Whether you are a business owner or employee, understanding Thailand labor law is crucial. Adhering to the country’s employment laws safeguards your reputation and prevents potential legal disputes.
The Ministry of Labour, via the Department of Labor Protection and Welfare, enacts laws regarding workers’ minimum rights such as working hours, compensation, work restrictions, socio-cultural funding, allowable vacation and sick leaves, and holidays.
Dispute Resolution
Workers and employers often encounter differences that lead to labor disputes. In Thailand, these issues can include wages and benefits, working conditions, severance pay, wrongful termination, and other employment-related matters. Labor laws in Thailand are designed to cultivate a symbiotic relationship between employers and employees, ensuring fair treatment for all parties involved. Being well-versed in these laws enables both parties to make informed decisions and minimize disputes, resulting in a productive work environment that is beneficial for all stakeholders.
Thailand Dispute resolution in labor disputes involves mutual negotiation between both parties through their duly-authorized representatives. When this method fails, the matter can be referred to mediation. This step is mandatory if the dispute concerns essential services affecting public interest, such as ports, rail transport, telecommunications and waterworks.
The Ministry of Labor and its affiliated departments are a good source for information on labor-related regulations. In addition to offering online resources, these departments also provide legal representation for workers and employers. Regular consultation with specialized attorneys is important for both parties to stay up-to-date on changes in Thailand’s labor laws and to ensure compliance.
As a leading law firm in Thailand, Juslaws & Consult can help you better understand your rights and obligations under Thai Labor Law. Contact us to learn more about how we can assist you. We are dedicated to providing comprehensive advice and guidance to our clients.
Arbitration
The legal system in Thailand allows parties to resolve disputes outside the classical judicial system, through alternative dispute resolution methods such as mediation, arbitration and conciliation. This is often a faster and more predictable solution to court litigation.
In labor disputes in Thailand, mediation and arbitration are common. Negotiation is usually the first step in the process, and is often included as a standard arbitration clause in contracts. If the parties cannot agree, the matter may be referred to one or three arbitrators. The arbitration tribunal will require the disputing parties to present evidence and offer defenses, as well as question expert witnesses. A decision will then be made.
The out-of-court arbitration regime in Thailand is governed by the Arbitration Act B.E. 2545 (2002), which is based on the UNCITRAL Model Law with a number of additional Thailand specific additions. A contract incorporating an arbitration clause is binding on the parties, and the number of arbitrators (as well as the language and rules of the proceedings) can be chosen by the disputing parties.
The arbitration regime is influenced by several international conventions, including the ILO’s freedom of association and collective bargaining conventions. Despite these influences, it is difficult to enforce a mediated settlement agreement through the courts in Thailand. Parties can however request the arbitration tribunal to issue interim measures, which are subject to enforcement by Thai courts.
Mediation
Disputes may arise over a variety of issues, including the terms and conditions of employment, wage and overtime pay, severance pay, and contract duration. Conflicts can also result from union activities, such as strikes and collective bargaining, and may be caused by perceived violations of the law. Other causes of disputes include alleged discrimination, unfair dismissal, and non-compete clauses.
While Thailand has made progress in bringing its labor practices into line with international standards, some areas still require improvement. The country has ratified core ILO conventions and incorporated them into its legal framework, but full compliance with these remains an ongoing challenge.
In addition to the formal judicial system, there are several alternative dispute resolution mechanisms available for resolving labour disputes in Thailand. These include arbitration, negotiation, and mediation. Mediation is a facilitated discussion between disputing parties, and the mediator will try to find incremental compromises from both sides that could lead to settlement of the dispute. This method of dispute resolution is less costly and time consuming than litigation.
Most civil cases in Thailand do not have a mandatory requirement for mediation prior to witness hearings, but courts have recently begun to encourage mediation. This is especially the case in the real estate and construction sectors, where it is standard practice to include a structured dispute resolution clause in contracts.
Courts
Disputes in the workplace are inevitable, and Thailand has an established legal framework for handling them. Individual disputes are resolved through the Labor Courts, which adjudicate cases involving employee-employer conflicts over rights and benefits under labor laws. Collective disputes, such as those involving a group of employees or trade unions, are handled by the Labor Relations Panels. Both are governed by the Labor Protection Act B.E. 2518 and other laws issued by the Ministry of Labor.
The courts are designed to handle employment-related disputes in a more streamlined and expedited process than general courts. This includes mandatory mediation and trial proceedings that last no more than three days. Appeals are allowed, but only on questions of law.
Workers may also choose to form unions, which are legal associations of employees that exercise their rights to demand better working conditions from their employers. However, only ten employees from the same company may join one, and unions are prohibited from performing supervisory functions, making it difficult for them to effectively represent their members.
The government enacts a number of laws that govern labor disputes, including the Labor Protection Act and the Labor Relations Act. These laws list the minimum rights of employees, such as work hours, compensation, social security, and socio-cultural funding, and prohibit discrimination based on religion, race, ethnicity, sexual orientation, or gender identity. The country has ratified the ILO’s Equal Remuneration Convention and Abolition of Forced Labour Convention, though it still has a long way to go in fully complying with the Worst Forms of Child Labor Convention.