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Monday, 18 December 2006 |
Working the legal way in ThailandON THE JOB: For foreigners seeking work permits, procedures have been clarified and simplified, but some will probably continue their quarterly visa runs.
The rise of globalisation has resulted in Thai people becoming accustomed to seeing people from many nations on the streets and in the offices of the capital. Thailand is a popular destination for foreigners seeking new opportunities, whether for a few months or as part of a long-term career change.
But among the waves of North Americans, Europeans, Australians, Asians and others are a lot of people who are working illegally without work permits, according to Michael Ascot, managing partner of Amrop Hever Group, an executive search firm.
``Yet the foreigners I know, who are working for serious firms, all have their work permits,'' he said.
The government has grappled for years with headaches created by people who come to Thailand with tourist visas and stay on in the country to work.
Some are simply put off by the red tape involved in obtaining work permits. But for those lucky enough to work for companies eligible to use the government's One-Stop Service Centre, the paperwork is fairly painless.
Those with tourist visas have to leave the country every three months to renew them. Some people have been making quarterly ``visa runs'' to the likes of Vientiane or Penang and returning to the country to resume paid employment for many years.
``And this is illegal,'' said Treephong Na Nongkhai, a lawyer at Siam Premier International Law Office.
According to the law, tourists can come into the country for three months at a time as long as they keep their tourist visas current. ``This can be done as long as they don't work,'' said Mr Treephong.
``If the tourists wish to stay on and get a job, they need to have their tourist visa changed to a non-immigrant visa for business. Or they need to have the right visa in the first place before entering the country.''
According to the Alien Working Act, a work permit issued under the Act is valid for one year from the date of issue. It is illegal for a person who employs a foreigner without a work permit to work in his business.
Employers who violate the law face fines of up to 60,000 baht and/or jail terms of up to three years. Foreign employees found in breach of the law can be jailed for up to three months and/or fined up to 5,000 baht.
There are several reasons why some people choose not to abide by the laws. Mr Ascot believes one of the most likely is the desire to avoid paying tax. ``Or else, some of them just think, `This is Thailand', they can do whatever they want and no one is going to care,'' he laughed.
``Or sometimes it is a very short working period, around 15 to 30 days, and the firms don't bother to get their employees work permits,'' said Mr Treephong.
Some companies deliberately avoid seeking work permits for foreign staff as it is one way to avoid having to pay them benefits. Others are unwilling to disclose their assets, financial status and other documents required for obtaining permits, as it could lead to unwanted attention from the tax authorities.
Besides, the law places limits on the number of foreigners allowed to work at a firm based on particular conditions. ``Thus, those who exceed the quota have to work without work permits,'' said Mr Treephong.
As well, he said, some companies simply found getting work permits for their employees too costly and complicated, though new regulations offered much more flexibility than before. (see details in illustration)
``These new regulations allow great flexibility in hiring foreigners for firms and issuing them work permits. We can see very few situations in which a firm does not fall into any of the five categories,'' said Mr Treephong.
Businesses eligible to use the One-Stop Service Centre for visas and work permits say that for the most part, it has been living up to its name.
In the first quarter of this year, the centre processed 13% more applications than in the same period last year.
From January to March, the centre processed 19,140 long-term visas, 6,012 work permits and 189 miscellaneous applications, such as requests for changing the type of visa. The total number of applications handled by the centre last year was 115,000, up from 94,888 the previous year.
The revised regulations offer the greatest benefit to companies or businessmen who are in the country for serious long-term investment.
However, at the same time, they could create more opportunities for those wanting to exploit the eased rules, Mr Treephong said.
``This could bring about the possibility of increased fraud. There could be companies that don't really exist or are set up just to issue foreigners with work permits, or foreigners who don't actually perform work but make up the income documents required for work permit application.''
Mr Treephong said it was interesting to note, though, that while the Thai government was trying to set standard rules for the employment of foreigners, in many other countries the issue would be left to the discretion of authorities.
Normally, other countries look at demand in various professions or specialisations, which can shift with economic conditions. The goal is to see if the employment of foreigners would produce tangible benefits for their people and countries.
Source: Bangkok Post
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