FY 2005 Liaison Meeting - JILPT International Labor Information Project

Transcription

1 FY 2005 Liaison Meeting - JILPT International Labor Information Project November 7-10, 2005 Tokyo, Japan Policies and Systems for Foreign Workers in Asian Countries: With a Special Reference To The Thai System Presented by Associate Prof. Chuta Manusphaibool, Ph.D. Faculty of Economics, Chulalongkorn University Bangkok, Thailand

2 I. Policy and system for Foreign Workers 1. Background for Foreign Workers Acceptance Systems The policy and system for foreign workers who which to work in the Thai Kingdom are based on the criterion and conditions stated in the Immigration Act B.E.2522 (B.C.1979). It stipulates the foreign nationals who want to attain resident in Thailand may apply for resident permit with the Immigration Commission. To facilitate an immigration of foreign nationals for the best interest of the Kingdom, the Immigration Commission has set the following criteria on qualification of foreign applicant for residential permit by considering the applicant s income, assets, knowledge, vocational ability, and family status in terms of connection with Thai national, conditions on national security or others as deem appropriate for current economic and social condition and to make it also certain that such consideration has been made thoughtfully, transparently and fairly. Apart from the Immigration Act B.E. 2522, since year 2004, the Thai Government also granted work permit for illegal foreign workers from three nationals i.e., Myanmar, Lao and Cambodia. The cabinet Resolution in 2004 allowed these illegal foreign workers to register with the Ministry of Labor due to shortage of labor the designated jobs such as domestic works, fishery, laborers etc.

3 2. Immigration Control System 2.1) Qualification of the eligible applicant to be considered for residential permit: Foreign national applicant must hold a passport that bears a Non-Immigrant Visa and was granted with one-year visa extensions, which reveal that up until the date of application submission, the applicant, have been staying in the Kingdom for at least 3 consecutive years Foreign national who is at least 14 years old is subject to criminal record check according to the following process; Fingerprint along with identity information of the applicant will be forwarded to the Criminal Record Division, Royal Thai Police for investigation to find whether the applicant has criminal record or not The criminal record certifying letter handed in by the applicant will be examined Investigation through a watch list system of the Immigration Bureau will me made to determine whether the applicant is a prohibited person (persona non grata) according to the Immigration Act B.E or not.

4 Investigation will me made through the Foreign Affairs Division, Royal Thai Police to determine whether the applicant is a wanted person according to the warrants issued by the ICPO- Interpol or not The applicant must reveal information on his/her income, assets, knowledge, vocational ability, and family status in terms of connection with Thai national conditions on national security or others as deem appropriate for the consideration The applicant must be able to understand and speak Thai language. 2.2) Categories of application Investment, Employment, Humanitarian reasons as follows; Spouse: To provide patronage or to be under patronage of a Thai national spouse, Child: To provide patronage or to be under patronage of a Thai national father or mother Father or mother: To provide patronage or to be under patronage of the applicant s Thai national child,

5 Spouse: To provide patronage or to be under patronage of the applicant s spouse, who was granted with residential permit, Child: To provide patronage or to be under patronage of the applicant s father or mother, who was granted with residential permit, Father or mother: To provide patronage or to be under patronage of the applicant s child who was granted with residential permit Expert, Extra circumstances on a case by case basis, 3. Foreign Workers Acceptance System 3.1) Qualification of foreign applicant who wishes to work in the Kingdom; The applicant has to be in a position of executive officer such as President of Committee of Committee of juristic person registered in Thailand with a capital of at least Baht 10 million and is

6 authorized as a signatory for such juristic person, up to the date of application submission, for at least 1 year. The applicant must earn at least Baht 50,000 per month, up to the date of application submission, for a period of 2 consecutive years as minimum and tax return is required and the business in which the applicant works must be of an interest of national economy i.e International commerce where its export value in foreign currency in the past 3 years reached a threshold of Baht 20 million in average. This fact must be certified by a letter issued by commercial bank concerned or a company that provide loan to domestic manufacturing company by bringing into this country, within the past three years, foreign currency at the amount not less than Baht 100 million Tourism related business, which in the past 3 years has brought into this country, at least 5,000 tourists in average. This fact must be certified by the letter issued by the authority concerned or Other type of business that the applicant is a shareholder of at least

7 Baht 5 million for a period of at least 2 years up to the date of application submission. 3.2) In case where the applicant lacks of any qualifications as mentioned in and then the following requirement is applied are a holder of work permit for at least 3 consecutive years up to the date of application submission Have been working in the current company for at least 1 year, up to the date of application submission and Earn annual income at least Baht 80,000 per month for a period of at least 2 years, up to the date of application submission, or have been filing tax return for the amount of annual income of Baht 100,000 for at least 2 consecutive years, up to the date of application submission. 3.3) Qualification of applicant who applied as expert graduated at least Bachelor Degree and possesses special ability that is needed and benefit to this country, Be supported and officially certified by the authority concerned,

8 3.3.3 Certifying letter pertaining to the applicant s service in such position indicating, up to the date of application submission, a period of at least 3 consecutive years in the service is required. 4. Residency Control System 4.1 A Certificate of Residence Taking As stated in Section 41 of the Immigration Act, B.E. 2522, foreign workers are not allowed to take up residence in the Kingdom unless authorized by the Immigration Commission and by the approval of the Interior Minister, within the immigration quota limitation as prescribed by the Minister in accordance with the provision of Section 40 (Subject to the provision of Section 42, 43 and 51, the Minister, by the approval of the Cabinet, shall have power to publish, in the Government Gazette, immigration quotas from year to year, not exceeding 100 persons per year from each country and not exceeding 50 persons who have no nationality, for the purpose of fixing immigration quotas, all the colonies of a country or each self-governing country shall be recognized as one country). The foreign workers should receive the Residence Certificate in allowing them to take up residence in the Kingdom. In applying for a Residence Certificate, the foreign worker may apply before coming into the

9 Kingdom or apply after he/she has been granted permission to stay temporarily in the Kingdom. The Committee can stipulate any requirement to a foreigner under Section 34 who is holding a temporarily permit of stay and applying for a permanent resident visa. 4.2 Policy Encouraging Return to Home Countries Foreign workers are allowed to stay in the Kingdom at the authorized period of time granted by the Immigration Commission. When the period of stay is expired, they are able to submit the extension period within the consideration of the Immigration Commission. It is stated in Section 81 that any foreigner who stay in the Kingdom without permission or with permission expired or revoked shall be punished with imprisonment not exceeding two years or a fine not exceeding 20,000 Baht or both. Therefore, that foreign worker shall return to home country when the authorized period of stay is no longer valid. Any foreigner who enters or come to stay in the Kingdom without permission or when such permission expired or is revoked, the competent official will deport such foreigner out of the Kingdom. II. The Situation of Foreign Workers in the Labor Market

10 1. Current situations on Inflows and Outflows of Foreign Workers The labor statistics Report for the first quarter of 2005 indicates that there are 126,173 foreign workers in the Kingdom. It increases from the same period of year 2004 at the rate of per cent. This shows that there are more inflows of foreign workers than outflows. 1.1 Types of Work Permit Types of foreign workers classified by the Immigration permission demonstrate in figure 1 as follow: - Figure 1.1 Foreign Workers with Work Permit in the First Quarter of Year 2005 Granted by Section 12 Permanently Temporary 56 93% Invest ment Promot ion Source: Ministry of Labor

11 1.2 Occupations The number of foreign workers classified by occupations is predominantly engaged in Legal Service, Executive and Managers, which accounted to 52,530 (47.01 per cent). The inflows are increasing at the rate of per cent in comparison to the same period of It is followed by other occupations, which are about 17,737 persons or per cent. The number is increasing around per cent from last year. Fundamental workers are 17,678 persons (15.82 per cent) that increased about per cent from year The details of occupational foreign workers are demonstrated in Figure 2. Figure 1.2 by Occupation Foreign Workers Classified

12 Number 60,000 50,000 40,000 30,000 20,000 10,000 0 Legal Service, Executive, Manager Other Occupations Technical Staff Clerical Service Sale and Marketing Agricultural Expert / Food Processing Source: Ministry of Labor Skilled Workers Labourer / Machenics Foundamental Workers Trainee Others Occupation The first quarter of year 2004 The first quarter of year Nationalities In year 2005 foreign workers classified by nationalities are presented in Figure 3. The largest numbers are the Japanese, which accounted to per cent. The numbers are increasing from 13 per cent of year It s followed by the Chinese s, which are accounted to 7.08 per cent or increased to per cent from last year. The third largest are the British at the rate of 6.83 per cent or increase from last year at the rate of per cent. Figure 1.3 indicates the top ten numbers of foreign workers classified by nationalities.

13 25,000 20,000 Number 15,000 10,000 5,000 0 Japan China British India Myanmar U.S.A. Taiwan The Philippines Australia South Korea Nationality The first quarter of year 2004 The first quarter of year 2005 Source: Ministry of Labor 2. Current Situations on Employment In the First quarter of year 2005 (January March), the number of employed people is accounted to 34,050,101 persons while those who are unemployed are 888,144 persons. The unemployment rate is about 2.52 per cent in comparison to 2.87 per cent in year Figure 2.1 Labor Forces and Employment in Thailand Unit: person Labor Situation Year 2004 Year 2005

14 1st Quarter 1st Quarter Population 64,757,435 65,265, Labor Force 34,803,201 35,280, Employed 33,423,571 34,050, Unemployed 1,000, , Seasonal Workers 379, , Non-Labor Force 14,217,768 14,260, House 4,446,974 4,567,034 Workers 2.2 Students 4,697,882 4,702, Others 5,072,911 4,991, Unemployment Rate (%) Source: National Statistical Office. The current situation on employment in Thailand is increasing at the rate of 1.87 per cent from last year. Employed persons classified by industry, types of occupation, work status, level of education attainment, age group and average wage for the Whole Kingdom are presented in Table 1-6, respectively.

15 Table 1 Employed Persons by Industry for Whole Kingdom: (In thousands) Industry Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 (Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.) Total 30, , , , , , , , , , , , , , , , ,050.1 Agricultural 11, , , , , , , , , , , , , , , , , Agriculture, hunting and forestry 10, , , , , , , , , , , , , , , , , Fishing Non-Agricultural 19, , , , , , , , , , , , , , , , , Mining and quarrying Manufacturing 5, , , , , , , , , , , , , , , , , Electricity, gas and water supply Construction 1, , , , , , , , , , , , , , , , , Wholesale and retail trade, repair of 4, , , , , , , , , , , , , , , ,720.4 motor vehicles motorcycles and personal and household goods 6. Hotel and restaurants 1, , , , , , , , , , , , , , , , , Transport, storage and communication 1, , , , , , , , , , , , Financial intermediation Real estate, renting and business activities 10. Public administration and defence, 1, , , , ,081.3 compulsory social security 11. Education 1, , , , , , , Health and social work Other community, social and personal service activity 14. Private households with employed employed persons 15. Extra-territorial organizations and bodies 16. Unknown Source: Report of the Labor Force Survey: National Statistical Office.

16 Table 2 Employed Persons by Occupation for Whole Kingdom: (In thousands) Occupation Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 (Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.) Total 30, , , , , , , , , , , , , , , , , Legislator, senior officials and manage 2, , , , , , , , , , , , , , , , , Professionals 1, , , , , , , , , , , , , , , , , Technicians and associate professionals 1, , , , , , , , , , , , , , , , , Clerks 1, , , , , , , , , , , , , , , , , Service workers and shop and 4, , , , , , , , , , , , , , , , ,095.9 market sales workers 6. Skilled agricultural and fishery workers 9, , , , , , , , , , , , , , , , , Craftsmen and related trades workers 4, , , , , , , , , , , , , , , , Plant and machine operators 2, , , , , , , , , , , , , , , , and assemblers 9. Elementary occupations 4, , , , , , , , , , , , , , , , Workers not classifiable by occupation Source: Report of the Labor Force Survey: National Statistical Office.

17 Table 3 Employed Persons by Work Status for Whole Kingdom: (In thousands) Work Status Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 (Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.) Total 30, , , , , , , , , , , , , , , , ,050.1 Employers , , , , , , , , , , , , , ,130.3 Government employees 2, , , , , , , , , , , , , , , , ,936.9 Private employees 11, , , , , , , , , , , , , , , , ,664.5 Own-account workers 9, , , , , , , , , , , , , , , , ,445.5 Unpaid family workers 5, , , , , , , , , , , , , , , , ,797.9 Members of producers' cooperatives Source: Report of the Labor Force Survey: National Statistical Office.

18 Table 4 Employed Persons by Level of Education Attainment for Whole Kingdom: (In thousands) Level of Education Attainment Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 (Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.) TOTAL 30, , , , , , , , , , , , , , , , ,050.1 None 1, , , , , , , , , , , , , , , , ,189.3 Less than Elementary 12, , , , , , , , , , , , , , , , ,566.2 Elementary 6, , , , , , , , , , , , , , , , ,505.0 Lower Secondary 3, , , , , , , , , , , , , , , , ,922.7 Upper Secondary 2, , , , , , , , , , , , , , , , , General Type 1, , , , , , , , , , , , , , , , , Vocational Type 1, , , , , , , , , , , , , , , , , Educational Type Higser Level 3, , , , , , , , , , , , , , , , , General Type 1, , , , , , , , , , , , , , , , , Vocational Type 1, , , , , , , , , , , , , , , , , Educational Type Others Unknown Source: Report of the Labor Force Survey: National Statistical Office.

19 Table 5 Employed Persons by Age Group for Whole Kingdom: (In thousands) Age Group Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 (Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.) TOTAL 30, , , , , , , , , , , , , , , , ,050.1 < , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , and over 1, , , , , , , , , , , , , , , , ,298.9 Source: Report of the Labor Force Survey: National Statistical Office.

20 Table 6 Average Wage of Employed Persons for Whole Kingdom: (In thousands) Industry Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 (Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.)(Apr. - Jun.)(Jul. - Sep.)(Oct. - Dec.)(Jan. - Mar.) Total 6,502 6,626 6,764 6,761 6,418 6,632 6,704 6,689 6,592 6,711 6,912 6,820 6,754 6,818 7,015 7,074 7,176 Agricultural 2,630 2,395 2,356 2,146 2,537 2,657 2,478 2,420 2,650 2,690 2,647 2,563 2,865 2,787 2,827 2,602 3, Agriculture, hunting and forestry 2,527 2,289 2,261 2,060 2,454 2,553 2,368 2,309 2,557 2,579 2,534 2,480 2,801 2,706 2,747 2,528 2, Fishing 4,822 4,286 4,166 4,045 4,220 4,292 4,371 4,381 4,348 4,652 4,492 4,307 4,120 4,443 4,808 4,316 4,248 Non-Agricultural 7,311 7,370 7,652 7,755 7,214 7,365 7,512 7,552 7,376 7,456 7,687 7,673 7,533 7,483 7,828 8,082 7, Mining and quarrying 9,867 5,195 10,936 8,118 4,637 5,904 5,771 6,183 8,049 6,632 10,319 9,054 6,717 10,214 7,101 7,140 7, Manufacturing 6,015 6,127 6,109 6,408 5,869 6,100 6,108 6,090 6,083 6,155 6,299 6,212 6,077 6,040 6,186 6,347 6, Electricity, gas and water supply 15,260 14,277 16,191 14,423 14,272 15,190 14,759 16,341 14,634 12,652 16,304 15,989 15,784 15,284 15,907 17,514 17, Construction 4,417 4,440 4,807 4,849 4,281 4,482 4,902 4,935 4,576 4,637 4,876 4,830 4,454 4,558 5,259 5,286 4, Wholesale and retail trade, repair of 6,399 6,607 6,613 6,528 6,717 6,488 6,618 6,529 6,450 6,604 6,664 6,919 6,772 6,511 6,429 6,526 6,760 motor vehicles motorcycles and personal and household goods 6. Hotel and restaurants 5,088 5,112 5,096 5,131 5,067 5,621 5,042 5,059 5,160 5,264 5,171 4,928 5,132 5,132 5,419 5,664 5, Transport, storage and communication 8,954 11,598 10,365 11,350 11,146 11,033 10,869 11,154 11,577 11,778 10,907 11,146 11,888 12,106 11,579 11,732 11, Financial intermediation 15,992 16,368 16,681 17,234 15,594 15,685 15,796 16,651 16,063 15,744 16,844 17,405 17,521 16,991 16,403 19,306 19, Real estate, renting and 9,449 8,892 8,667 8,958 8,618 9,536 9,415 8,677 8,411 8,905 8,846 8,665 9,374 9,800 9,310 9,352 9,571 business activities 10. Public administration and defence, 9,738 9,427 10,192 10,435 9,628 10,393 10,698 10,586 10,581 10,614 10,964 10,795 10,492 10,266 10,981 11,450 11,375 compulsory social security 11. Education 12,412 12,320 12,797 12,553 12,263 12,436 12,680 12,994 12,690 13,142 13,079 13,208 12,951 13,803 14,238 14,852 14, Health and social work 9,395 8,909 9,122 8,768 9,223 9,097 8,845 8,771 9,255 9,527 8,911 8,838 10,434 9,928 10,467 10,817 10, Other community, social and 5,868 5,256 6,495 5,851 5,797 5,662 5,058 5,443 5,317 5,912 5,962 5,617 5,552 5,390 5,653 6,028 6,311 personal service activity 14. Private households with employed 3,774 3,549 3,748 3,810 3,853 3,769 3,827 3,749 3,936 3,862 4,010 3,897 4,155 4,033 3,838 4,722 4,068 employed persons 15. Extra-territorial organizations 17,664 31,705 12,611 32,018 25,000 10,835 23,621 63,609 24,943 50,000 58,620 6,510 32,548 33,776 5,911 4,753 5,753 and bodies 16. Unknown 8,266 14,027 12,164 17,055 9,410 9,182 19,303 15,990 9,962 18,966 8,949 8,911 9,545 11,647 12,112 14,160 12,341 Source: Report of the Labor Force Survey: National Statistical Office.

21 3. Current Situations on Unemployment At present, number of unemployed persons is 0.88 million or accounted to 2.52 per cent. The rate of unemployment is declining from year Unemployment rates classified by region are demonstrated in the following Figure. Figure 3.1 Unemployment Rates by Region Unit : Per Cent Whole Kingdom Bangkok Central Northern North Eastern South Region Source: National Statistical Office.