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INSIGHTS

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We provide you with all of the latest legal developments in Southeast Asia, ensuring that you have the up-to-date knowledge you need to navigate the ever-changing legal landscape affecting your business. You can browse our entire library of publications below, and email [email protected] to sign up for updates that are relevant to your interests, delivered straight to your mailbox, as they emerge.

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September 13, 2021
With COVID-19 cases continuing to pose a significant threat throughout Thailand, many employers have ordered their employees to work exclusively from home in order to minimize their chances of contracting the virus. However, this luxury is not afforded to all employees—some are unable to work from home due to the nature of their work, and consequently they are placed in the precarious position of being exposed to possible infection. Thailand’s Social Security Office (SSO) understood these risks early in the pandemic and, in March 2020, issued guidelines through the Workmen’s Compensation Fund Office on employees’ entitlement to claim benefits from the workers’ compensation fund (WCF) if they contract the virus as a result of their work. The WCF provides medical-related assistance and compensation to employees who directly suffer from a work-related injury or sickness (subject to certain conditions). Falling ill with COVID-19 during the performance of work duties may constitute suffering work-related sickness, thereby allowing employees to claim compensation from the WCF by submitting the Kor Thor 16 form, a medical certificate, treatment records, records of the employee’s working hours, and other relevant documentation. Upon receiving a claim, the SSO will investigate by collecting facts and evidence from the employer, the infected employee and his or her colleagues, and any witnesses. The official will examine the employee’s duties and working conditions in detail, taking into consideration any relevant information, such as evidence regarding the employee’s travel or movements prior to falling sick. Once all the facts and evidence are gathered, the matter will be submitted to a medical subcommittee responsible for determining whether the employee’s onset of COVID-19 is due to his or her work. If the subcommittee finds that the employee’s contraction of the virus did indeed result from the performance of his or her work duties, the employee will
September 10, 2021
Thailand’s Ministry of Interior has issued new regulations requiring owners, occupants, and operators of certain types of buildings to obtain third-party life, body, and property liability insurance. The Ministerial Regulations Prescribing the Type or Category of Buildings Which Must Apply for Legal Liability Insurance B.E. 2564 (2021) were announced in the Government Gazette on September 6, 2021, and will come into effect on November 5, 2021. The new regulations, which repeal and replace similarly titled regulations from 2005, detail third-party liability insurance rules, procedures, conditions, and minimum insurance amounts for specific building types and activities. The new regulations clearly distinguish the building use phase from the construction, modification, relocation, and demolition phases. They also add a new requirement for the owner, occupant, or operator of large buildings to apply for third party liability insurance during the construction, modification, relocation, and demolition phases. Building Construction, Modification, Relocation, and Demolition When a permit for construction, modification, relocation, or demolition is granted for a building classified as a high-rise, large, or extra-large building, the owner, occupant, or operator who obtained the permit must apply for third-party liability insurance before work begins. If work is already in progress when the regulations come into effect, the permit holders will have 30 days to apply for third party liability insurance covering the remainder of the period specified in the permit. Building Usage Owners or occupiers of public assembly buildings, hotels with more than 80 rooms, entertainment venues of 200 square meters or more, and large freestanding or building-attached signboards and support structures must also apply for third party liability insurance covering accidents related to the condition or use of the structures. Owners or occupiers have 30 days from the completion of the construction, modification, relocation, or change of use of the buildings, as the case may be, to apply for third-party
September 9, 2021
Multilaw has published its new Global Business Entities Guide, which collects expert advice from Multilaw’s member firms in more than 65 jurisdictions around the world. The guide provides answers to the key issues concerning international business operations, investments, and joint ventures. Each country section lists the main types of business vehicle that exist in the jurisdiction, and gives a detailed review of each business type through a standardized template that covers the following topics: General principles Incorporation, formation, or organization Registers Governance Ownership interests Costs and taxes Jurisdiction-specific matters Multilaw is a global network of carefully selected, independent law firms consisting of over 10,000 commercial lawyers in more than 100 countries, able to provide expert legal advice in complex environments around the globe. The full guide is available for free on the Multilaw website.
September 7, 2021
“Condominium” combines the Latin roots com (“together”) and dominium (“right of ownership or property”) into a word that literally means “shared property.” This shared ownership of property—which in the condominium’s case has come to mean a large building of residential units—has been enormously popular in Bangkok and other Thai cities, and regardless of the economic situation in Thailand, condominiums continue to be attractive to Thai people and foreign investors due to their favorable locations, pleasant common spaces, access to convenient methods of transportation, and reasonable prices. The land available for “low-rise” buildings—such as detached houses, townhouses, twin houses, or commercial constructions—is expected to become progressively scarcer in urban areas, with condominiums or “high-rise” residences eventually becoming the residence of choice. Despite its advantages, living in condominiums involves the coming together of the people owning or leasing the units, so various conflicts among the owners or with the condominium juristic person are bound to arise from time to time. As a continuation of a similar discussion of condominiums that we wrote a few years ago, this article aims to provide some clarity to these issues by identifying some key elements of the legal framework governing condominiums, considering some of the more common disputes that arise, and suggesting legally sound resolutions to those disputes. Legal basics The main law governing condominiums in Thailand is the Condominium Act B.E. 2522 (1979), which establishes the following key definitions: Condominium. A building in which the ownership is divided into multiple parts consisting of individual personal properties and jointly owned common property. Personal property. A condominium unit, including constructions and land provided to each unit owner. Personal property can be divided into two main types: a “unit,” which refers to the parts of the condominium that are divided to be owned by different persons; and a developed or undeveloped piece
September 7, 2021
COVID-19 and the resulting lockdown measures to limit outbreaks in Thailand have caused significant financial difficulties for many business operators, large and small. Whether a business is a creditor or debtor, there is a high likelihood they have faced or will face a default caused by the pandemic. This article identifies three legal options available when a party defaults—civil cases, bankruptcy actions, and business rehabilitation actions—and compares key elements associated with each option. For context, those three options are defined as follows: Civil case. A legal proceeding in which a creditor files a civil lawsuit (or arbitration claim) against a debtor for debt collection. If a debtor fails to settle a debt in accordance with a judgment, the creditor can ask the court to enforce the judgment by seizure and sale of the debtor’s assets through public auction. Bankruptcy action. A legal proceeding under the Bankruptcy Act in which a government authority can collect a debtor’s assets, sell the assets by public auction, and distribute the net proceeds among creditors. In bankruptcy proceedings, the creditors will receive repayment in proportion to the size of the outstanding debts. Business rehabilitation action. A legal proceeding under the Bankruptcy Act aimed at helping a debtor recover from insolvency and continue its business. Debtors are given debt relief and a “new start” through business rehabilitation, while creditors are able to collect a higher percentage of outstanding debt under rehabilitation than they would under a bankruptcy action. In short, a civil case is a claim in court for repayment of a specific debt, a bankruptcy action results in distribution of the debtor’s assets among the creditors, and a business rehabilitation action aims to enable the debtor to stay in business while repaying their debts to some degree. A civil case may be appropriate when the debtor defaults on debt
September 3, 2021
Attorneys from Tilleke & Gibbins have prepared the Thailand section of the Foreign Investment Restrictions Guide, published by Lex Mundi. The guide provides answers to key questions related to the regulatory regime for foreign investments in the jurisdictions of Lex Mundi member firms in 57 jurisdictions around the world. Each country-specific section contains in-depth information on the jurisdiction’s legal framework governing employment relationships, addressing the following questions and topics: General overview of the country’s foreign investment restrictions Sectors subject to investment restrictions Relevant thresholds, notification obligations, and approval requirements Grounds to block a foreign investment Information specific to COVID-19 and other relevant potential developments The guide draws on the expertise of Lex Mundi member firms from around the world. Its innovative format allows users to compare current information from multiple jurisdictions in a side-by-side customizable report. To browse the contributions, generate country-specific reports, and compare regulatory guidance on cross-border investment and transactional activity across multiple jurisdictions, please visit the Lex Mundi website.