Learn more about Thailand’s Labour Protection Act

Labour law in Thailand outlines rights for workers and obligations for companies, seeking to balance fairness and security within workplaces. The central legislation, the 1998 Labour Protection Act, covers contracts, scheduling, baseline pay, dismissal protocols, and severance packages. Non-Thais must follow the Alien Working Act’s mandate to obtain legitimate work authorization.

Employers must adhere to regulations on social security, employee welfare, and dispute resolution. Labour courts handle employment disputes. Compliance with Thai labour law is crucial to avoid penalties and ensure a fair work environment for all parties.

The Labour Protection Act (LPA) in Thailand is a comprehensive legislation governing various aspects of labor and employment relations in the country. It establishes a legal framework defining the rights and responsibilities of employees and employers, covering issues such as working conditions, wages, benefits, termination, and dispute resolution.

An employment contract is a formal agreement between an employer and an employee. It details the position, job title, start date, probationary period, work schedule, remuneration, benefits, and termination conditions, among other things. It is strongly recommended that you consult experts in employment law to examine these contracts.

In Thailand, a letter of dismissal must comply with the Labour Protection Act B.E. 2541 (1998) to ensure legal validity. It should include the employee’s name, position, and termination date, along with a clear reason for dismissal if applicable. If termination is due to misconduct, the employer must specify the violation. The letter must also outline the notice period or state if immediate termination applies under Section 119. Employers should mention severance pay entitlements, as required by Section 118, and inform the employee of their final salary, benefits, and legal rights to avoid disputes or labour court claims.

In Thailand, the provisions relating to severance pay are set out in the Labour Protection Act. Severance pay is calculated based on the employee’s length of continuous service with the employer. It sets a ceiling for redundancy pay, which is 400 days’ salary.

In Thailand, dismissal is considered unfair when it violates an employee’s rights under the Labour Protection Act. Employees who believe they have been unfairly dismissed can file a complain to the Labour Relations Committee or the Central Labour Court.

Labour Protection Act revised in March 2023 has been developed in accordance with the global tendency of the increase in remote and hybrid work. It provides employers and workers with the opportunity to reach an agreement to make some or all workers work remotely. This revised act promotes workers’ greater well-being and at the same time positively affects business process efficiency.

 The Labour Protection Act is characterized as “pro-employee.” It aims to prevent disadvantages that employees might suffer because of the often stronger position of employers. It guarantees rights such as paid holidays, safe working conditions, fair pay, and protection against discrimination.

 The Protection Act stipulates that employees in Thailand must not generally work more than 8 hours a day or 48 hours a week. It also guarantees employees the right to a minimum break of one hour daily after five hours.

The LPA sets minimum wage levels that vary according to region and type of work. It also obliges employers to provide benefits such as social security contributions, holidays, and public holidays.

The Labour Protection Act  has also been promoted to guarantee the safety and health of employees. Workers should not be exposed to any known or potential danger or harm by the employers. Workers must have proper training, protective equipment, and working conditions to mitigate risk and prevent any accident or work-related illness.

Under both the Labour Protection Act from 1998 as well as related regulations, all employers in Thailand must ensure ongoing skill development and safety training for their employees. Any company with over a hundred workers is mandated by the Skill Development Promotion Act from 2002 to teach at least half of their staff each year, or risk facing charges or contributing to the Skill Development Fund. Employers with high-risk jobs, such as those in construction or manufacturing, must provide occupational safety lessons that adhere to the Occupational Safety, Health, and Environment Act from 2011. Additionally, all companies must conduct anti-harassment seminars regarding sexual misconduct and workshops on workplace ethics that align with Section 16 of the Labour Protection Act. Failure to comply could result in fees or legal action taken by the Department of Labour Protection and Welfare.

The Labour Protection Act of 1998 in Thailand rigidly manages the employment of minors to guarantee their security and wellbeing. Employers are unable to hire children under the age of fifteen, and those using youths between fifteen and eighteen must notify the Department of Labour Protection and Welfare within a fortnight of hiring. Young workers cannot partake in hazardous occupations, such as construction sites, mines, operating heavy machinery, or dealing with chemicals. They are banned from working between ten at night and six in the morning, excluding with special consent. Overtime and night shifts are constrained, and employers must offer no less than a one-hour break after four continuous hours of work. Violations of these stipulations can lead to fines or incarceration. Adhering to the rules safeguards the youths’ protection and development.

The first is permanent employment contracts that are used in many sectors of the Thai economy. Such contracts are recognized by the Act and provide the legal basis for the guarantee of certain rights both for employees and employers. In the absence of a direct indication of a certain period, such a contract is considered an employment equated for an indefinite duration. The latter means that the parties have permanent commitments to each other until the employment contract is terminated. Such agreements are established within the scope of general provisions of the law that regulate compensation rights in the case of dismissal, perform health and safety responsibilities, as well as vacation pay claims or other benefits.

Under the Labour Protection Act B.E. 2541 (1998), employees have specific safeguards should an employer go bankrupt. If insolvency renders a company unable to pay wages, severance pay, or other benefits owed, Thai law designates affected employees as preferential creditors. This prioritizes their unpaid remuneration, severance packages, and other entitlements above nearly all other debts during bankruptcy proceedings. The Labour Protection Act explicitly requires employers to settle outstanding pay before apportioning assets to other claimants. Plus, the Employees’ Welfare Fund under the Ministry of Labour may offer financial assistance to qualifying workers in some situations. If bankruptcy prevents an employer from compensating staff, impacted individuals can petition the Labour Court to recoup unpaid salaries and benefits.

Dismissing a long-term employee is a complex decision that must be handled delicately, as Thai labor protections strongly favor workers. Justifying any termination requires documenting proper notice and sufficient cause, lest the dismissal be deemed unjust and attract severe legal consequences. Those with extended tenure are given generous severance under the law, incentivizing judicious performance reviews and corrective actions prior to discharge. However, abruptly releasing even underperforming staff can still incite litigation if regulations are perceived to be breached. The courts consistently interpret labor codes in a manner sympathetic to plaintiffs, imposing stiff penalties on organizations found culpable of violating employees’ rights or shortchanging their entitled redundancy pay. While dismissing problematic staff remains an option of last resort, doing so demands meticulous documentation and scrupulous adherence to process to avoid the steep costs, in damages and reputation, of being ruled against. Even if a person believes that he was laid off unfairly, he has the right to file a lawsuit against other obligations of the employer.

Safety training is a crucial aspect of ensuring that an employee is safe while working. The Labour Protection Act under Section 92 stipulates that every employer must train its employees regularly and widely on the safety measures at their workplace. The training should not only touch on the primary procedures but also include the recent and upcoming procedures within the safety regulations. Every employee should be trained on how they can work while safe, regardless of their position or role . Further, the employer should also tailor the training to its industry while having every safety instructional design from a licensed person. Failure to do this, the employer shall be liable for any accident experienced.

The Labour Protection Act in Thailand is one of the most important legislative documents concerning the safety and well-being of workers. In the context of potentially dangerous environments, the law sets stringent standards for compliance with which employers are responsible. They must take measures of a preventable nature to reduce the risks associated with an unsafe working environment. These measures involve conducting risk assessments on a regular basis, developing safety procedures according to the outcomes of risk assessments, and providing sufficient personal protection equipment. Employers should also provide information about the risks associated with the work to employees and train them on how to use PPE correctly. Neglect or inability to do that results in serious legal consequences for employers.

If an employer wants to transfer an employee to another job not specified in the employment contract, the employer must obtain the employee’s consent. The employer must also cover any additional costs that the employee may incur as a result of the transfer.

The Act stipulates that women and young workers may not be employed for night work between 10 p.m. and 6 a.m., except in sectors where the work is considered safe.

If an employee resigns and has worked for the same employer for a certain number of consecutive years, he or she may be entitled to severance pay. The amount of this compensation depends on the employee’s length of service.

The Act allows employers to set a probationary period for new employees. However, this period cannot exceed 120 days, and the employee must be informed in advance of the length of the probationary period.

If an employer wants to transfer an employee to another job not specified in the employment contract, the employer must obtain the employee’s consent. In addition, the employer must cover any additional costs incurred by the employee as a result of the transfer.

The Act also limits normal hours of work to eight per day , i.e., employees should for only 8 hours within a normal working environment. Nonetheless, sectors such as the hotel industry allow work 10 hours each day; this should not exceed 48 hours in a week . Any work in excess of this normal work hours would be overtime and is categorized under higher wages than the normal wage.

The Act protects pregnant employees, especially because it provides for maternity leave. It intends to safeguard the health of the mother and that of the child. Additionally, it also protects the child concerned since it prohibits child labor by defining the minimum age to gain formal employment. It guards the child against performing tasks that might interfere with its growth.

Under the Labour Protection Act B.E. 2541 established in 1998, the legislation outlines paid time off allotments for employees in Thailand. Those who have dedicated a full calendar year of service to their company are awarded a baseline of six compensated annual leave days with the potential for supplemental time gifted at the employer’s discretion. Staff with less tenure may receive a prorated allotment determined by organizational policy having not achieved one uninterrupted year yet. On top of yearly personal holidays, the law mandates no fewer than 13 additional paid public holiday dates annually as fixed by the government or specified inside employment contracts. If circumstances necessitate work on one of these reserved days, compensation owed doubles the standard daily wage in recognition of the sacrifice. Ongoing sick time can also be taken without bounds although medical certification must authenticate absences extending three sequential days or longer.