign employees of Board of Investment sponsored companies needing to transfer a visa from an old passport to a new passport when the existing visa was only granted until the expiration date of the passport.

What does the change mean? The new process entails additional steps, including applying for an extension and obtaining a new re-entry visa; therefore, employers and individuals should expect longer time lines when transferring visas.

Implementation time frame: Immediate and ongoing.
Visas/permits affected: Visa transfers.
Who is affected: BOI-sponsored companies and their employees who need to transfer a visa to a new passport.
Impact on processing times: Applicants must get the visa transfer before they can queue for a visa extension for the full duration of the work authorization in the BOI approval letter. The wait time at the One Stop Service Center is approximately 4-5 hours.
Business impact: BOI-sponsored companies should anticipate the longer process for employees requiring a visa transfer.

Background: Under the new process, an existing visa that was valid only until the holder’s passport expires will not be transferred to a new passport for the full work-authorization period per the BOI approval letter. As a result, the applicant must first apply for a visa transfer at the Service Center, then apply for a visa extension stamp for the full work-authorization period stated in the BOI approval letter. The government fee of 1,900 baht (about US$54) applies to the visa extension. Applicants should also then apply for a re-entry visa if they intend to travel abroad and return to Thailand.

BAL Analysis: Companies and employees should plan for longer timelines and a two-step process at the Service Center when transferring visas. BAL can assist in the process and reduce the employee’s queueing time at the Service Center.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.