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Thailand’s employment laws are administered by the Department of Labor, Protection and Welfare.
They stipulate working conditions including maximum work hours, holidays, sick leave, minimum wage
and severance pay.
Employment legislation has a direct bearing on labor practices for each type of business.
Investors should seek appropriate advice to determine which legislation applies to their line of business.
1. Labor Protection
In August 1998, the Labor Protection Act (1998) went into effect. It applies to all businesses with at least
one employee. Under the law, employers who disregard the law are subject to fines ranging from 5,000 baht
to 200,000 baht and imprisonment of up to one year. It should be noted that domestic workers (household staff)
are not included in the definition of “employee” and are not covered by the Labor Act. All other employees,
whether full or part time, seasonal, casual, occasional or contract, are covered.
Important protections contained in the law are:
In addition to these provisions, there are restrictions on the kind of work women and children can perform.
Guidelines are set for wages and overtime, as well as resolution of labor-management disputes. Employers
are required to pay workers compensation if an employee suffers injury, sickness or death in the course of work.
Thai law also requires employers to provide welfare facilities, including medical and sanitary facilities.
2. Legal Implications of Labor Management
In general, Thai labor laws provide for considerable freedom in managing labor. In many countries,
it is not legal to discriminate on the basis of age or sex. Perusal of personnel ads in Thai newspapers
finds employers narrowly defining their needs: “The successful candidate will be male, under 35 years of age,
not a member of a labor union, and at least 150 cm in height, etc.”
Further, the government does not interfere with a company’s retrenchment policies when economic
conditions necessitate cutbacks. There is no “first in, last out” requirement in Thailand. Similarly,
Thai employers have the right to transfer employees to other work locations, provided the transfer
is not ordered with the exclusive intent to create hardship on them. Refusal to transfer is legal cause for dismissal.
3. Tips on Recruiting and Developing Staff
The ability of a company to attract and retain staff is considerably enhanced by tailoring compensation packages
to meet individual employee needs. Increasingly, factors such as work environment, organizational policies,
relationships with superiors, and career path influence decisions whether to join, or remain with, a company.
In a challenging living environment such as Bangkok, these “quality of life” issues take on even more importance.
Organizing training programs to upgrade skills helps to motivate staff and demonstrates a company’s commitment
to its employees. Admission to such programs can be seen both as a reward for good performance and as part
of the total compensation package.
In addition, many employers find there is benefit to holding "teambuilding" exercises outside the workplace,
typically at a resort outside of Bangkok. Some companies combine this with merit-making, with the company
and its employees joining hands to make a charitable donation to a temple or needy school, providing goods
(clothing, blankets, rice, water tanks or water filtration systems, etc.) to make life more comfortable for villagers
in remote areas of Thailand, or using their technical skill to help build or repair items in local communities.
4. Skills Development
In 2002, the Thai government enacted a Skills Development Act that encourages business operators or
employers to play a vital role in upgrading the skills and knowledge of the workforce by granting tax deduction
of up to 200% of the training cost that occurred at the workplace. The idea was to stimulate the private sector
and establishments to set up and register with the DSD as training providers for workplace learning.
5. Regulations on Employment of People with Disabilities
In accordance with sections 33, 34 and 45 of the Persons with Disabilities Empowerment Act, B.E. 2550 (2007)
and its amended version (No.2), B.E. 2556 (2013), the Ministerial Regulation of the National Office for
Empowerment of Persons with Disabilities dated April 26, 2011, has placed a positive obligation on employers
to hire disabled employees in their workplace. The new regulations require employers to hire one disabled
employee for every 100 employees.
After the first 100 employees, the hiring obligation is triggered by every 50 employees thereafter. (For example,
an employer with 100 employees would be required to hire one disabled employee and an employer with
150 employees would be required to hire two disabled employees).
Employers who fail to hire the required number of disabled employees will have to pay the Fund for
Empowerment of Persons with Disabilities no later than 31 January, in an amount equal to the statutory
minimum daily wage multiplied by 365 days for each disabled employee who is not hired.
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