Despite several years of relative political uncertainty, the business climate in Thailand continues to be positive and welcoming to foreign investment. The country’s participation in the recently established Association of Southeast Nations (ASEAN) Economic Community can only be expected to continue this trend. This in-brief provides a snapshot of the key aspects of employment law in Thailand.

The employment law landscape

Thailand has a civil law system.

The rights and duties of an employer and an employee are generally governed by the Labour Protection Act 1998 (“LPA”), the Labour Relations Act 1975 and the Civil and Commercial Code, the LPA being the principal statute governing employment. Thailand’s employment law is generally considered to be “pro-employee”. For example, what is considered “fair and reasonable” is intended to ensure that employees are often not disadvantaged by the stronger position of employers.

Thai employment law applies to all employees working in Thailand, regardless of nationality. It is impossible to avoid the applicability of Thai law through the use of the choice of law provisions and parties cannot contract out of minimum statutory rights under Thai law.

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