Disputes can arise when an employee feels mistreated or resentful, often for reasons that do not necessarily stretch beyond the legal parameters. If the dispute cannot be resolved through the grievance procedure, it can be escalated to Labor Courts or the Ministry of Labor.
Understanding and aligning with Thailand’s labor laws is not only a legal obligation but also a sign of integrity and respect. Accessible resources and expert assistance can help to ensure compliance.
Changing Conditions of Employment
Disputes over conditions of employment in Thailand can arise on a variety of issues, including working time per day and week, overtime payment, vacation, sick leave and maternity leave. Employees can seek mediation and arbitration from the Labor Welfare Committee, a government agency. If the dispute does not resolve through these methods, it can be escalated to the Ministry of Labor or even the Labour Courts.
The Labor Courts are tasked with ensuring that the legal principles enshrined in Thai labor law are upheld in the event of conflicts between employers and employees. Their structured approach to Thailand dispute resolution prioritizes dialogue and equity, backed by a strong legal framework.
Employers must be aware of the pitfalls that can occur when changing work conditions, as doing so can result in unlawful changes to legally protected entitlements and rights. Additionally, it is crucial for companies operating in Thailand to correctly classify employees as either independent contractors or full-time employees. Maintaining accurate classifications safeguards your business and ensures that your employees receive the benefits they deserve.
Arbitration
Arbitration is a common method of dispute resolution in Thailand. An impartial third party, known as an arbitrator, hears the parties’ argument and evidence and makes a binding decision on the issue. Arbitration hearings are less formal than court proceedings and typically take place in a private setting. This can be particularly appealing for businesses and renowned individuals who may prefer to keep sensitive information out of the public eye.
In addition to its long-standing membership of the New York Convention, which allows its award to be enforced in 164 member states, Thailand has relaxed some of its arbitration laws in recent years, further strengthening it as an international dispute resolution venue. For example, it recently amended its arbitration legislation to allow foreign arbitrators to receive a special work permit that permits them to act in an arbitration in Thailand.
However, despite some recent laudable developments, as previously reported on Kluwer Arbitration Blog, the Supreme Administrative Court has a tendency to apply its concept of “public order and morals” broadly in setting aside high-profile arbitration awards involving State and State-related entities. This remains a potential area for improvement.
Grievance Procedures
When an employee feels they have a legitimate grievance, they should raise the issue through their employer’s formal procedures. This is typically by writing a letter outlining the problem and detailing what they expect as an outcome or resolution.
Trade unions are recognised by Thai labour law and have rights, such as the ability to arrange strikes. However, the number of members of trade unions is relatively small compared to the population as a whole.
If a complaint is not resolved through informal negotiations, the dispute can be referred to a conciliation officer or to arbitration by the Labor Relations Committee. The Minister of Labor also has the power to announce in the Government Gazette that any Unsettled Labor Disputes which involve ports, railway transport, telecommunications, utilities or energy must be considered by persons appointed by the Ministry. The resulting decisions are final. If a worker is deemed to have been unfairly dismissed, the employer must pay the employee compensation for wrongful dismissal.
Courts
Courts are the guardians of legal principles enshrined in Thailand’s labor laws and provide a structured framework for dispute resolution. They also ensure that employees and employers are treated with equity and justice.
Several specialized courts are in operation, including the intellectual property and international trade court, tax court, bankruptcy court, and labour court. The panels of judges in the latter two specialized courts consist of professional judges and associate judges recruited from among the representatives of employers and employee organizations who have been approved by the Department of Labor.
Labor unions are legally registered associations of workers that exercise their rights to demand better working conditions and carry out other activities for their benefit. They are entitled to file lawsuits against employers. However, only workers who do not have supervisory functions or responsibility in terms of recruitment, promotion, sanctions, or termination are allowed to join a union. They must be employed at the same enterprise for 20 years.
