Imagination of Impact from the State Welfare Policy if the New Government led by Move Forward Party: Thoughts for HR to Start Thinking.

Herehr >> Opinion

I think Thailand, at least 14.2M out of 52.2M eligible voters regardless of which generation they are in, has spoken their voice (https://www.thairath.co.th/news/politic/2693870) and expresses the demand in giving opportunity to the new government to “make change” that they want to see to Kao Klai or the Move Forward party. Today I would like to invite all of us in particular to HR folks to think about potential impact that might take place if the policy implemented and what kind of preparation HR needs to help organization to prepare. I’m talking about the State Welfare Policy focusing on “Working”, which is the 2nd key policy pillar of the party. (https://www.moveforwardparty.org/article/15634/)

Under the pillar on Working, there are five items mentioned:

1.????Adjust minimum wage every year. Starting from 450 THB. The government will support SME in the first 6 months.

2.????Fair employment contract. Working not over 40 hours per week.

3.????Every group of workers can set up labor union in according to International Labor Organization (ILO).

4.????Social Security to all. Being sick worker can receive compensation pay and travelling allowance to visit a doctor.

5.????Learning to update skill for free via online platform and support by a coupon for additional study.

I’m not going to talk about where the fund provided by government coming from rather than what we have to prepare as an HR.

Minimum Wage

Today the minimum daily wage in Thailand is ranging from 328 THB to 354 THB (https://www.mol.go.th). If daily wage of 450 applied to all, the wage will be increased approximately 27% - 37% depends where it comes from. Points for HR to start thinking:

1.????Percentage of employees whose daily wage is below 450 THB. HR needs to ensure definition of daily wage as well what/how is defined in your organization. Be straight forward in this part.

2.????Category of your company is SME or not. If yes, you can plan your budget with support of government for 6 months. If not or even any worse case, no supports at all, you have to plan the total cost on your own.

3.????Effected labor cost items that can potentially effected by the increment such as OT, provident fund, social security, others allowances, bonus, incentives and benefits based on wage, reward programs, retirement benefits, etc. These are what you need to think of.

On top of that, for sales, marketing, products and service teams, you may need to do the calculation of costing and pricing including strategy to maintain or to increase. What/how communication will be launched to customers.

Employment Contract and Overtime Pay

Today many companies have a standard working hours at 40 hours per week. Of course there are many as well are not. HR has to start thinking to comply to 40 working hours per week based on the current state.

1.????Which jobs tend to require more than 40 working hours per week?

2.????Which jobs need to run 24/7?

3.????Do we need more people?

4.????Do we need to digitize the operation?

5.????Do we need to reskill, upskill or create new skills?

6.????What kind of results we need from 40 working hours from each type of jobs? What/how to define measurement?

7.????Do we need more tracking and monitoring job system?

These are common questions that most of HR can think of.

For the overtime, by the current labor protection act (B.E. 2541), it has been clearly written that overtime must be paid to eligible persons. The points you need to think are (if there is no changes in the labor law):

1.????How to enforce overtime pay to be in a common practice and comply to the law? This includes regulations and guidelines when OT is being granted must be clear to avoid confusion or misinterpretation.

2.????Employment type whether employees are exempt or non-exempt type and so. It has to be reviewed and defined clearly.

As I said, it is here. Nothing new. It is about what/how to enforce. Do remember that the workers’ rights can be implicitly seen under this policy. Company should also be straight forward as well.

Labour Union

It is encouraged under this new policy that all groups of professions can set up the labor union. In one organization can have several labour union as well. HR needs to start thinking, for examples,

1.????What/how company can align, work, communicate and involve labour union in the company plan and activities.

2.????What/how company will manage multiple labour unions.

3.????Does HR itself has a skill to work with labour union?

4.????What plan company needs to have in order to stabilize the operation or any contingency plan they need to think as risk management in case there are some labour issues?

I don't talk about the learning platform, which is one of good ideas. Let's talk about it some other times.

For now, these are the points that HR need to start thinking and preparing.

As an HR professionals, these are the situation that you have to monitor, understand, analyze and make preparation. The last minute planning should be something we all should avoid.

So are you ready to take up further study and discuss with your management team?

Have a good day.