Cabinet approves ‘force majeure’ closure of hotels

The Cabinet has approved the ‘force majeure’ closure of hotels and any lodging businesses, with additional compensation for businesses that are under the social security scheme.

There will now be compensation for employees of hotel and lodging businesses for their loss of income, either due to the government’s shutdown order or their owner’s decision to close down during the current crisis.

The Minister of Tourism and Sports Pipat Ratchakitprakarn says that the Cabinet has agreed that a shutdown by either reason or a result of the Covid-19 situation, will be considered a force majeure, making the employees eligible for compensation under Section 79/1 of the Social Security Act.

The Act states that those “under the social security scheme who have become unemployed due to force majeure will be eligible for 62% of their daily wages until the business can resume its operations, but not exceeding 90 days”.

“Next week my ministry will propose to the Cabinet granting similar compensation to employees working as tour guides and other tourism related businesses who are under social security scheme and affected by the Covid-19 situation.”

SOURCE: The Nation