Vietnam’s political system is currently undergoing a significant reorganization to streamline government operations and improve efficiency. In this regard, Plan 141/KH-BCDTKNQ18, issued on December 6, 2024, provided guidelines on the restructuring of existing ministries, ministerial-level agencies, and government-affiliated agencies. Accordingly, the number of ministries is being reduced from 18 to 14 through mergers and consolidations and the establishment of a new Ministry of Ethnic and Religious Affairs. The number of ministerial-level agencies is being reduced to three, and government-affiliated agencies to five. Similar streamlining is happening at provincial levels. The newly consolidated state agencies will assume all functions, rights, and responsibilities of the merged entities, and will continue handling all ongoing matters previously handled by the former agencies. Some examples of these changes include the following: The Ministry of Science and Technology (MOST) will oversee telecommunications, IT applications, cybersecurity, e-transactions, and national digital transformation, which had previously been managed by the Ministry of Information and Communications (MIC). MOST will also be responsible for issuing licenses related to these areas, such as licenses for G1 online game services and telecommunication services. The Ministry of Culture, Sports, and Tourism will assume the responsibility of press management, previously under the MIC. The Ministry of Finance will assume state management functions related to investment, previously handled by the Ministry of Planning and Investment. Provincial Departments of Finance will issue Investment Registration Certificates and Enterprise Registration Certificates, a responsibility previously held by the Departments of Planning and Investment. The Ministry of Home Affairs will oversee labor and employment matters. Provincial Departments of Home Affairs will be authorized to issue work permits and will be the designated authorities for companies to register their internal labor regulations. Advantages for Businesses The restructuring aims to simplify regulations and expedite licensing processes. By reducing the number of agencies

On December 27, 2024, a new minimum daily wage rate in Thailand was published in the Government Gazette, taking effect on January 1, 2025. With these changes, the minimum daily wage in 2025 ranges from THB 337 to THB 400, up from the previous THB 330 to THB 370, depending on the province. For most provinces, these rates reflect an increase of THB 7 per day, except for the following provinces and districts, which have increases of THB 9–55 per day: Bangkok Chon Buri Hat Yai District in Songkhla Ko Samui District in Surat Thani Mueang Chiang Mai District in Chiang Mai Nakhon Pathom Nonthaburi Pathum Thani Phuket Rayong Samut Prakan Samut Sakhon The full table of minimum daily wage rates is below. For more details on the new minimum wages, or any aspect of labor and employment in Thailand, please contact Pimvimol (June) Vipamaneerut at [email protected], Ketnut Pukahuta at [email protected], Dusita Khanijou at [email protected], or Chomanut Arif at [email protected].

Thailand has issued a series of regulations implementing the Employee Welfare Fund, which was established under the Labour Protection Act B.E. 2541 (1998) (LPA) but had remained unimplemented since the law’s enactment. The Employee Welfare Fund provides financial support to employees in cases such as termination of employment, death, and other circumstances as specified by the Employee Welfare Fund Committee. Under the LPA, employers with more than ten employees are required to register their employees with the Employee Welfare Fund if they do not offer employees a provident fund or comparable assistance for employment termination or death. With the new regulations detailed below, employers are now able to comply fully with this requirement. Implementation Timeline and Details On November 15, 2024, the Royal Decree Determining the Period for Starting the Collection of Savings and Contributions to the Employee Welfare Fund was officially enacted and published in the Government Gazette. According to this royal decree, contributions to the Employee Welfare Fund will commence on October 1, 2025. Two ministerial decrees followed on November 22, 2024—one setting the withholding and contribution rates, and the other outlining minimum levels of financial assistance due in cases of employment termination or death. The Ministerial Notification Specifying the Rate of Savings and Contributions stipulates the required rates for contributions to the Employee Welfare Fund and establishes a five-year initial period with reduced contribution rates. From October 1, 2025, to September 30, 2030, employers and employees are each required to contribute 0.25% of wages to the Employee Welfare Fund. Starting October 1, 2030, employers and employees will each be required to contribute 0.5% of wages. The Ministerial Notification Specifying Criteria and Procedures for Employers to Provide Assistance in Cases of Employment Termination or Death establishes the guidelines employers must follow when offering financial assistance to employees

Attorneys at Tilleke & Gibbins in Phnom Penh have contributed the Cambodia chapter to Labor and Employment Disputes 2024, a comprehensive guide from Lexology Panoramic to labor and employment dispute resolution in various jurisdictions around the world. The Cambodia chapter covers the following topics: 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 to proceedings, consolidating proceedings Class and collective actions: Special considerations Evidence: Witnesses, tactical considerations Interim relief: Availability, requirements Trial: Hearings conduct and typical 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 of collective rights, standing Remedies and enforcement: Available remedies, assessing compensation, enforcement mechanisms Appeals: Appeal procedure and time frames, other means of challenge Update and trends: Recent cases and developments, technology developments, other issues The Cambodia chapter was authored by associates Mealtey Oeurn, Saryda Ou, Chanvisal Lok; and Jay Cohen, partner and director of the firm’s operations in Cambodia. Tilleke & Gibbins also contributed the Vietnam and Thailand chapters to Labor and Employment Disputes 2024. The full Cambodia chapter is available below as a PDF.