Legal Framework of Employer/Employee Relations: Thailand

By John P. Formichella

Formichella & Sritawat

john@fosrlaw.com

Fundamental labour law in Thailand is governed by basic law: the Civil Commercial Code, the Labour Protection Law, the Labour Relations Law, the Act Establishing the Labour Court and Labour Procedure, Social Security Law, and Workmen’s Compensation Law.

A. Civil and Commercial Code

Title VI: Hire of Services of The Civil and Commercial Code provides general rights and obligations of the relationship between an employer and employee pursuant to the employment contract, remuneration, transfers of contractual rights, termination of the contract, etc.

B. Labour Protection Act

The Labour Protection Act, B.E. 2541 (the “Act”) prescribes minimum working standards for the purpose of protecting employees against exploitation by employers. The Act includes provisions for general labour protection, protection for children and women, minimum remuneration, wage bond, severance pay, welfare and safety at work, employees welfare fund and labour inspectors.

C. Labour Relations Law

The Labour Relations Act, B.E. 2518 (the “Labour Relations Act”) governs working relations to promote a good understanding between employers and employees. The provisions cover collective agreements between employers and employees on the rights and duties of workers, the settlement of the labour disputes, lay-off and strike, organizations of the employers and the employees.

D. Labour Court and Labour Procedure Law

The Act Establishing the Labour Court and Labour Procedure, B.E. 2518 establishes labour courts as a forum for actions on disputes under employment agreements, collective agreements on working conditions, complains under the Labour Protection or Labour Relations Laws, etc. This Act also establishes legal procedures for actions in these courts.

E. Social Security Law

The Social Security Act, B.E. 2533 establishes a system of labour welfare measures for the majority of Thai workers. Employers, Employees, (self-employed persons will also be able to join in the fund once implementing regulations have been issued.) and the government are all required to contribute to the Social Security Fund (the “Fund”) at the rates and in the circumstances prescribed in the Act. Employees and self-employed persons who participate in the Fund will be entitled to compensation in the event of injury, illness or death which is not related to work, childbirth, or disability. The Social Security Office is responsible for the administration of the Fund.

F. Workmen’s Compensation Law

The Workmen’s Compensation Fund was establishes under the Workmen’s Compensation Act, B.E. 2537 to ensure that proper compensation will be paid to employees when the employees suffer from injury, sickness or die as the result of their work or from diseases resulting from the nature or conditions of the work or of such disease arising from the work as the Ministry of Interior may prescribe. This objective is accomplished by prescribing employers to enroll and make contributions to the Workmen’s Compensation Fund and by having the Department of Labour Protection and Social Welfare pay the above compensation, which employers are obligated to pay under the labour protection law, instead of the employers.

In addition to the above-mentioned laws, there are the Provident Fund Act, B.E. 2530, the Employment Provision and Employment Seekers Protection Act, B.E. 2537, the Ministerial Regulations and the Notification issued from time to time by the Ministry of Labour and Social Welfare.


The above should is not intended to be legal advice and should not be relied upon as legal advice accordingly.

© John P. Formichella, 2016 All Rights Reserved