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Stricter Rules for Work Permit Extensions

November 24, 2015

Regarding the work permit extension, the officer has discretion to extend the work permit for a time period not exceeding two years, depending on the company’s compliance with Section 21 of Foreign Workers Act.

The officer will consider the financial statements of the employer related to the preceding year as well as VAT payments of the employer. Now, according to a new practice of the Labour Department, if the company has no income or income lower than One Million Thai Baht shown on the latest financial statement or VAT documentation, they will use their own discretion to extend the work permit for only 6 months. This practice is based on any specific law or regulation, rather it is an internal policy from the head of the Labour Department within their authority. The finances of the employer would be reviewed and considered. If the company operates continuously at a loss, the Labour Department questions how the company can do business without any profit and that it not reasonable to do business this way.

However, the aforementioned policy is not strictly enforced. The Labour Department will be flexible if appropriate reasons are provided to explain why the company operates at a loss or has no any income at this moment. If the reason is acceptable, they will agree to extend the work permit for one year. The matter will be considered on a case by case basis.


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