Domestic Employment Agencies & the Employment & Job Seeker Protection Act

Domestic Employment Agencies & the Employment & Job Seeker Protection Act In this month’s article, we shall continue examining the Employment & Job Seeker Protection Act (1985) (The ‘Act’) but we shall focus on domestic employment agencies and the law relating to them. We shall begin by explaining the main legal requirements which must be met before a license can be granted to run a local employment agency, thereafter we shall examine various other topics including ongoing compliance requirements as well as rules relating to staffing of an agency and changing license details. Legal Requirements for Granting of a Domestic Employment Service License: According to the Act, an applicant for a domestic employment license must be a Thai National who is at least 20 years of age who isn’t or previously was a person involved in disgraceful conduct or having […]

Examining Employment & Job Seeker Protection Act

Examining Employment & Job Seeker Protection Act In this month’s article, we shall examine certain aspects of the Employment & Job Seeker Protection Act (1985.) We shall begin by explaining the main legal requirements which must be met before a license can be granted to run an overseas employment agency, we shall then move on to explaining aspects of the legal regime which applies when such service providers send Thai nationals to work overseas. We shall then conclude by looking at what legal requirements apply to overseas employment service providers after a job seeker arrives in their country of employment. Legal Requirements for Granting of an Overseas Employment Service License: According to the Act an applicant for the overseas employment license must be a company limited or public company limited. Thai nationals must hold at least 75% of the total […]

Trade Secrets and How Employers Can Protect Them

Since the commencement of the Trade Secret Act in the middle of 2002 the business community in Thailand has increasingly used non-disclosure agreements and clauses in work rules and employment agreements with their staff. These agreements and clauses generally prohibit employees with access to trade secrets from disclosing such information to other parties. Along with this growth in non-disclosure clauses and contracts, employers are also protecting their trade secrets by using non-compete clauses which aim to stop employees from engaging or working with any employer that competes with their ex-employer’s business. The reason behind this growth in non-compete clauses is that many employers fear that if their employees resign and then join a competitor, their ex-staff will disclose their trade secrets which could cause them significant commercial damage. Meaning of Trade Secret: In order to understand the rationale behind the […]

Amending an Employment Agreement

During the term of an employment contract the working conditions of the employee may undergo significant changes, for instance an employee could be promoted, demoted, have a pay rise, be seconded to a new role or otherwise have their work responsibilities adjusted to fit their employers operational needs. Given that an ongoing employment contract may be in effect for a long period of time, its provisions may need to be amended to reflect these different circumstances, however, this need to amend gives rise to an important legal issue as to how can such changes to an employment contract be compliant with Thai labor law. Background to Employment Contracts and Working Conditions: To begin with, it is necessary to examine the legislative background of employment contracts and working conditions. In relation to work condition agreements, section 5 of the Labour Relations […]

Reorganization & Unfair Termination

Increasing the minimum wage to be 300 Baht per day across all provinces in Thailand coupled with the impending commencement of the Asian Economic Community (AEC) in 2015 will change the operating environment for many businesses in Thailand, the above mentioned wage change will be particularly significant as salary payments are often the main operating expense of a business. Not all businesses in Thailand will be able to shift this additional burden onto their customers, hence some of them will need to improve or streamline their businesses in order to be able to compete with the foreign companies who will become increasingly competitive under the AEC. To face this hurdle, many business owners will likely consider cutting unnecessary expenses; those who operated through the 1997 economic crisis will likely have considerable experience in overcoming such challenges and should be able […]

Product Liability Laws in Thailand

  Introduction: In Thailand, the key pieces of legislation dealing with the issue of product liability are: 1. Liability for Damages Arising from Unsafe Product Act (2008) otherwise known as the Product Liability Act (2008); and 2. The Consumer Cases Act (2008). The Thai Civil and Commercial Code is also relevant as it supplements the Product Liability Act in relation to compensation to injured persons. Product Liability Act (2008) Purpose of the Act The main purposes behind this legislation were to: a. Instill greater consumer confidence in products in Thailand and to better protect the public from dangerous or defective products; b. Simplify the previous legal approach to product liability which was overly complicated and make it easier for injured persons to receive justice and fair compensation. Scope of the Act This Act offers consumers considerable protection given that it […]