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Employment & Labour Disputes

In the course of running a business, you will come to learn that Thailand places a lot of emphasis on protecting the interest of employees. There are several legal Acts and regulations implemented for the protection of labourers and employees, whereby the Thai Civil & Commercial Code and the Labour Protection Act are the most prominent.

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Employee Contracts & Conditions

If you would intend to prepare an Employment Contract for your employees, Umpire Legal can assist you in drafting the contract as per the terms of agreement with your employees. The Employment Contract should not be contrary to the labour related laws, and provisions of the said laws would apply in the absence of an Employment Contract.

Upon confirmation of a full time employment, there is a probation period of 120 days. Employees should be registered for social security funds with the Social Security Office within 30 days as from the date on which they start working for the employer. Companies having ten or more employees are required to file their work rules and regulations with the Labour department.

Termination of Employment

The employment which is for an indefinite period can be terminated on the following basis:

  • An employee may resign at any time by giving written notice to the employer at least one payment cycle in advance
  • An employer may dismiss an employee at any time by giving written notice to the employee at least one payment cycle in advance. If you intend to dismiss an employee instantly, do note that you will be required to pay compensation for the notice period as well as severance if the employee has passed the probation period and if there are no legal grounds for instant dismissal. The amount of severance payment is determined based on the total duration of the employment and the employee’s latest salary.

Bases of Instant Dismissal Without Severance Pay

Instant dismissal with no advance notice and without being liable to pay severance is possible if:

  • An employee dishonestly performs his/her duties or intentionally commits a criminal offence against the employer
  • Intentionally causes the employer to suffer losses
  • Performs an act of gross negligence which causes the employer to suffer severe losses
  • Violates the lawful and just rules or work regulations or the orders of an employer (after having received a written warning within the past year or in serious situations where a warning is not required)
  • Is absent from work without a justifiable reason for three consecutive working days regardless of whether or not there is a holiday in between
  • Is imprisoned by a final court judgement

Labour Dispute Resolution

Labour disputes due to the employer’s wrongful termination or the employee’s unfair demand for severance pay may be settled in the following ways:

  • Mediation at the Labour Department
  • Alternative dispute resolution or litigation at the Labour court

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