Thailand Labor and Employment Law

All labor laws in the Kingdom of Thailand are under the authority and supervision of the Department of labor, Protection and Welfare. The regulations set forth by this department aims to monitor all aspects concerning the employment of local and foreign workers in the Kingdom. This includes but is not limited to working conditions, hours, salaries, overtime payments, maternity and sick leave,public holidays and working days, social security and benefits, employment contracts and the termination, safety of working conditions, disputes, minimum salary, dismissal damages and so on.

The main pillars of these regulations are taken from the following legislative acts:

  • Labor Protection Act B.E. 2541
  • Workmen’s Compensation Act and Thai Civil and Commercial Code B.E. 2537
  • Social Security Act B.E. 2533
  • Labor Relations Act B.E. 2518
  • The Act Establishing the Labor Court and Labor Court Procedure B.E. 2522
  • Provident Fund Act B.E. 2530

Disputes

The labor laws in Thailand obliges employers to compensate their employees in the case of contract termination in the form of a payment called severance compensation in accordance with the law which shall meet certain conditions for the proper implementation.

Some cases of employment disputes in Thailand can involve details on how the severance compensation is calculated and the issues involving the rights given to employees under the law. Such disputes and cases can also involve breaches of employment contract by both parties during the employment period, as well as disputes rising from unjust termination of employment.

Severance and Termination:

A number of causes can result in the termination of employment in Thailand. Here are some common reasons:

  • 1) Termination on the grounds of mutual understanding from both parties
  • 2) Termination on the grounds of contract or employment agreement completion
  • 3) Termination on the grounds of work scope completion
  • 4) Termination on the grounds work being assigned to a third party, without the consent of the employee
  • 5) Termination by the employment on the basis of wrongdoings and negligence

Any individual who has been employed for more than 120 days is qualified to be compensated for severance pay in case the contract is terminated by the employee, except if one of the following is applied to the situation:

  • Intentional mischief or criminal conduct towards the employer
  • Deceitful actions in performing obligations
  • Crimes committed towards the employer with ill intentions
  • Negligence that lasted for more than three days without any vindication
  • Failure to abide by the rules and conditions of the workplace, provided that a written warning is provided and sufficient is action is not undertaken.
  • Employee being sentenced to prison for serious crimes and offenses which would not include minor crimes or wrongdoings caused by negligence

At Ratchada Lawfirm, our team of experienced labour attorneys have decades of experience in dealing with different labour disputes with different scale of complexity. Whether you are a Thai or foriegn employee, or you run a business that is facing difficulty in labour disputes, we know what your rights are and what is the best course of action to make sure the best results are achieved.

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