Learn more about Thailand’s Labour Protection Act

Thailand type a civil law system. That is why the employment relationship is dedicated to the Labour Protection Act 1998 . Called ‘pro- employee,’ LPA is designed to safeguard the employee against the perceived inequalities of power between employees and employers . The legislation covers all employees, regardless of their citizenship. If any exception is applicable, local employment legislation may not be eluded, as some statutory minimum rights and guarantees of employees cannot be waived.

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.

A redundancy letter should be written with professionalism and empathy. It should include details such as the date, the employee’s name, the reason for dismissal, the notice period, information on the return of company assets, details of final pay and benefits, and a legal disclaimer.

In Thailand, the provisions relating to redundancy pay are set out in the Labour Protection Act. Redundancy 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 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.

Although the information provided does not explicitly detail ongoing training obligations, it is implicit that employers must provide the training necessary to ensure the safety and well-being of employees, particularly for tasks that could compromise their health or safety.

  The  Act recognizes the unique needs of young workers. It establishes a minimum age for employment to ensure that children are not engaged in work that could be detrimental to their development and well-being.

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.

Bankruptcy of the company is a disaster for its workers. Yet in Thailand, the Labour Protection Act guarantees that workers’ rights will not be prejudiced. The employees have entitlement to payment for work accomplished in case of employer’s bankruptcy . This is a privilege requirement, which implied that the workers must be compensated before the other creditors share payments from the company’s property. Moreover, the workers have entitlement to any unpaid remuneration, money benefits, or any other payment they may be granted on a civil or criminal basis. In case the employer is insolvent, the workers or their representatives may seek recovery from the employers.

Dismissing an employee is a step that should be taken by an employer carefully. Namely, the law protects employees from it by obliging the employer to justify the dismissal. If the measure is unfounded or the employee is not properly warned, he can be compensated. Depending on the number of years worked in a particular company, the worker may receive a refund for lost wages. 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 . The Thai judicial system is loyal to workers and in case of detection of high fines.

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.

After completing one year’s service, employees are entitled to a minimum of six working days’ paid annual leave. In addition, there are 13 official public holidays each year. Employees are also entitled to up to 30 working days of paid sick leave each year.