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AEC Update: Outdated Legislation Hinders the Free Flow of Labor

Subscribe to Updates
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.

Download Full Article
Related Professionals

Practices

Employment

Location

RELATED INSIGHTS​ 

September 30, 2025
Over the past several years, during and after the COVID-19 pandemic, Thai employees and labor unions have faced reductions in benefits and welfare from their employers. Consequently, they have pursued various strategies to enhance their compensation packages. One such approach involves establishing employee committees to negotiate with employers regarding benefits and welfare. Additionally, companies with existing unions typically nominate representatives to serve on these employee committees. Many employers, however, remain unfamiliar with both the committee’s role and the heightened procedural requirements that apply when disciplinary measures are contemplated against committee members. Because any violation of a committee member’s statutory rights can expose the employer—and its directors or authorized representatives—to criminal liability, a clear understanding of the relevant legal framework is essential. The Labor Relations Act B.E. 2518 (LRA) provides the statutory foundation for establishing employee committees. The purpose of the committee is to promote harmonious industrial relations and create a formal channel through which employees and employers can discuss workplace matters on a regular basis. Any workplace that employs at least fifty employees must, upon request by employees or the labor union, facilitate the creation of a committee. Members may be elected directly by employees or, where applicable, appointed by the labor union. Each member serves a three-year term. The LRA prescribes minimum committee sizes based on the employer’s headcount, as shown in the table below. If union members constitute more than 20 percent of the total workforce, the union must appoint at least one more committee member than the number of nonunion members elected by the general workforce. If union membership exceeds 50 percent of the workforce, the union acquires the exclusive right to appoint every committee member. Where multiple unions exist and their combined appointments would exceed the statutory committee size, the employer may lawfully refuse to
Read More
September 25, 2025
Tilleke & Gibbins’ labor and employment team in Hanoi and Ho Chi Minh City has contributed the Vietnam chapter to Labor and Employment Disputes 2026. Drawing on the expertise of three of the firm’s employment specialists, the chapter provides practical guidance for navigating employment disputes in Vietnam and covers: Pre-action considerations: key requirements, third-party funding, contingency fee arrangements Issuing a claim: forum, territorial jurisdiction, standing, commencing claims, fees, service, defendants and legal personality, types of claims, time limits, counterclaims Case management: procedure, rules, amendments to claims, adding parties, consolidating proceedings, class and collective actions, evidence, witnesses, tactical considerations Interim relief: availability, requirements Trial: hearings conduct and time frames, confidentiality and public access, media reporting, elements of successful claims and burden of proof Alternative dispute resolution: available types, requirements and expectations, enforcement Collective employment and labor rights: enforcement and standing Remedies and enforcement: available remedies, assessing compensation, enforcement mechanisms Appeals: procedure, time frames, other means of challenge Updates and trends: recent cases and developments, technology developments, other issues The Vietnam chapter is available for download below. Tilleke & Gibbins also contributed the Cambodia and Thailand chapters to Labor and Employment Disputes 2026. Readers can also gain 30 days of complementary access to the full Labor and Employment Disputes 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More
September 25, 2025
In the Thailand contribution to Labor and Employment Disputes 2026, four members of Tilleke & Gibbins’ Bangkok labor and employment team outline key aspects of dispute resolution in Thailand. Their analysis, part of Lexology Panoramic’s comparative guide covering jurisdictions worldwide, addresses the following areas: Pre-action considerations: key requirements, third-party funding, contingency fee arrangements Issuing a claim: forum, territorial jurisdiction, standing, commencing claims, fees, service, defendants and legal personality, types of claims, time limits, counterclaims Case management: procedure, rules, amendments to claims, adding parties, consolidating proceedings, class and collective actions, evidence, witnesses, tactical considerations Interim relief: availability, requirements Trial: hearings conduct and time frames, confidentiality and public access, media reporting, elements of successful claims and burden of proof Alternative dispute resolution: available types, requirements and expectations, enforcement Collective employment and labor rights: enforcement and standing Remedies and enforcement: available remedies, assessing compensation, enforcement mechanisms Appeals: procedure, time frames, other means of challenge Updates and trends: recent cases and developments, technology developments, other issues The complete Thailand chapter can be downloaded below. Tilleke & Gibbins also contributed the Cambodia and Vietnam chapters to Labor and Employment Disputes 2026. Readers can also gain 30 days of complementary access to the full Labor and Employment Disputes 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More
September 25, 2025
Four of Tilleke & Gibbins’ labor and employment specialists in Phnom Penh have authored the Cambodia chapter of Labor and Employment Disputes 2026, the latest edition of Lexology Panoramic’s global guide to handling labor and employment disputes. The chapter provides practical insights on a wide range of dispute resolution issues, including: Pre-action considerations: key requirements, third-party funding, contingency fee arrangements Issuing a claim: forum, territorial jurisdiction, standing, commencing claims, fees, service, defendants and legal personality, types of claims, time limits, counterclaims Case management: procedure, rules, amendments to claims, adding parties, consolidating proceedings, class and collective actions, evidence, witnesses, tactical considerations Interim relief: availability, requirements Trial: hearings conduct and time frames, confidentiality and public access, media reporting, elements of successful claims and burden of proof Alternative dispute resolution: available types, requirements and expectations, enforcement Collective employment and labor rights: enforcement and standing Remedies and enforcement: available remedies, assessing compensation, enforcement mechanisms Appeals: procedure, time frames, other means of challenge Updates and trends: recent cases and developments, technology developments, other issues The full Cambodia chapter is available for download below. Tilleke & Gibbins also contributed the Thailand and Vietnam chapters to Labor and Employment Disputes 2026. Readers can also gain 30 days of complementary access to the full Labor and Employment Disputes 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More