Part 1 – Labour Relations in Thailand

Introduction:

In Thailand, the key piece of legislation which governs labour relations in the workplace is the Labour Relations Act (1975) (hereinafter referred to as ‘the Act’). This longstanding law is key to understanding several key aspects of labour relations including settlement of labour disputes, employee’s unions, the right of employees to strike as well as the right of employers to lock-out their employees from the workplace. This first article on this important topic will try to explain certain basic elements and principles of this law as well as its practical application in the workplace.

Employee Strikes and Employer Lock-outs:

According to this Act a ‘strike’ is defined as a concerted temporary stoppage of work carried out by the employees as a result of a labour dispute’, whereas a ‘lock-out’ is defined as a temporary refusal by an employer to allow its employees to work as a result of a labour dispute.

Strikes and lock-outs are some of the strongest methods used by employees and employers in addressing workplace conflict between staff and employers and as such are often only used as a last resort to try to pressure change. However, before such approaches are utilized both employees and employers should be aware of the following key considerations.

According to the Labour Relations Act an employer is not permitted to conduct a lock-out, nor are employees permitted to strike under the following circumstances:

1. Where a demand for an agreement relating to conditions of employment or a demand regarding the amendment of such agreement has not been presented according to the Act.
2. If an employer (of their appointed representative) or their employees (or their labour union) agree on a demand (submitted in accordance with the Act) regarding conditions of employment and thereafter within three (3) days of such agreement the employer openly displays a notice of the new or revised conditions of employment for at least thirty (30) days in the workplace and registers such conditions with the Director General of the Department of Labour.
3. Where the matter is pending a decision of the Labour Relations Committee or after a decision has been made by this Committee pursuant to section 24 of the Act.
4. When an employer or the employees have a duty to comply with an agreement or settlement made by a conciliation officer and such duty is complied with;
5. When an employer or the employees have a duty to comply with an award of the Labour Dispute Arbitrators and such duty is complied with; or
6. When a matter is awaiting a decision of Labour Dispute Arbitrators.

It is also worth noting that in any case, this legislation provides that if an employer wishes to carry out a lock-out or if the staff wish to strike then they must not only inform the appointed conciliation officer but they must also inform the other party at least twenty four (24) hours in advance of the proposed strike or lockout.

One key question which many employers often ask is whether they can do a partial lock-out of their place of business and keep other parts of their business operating, and the simple answer to this is no. If a lock-out occurs then all staff must be kept out of the workplace. Moreover, it is worth noting that in a practical sense strikes and lock-outs can be hard on both parties as during such event not only are the employer’s operations hindered but the employees have no right to be paid wages.

Under this law, the Minister of Labour has considerable powers with which to deal with strikes and lock-outs. For instance, if the Minister determines that a strike or lock-out may adversely affect the Thai economy, cause public hardship or endanger national security or be contrary to public order, then they have the power to take the following action:

1. In the case of a lock-out, they can order to employer to re-engage the employees and pay wages at the previous rate received by the employees;
2. Order employees on strike to return to work;
3. Order the Labour Relations Committee to settle the dispute; or
4. Arrange for other persons to replace the employees who are not working due to strike or lock-out, and compel the employer to allow such other persons to work at the workplace and pay them wages at the same rate as those received by the previous employees.

Employee’s Committees:

For those employers which have a large workforce, understanding the legal rights of employees is vital to managing workplace relations between senior management and staff. One of the most important worker’s rights which companies and businesses should be aware of is the right of employees to establish an employee committee. The following sections outline key details on employee’s committee, such as which workplaces are permitted to have a committee, composition of the committee, meetings with employers and legal protections provided to employee committee members.

According to the Labour Relations Act , the employees in a place of business which has fifty (50) or more employees are permitted to establish an employee’s committee. In terms of the size of the committee, this depends on the number of employees at the place of business, for instance:

1. If the workplace has between 50 to 100 employees, the committee shall comprise five (5) members;
2. If the workplace has between 101 to 200 employees, the committee shall comprise seven (7) members;
3. If the workplace has between 201 to 400 employees, the committee shall comprise nine (9) members;
4. If the workplace has between 401 to 800 employees, the committee shall comprise eleven (11) members;
5. If the workplace has between 801 to 1500 employees, the committee shall comprise thirteen (13) members;
6. If the workplace has between 1501 to 2500 employees, the committee shall comprise fifteen (15) members; and
7. If the workplace has more than 2501 employees, the committee shall comprise seventeen (17) members.

It is also important to note that the composition of such committee will depend on whether the employees at the place of business are members of a labour union because if more than 20% of the total number of employees at the workplace are members of a labour union, then the number of members appointed by such union shall be one (1) more than the number of members to the committee who are appointed by those staff who are not members of the union. However, if more than 50% of the employees in the workplace are labour union members then such union may appoint all members of the employee’s committee.

In relation to the term of office of committee members, members are to hold their position for a period of three (3) years but may be re-elected or reappointed at the end of their term. It is also worth noting that a member of a committee must vacate their position upon their resignation from the employer, being dismissed by a resolution of more than 50% of the total number of employees at the place of business, being issued a dismissal order by the Labour Court, being imprisoned by a final judgment of imprisonment or a new election or appointment of the employee’s committee en masse .

In relation to a new election or appointment of the employee’s committee en masse , this occurs in the following circumstances:

1. When the number of employees at the place of business increase or decreases by more than 50% of the previous total number of employees;
2. More than 50% of the committee members vacate office;
3. More than 50% of the employees at the place of business pass a resolution dismissing the employee’s committee en masse ; or
4. The Labour Court orders the dismissal of the employee’s committee en masse .

With respect to workplaces with an employee’s committee, employers should be aware that they are legally required to arrange meetings with the committee every three (3) months or otherwise upon request being made for suitable reasons that is made by more than 50% of the members of the committee or the labour union to discuss the following types of matters:

1. Provision of welfare for the employees;
2. Consider complaints of the employees;
3. Carry our compromise and settle disputes in the workplace;
4. Discuss workplace regulations which would be beneficial to both the employer and employees.

Companies and business operators whose workplace has an employees’ committee should also be mindful of the various protections granted to committee members under this Act; for instance an employer is not able to dismiss, cut wages, discipline, limit the work duties or do anything which results in a committee member not being able to continue to work in the workplace unless the Labour Court grants its approval. Moreover, this legislation also prevents employers from offering special inducements to committee members as it provides that they are not legally permitted to give committee members any money or property other than their wages, overtime, holiday pay, bonus, dividends or other welfare to which they are normally entitled in their capacity as an employee.

In terms of discipline, employers should also be aware that a committee member who works dishonestly or acts in a manner which is contrary to public order, or if they disclose secrets of their employer regarding an undertaking (without suitable justification) then the employer has the right to submit a motion to the Labour Court seeking the dismissal of such committee member.

In our next article we will continue discussing key aspects of the Labour Relations Act that are relevant for companies and business operators in Thailand.

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