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Labor Laws in Thailand

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  • Labor Laws in Thailand

    Alien Employment Act B.E. 2521 (1978) (Department of Employment)
    Alien Employment Act was enacted to control alien employment and the issuance of work permits to aliens and to reserve certain occupations for the Thai labour force. According to this Act, aliens of the following 3 categories are qualified to apply for work permits:

    Alien who resides in the Kingdom of Thailand or is allowed temporary stay in the kingdom, but not as a tourist or a transit traveller.
    Alien who is allowed to work in the Kingdom according to the investment promotion laws or other laws.
    Alien who has been deported but is allowed to work in certain location in replacement of deportation or while awaiting deportation; alien who has illegal entry into the kingdom or is awaiting a forced transfer out of the Kingdom; and alien who was borned in the kingdom but not granted Thai nationality or was denaturalized, is eligible to work in 27 occupations as stipulated in the Ministerial Announcement.

    Employment and Job Seeker Protection Act B.E. 2528 (1985) (Department of Employment)
    Originally, the Employment Act B.E. 2511(1968) had been used for enforcement until there were increasing numbers of overseas employment service businesses and frequent incidents of defraudation. As a result, the Employment Act B.E. 2511 (1968) was amended to become the Employment and Job Seeker Protection Act B.E. 2528 (1985). {Amendments to this Act were also made in B.E. 2537 (1994) and B.E. 2538 (1995).} The essence of this Act is as follows:
    1. Set up government’s employment office to provide employment services to the labour force at no cost.
    2. Expand job seeker protection approaches and activities to ensure fairness and appropriate assistances when job seekers are in trouble.
    3. Actively and seriously control and oversee private employment service businesses to ensure compliance to the following regulations:

    Local employment service provider must be a Thai national, and must deposit Baht 100,000 as a financial guarantee with the Registrar Officer as required by this Act. In case the employment service provider is a juristic person, such juristic person must be a Thai national, and its Manager must be qualified and does not possess prohibited characteristics.

    Overseas employment service provider must be a company limited or a public company having fully paid registered capital of not less than Baht 1 million and a financial guarantee of Baht 5 million deposited with the Central Employment Registrar Officer as required by this Act, and its Manager must be qualified and does not possess prohibited characteristics.
    4. Establish requirements for overseas employment service providers to arrange for skill standard testing with appropriate authority for job seekers.
    5. Under the Department of Skill Development’s mandate, establish skill testing control measures and mechanisms for skill standard testing activities that may be implemented by government agency or private entity.

    Skill Development Promotion Act B.E. 2545 (2002) (Department of Skill Development)
    This Act is an amendment of the the Occupational Training Promotion Act B.E. 2537 (1994). The objectives were to promote and support occupational skill training for economically active labour in response to the business and industrial job market, to upgrade skill standards for employed labour, and to promote cooperation between private establishments and educational institutes in providing apprenticeship for high school and college students by the private establishments and occupational skill tranining for the apprentices by educational institutes or government’s occupational training authorities. As an incentive and to promote private sector involvement in skill development efforts, any private establishment that delivers any occupational skill training services to labour force or its own employees utilizing training curricula or activities endorsed by the Registrar, will be eligible for certain privileges as stipulated in this Act. Additionally, a Skill Development Fund had been established for use as a revolving fund for the promotion of skill development efforts.

    Labour Relations Act B.E. 2518 (1975) (Department of Labour Protection and Welfare)
    Labour relations law is concerning labour relations enhancement system and processess between employers and employees. This Act primarily contains rules and regulations and procedures for sumission of demands for changes and modifications to the Conditions for Employment, procedures for settling labour disputes, and employers’ and employees’ rights to establish labour association and labour union for acquiring and protecting their interests relating to the Conditions of Employment. These include benefits and welfare, enhancement of favorable employer-employee relationships, and establishment of Employees’ Committees for dialoging and dealing different affairs with employers. The aim is to create a good understanding and successful reconciliation between employers and employees, which will result in a peaceful atmosphere and co-existence in the industry. This will ultimately be beneficial to the national development. [ Download Labour Relations Act ]

    Labour Protection Act B.E. 2541 (1998) (Department of Labour Protection and Welfare)
    Labour protection law is concerning the rights and duties of employers and employees. It primarily establishes minimum standard practices in general labour force utilization, women and child labour utilization, remuneration, severance, and Employee Welfare Fund. It prescribes also the interventions by government officials in providing protection to labours so as to ensure fairness and sound occupational health for the maximum benefit of both employers and employees, which will ultimately be beneficial for the national development.
    [ Download Labour Protection Act ]

    State Enterprise Labour Relations Act B.E. 2543 (2000) (Department of Labour Protection and Welfare)
    State enterprise labour relations law is concerning the benefits and labour relations standards between State Enterprises’ Management and employees. It establishes the right to collective bargaining in accordance with regulations and procedures setforth for submission of demand for changes or modifications of the Conditions of Employment, settlement of labour disputes, establishment of State Enterprise Labour Union for acquiring and protecting benefits for State Enterprise employment. This law also requires each State Enterprise to establish the State Enterprise Labour Relations Committee, which is a tripartite committee to set the minimum standards of the Conditions for Employment in State Enterprises. Additionally, the establishment of Labour Relations Affair Committee in each State Enterprise is also mandatory. This is a bipartisan committee involving both parties in the discussion and reconciliation of labour issues and disputes with an aim to create positive mutual understanding and peaceful working atmosphere and co-existence between State Enterprises’ Management and the employees. [ State Enterprise Labour Relations Act]

    Social Security Act B.E. 2533 (1980) (Social Security Office)
    This Act requires the collection of contributions paid by employers, employees, and the government for use in providing protection and welfare in respect of non-work related injury or sickness or invalidity or death, or maternity or child allowance or old-age, or unemployment to employees who are insured persons. The consolidated rates of contributions from 3 parties are not to exceed the following limits: 4.5% of wage for injury, sickness, invalidity, death, and maternity benefits; 9% of wage for child welfare and old-age benefits; 15% of wage for unemployment benefits. All insured persons will be entitled to receive different benefits, including medical services and conpensatory wage for incapacitated period, maternity allowance and child allowance, funeral allowance and survisor allowance in case of death, and pension benefit for old-age. In respect of unemployment, when deemed appropriate, a Royal Decree is to be enacted for enforcing the execution of this benefit and compliance by all concerned.

    Workmen’s Compensation Act B.E. 2537 (1994) (Social Security Office)
    This Act requires employers to pay annual contributions at the rates of 0.2-1% of wage depending on risk levels of any given business. This contribution is to be used for paying workmen’s compensation in respect of work-related injury, or sickness, or loss of organs, or invalidity, or death, or lost to employees who are insured persons. All insured persons will be eligible to receive medical expenses, compensatory income for incapacitated period, funeral allowance, or rehabilitation expenses depending on the seriousness of injuries.