Part 3 – Labour Relations in Thailand

Introduction:

In this third article on labour relations in Thailand we will continue examining important parts of the Labour Relations Act (LRA). In following on from our previous article which looked into various aspects of labour unions such as their formation, powers, authorized roles/activities and membership requirements, this installment will look into unfair practices under the LRA as well as Employer & Labour Federations including their registration, objectives and member participation.

Unfair Practices

Under the LRA there are a number of types of conduct which are stipulated as being ‘unfair practices’, this part of the Act (chapter 9) helps to ensure that labour relations in Thailand are undertaken in a fair and objective manner.

If an Employee or a labour union is planning to or does one of the following: call a rally, files a complaint, submits a demand, files a law suit or give testimony as a witness to competent officials then this Act prevents the employer from terminating the employment of the employee or taking any action which prevents the employee, their representative or a committee member of a labour union from continuing working. In addition to this important protection, the LRA further safeguards the rights of workers by providing that employers are prohibited from the following conduct:

1. terminating the employment or taking any action which may result in the employee being unable to continue working due to the employee being a registered member of a labour union;
2. preventing an employee from being a member of a labour union;
3. causing an employee to resign from a labour union;
4. giving inducements to an employee to encourage them to refrain from applying for labour union membership or to encourage them to resign their membership;
5. giving inducements to a labour union official to refuse an employees’ application for membership;
6. preventing a labour union or a labour federation from carrying out its affairs or preventing employees from exercising their legal rights to become members of a labour union; and
7. interfering with the operations of a labour union or a labour federation without lawful authority.

It is also worth noting that this law also forbids an individual to take action which causes an employer to violate the above-mentioned prohibited conduct. An example of this type of conduct would be a HR executive in a company issuing a notice (without the Company Management’s approval) to employees stating that employees are not permitted to become a member of a labour union and demanding that staff who are members must resign their membership or face termination.

In addition to the above protections, the LRA further safeguards individual’s rights in relation to labour relations by providing that it is not permitted to have a person coerce or threaten an individual to join or resign from a labour union. Examples of coercive conduct which is prohibited under this legislation include money gifts to encourage workers to join a union or threats of violence against a worker to persuade them not to resign from a labour union.

In concluding on the matter of unfair practices, employers should also be mindful of section 123 of the LRA which stipulates that while an agreement dealing with conditions of employment or a decision or an award is in force an employer is not able to dismiss an employee, an employee’s representative, a member of a committee/sub-committee of a labour union or labour federation who is involved in a demand unless the individual to be dismissed has:

i) intentionally caused damage to the employer; or

ii) neglects their work duties for 3 consecutive days without a suitable reason; or

iii) incites encourages or persuades a violation of the agreement relating to conditions of employment or the decision or award; or

iv) violated the rules, regulations or lawful orders of their employer, who in turn has issued the employee with a formal warning/caution, however this does not apply to cases where the violation is serious where the employer is not required to give the employee a warning/caution. However, a dismissal under these circumstances is subject to the condition that the said regulations/orders relied upon for the dismissal were not issued to prevent the employee taking action relating to the demand.

Filing a Complaint for Unfair Practices

If a person files a complaint alleging the abovementioned unfair practices they may file it with the Labour Relations Committee. In relation to timing, the LRA requires that such complaints must be lodged with the Committee within sixty (60) days of the alleged violation.

After the Committee receives a complaint alleging that a person/party has been involved in unfair practices as mentioned under sections 121-123 of the LRA, it has ninety (90) days from receipt of the complaint in which to make a decision, unless the Minister of Labour exercises his discretion to intervene to extend the decision making period. In relation to this ministerial discretion, the Minister can extend the timeframe for the making of the decision as they see fit.

Criminal Prosecution for Unfair Practices

Victims of unfair practices under the LRA should also be aware that this legislation also limits their rights to institute criminal prosecutions in certain circumstances. For instance, a party which commits unfair practices will not be subject to criminal prosecution if the complaint is adjudicated by the Labour Relations Committee and the breaching party complies with the decision of the Committee within the stipulated timeframe. However, if the breaching party fails to comply with the order of the Committee then they are able to be subject to a criminal prosecution.

Employer Federations:

The Labour Relations Act provides that two or more employer’s associations that have members in the same sector can register and jointly establish an employers federation to promote improved relationships between employers’ associations as well as the protection of the interests of their members (employer’s associations) and employers. Upon the completion of the registration process, the employer federation becomes a juristic person and as a result has legal capacity in its own right and is subject to various legal requirements such as the preparation of annual audits and preparation of financial balance sheets etc.

In terms of member participation, the employers’ associations which comprise the membership of an employers federation are permitted to send representatives to attend meetings and participate in the internal affairs of the federation in accordance with internal regulations of the federation. The management committee of such federation must be made up of elected representatives of the employer’s associations who are members of the federation.

In order to register and become a member of an employers federation, a majority vote of the total number of members of the employers association must first be obtained, such vote must be held in accordance with the internal regulations of the respective employer’s association.

Labour Federations

Two or more labour unions whose members are either: employees working for the same employer (regardless of whether the employees are involved in the same type of work) or employees involved in the same type of work (but who may or may not work for the same employer) can register and jointly establish a labour federation. The objective of such federations are to promote improved relationships between labour unions and safeguard the interests if labour unions and employees. Upon the completion of the registration process, the labour federation becomes a Juristic Person and has legal capacity in its own right.

In terms of member participation, the labour unions which comprise the membership of a labour federation are permitted to send representatives to federation meetings and get involved in the internal affairs of the federation in accordance with its internal management regulations. The management committee of a labour federation must be made up of elected representatives of the labour unions who are official members of the Federation.

In order to register and become a member of a labour federation, a majority vote of the total number of the members of the labour union must first be obtained, such vote must be held in accordance with the internal regulations of the respective labour union.

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