Doing Business in Thailand - Employment Law

Principally, labor and employment issues are scattered in a series of laws, government announcements and regulations of the Ministry of Labor, which are most commonly referred to as follows.

1.   Civil and Commercial Code (“CCC”)

The provisions regulating the rights and duties of employers and employees are set out under Title 6 of Book 3 of the CCC, Sections 575 to 586 (“Hire of Services”).

2.  Labor Protection Act B.E. 2541 (1998)

The Labor Protection Act is principally describing the minimum labor and employment requirements and standards such as duties of the employer in using labor, arranging compensation, the use of labor consisting of women and minors, providing welfare and safety measures at work as well as governing severance pay for termination of employment.

3.   Labor Relations Act B.E. 2518 (1975):

The Labor Relations Act deals with the procedures of negotiations and bargaining as regards labor issues between employers and employees, i.e. the settlement of labor disputes, labor strikes and lockout, the rights of the employees to set up associations and labor unions as well as the rights and duties of these organizations. The Act also covers the establishment of employee committees as a vehicle for holding consultations between the employees and their employers.

4.   Act on the Establishment of Labor Courts and Labor Court Procedure B.E. 2522 (1979)

The Act introduces the establishment of the Labor Court and labor litigation. The Labor Court is competent for cases dealing with disputes between the employer and the employee arising from the employment contracts or that are concerned with the rights of the employers and employees under the laws of labor protection and labor regulations.

5.   The Social Security Act B.E. 2533 (1990)

The Act regulates the establishment of a Social Security Office and Social Security Fund and requires the employers, the employees and the Government to pay monthly contributions in order to help compensate employees in cases of injuries, illness, disability, death, maternity, aging and unemployment. The benefits also include spouse and children of the employee.

6.    The Workmen’s Compensation Act B.E. 2537 (1994)

The law deals with the employer’s liabilities in case of employee’s death or loss as a consequence of working for the employer. Therefore, the act establishes a compensation fund whereas collection is to be made from employers. In addition, the Act governs conditions and procedures in making claims for employer’s compensation.

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