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THAILANDLabor Laws
When a company wishes to dismiss an employee in Thailand, the permission of authorities and the consent of the trade union are not required, but "due cause for dismissal" are required. However, Thailand's Labor Courts Act merely prescribes as follows: "If the Labor Court finds that the reason for the dismissal is unfair, the court has the power to order the reinstatement of the employee at the same wage rate that the employee was receiving at the time of dismissal", and judgment needs to be made based on the accumulation of individual precedents. Generally speaking, the fact that employees cannot be dismissed easily is not that different from Japan. Meanwhile, unlike Japan, it should be noted that companies are required to pay a statutory "severance pay" upon the dismissal or retirement of an employee.
When a company wishes to acquire a visa for a foreign worker, the company is required to ensure employment of a Thailand national within the same company, and it cannot be said that Thailand is a jurisdiction that is generous in employing foreigners.
Moreover, since there is a constant shortage of manpower, a major challenge for Japanese companies is to establish and maintain an appealing working environment to prevent the job-hopping of employees.
*Overview of Common Law and Civil LawCommon Law is a legal system mainly in use in the UK and in nations formerly part of the British Empire (the US, Canada, Australia, New Zealand, etc.), which emphasizes decisions based upon traditions, customs, and precedent.
On the other hand, civil law developed on the European continent in nations such as France and Germany, and as a legal system compared to common law, civil law places emphasis on statutes. Japan uses a civil law legal system.
Points to consider regarding labor management in Thailand, characteristics of labor practices in Thailand, and status of recent labor policy
Civil Law
Thailand is considered to fall under the Civil Law system. However, what is unique about Thailand is that it is not strongly influenced by a former colonial power as a result of not experiencing colonial rule by any Western country, which is rare among Asian countries. Thailand's legal system is structured with its Constitution at the top and various individual laws, including labor-related laws, positioned beneath. Nevertheless, because Royal Decrees, Ministerial Regulations, and Municipal Ordinances are additionally positioned below the individual laws, it should be noted that reference to such decrees, regulations, and ordinances is also required upon interpreting and applying labor laws.
Workers' market and problems arising from dismissal of employees
The unemployment rate in Thailand is extremely low at around 1%. Because it is a workers' market, Japanese corporations and Western corporations are scrambling to hire management-level employees and talented personnel.
Meanwhile, the turnover rate in Thailand is high. In particular, it is said that young Thai workers (new graduates) switch jobs every two to three years. One reason for this high turnover rate is because the general understanding is that the rate of pay raises from switching jobs is higher than the rate of pay raises from continuous employment. Which is why, in Thailand, it is recommended that a system be designed based on the premise that personnel will come and go to some extent, rather than designing an HR management system based on the premise of permanent employment, which is often adopted in Japan.
While voluntary resignation is common as described above on the one hand, the hurdle for dismissing employees is quite high on the other. It may not be an exaggeration to say that the most common labor-related problem encountered by Japanese corporations in Thailand is related to the dismissal of employees. Upon dismissing employees, not only is it necessary to take procedures pursuant to laws, due cause for the dismissal is also required. It should be noted that, when a court determines that the dismissal was wrongful, the court may order the employer to reinstate the employee at the same wage at the time that the employee was dismissed, or order the employer to compensate for damages if it is acknowledged that continued employment is difficult (Act Establishing Labor Courts and Labor Procedure, Article 49). Unfortunately, there are many Japanese corporations that become embroiled in a labor trial as a result of dismissing their employees without adequately considering the cause of the dismissal.
Increase of minimum wage
The minimum wage in Thailand has been amended and released on 28 December 2023 as per the following table. It is effective since 1 January 2024.
In Thailand, the Wage Committee headed by the Permanent Secretary of the Ministry of Labor and Social Welfare has the powers and duties to determine the minimum wage rate, and the said Committee determines the minimum wage upon giving consideration to 10 items, including consumer prices and GDP (Labor Protection Act B.E. 2541, Article 79, Paragraph 1, Item 3, Article 87, and Article 88).
Introduction of class action system
Pursuant to the amendment of the Civil Procedure Code in December 2015, class action lawsuits are now available for protecting rights under labor laws. Excluding certain exceptions, the Civil Procedure Code prescribes that all courts in Thailand have jurisdiction to try class action lawsuits. If the class action pertains to the infringement of the rights of workers, a labor court will be the court of jurisdiction.
In Thailand, the term "class" is defined relatively broadly as one or more persons who mutually have similar interests against a defendant in cases where the respective members of that class have identical rights arising from common issues of fact. The Civil Procedure Code additionally prescribes that class members will receive a notice regarding the commencement of class action upon taking certain notification procedures, and can thereby proceed with the class action procedures. The period of prescription of class members will be suspended for all class members once the class action is initiated.
In Thailand, unlike class action lawsuits in the United States, the grouping of a class is allowed only on the grounds that the nature of damages is different, and grouping on the grounds that there are differences regarding factual issues or legal issues within the class is not allowed.
Members of the same class are entitled to file an appeal only regarding judgment debts, and are not entitled to file an appeal with an appellate court or a supreme court on the grounds of legal or factual errors.
Overview of basic labor laws of Thailand
Legal system
As described above, the legal system of Thailand is classified as being the Civil Law system as with Japan, but because Thailand has no history of colonization, which is rare among Asian countries, it is also said that its legal system contains elements based on an independent culture.
Civil and Commercial Code B.E. 2535 (1992)
The Civil and Commercial Code of Thailand, which is the basic law pertaining to civil and commercial affairs, prescribes matters related to employment contracts in Article 575 to Article 586. Specifically, matters related to the conclusion of employment contracts (Article 575), transfer of employment contracts (Article 577), termination of employment contracts (Article 577 to Article 579), and time for payment of salaries as the remuneration for labor (Article 580) are prescribed. Nevertheless, these matters are often subject to the application of the Labor Protection Act described later and handled pursuant to the interpretation of the said Act. Thus, the foregoing provisions under the Civil and Commercial Code rarely become an issue.
Labor Protection Act B.E. 2541 (1998)
The Labor Protection Act has been enacted as the basic law pertaining to the protection of workers. The Labor Protection Act prescribes important rules related to employment contracts, including workdays, working time, holidays, overtime work, holiday work, holiday overtime work, annual holidays, leaves, disciplinary measures, and wages.
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Workdays, working time, holidays
Workdays
The term "workday" means a day scheduled for an employee to work regularly (Article 5, Item 7, of the Labor Protection Act; hereinafter referred to as "LPA"), and corresponds to days other than holidays and leaves.
Working time
The term "working time" refers to the period between commencing time and ending time of work, and as a general rule, the working hours of any day shall not exceed 8 hours, and the total working hours of any week shall not exceed 48 hours (LPA, Article 23, Paragraph 1).
As an exception, for work (dangerous work) that may be harmful to the health and safety of employees as prescribed in the Ministerial Regulations, the working hours of any day shall not exceed 7 hours, and the total working hours of any week shall not exceed 42 hours. Dangerous work includes work under water, underground, in a cave, in a tunnel, or airlock place and work involving radiation, welding of metals, transport of hazardous materials, and work under dangerous hot or cold environments.
Rest period
A rest period of not less than one hour must be arranged for each workday, and such rest period must be arranged before the lapse of five consecutive hours of working time (LPA, Article 27, Paragraph 1). When the total rest period is set to be not less than one hour, the employer and the employee may agree in advance to divide the total rest period into several rest periods. However, it should be noted that any rest period that is set to be too short for taking a break may be deemed invalid.
Holidays
The term "holiday" means a day scheduled for an employee to take a weekly holiday, traditional holiday, or annual holiday (LPA, Article 5, Item 8).
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(ⅰ) Weekly holiday
A weekly holiday of not less than one day per week must be provided (LPA, Article 28, Paragraph 1). However, because many companies are now adopting the five-day workweek system (with no work on Saturdays and Sundays), employees often request a day off on Saturdays in addition to Sundays during their job interview.
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(ⅱ) Traditional holidays
An employer must set not less than 13 traditional holidays, including National Labor Day on May 1, and must announce it to employees in advance (LPA, Article 29, Paragraph 1). In practice, employers set the traditional holidays for the following year by selecting from the public holidays that the government announces around December of the preceding year. If a public holiday coincides with a weekly holiday, the following workday must be given to the employees as a substitute holiday. Usually an employer announces the traditional holidays to the employees by distributing an internal calendar indicating the traditional holidays.
National Holidays and Observances in Thailand - 2024 (Source: Tourism Authority of Thailand)
https://www.thailandtravel.or.jp/wp-content/uploads/2023/12/2024_thai_Schedule_02.pdf -
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Overtime work, holiday work, holiday overtime work
Overtime work
Work exceeding the working time of a workday (as a general rule, 8 hours or less per day and 48 hours or less per week) is referred to as overtime work.
As a general rule, an employer may not cause an employee to engage in overtime work without obtaining the prior consent of that employee (LPA, Article 24, Paragraph 1). As exceptions, an employer may cause an employee to engage in overtime work as needed when the description or nature of work requires it to be performed continuously and stoppage may cause damage to the work, or it is emergency work, or other work as prescribed in the Ministerial Regulations (LPA, Article 24, Paragraph 2).
Furthermore, when an employer is to cause an employee to engage in overtime work for two hours or longer after the working time, the employer must grant a rest period of not less than 20 minutes to the employee before the person commences the overtime work (LPA, Article 27, Paragraph 4). However, an employer is not required to grant this rest period when the employee is to perform work of a continuous nature or character and the consent of that employee has been obtained, or in the case of emergency work (LPA, Article 27, Paragraph 5).
Holiday work
Work performed during a holiday, such as a weekly holiday, traditional holiday, or annual holiday, is referred to as holiday work. As a general rule, employers may not require employees to work on holidays unless the description or nature of work requires it to be performed continuously and stoppage may cause damage to the work, it is emergency work (LPA, Article 25, Paragraph 1), or the company operates a specific business, such as hotel, entertainment facility, restaurant, or hospital (LPA, Article 25, Paragraph 2). For the purposes of production, sales, and service, an employer may require an employee to work on a holiday as necessary, provided that the employee’s prior consent is obtained on each occasion (LPA, Article 25, Paragraph 3).
Extra allowance
Extra allowance to be paid for overtime work, holiday work, and holiday overtime work is as per the following table (LPA, Article 61, Article 62, Article 63).
The amount of holiday work allowance to be paid will vary depending on whether the holiday is a paid holiday or an unpaid holiday (LPA, Article 62). In general, an employee is entitled to wages on a weekly holiday, a traditional holiday, or an annual holiday. (LPA, Article 56). This is a paid holiday. An employee who is paid based on a daily rate, hourly rate, or piece rate is not entitled to a wage on a weekly holiday (LPA, Article 56 (1)). This is an unpaid holiday. Thus, if an employee who works on any holiday will be entitled to a wage of 1.0 x or more, an employee who is paid based on a daily rate, hourly rate, or piece rate and works on a weekly holiday will be entitled to a wage of 2.0 x or more.
Employees who are not entitled to receive overtime allowances, etc.
An employer is not required to pay any overtime allowance or holiday overtime allowance to an employee who is authorized to hire employees, grant bonuses, or terminate employment (LPA, Article 65 paragraph 1, item 1). Whether or not an employee corresponds to the above is determined not based on formality, such as the title of the employee, but based on specific facts. Thus, for instance, even if an employee has the title of managing director or president, if the person does not possess the foregoing authority, it should be noted that such employee may be entitled to receive overtime allowances.
Right to receive a payment during temporary shutdown
In some circumstances other than a force majeure, The employer may temporarily suspend business, either a whole business or some part (LPA, Article 75, Paragraph 1). The maximum temporary suspension period is not specified under the law, thus it will be considered case by case depending on the reason for the suspension.
In such a circumstance, the employer shall inform its employees and the competent officer about its temporary suspension at least three business days in advance (LPA, Article 75, Paragraph 2). During this temporary suspension, the employee is entitled to wages of not less than seventy-five percent of normal wages for the workdays (LPA, Article 75, Paragraph 1). The wages shall be paid accordingly to the provision regarding the due date of and the place and method of normal wage payment (LPA, Article 75, Paragraph 1, Article 55, and Article 70, Item 1). In the event of force majeure, above-mentioned wage compensation will not be required.
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Annual holidays
An employee who has worked for a continuous period of one year is entitled to annual holidays of not less than six workdays in one year (LPA, Article 30, Paragraph 1). At least six days of annual holidays are uniformly granted to employees who have worked for a continuous period of one year or longer, and the number of annual holidays does not change depending on the years of service. Nevertheless, the employer may increase the number of annual holidays, at its own consideration, from the second year of service (LPA, Article 30, Paragraph 2). Moreover, an employer may arbitrarily grant annual holidays to an employee who has not yet completed one year of service in proportion to the length of service of that employee (LPA, Article 30, Paragraph 4). The day on which an employee may take an annual holiday is to be designated by the employer or prescribed based on an agreement between the employer and the employee (LPA, Article 30, Paragraph 1). Any annual holiday that was not used in a certain year may be carried over to the following year based on a prior agreement between the employer and the employee (LPA, Article 30, Paragraph 3).
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Leaves
Statutory leaves
The Labor Protection Act of Thailand prescribes the following leaves.
- Sick leave (LPA, Article 32)
- Leave for sterilization (LPA, Article 33)
- Leave for necessary business (LPA, Article 34)
- Leave for military service (LPA, Article 35)
- Leave for training or development of knowledge and skills (LPA, Article 36)
- Maternity leave (LPA, Article 41)
(ⅰ) Sick leave
An employee is entitled to sick leave on the grounds of being sick (LPA, Article 32).
・ Medical certificate
When an employee takes sick leave for three or more consecutive days, the employer may ask the employee to submit a certificate from a first-class physician or public medical institution.
・ Total period of paid leave
An employee is entitled to receive wages during sick leave up to 30 days per year (LPA, Article 57, Paragraph 1).
(ⅱ) Leave for sterilization
Leave for sterilization is a system that is unique to Thailand. In other words, an employee is entitled to this leave to undergo sterilization procedures and leave as a result of sterilization with a certificate issued by a first-class physician (LPA, Article 33).
An employee may take leave for sterilization for a period determined as necessary by a physician (LPA, Article 33). Furthermore, an employee is entitled to receive wages during the leave for sterilization (LPA, Article 57, Paragraph 2).
(ⅲ) Leave for necessary business
An employee is entitled to leave to deal with necessary business with the condition designated by work rules (LPA, Article 34) and to receive wages during leave for necessary business not exceeding three days per year (LPA, Article 57/1).
(ⅳ) Leave for military service
An employee is entitled to leave for military service to undergo inspections or training for military service under laws concerning military service (LPA, Article 35). Under current laws, an employee is entitled to receive wages during the leave for military service up to 60 days per year (LPA, Article 58).
(ⅴ) Leave for training or development of knowledge and skills
An employee is entitled to leave for training or development of knowledge and skills pursuant to the rules and procedures prescribed in the Ministerial Regulations (LPA, Article 36). Because the Labor Protection Act does not specify that wages must be paid for this leave, the employer is not required to pay wages to employees over 18 years old who take this leave, while employees under 18 years old are entitled to receive wages up to 30 days per year (LPA, Article 52).
(ⅵ) Maternity leave
A pregnant female employee is entitled to take maternity leave, including pregnancy checkup leave and prenatal leave of not more than 98 days for each pregnancy (LPA, Article 41, Paragraph 1, Paragraph 2). Besides, holidays, such as weekly holidays and traditional holidays, during the maternity leave shall be included in the period of maternity leave (LPA, Article 41, Paragraph 3). An employee is entitled to receive wages during maternity leave up to 45 days (LPA, Article 59).
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Disciplinary measures
Types of disciplinary measures
Disciplinary measures can be broadly classified into the following six types.
- Verbal warning
- Written warning
- Suspension
- Ordinary Dismissal
- Disciplinary Dismissal
- Other disciplinary measures
All types of disciplinary action shall be stipulated in the work rules to be enforceable.
(ⅰ) Verbal warning
A verbal warning is the lightest among the disciplinary measures and often used for urging an employee to reflect on conduct and make changes. A written record for the proof of a verbal warning shall be made and kept.
(ⅱ) Written warning
Unlike a verbal warning, a written warning is an important disciplinary measure that is issued in anticipation of future dismissal. If a written warning is issued at the time an employee violates or breaches a law, rule, or order, an employer may dismiss that employee without advance notice or payment of severance pay in the event the person engages in the same violation or breach within one year from the violation or breach date (LPA, Article 17, Paragraph 4, Article 119, Paragraph 1, Item 4). However, whether the dismissal of an employee is actually acknowledged as a legitimate dismissal needs to be examined on a case-by-case basis.
(ⅲ) Suspension
There are two types of suspensions: specifically, suspension with (partial) pay for investigating the offense (LPA, Article 116), and suspension for genuinely punishing an employee.
・ Suspension for investigating the offense
Suspension for investigating the offense is possible when it is stipulated in the work rules or the labor agreement; however, the period of suspension for investigating the offense must not exceed seven days (LPA, Article 116, Paragraph 1). During the suspension, the employer shall pay at least 50% of the wages that were being received by the employee before being suspended (LPA, Article 116, Paragraph 2).
Furthermore, if it is discovered that there was no offense as a result of the investigation, an employer is required to pay the same amount of wages equivalent to the wages that the employee should have received during the period of suspension (LPA, Article 117). In the foregoing case, the wages paid under Article 116, Paragraph 2, will be appropriated as a part of the employee's wages described above with a late payment charge at a rate of 15% per annum.
・ Suspension as punishment
The general understanding is that an employer is not required to pay wages during the period of suspension as punishment. Moreover, while there are no clear rules regarding the length of suspension as punishment, the length is normally around one to two weeks.
(ⅳ)Ordinary Dismissal
While dismissal will be described in detail later, it is crucial to confirm the various procedures and requirements in advance, including advance notice, payment of severance pay, and satisfaction of due cause.
(ⅴ) Disciplinary Dismissal
Disciplinary dismissal can be carried out if the grounds for dismissal fall under (a) to (f) below (LPA, Article 119, Paragraph 1). In practice, it is common to see the case of grounds (d), a worker can be dismissed if, after a written warning about a breach of the employment contract or work rules is issued, the same breach is repeated within one year after the violation. However, the employer shall be reminded that due cause for dismissal will separately be questioned.
- Performing assigned duties dishonestly or intentionally committing a criminal offence against the Employer
- Willfully causing damage to the Employer
- Committing negligent acts causing serious damage to the Employer
- Violating the work rules, regulations, or orders of the Employer that are lawful and just, and after a written warning having been issued by the Employer, except for a serious case with no requirement for the Employer to issue a warning. The written warning shall be valid and not exceed one year from the date when the employee commits the offence.
- Being absent from the assigned duty without a justifiable reason for three consecutive workdays regardless of whether there is holiday in between
- Being sentenced to imprisonment by a final court judgment
Reasons for dismissal that are not stated in the dismissal letter are not permitted to be claimed in labor court to avoid severance pay (LPA, Article 119, Paragraph 3); therefore, a dismissal letter in writing shall always be issued and shall clearly contain specific and comprehensive reasons for the dismissal.
(ⅵ) Other disciplinary measures
While pay cuts and demotions are conceivable as disciplinary measures other than those listed above, as a general rule, it is difficult to implement these measures. If an employer intends to impose a pay cut or a demotion on its employee, the employer should consult with an expert in advance.
< Labor court in Thailand >
In Thailand, workers can file a lawsuit verbally (Act Establishing Labor Courts and Labor Procedure, Article 35), on holidays (Act Establishing Labor Courts and Labor Procedure, Article 28) and free of charge (Act Establishing Labor Courts and Labor Procedure, Article 27). The labor court will hear the case, taking into account the working conditions of the worker, the cost of living, the worker's hardship, the level of wages, the rights and interests of workers in similar businesses, the state of the employer's business, and the economic and social situation (Act Establishing Labor Courts and Labor Procedure, Article 48), and order either to reinstate the worker with the same wages as those at the time of dismissal, or to pay compensation for damages [if it is determined that the worker and employer cannot work together] (Act Establishing Labor Courts and Labor Procedure, Article 49). In general, the employers are ordered to pay compensation for any damage. -
Change of employer
During the term of business operations, a merger or acquisition can occur. If a change of employer occurs because of such merger or acquisition, an employee has a right to choose not to work for the new company. If an employee refuses to work for the new company, the old company has to pay severance pay to the employee (LPA, Article 118, Paragraph 1).
In addition, if the employee decides to work for the new company, the new company shall guarantee to assume the old company's rights and obligations to the employee (LPA, Article 13).
Labor Relation Act B.E. 2518 (1975)
The Labor Relation Act prescribes procedures related to collective bargaining, strikes, and other related matters.
Act Establishing Labor Courts and Labor Procedure B.E. 2522 (1979)
The Act Establishing Labor Courts and Labor Procedure prescribes matters related the court proceedings in a labor court having exclusive jurisdiction over labor cases.
Social Security Act B.E. 2533 (1990)
The Social Security Act prescribes matters related to injury or sickness benefits, maternity benefits, invalidity benefits, death benefits, child benefits, old-age benefits, and unemployment benefits.
Until 28 February 2022, the Social Security Office had provided a variety of different allowances during COVID-19, which have now been abolished. The base wage used by Social Security Office for calculation is maximum 15,000 THB per month.
Foreign Nationals Working Management Emergency Decree B.E. 2560/2561 (2017/2018)
The Foreign Nationals Working Management Emergency Decree prescribes procedures for an alien who is not of Thai nationality to obtain a work permit upon working in Thailand. Not only hiring a foreign national who has no work permit, but also assigning a foreign national to work outside of the permitted work under the work permit is subject to the penalty as well.
The Alien Working Act B.E. 2551 (2008) has been repealed by the Foreign Nationals Working Management Emergency Decree B.E. 2560 (2017).
Duty to prepare Employment Handbook in Thailand and contents of such Employment Handbook
Duty to prepare work rules under laws
An employer who employs 10 or more persons is required to prepare work rules in Thai (LPA, Article 108, Paragraph 1).
Deadline for preparing work rules
An employer must announce the work rules within 15 days from the date that the employer employs 10 or more persons (LPA, Article 108, Paragraph 2).
Storage and distribution
An employer must keep a copy of the work rules in the workplace at all times (LPA, Article 108, Paragraph 2).
An employer must also publicly announce its work rules and post such work rules in a public location within the workplace; additionally, the employer can distribute the work rules in electronic form and make them easily accessible to the employees (LPA, Article 108, Paragraph 3). When the work rules are established or amended, the employer shall announce and distribute them to the employees within 15 days (LPA, Article 110)
Abolition of duty of notification
Conventionally, an employer was required to deliver a copy of the work rules to the Director-General or a person entrusted by the Director-General of the Department of Labor, Protection and Welfare within seven days from the date of enforcement of such work rules, and in such a case, the Director-General or the person entrusted by the Director-General was allowed to order the amendment of the work rules if necessary.
Nevertheless, the duty of notification has been abolished pursuant to Order No. 21/2560 of the National Council for Peace and Order (NCPO) of Thailand, which was published and took effect on April 4, 2017, and Labor Protection Act No. (6) B.E. 2560(2017).
When the number of employees becomes less than 10 persons
Even when the number of employees becomes less than 10 persons after the work rules are announced, an employer is required to continue the preparation, storage, and distribution of work rules (LPA, Article 111).
Breach of duty and penalty
An employer who neglects to prepare, store, and distribute work rules will be penalized with a fine not exceeding 20,000 baht (LPA, Article 146).
Details to the included in the work rules
Details to be included in the work rules are as follows (LPA, Article 108, Paragraph 1, respective items). The items of actual work rules are often set in accordance with the following format:
- Workdays, working time, and rest periods
- Holidays and rules of taking holidays
- Rules governing overtime work and holiday work
- Date and place of payment of wages, overtime allowance, holiday work allowance, and holiday overtime allowance
- Leave and rules for taking leave
- Discipline and disciplinary measures
- Lodging of grievances
- Termination of employment, severance pay, and special severance pay
Among the above, for (7) lodging of grievances, it is necessary to include at least the following particulars (LPA, Article 109):
- ・ Scope and meaning of grievances
- ・ Method and steps of dealing with grievances
- ・ Investigation and consideration of grievances
- ・ Procedures for settlement of grievances
- ・ Protection for the claimant and any involved persons
Overview of wage system (bonuses, retirement benefits, and overtime payments) and other legal systems in Thailand
Definition of wages
The term “wages” shall mean the money to be paid in cash to an employee in return for the work performed under the employment contract (LPA, Article 5). From the judicial precedent, in addition to basic pay, wages include the other allowances that are paid in return for the work performed regularly in a fixed amount with no conditions.
Due date for wage payment
As a general rule, wages must be paid not less than once a month when they are calculated on a monthly, daily, or hourly basis or on the basis of another period of not more than one month or when they are calculated on a piece rate basis (LPA, Article 70, Paragraph 1, Items 1 and 2).
Exceptions are as follows:
- In cases where wages are calculated in the same manner as described above, if a separate agreement is reached between the employer and the employee regarding a different method of payment in favor of the employee, wages will be paid on the agreed payment date (LPA, Article 70, Paragraph 1, Item 1).
- In cases where wages are calculated according to a method that is different than the foregoing method, wages will be paid on the payment date that is agreed upon between the employer and the employee (LPA, Article 70, Paragraph 1, Item 2).
- In case where the employer dismisses the employee, regardless the reason of dismissal, wages and other allowances shall be paid within three days from the dismissal date (LPA, Article 70, Paragraph 2).
The employer who fails to pay wages and/or other payment due under the Act shall pay interest to the employee at the rate of 15% per annum for the unpaid amount (LPA, Article 9, Paragraph 1).
Moreover, without the reasonable ground, if the unpaid period is seven days or more, the employer shall pay additional 15% per annum of that unpaid amount for every seven-day period after the first seven days that the amount remains outstanding (LPA, Article 9, Paragraph 2).
Due date for payment of overtime
Overtime allowance, holiday work allowance, holiday overtime allowance, and other money that the employer is obligated to pay under the Labor Protection Act must be paid not less than once a month (LPA, Article 70, Paragraph 1, Item 3).
When the employer dismisses an employee, regardless the reason for dismissal, the above payment shall be paid within three days from the dismissal date (LPA, Article 70, Paragraph 2).
The provision regarding the interest on late payment and additional payment shall apply to this payment as well (LPA, Article 9, Paragraphs 1 and 2).
Place of payment of wages
As a general rule, an employer must pay wages, overtime allowance, holiday work allowance, holiday overtime allowance, and other pecuniary benefits related to employment to an employee in the workplace (LPA, Article 55).
As an exception, an employer may make the payment of wages at a location other than the workplace upon obtaining the consent of the employee (LPA, Article 55). Accordingly, when an employer wishes to make the payment of wages by way of bank transfer, the employer is required to obtain the consent of the employee.
Deduction from wages
The following items may be deducted from wages, overtime allowance, holiday work allowance, and holiday overtime allowance (LPA, Article 76, Paragraph 1):
- Income tax that is legally due, and other payments provided by law
- Labor union fees based on labor union regulations
- Payment of debts owed to the saving cooperatives or other cooperatives of the same description or of debts for welfare that is beneficial only to the employee with the prior consent of the employee
- Payment of the deposit under Article 10 of the Labor Protection Act or as compensation for the damage suffered by the employer due to the willfulness or negligence of the employee with the prior consent of the employee
- Contributions under an agreement related to a provident fund
When the consent of the employee has not been obtained, each deduction based on (2) to (5) above shall not be made in excess of 10% of wages, overtime allowance, holiday work allowance, and holiday overtime allowance, and total deductions from (2) to (5) shall not exceed 20% of wages, overtime allowance, holiday work allowance, and holiday overtime allowance (LPA, Article 76, Paragraph 2).
Bonus
There are no legal provisions that stipulate matters related to bonuses. Accordingly, from a legal perspective, an employer may arbitrarily determine whether to pay any bonus, as well as the amount of such bonus, in light of the business climate and the employee's performance.
Retirement allowance
If there is no retirement age set out by the employer, or if the retirement is set out over 60 years of age, an employee who has reached the age of 60 may retire by notifying the employer of their intention to cease working. The retirement will become valid after 30 days from the date of notification (LPA, Article 118/1).
The employer must make the full severance payment to employees who have chosen to retire at the retirement age of 60, in accordance with LPA, Article 118, Paragraph 2. The employer who fails to comply with this rule shall be subject to imprisonment not exceeding six months or a fine not exceeding THB 100,000 or both (LPA, Article 144).
Method and points to consider regarding ordinary dismissal, punitive dismissal, and dismissal on the grounds of reorganization in Thailand
Dismissal
Employees are heavily protected under the Labor Protection Act, and it is often said that the dismissal of an employee is difficult. Furthermore, because it is easy to initiate a labor case in Thailand, wrongful dismissal is often contested at a later date. Accordingly, in order to prevent disputes, not only is it important to properly perform the dismissal procedures prescribed by law, it is also important to prescribe the grounds that would result in a dismissal in the employment contract and work rules, as well as preserve objective evidence that would support the rightfulness of the dismissal.
Dismissal procedures
In Thailand, there is no clear legal classification of ordinary dismissal, punitive dismissal, and dismissal on the grounds of reorganization (excluding dismissal on the grounds of reorganization based on adoption of machinery described later). Thus, legal procedures that are common to the dismissal of employees in Thailand are explained below.
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Advance notice
General principle
As a general rule, upon dismissing an employee whose period of employment is not specified in the employment contract, an employer must give advance notice in writing to the employee (LPA, Article 17, Paragraph 2).
While the foregoing notice must be given to an employee on or before the due date for wage payment preceding the scheduled date of dismissal, there is no requirement for an advance notice of more than three months (LPA, Article 17, Paragraph 2). The dismissal will take effect as of the expiration of the foregoing period.
What is important here is the timing of giving the notice; specifically, on or before the due date for wage payment. For example, when a company that is paying wages on the last day of each month wishes to dismiss an employee as of the last day of March, the company must give advance dismissal notice on or before the last day of February. If the advance notice is late by one day and given on March 1, the dismissal will take effect on the last day of April. Accordingly, it should be noted that, when the timing of giving the advance notice is delayed as in the foregoing case, companies will be required to continue employing that employee for one month or longer than initially scheduled.
Exceptions
In the following cases, as exceptions, an employer may immediately dismiss an employee without having to wait for the expiration of the advance notice period (LPA, Article 17, Paragraphs 3 and 4).
- An employee will immediately dismiss an employee by making an advance payment of the monies to be paid on the scheduled date of dismissal indicated in the dismissal notice. By choosing this scheme to dismiss the employment, the employer shall make a payment on the dismissal date (LPA, Article 17/1); or
- An employee will dismiss an employee for the following reasons (LPA, Article 119, Paragraphs 1 and 2, Civil and Commercial Code, Article 583):
- The employee performs assigned duties dishonestly or intentionally commits a criminal offense against the employer.
- The employee willfully causes damage to the employer.
- The employee commits negligent acts causing serious damage to the employer.
- The employee engages in a material breach or violation of work rules or laws.
- The employee breaches or violates the same work rules or laws within one year after being warned in writing.
- The employee is absent from work without a justifiable reason for three consecutive workdays.
- The employee is sentenced to imprisonment by a final court judgment.
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Severance pay
General principle
An employer is required to pay severance pay upon dismissing an employee (LPA, Article 118, Paragraph 1). The amount of severance pay will vary depending on the service years of the employee. Details are shown in the following table.
Exceptions
As exceptions, an employer may not be required to pay any severance pay in the following cases.
- The length of service of an employee is less than 120 days (refer to LPA, Article 118, Paragraph 1, Item 1).
- An employee is employed based on a special employment contract (i.e., seasonal work) for a definite period which will be terminated within two years or less (LPA, Article 118, Paragraphs 3 and 4).
- An employee is dismissed for the following reasons (LPA, Article 119, Paragraphs 1 and 2):
- The employee performs assigned duties dishonestly or intentionally commits a criminal offense against the employer.
- The employee willfully causes damage to the employer.
- The employee commits negligent acts causing serious damage to the employer.
- The employee engages in a material breach or violation of work rules or laws.
- The employee breaches or violates the same work rules or laws within one year after being warned in writing.
- The employee is absent from work without a justifiable reason for three consecutive workdays.
- The employee is sentenced to imprisonment by a final court judgment.
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Due cause for dismissal
In order to dismiss an employee, there must be due cause for such dismissal (Act Establishing Labor Courts and Labor Procedure, Article 49).
When the dismissal is determined to be wrongful in a labor case, the labor court may order the employer to reinstate the employee at the same wages at the time that the employee was dismissed or order the employer to compensate for the damage suffered by the employee if it is acknowledged that continued employment is difficult in light of labor-management relations (Act Establishing Labor Courts and Labor Procedure, Article 49). The labor court may decide the amount of damages to be paid in the latter case by giving comprehensive consideration to the age of the employee, service years of the employee, level of hardship to be endured by the employee when dismissed, cause of dismissal, and amount of compensation the employee is entitled to receive (Act Establishing Labor Courts and Labor Procedure, Article 49).
It is clearly stipulated that an employer may not dismiss a pregnant female employee on the grounds of pregnancy (Act Establishing Labor Courts and Labor Procedure, Article 43).
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Payment for unused annual holidays
Upon dismissing an employee, an employer must pay for unused annual holidays as follows.
Annual holidays for the year of dismissal
When an employer is to dismiss an employee, as a general rule, the employee must pay for the unused annual holidays (prorated up to the date of dismissal) to which the employee is entitled for the year that the dismissal will take effect (LPA, Article 67, Paragraph 1).
As exceptions, an employer is not required to pay for unused annual holidays upon dismissing an employee for the following reasons (LPA, Article 67, Paragraph 1):
- The employee performs assigned duties dishonestly or intentionally commits a criminal offense against the employer.
- The employee willfully causes damage to the employer.
- The employee commits negligent acts causing serious damage to the employer.
- The employee engages in a material breach or violation of work rules or laws.
- The employee breaches or violates the same work rules or laws within one year after being warned in writing.
- The employee is absent from work without a justifiable reason for three consecutive workdays.
- The employee is sentenced to imprisonment by a final court judgment.
Accumulated annual holidays
An employer must pay, without exception, for accumulated unused annual holidays to which the employee to be dismissed is entitled with or without an agreement on carryover. (LPA, Article 67, Paragraph 2).
Special dismissal requiring special severance pay
When an employer is to dismiss an employee in connection with the relocation of its office or on the grounds of reorganization involving the adoption of machinery, special procedures are prescribed for each of these cases.
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Dismissal due to relocation of office
Advance notice
When an employer relocates its office, the employer must notify the employee of such relocation at least 30 days before the date of relocation. An employee who finds that the relocation will significantly affect the daily life of the said employee or family and does not wish to work at the new location is entitled to terminate the employment contract within 30 days from the date of notice or relocation, if the notice is not given (LPA, Article 120, Paragraph 3).
Special severance pay
When an employee is to terminate the employment contract based on the foregoing reason, the employer must pay to the employee security money (special severance pay) of an amount that is higher than the security money prescribed under LPA 118, Paragraph 1, to be paid in the case or ordinary dismissal (LPA, Article 120, Paragraph 3).
The special severance pay must be paid within seven days from the day the employment contract is terminated (LPA, Article 120, Paragraph 4).
Procedural violation
(ⅰ) Violation of notification procedures and penalty
If an employer neglects to notify an employ of the relocation of its office, the employer must pay to the employee security money in an amount corresponding to the employee's last rate of wages for 30 days (special severance pay in lieu of an advance notice; LPA, Article 120, Paragraph 2).
(ⅱ) Failure to pay special severance pay and lodging of complaint
If an employer fails to pay the special severance pay or the special severance pay in lieu of an advance notice, the employee is entitled to lodge a complaint with the Labor Inspector within 30 days from the due date for payment (LPA, Article 123, Paragraph 1). The Labor Inspector that received the complaint will consider the complaint within 60 days from the date of receiving the complaint, and upon determining that the employee is entitled the special severance pay or the special severance pay in lieu of an advance notice, issue an order to the employer to make such payment within 30 days from the date the employer receives an order (LPA, Article 124, Paragraphs 1 and 3).
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Dismissal on the grounds of reorganization involving adoption of machinery
Advance notice
If it becomes necessary to reduce the number of employees for an employer to improve production, sales, or services in its reorganization involving the adoption of machinery or the change of machinery or technology, the employer must notify the employee to be dismissed and the Labor Inspector at least 60 days before the contemplated dismissal (LPA, Article 121, Paragraph 1). This notice shall indicate the name of employee to be dismissed, termination date of the employment contract, and the reason for terminating the employment contract (LPA, Article 121, Paragraph 1).
What is different from the other forms of dismissal is that the notice must also be given to the Labor Inspector. Furthermore, when an employer is to dismiss an employee based on the reasons described above, the employer must follow all procedures explained in this section and may not dismiss the employee based on a standard advance notice (LPA, Article 121, Paragraph 1).
Special severance pay
When the length of service of an employee whose employment contract will be terminated pursuant to the foregoing dismissal on the grounds of reorganization is six years or longer, an employer must pay, in addition to the standard severance pay, a special severance pay that is not less than the employee's last rate of wages for 15 days for each year of service (LPA, Article 122, Paragraph 1).
Procedural violation
If an employer neglects to give the foregoing advance notice, the employer must pay to the employee, in addition to the standard severance pay, an amount that is not less than the employee's last rate of wages for 60 days (LPA, Article 121, Paragraph 2).
Remedies for wrongful dismissal
When an employee wishes to contest wrongful dismissal, the employee may initiate legal action in a labor court (Act Establishing Labor Courts and Labor Procedure, Article 8). As a general rule, an employee is required to initiate legal action in a labor court having jurisdiction over the workplace (Act Establishing Labor Courts and Labor Procedure, Article 33, Paragraphs 1 and 2).
What is unique about this system is that an employee may state the claim orally (Act Establishing Labor Courts and Labor Procedure, Article 35, Paragraph 1) and that court costs are exempted (Act Establishing Labor Courts and Labor Procedure, Article 27).
As described above, when the dismissal is determined to be wrongful in a labor case, the labor court may order the employer to reinstate the employee at the same wages at the time that the employee was dismissed, or order the employer to compensate for the damage suffered by the employee if it is acknowledged that continued employment is difficult in light of labor-management relations (Act Establishing Labor Courts and Labor Procedure, Article 49).
A labor case adopts a three-trial system. Thus, if an employee or employer is dissatisfied with the decision of the labor court in the first instance, the employee may appeal to the Court of Appeal within 15 days from the day that the decision was rendered by the labor court in the first instance (Act Establishing Labor Courts and Labor Procedure, Article 54, Paragraph 2). However, an employee or employer may not file an appeal on the grounds of being dissatisfied with the findings, and an appeal may be filed only on the grounds of legal issues (Act Establishing Labor Courts and Labor Procedure, Article 56, Paragraph 2). In addition, if a party is dissatisfied with the decision of the Court of Appeal, the party may appeal to the Supreme Court within one month from the day the decision was rendered by the Court of Appeal (Act Establishing Labor Courts and Labor Procedure, Article 57/1). However, the grounds for appeal are limited to important legal issues or decisions rendered in conflict with the Supreme Court's precedents.
Types of foreign national visas and acquisition requirements
Types of visas
The visas being granted by the Royal Thai Embassy Tokyo, Japan, can be broadly classified into the following four types of visas:1
- Tourist visa
- Transit visa
- Non-immigrant visa
- Smart visa
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Tourist visa
A tourist visa permits a foreign national to enter Thailand for tourism purposes. The validity of a tourist visa is three months for a single entry and six months for a multiple entry. The stay of each entry for a tourist visa is 60 days or less, but permission for an extension may be requested at the Immigration Office of Thailand.
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Transit visa
A transit visa permits a foreign national to enter Thailand for transit purposes. In cases of going to a third country via Thailand, if a foreign national is in possession of airline tickets for all routes and will remain in a Thai airport for a transit within 12 hours, then a visa is not required. A foreign national must apply for a transit visa upon deviating from the foregoing conditions. A foreign national whose transit at a Thai international airport will be 12 hours or longer must apply for a transit visa even if the person will not enter Thailand. The validity of a transit visa is three months. The stay of each entry for a transit visa is 30 days or less, and the extension of stay may be requested at the Immigration Office of Thailand.
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Non-immigrant visa
There are following types of non-immigrant visa.
Purpose Type Workers, Teachers, Business proprietors, Investors B visa Spouse or family members of a Thai national or B visa holders O visa Guardians of students Volunteers Treatment Pensioners Long-stayers aged 50 and over O-A, O-X visa Students ED visa Journalists, Film and Drama Makers M visa For the purpose of working in Thailand, a foreign national will enter Thailand upon acquiring a business visa (B Visa).
When a family member of a foreign national working in Thailand wishes to enter and reside in Thailand, that person must acquire a visa for accompanying spouse or family members (O Visa).
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Smart visa2
The Smart visa is provided for highly skilled experts and investors who intend to work or invest in 13- S-Curve (13 country's target industries). The business must be certified as being the ones using technology in manufacturing or delivering service and being in the targeted industries by the relevant agencies.
13 country's target industries
- Next-Generation Automotive
- Smart Electronics
- Affluent Medical, and Wellness Tourism
- Agriculture and Biotechnology
- Food for the Future
- Automation and Robotic
- Aviation and Logistics
- Biofuels and Biochemicals
- Digital
- Medical Hub
- Alternative Dispute Resolution
- Human Resource Development in Science and Technology
- Environmental Management Renewable Energy
There are five types of Smart visa:
- Smart T for talent experts in the fields of science and technology working in the targeted industries
- Smart I for investors whose investment amount is THB 20 million or more (directly invest in one company or more)
- Smart E for senior executives working in the targeted industries
- Smart S for foreign startup entrepreneurs who want to invest in the targeted industries
- Smart O for the spouse and children of Smart visa holders
The privileges for Smart visa holder are as follows:
- Maximum four-year visa, but not exceeding the employment contract term (except for Smart-S holders who received a one-year visa for the first time, renewable for less than two (two) years or equivalent if requirements are met)
- No work permit required for working in the endorsed companies or projects; prior to any changes in the job details or an additional job must be approved by official
- 90-days reporting to Immigration extended to one year
- No re-entry permit required
- Spouses and children granted permission to stay in Thailand and to work without work permits (The jobs must not be on the prohibited list of occupations and professions for foreign nationals.)
Work permit and B Visa
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Work permit
In order for a foreign national to legally work in Thailand, the person must acquire a work permit under the Foreign Nationals Working Management Emergency Decree in addition acquiring to a business visa (Non-immigrant Visa B; commonly known as "B Visa") (Foreign Nationals Working Management Emergency Decree, Article 8). There is a common misunderstanding that the acquisition of a B Visa will enable the applicant (foreign national) to legally work in Thailand, but that is not the case. A work permit needs to be separately acquired in order to legally work in Thailand.
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Acquisition of B Visa and work permit
After a foreign national acquires a B Visa at the Royal Thai Embassy Tokyo, Japan, or other diplomatic office of Thailand and then enters Thailand, that person will subsequently apply for a work permit.
In order to acquire a work permit, if the employer is a company that was established in Thailand, as a general rule, certain conditions need to be satisfied; for instance, the company must have a paid-in capital of at least 2 million baht for each foreign national (Article 5 of the Department of Employment Rules on General Principle of Approval/Disapproval of Work Permit of Aliens); save for cases where privileges are granted by the Board of Investment in Thailand (BOI) under the Investment Promotion Act B.E. 2520 (1977) (Investment Promotion Act, Article 25, Article 26).
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Renewal of B Visa
While the initial validity of a B Visa is 90 days, a foreign national may apply for an extension during a period of one year after the work permit is issued. As the conditions for extending the B Visa, as a general rule, the employment of four Thai nationals for each foreign national is required, and, in the case of a Japanese national, that person must be receiving a monthly salary of 50,000 baht or more.
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Cases where a work permit is required, and various exceptions
Cases where a work permit is required
A work permit is required when a foreign national is to work in Thailand. According to the Foreign Nationals Working Management Emergency Decree, B.E. 2560 (2017), Article 5, work is defined as providing a professional act and is not limited to cases where fees are paid or an employment relationship exists. Accordingly, it should be noted that activities without pay could also be classified as work, and in such a case, the acquisition of a work permit will be required.
Activities that do not require a work permit
The following seven activities are not classified as work, and do not require an application for a work permit.3
- Entering Thailand as a participant of a meeting, conference, or seminar without being involved in the realization of the relevant project (Employees and contractors of the host of such meeting, conference, or seminar will be classified as being engaged in work.)
- Entering Thailand as a visitor of an exhibition or trade fair
- Entering Thailand as a person in charge of visiting businesses or taking part in business negotiations on behalf of a company (Employees or contractors of the party that arranged such visit or negotiation will be classified as being engaged in work.)
- Entering Thailand as an audience of a special lecture or academic lecture
- Entering Thailand as an audience of technical training or lecture
- Entering Thailand as a purchaser of goods at a trade fair (employees or contractors of a trade fair organizer are considered to be working)
- Attending a board of directors' meeting of one's own company
Fifteen-day urgent work notification system
- Even in cases where a work permit is required, for urgent work to be completed within 15 days, a foreign national may perform such work by submitting an urgent work notification form known as Tor Thor 10 and obtaining a reception stamp (Foreign Nationals Working Management Emergency Decree, Article 61, Paragraph 1). However, companies should note that this system is applicable only to cases of urgency. As an example, a case where machinery, which cannot be repaired domestically, breaks down and a foreign national qualified for the repair enters Thailand and repairs such machinery, corresponds to a case of urgency.
At one time, an official of the Department of Employment presented a condition that the same person can only submit the urgent work notification form three times in the same year, and in certain cases, the Tor Thor 10 form was not accepted. However, today, whether or not Tor Thor 10 is accepted is determined based on whether or not there are necessary and urgent circumstances for the applicant (foreign national) to enter Thailand on a case-by-case basis, and it has been clarified that there is no limit to the number of times that the Tor Thor 10 form may be submitted.
Additionally, Tor Thor 10 can be extended for another 15 days if the employer submits a letter requesting to extend before the first 15 days elapsed.
(ⅱ) Activities determined to be "Urgent" include the following:4
- Organizing or setting up conferences, training, seminars, exhibitions, and/or product exhibitions
- Conducting special educational lecture
- Aviation superintendent work
- Occasional internal audit
- Inspection, follow-up and technical solution work
- Inspection of products/goods quality
- Inspection or improvement of production process
- Inspection or repairing machinery and electricity generation equipment/systems
- Machine repairing or installing work
- Electric train system technical work
- Aircraft or aircraft equipment system technical work
- Advisory on machine repairing or testing work
- Machinery demonstrative or testing work
- Movie taking and photography work
- Recruitment of job seeker for oversea job placement
- Skill testing work for oversea job placement
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Occupations prohibited for foreign nationals
A work permit does not allow a foreign national to engage in the work of all occupations. The following 40 types of work5 are prohibited for foreign nationals (2020 Announcement of the Ministry of Labor, Prescribing Occupations, and Professions Prohibited for Foreign Workers) unless there is an agreement between the Thai government and a foreign government, the conditions under an international agreement or treaty are met, or the conditions for skilled or semi-skilled labor are met.
- Labor work, except for fishery work under 2
This does not include a foreign national allowed to be in Thailand under the covenant between the Thai government and another government, provided that such foreign national is legally permitted to enter Thailand and has a resident certificate. - Agriculture, animal husbandry, forestry, or fishery (except work requiring expertise, specialized work, farm supervision work, or labor work for fishery work)
- Bricklaying, carpentry, or other construction work
- Wood carving
- Driving motor vehicles, driving a non-mechanically propelled carrier, or driving a mechanically propelled carrier (except for piloting international aircraft)
- Shop/outlet attendance
- Auctions
- Supervising, auditing, or providing services in accounting (except internal auditing on occasions)
- Cutting or polishing diamonds or precious stones
- Haircutting, hairdressing, or beauty treatment
- Cloth weaving by hand
- Mat weaving or utensil making from reeds, rattan, hemp, straw, or bamboo pellicles
- Mulberry paper making by hand
- Lacquer ware making
- Making Thai musical instruments
- Nielloware making
- Gold ornaments, silverware, or pink gold making
- Bronze-ware making
- Thai doll making
- Mattress and quilt blanket making
- Alms bowl making
- Hand making of silk products
- Buddha image making
- Knife making
- Paper or cloth umbrella making
- Shoemaking
- Hat making
- Brokerage or agency work (except broker or agency work in international trade)
- Civil engineering work concerning design and calculation, organization, research, project planning, testing, construction supervision, or advising (excluding work requiring special expertise)
- Architectural work concerning designing, drawing of plans, cost estimating, construction directing, or advising
- Dressmaking
- Pottery or ceramic ware making
- Cigarette rolling by hand
- Tour guide or sightseeing tour operation
- Street vending
- Typesetting of Thai characters
- Silk reeling and twisting by hand
- Clerical and secretarial work
- Legal service or lawsuit work (except being an arbitrator or being a lawyer in the arbitration procedure)
- Thai massage
- Labor work, except for fishery work under 2
Penalty under the Foreign Nationals Working Management Emergency Decree B.E. 2560/2561
Obligation of the employer
Within 15 days after the employer employs a foreign worker, the employer must inform the Registrar regarding the name, nationality, and type of work that such foreign employee handles. In addition, the employer must inform the Registrar within 15 days after the foreign employee resigns or is terminated (Article 13 of Foreign Nationals Working Management Emergency Decree).
Failing to do so may be subject to a fine not exceeding THB 20,000 (Article 103 of Foreign Nationals Working Management Emergency Decree).
On top of that, hiring a foreign national who has no work permit or assigning a foreign national to work outside of the work that is not permitted under the work permit is not allowed (Foreign Nationals Working Management Emergency Decree, Article 9).
Failing to do so may be subject to a fine penalty between THB 10,000 to THB 100,000 for each foreign national hired, and repetitions of the violation may incur a fine or penalty between THB 50,000 to THB 200,000, imprisonment not exceeding one year, or both. Moreover, such employer will be prohibited from hiring a foreign national for three years. (Foreign Nationals Working Management Emergency Decree, Article 102).
Obligation of the foreign national
A foreign national who enters Thailand to work in the 15-day urgent notification system must inform the Registrar by submitting the Tor Thor 10 before commencing work (Article 61 of Foreign Nationals Working Management Emergency Decree).
Failing to do so may subject the foreign national to a fine not exceeding THB 50,000 (Article 119 of Foreign Nationals Working Management Emergency Decree).
A foreign national who works without a work permit or works outside of the work that the foreign national has the right to do is not allowed (Foreign Nationals Working Management Emergency Decree, Article 8).
Failing to do so may subject the foreign national to a fine or penalty between THB 5,000 to THB 50,000 and the foreign national is also ordered to leave Thailand immediately (Foreign Nationals Working Management Emergency Decree, Article 101).
A foreign national who receives a work permit must inform the Registrar regarding the employer, place of employment, and the type of work within 15 days after commencing work or changing employers (Article 64/2 of Foreign Nationals Working Management Emergency Decree).
Failing to do so may subject the foreign national to a fine not exceeding THB 20,000 (Article 119/1 of Foreign Nationals Working Management Emergency Decree).
