You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

June 12, 2015

AEC Update: Outdated Legislation Hinders the Free Flow of Labor

Bangkok Post, Corporate Counsellor Column

We are approaching the halfway mark of 2015, and many in the international business community—particularly those with investments in Southeast Asia—have questions about the current status of the ASEAN Economic Community (AEC).

The AEC was originally scheduled to take effect on January 1 of this year, but member states pushed back the deadline to December 31, as many needed more time to prepare. With only half a year to go, this article will focus on Thailand’s laws and regulations and how they match up with the provisions of the AEC.

The overall goal of the AEC is to establish a single market in Southeast Asia. To accomplish this objective, Section 9 of the AEC Blueprint is aimed at establishing a free flow of goods, services, investment, and skilled labor, as well as a freer flow of capital.

Thailand has already made great strides in implementing some of these aims. To facilitate the free flow of goods, for example, the country has effectively eliminated or significantly reduced most tariffs and non-tariff barriers, with some exceptions based on national security and human, animal, plant, and environmental safety. Thailand, along with five other ASEAN members—Brunei, Indonesia, Malaysia, the Philippines, and Singapore—has also established its own National Single Window to expedite customs clearance and reduce bureaucracy.

As for the free flow of labor, over the past ten years, ASEAN has made numerous attempts to liberalize the skilled-labor sector. As a result, there are now mutual recognition arrangements (MRAs) in place for the following professions: accounting, architecture, medical profession, dentistry, engineering, nursing, surveying, and tourism.

These MRAs will, in theory, provide unifying qualifications and allow local professionals to seek employment within the region. It should be noted, however, that some of these professions, including tour guiding and architecture, are subject to restrictions in Thailand. By royal decree, Thailand has 39 “protected professions” that foreigners are not allowed to engage in, so certain local laws must be amended to comply with these MRAs. There are currently no plans to introduce MRAs for freelance work or work carried out by independent practitioners.

Streamlining the process for skilled professionals within ASEAN to obtain visas and work permits is another major factor in promoting the free flow of labor. Foreign workers in Thailand, however, are still subject to the Alien Working Act of 2008, under which any foreign national wishing to work in Thailand—with the word “work” being very broadly defined so as to include even volunteer or charity work, with or without remuneration—must file an application to obtain a work permit.

Foreign nationals living and working in Thailand are all too familiar with the administrative hassles involved in obtaining a work permit. Therefore, exemptions that facilitate obtaining work permits should be included in the Alien Working Act for those professions that fall within the scope of MRAs in order for Thailand to fulfill its AEC obligations. Alternatively, new policies that introduce special documentation allowing other ASEAN nationals to work in Thailand legally could be brought into effect.

Yet another obstacle that should be lifted involves the local licensing requirements for professionals. Most of the tests to obtain a license to practice one’s profession in Thailand are still given only in the Thai language. This is obviously quite a hurdle for those who do not speak Thai. Tests should be offered in English, as well.

The UN Population Division estimates that ASEAN currently has 633 million people living in the region. This number is forecasted to reach nearly 700 million by 2025, making it the third-largest workforce in all of Asia, behind India and China. Development within the region is contingent on this massive workforce being able to cross borders more freely.

Changes need to be made to outdated legislation. This, however, will depend on Thailand addressing the conformity of its laws and regulations to the provisions of the AEC, which will require much-needed cooperation between the country’s various government agencies.

RELATED INSIGHTS​ 

March 31, 2026
On December 10, 2025, the National Assembly of Vietnam adopted Law on Vocational Education No. 124/2025/QH15, which took effect on January 1, 2026, replacing Law on Vocational Education No. 74/2014/QH13 of 2014. The new law broadens the categories of institutions eligible to deliver vocational training, introduces vocational upper secondary schools, and shifts governance structures for private institutions from ownership-representative boards of management to stakeholder-based school councils. These reforms aim to diversify training providers, align programs with labor market needs, and create a more flexible, open vocational education ecosystem, offering expanded opportunities for foreign and domestic investors, universities, and enterprises. Some highlights of the new Law on Vocational Education are presented below. Expansion of Vocational Training Levels and Programs In addition to elementary, intermediate, and college—the three levels of vocational training program set out under the 2014 Law on Vocational Education—the new law expands the structure by introducing two new levels: Vocational high school training programs are placed between elementary and intermediate levels, and are aimed at combining upper secondary education with vocational training, expanding options for learners after graduating from the lower secondary level. Other vocational training programs are not specified in detail under the new law, but aim to equip learners with the capability to perform and handle one or several simple tasks of an occupation. Expansion of Vocational Education Providers The new law reclassifies and extends vocational education providers by classifying them into two distinct categories: Vocational education institutions, which include colleges, intermediate schools, and vocational high schools. Establishments participating in vocational education activities, which include vocational education centers, vocational-continuing education centers, continuing education centers, other centers with vocational education functions, enterprises, cooperatives, and higher education institutions. Vocational education providers may provide one vocational training level only, or several/all levels, depending on the type of provider. The
January 16, 2026
Employment law specialists from Tilleke & Gibbins in Vietnam have contributed the Vietnam chapter to the Guide to Restructuring a Cross-Border Workforce from International Employment Lawyer. This comprehensive global guide, covering 50 jurisdictions worldwide, addresses the complex issue of workplace restructurings, with a particular focus on the needs of multinational companies. The Vietnam chapter was authored by partner Kien Trung Trinh, counsel Sarah Galeski, and associates Dung Thi Phuong Le and Nguyen Thi Huong Nguyen. The Q&A-style chapter provides in-depth analysis of key areas related to workplace restructuring, including: Reduction in workforce; Restructuring or reorganization of the business; Changing terms and conditions; and Areas to watch. A PDF of the Vietnam chapter can be downloaded through the button below. Tilleke & Gibbins also contributed the Cambodia, Laos, Myanmar, and Thailand chapters to the Guide to Restructuring a Cross-Border Workforce 2026. To browse the full guide for all 45 jurisdictions, please visit the International Employment Lawyer website.
January 16, 2026
Employment law specialists from Tilleke & Gibbins’ office in Bangkok have contributed the Thailand chapter to the Guide to Restructuring a Cross-Border Workforce from International Employment Lawyer. This comprehensive global guide, covering 50 jurisdictions worldwide, addresses the complex issue of workplace restructurings, with a particular focus on the needs of multinational companies. The Thailand chapter was authored by Pimvimol (June) Vipamaneerut, Chusert Supasitthumrong, Dusita Khanijou, and Chomanut Arif. The Q&A-style chapter provides in-depth analysis of key areas related to workplace restructuring, including: Reduction in workforce; Restructuring or reorganization of the business; Changing terms and conditions; and Areas to watch. A PDF of the Thailand chapter can be downloaded through the button below. Tilleke & Gibbins also contributed the Cambodia, Laos, Myanmar, and Vietnam chapters to the Guide to Restructuring a Cross-Border Workforce 2026. To browse the full guide for all 45 jurisdictions, please visit the International Employment Lawyer website.
January 16, 2026
Tilleke & Gibbins’ office in Yangon has contributed the Myanmar chapter to the Guide to Restructuring a Cross-Border Workforce from International Employment Lawyer. This comprehensive global guide, covering 50 jurisdictions worldwide, addresses the complex issue of workplace restructurings, with a particular focus on the needs of multinational companies. The Myanmar chapter was prepared by Kyaw Min Tun, an associate in the firm’s Myanmar office. The Q&A-style chapter provides in-depth analysis of key areas related to workplace restructuring, including: Reduction in workforce; Restructuring or reorganization of the business; Changing terms and conditions; and Areas to watch. A PDF of the Myanmar chapter can be downloaded through the button below. Tilleke & Gibbins also contributed the Cambodia, Laos, Thailand, and Vietnam chapters to the Guide to Restructuring a Cross-Border Workforce 2026. To browse the full guide for all 45 jurisdictions, please visit the International Employment Lawyer website.