Fraud

Business owners can help protect their businesses from employee theft and fraud by following these recommendations:

  1. Have established policies and procedures. Written job descriptions, clear organizational structure, comprehensive policies and procedures, open lines of communication between management and employees, and positive employee recognition will all help reduce the likelihood of internal fraud and theft.
  2. Internal controls. These measures are designed to ensure the effectiveness and efficiencies of operations, compliance with laws and regulations, safeguarding of assets and accurate financial reporting. The controls of safeguarding assets financial reporting require policies and procedures addressing:
    •  Separation of duties. No employee should be responsible for both recording and processing a transaction.
    • Access controls. Access to physical and financial assets and information, as well as accounting systems, should be restricted to authorised employees.
    • Authorisation controls. Develop and implement policies to determine how financial transactions are initiated, authorised, recorded, and reviewed.
  3. Pre-employment background checks are an excellent way to cut down on hiring dishonest employees. A thorough pre–employment background check should include:
    • Drivers license check for numerous or serious violations;
    • Education verification for degrees from accredited institutions; and,
    • Employment verification of positions, length of employment and reasons for leaving.
  4. Perform regular and irregular audits.

Every employer should have regular assessments, but random, unannounced financial audits and fraud assessments can help identify new vulnerabilities, and measure the effectiveness of existing controls. It also lets employees know that fraud prevention is a high priority for the organisation.

Implementing these recommendations can dramatically reduce the opportunity for employee theft and protect the assets of your business.  If you suspect fraudulent activity by an employee, seek professional assistance to conduct the investigation. Determine what’s necessary to protect your business and prevent a reoccurrence.

[RSM Prince  & Partners, New Zealand]

Should Employees Get A “Share” in the Business?

THAT IS A QUESTION that is often asked – usually when a business is doing well, and employers would like to reward some key staff members for their efforts in contributing to the business’ success.

The most common scenario is for a company to allow employees to have equity shares in the company. An employee share scheme (“employee scheme”) that is structured properly can have benefits for both the company and staff.

An employee scheme can provide employees with a sense of ownership and also engender a feeling that their efforts have a direct correlation with the outcomes of the business. Such schemes are seen as a good way to retain key staff. An employee scheme can also be used as an incentive to attract new employees who maybe looking for a more stable future and career.

The opportunity to participate in an employee scheme could be seen as an investment in their future.

Companies can also use employee schemes to boost a remuneration package, or link directly to performance measures.

One of the things that employers will need to consider is whether the employee scheme is open to all staff, or for selected staff only.

On the downside for employees is the possibility that their equity in the company may be affected if the company suffers downturns, regardless of whether those downturns are within or outside the control of the company.

This, of course, could be seen as a normal risk of participating in business. The employer should note that there are various set-up and administration costs to consider, including compliance costs to meet requirements under the Securities legislation.

Before employers embark on such a scheme, there are various issues that require consideration, for example;

  • Legal requirements, including those under the Securities legislation;
  • Tax implications of the scheme for both the company and employees;
  • The possible need to create another class of employee shares;
  • The proportion of the company that will be held by staff;
  • The voting rights attached to the shares issued under the employee scheme; and,
  • The transferability of the shares.

The issues for consideration are important, but the need to consider them should not deter employers, if such a scheme will be advantageous to the business.

The most important point is that employers should approach this with a clear idea of what the scheme is meant to achieve and how it will fit in with the business’ objectives.

[RSM Prince & Partners, New Zealand]

Minimum Thai Wage Rates

 

No.

Name of Provinces

Minimum Wage Rate

1

Bangkok Metropolis, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakarn, Samut Sakorn

203 Baht

2

Phuket

197 Baht

3

Chonburi

180 Baht

4

Saraburi

179 Baht

5

Chachongsao, Phra Nakhon Si Ayutthaya and Rayong

173 Baht

6

Nakhon Ratchasima

170 Baht

7

Ranong

169 Baht

8

Chiang Mai and Phang Nga

168 Baht

9

Krabi and Kanchanaburi

165 Baht

10

Petchburi and Ratchaburi

164 Baht

11

Chanthaburi, Prachinburi and Lopburi

163 baht

12

Loei

162 Baht

13

Singburi and Angthong

161 Baht

14

Prachuab Khiri Khan, Samut Songkram and Srakaew

160 Baht

15

Chumporn and Uthai Thani

158 Baht

16

Chiang Rai, Trang, Songkhlam Nongkhai and Udorn Thani

157 Baht

17

Kampaengphet, Trad, Nakhon Nayok and Lamphun

156 baht

18

Kalasin, Nakhon Si thammarat, Nakhon Sawan, Buriram, Pattani, Phatthalung, Petchabun, Yasothorn, Yala, Sakhon  Nakhon, Satul and Surat Thani

155 Baht

19

Khon Kaen, Chainat, Roi-et, Lampang, Supanburi, Nong Bua Lampu and Ubon Ratchathani

154 baht

20

Nakhon Panom, Narathiwat, Mukdaharn and Amnartcharoen

153 Baht

21

Pitsanuloke

152 Baht

22

Tak, Mam, Mahasarakham, Mae Hong Son, Sukhothai and Surin

151 baht

23

Payao, Phichit, Prae and Sri Sa Ket

150 Baht

24

Uttaradit

149 Baht

25

Chaiyaphum

148 Baht