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Labour Disputes

Labour Disputes are controversies that may arise between employers and their employees regarding the terms and conditions of employment, such as standard working hours, wages and fringe benefits. In Thailand, rights and obligations of both employers and employees are set forth in the Labour Protection Act of 1998, which defines the scope of mutual commitments and protects the law-abiding party against the wrongdoings of the other party.

We at Mahanakorn Partners Group provide legal defence in every instance of labour disputes, including but not limited to:

  • Employment agreements
  • Minimum wage rates
  • Working hours and overtime pay
  • Severance pay
  • Wrongful dismissal
  • Notice periods
  • Statutory holidays
  • Maternity leave
  • Warnings

In early 2017, the Thai Cabinet approved an amendment to the Labour Protection Act of 1998, which would entitle retirees to a statutory severance pay and set the statutory retirement age at 60, or Proposed Default Retirement Age, unless otherwise expressly indicated in the employer’s internal policy. The amended Act is being reviewed by the Office of the Council of State, before entering into force.
The parties are generally advised to reach a compromise. Failure to do so would prompt the labour court to proceed with a trial. The labour court will reach a verdict by weighing many factors, among them: mutual contractual rights and obligations; work environment; cost of living and wage rate; benefits in kind; employee’s hardship; status of the employer’s business; and economic and social conditions, to name a few. During the course of the trial, the labour court will consider all of the evidence to ensure fairness to both parties.


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