The Labour Protection Act of 1998 protects the stability and well-being of all employers and employees excluding the government administration and state enterprises. The Act contains the provisions for working hours of the mentioned parties, leaves, overtime, welfare funding, sick or educational leaves, holidays, safety and more. In addition, it also defines the rules and regulations regarding the closure of the employment contract and what to be done in case of a wrongful dismissal which is one of the most common labour disputes.



If the employment agreement is duly signed by both the employer and the employee is for a specified time, the agreement will automatically end at that date. If on the other hand, the agreement was concluded for an indefinite amount of time, both the mentioned parties can close the contract anytime as long as the term of notice and severance pay are considered and provided that the process is fair and clear. These two examples qualify as fair dismissal.

Contrarily, the below-mentioned cases can be considered as a wrongful dismissal :

  • Sudden dismissal without any prior and clear notification or the termination of the employment agreement without any genuine cause nor severance pay.
  • The termination of the employement agreement without paying for the unused annual leaves.
  • The termination of the agreement based on the (claimed) ignorance or violation of the work rules by the employee without any advance notice or warning.

If any employer is found guilty of violating the terms and conditions specified in the Labour Protection Act, he or she will be penalized a reasonable amount ranging from 5,000 to 200,000 THB and/or imprisonment for at least one year. Wrongful terminations and its consequences can be prevented by following the regulations and standard procedures, without limitation to, giving a proper notice, awarding severance pay or dismissing an employee with serious and valid reason.



On way to resolve the wrongful dismissal, from the employee's perspective is to contact the Labour Inspection Officer to examine the case directly at the workplace. The officers have the right to collect any necessary document that could be helpful in resolving the dispute.

If doing this does not yield results, the employees can further file a complaint with its local Labour Inspection Officer (in the area where the employee is working or domiciled). Once a comprehensive examination of the evidences and facts is done, the Labour Inspection Officer will hence inform both the parties about the cconsequences of the investigation and whether the employee will be penalised if found guilty.

In the event that the disputes remain unsettled, the case can further be addressed in the local Labour Court or subsequently to the Supreme Court.

On a whole, labour disputes do not involve the presence of a lawyer, however, with the whole process dealt in Thai and the complications under the Thai law, it is strongly recommended to hire a qualified Thai lawyer to assist you thoughout the settlement of the dispute. Get in touch with us today and experience how the expertise of our top-notch Thai lawyers can help you resolve your case.