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

May 14, 2020

Changing Employment Conditions during the COVID-19 Situation

Subscribe to Updates
Bangkok Post: Human Resources Watch

The COVID-19 crisis continues to have a serious impact on global economic conditions, and many employers are feeling the severe economic effects here in Thailand. In light of this situation, employers are making efforts to ensure that their businesses survive the crisis, often looking to cost reduction measures such as reducing employees’ wages and benefits in accordance with labour laws. In general, Thai labour laws permit employers to reduce employee wages and benefits either by negotiating with employees and receiving their consent for the reductions, or by carrying out the labour relations processes described below.

Under Thailand’s Labour Relations Act (LRA), the definition of “employment conditions” includes general working conditions, working days and times, wages, welfare, conditions for termination of employment, and other benefits received by employers or employees relating to their employment or work. Any employer who would like to change these employment conditions, such as by reducing wages or benefits, must comply with the LRA.

In accordance with the LRA, employers are entitled to submit a written labour demand to employees (or a labour union, if applicable) in order to change an employment condition. Similarly, employees are entitled to submit a written demand to their employer to change an employment condition if the demand is submitted jointly by at least 15 percent of the total number of employees, or if the demand is submitted by a labour union that has a membership of at least one-fifth of the total number of employees.

After the demand has been submitted by either the employer or the employees, the parties must begin negotiations within three days.

It is important for employers to note that, once formal labour demands have been made to the other party, the employer is temporarily barred from terminating or transferring the employees, employee representatives, committee members, members of the labour union, or members of the labour federation committee. The only exceptions that allow termination of one or more of those parties are when they commit one of the following acts:

  • Acting dishonestly or intentionally committing a criminal offence against the employer;
  • Intentionally causing damage to the employer;
  • Violating the employer’s work rules, regulations or lawful orders, after the employer has already given a written warning to the employee (for matters not deemed serious); or
  • Neglecting their duties for a period of three consecutive workdays without reasonable cause.

This prohibition remains in force throughout the course of negotiations and settlement, or arbitration of the labour dispute should one arise.

If the parties are able to settle, they must enter into a written agreement signed by their representatives. Within three days from signing the agreement, the employer must display the agreement at the workplace for a period of at least 30 days. The employer must also register the agreement with the Ministry of Labour within 15 days from the date of signing.

If the parties do not settle after negotiations, or if they fail to negotiate at all, the labour demand is designated a “labour dispute.” In this situation, the party who submitted the labour demand must give written notice to a mediator within 24 hours after the lapse of the three-day period or the failure of the negotiations. The mediator is then obliged to resolve the dispute within five days. If a settlement is reached, the employer must proceed with the same notice requirements as stated above. If the parties are unable to reach a settlement, the labour dispute becomes an “unsettled labour dispute.”

The parties then have the legal right to either appoint one or more labour arbitrators to resolve the dispute by binding arbitration (if agreed upon by both parties), the employer can order an employee lockout, or the employees can go on formal strike. If the employees plan to proceed with a strike, they must give written notice to the labour dispute mediator, and to the employer, at least 24 hours prior to the strike commencing. In the present situation, parties should note that if the government issues any relevant regulations under the Emergency Decree on Public Administration in Emergency Situation to prevent the COVID-19 outbreak, both parties must also comply with those measures.

If the employees follow all legal procedures prior to executing a strike, they will be protected under Thai labour law. For example, if the employer then terminates the employees for submitting the labour demand, the employees can lodge a complaint to the Labour Relation Committee (LRC). The complaint will allege that the employer committed an unfair labour practice and will ask the LRC to order the employer to reinstate the employees at the same position, wages, and benefits that they had before termination. If the LRC agrees that the employer committed an unfair labour practice, the court may order the reinstatement. If the employer disagrees with the LRC’s order, they are entitled to challenge the order by submitting a petition to the Central Labour Court to revoke the LRC’s order. If the employer fails to comply with the LRC’s order by the deadline, and fails to submit a petition to the labour court in order to revoke the LRC’s order, the employer and its directors will face criminal penalties, such as imprisonment for up to six months, a fine of up to THB 10,000, or both.

Although this process gives the employer one method of changing employment conditions, this article shows that it is not always a simple process. If negotiations go well and consent is forthcoming, labour demands can be an effective way of mitigating the effects of the COVID-19 crisis on some businesses. However, if the demand becomes a dispute, employers can find themselves in difficulty, and must be aware of the risk of criminal penalties if they fail to comply with any legal requirements or take disciplinary action against the employees during the dispute period.

 

This article was originally published in the Bangkok Post and is reproduced here with permission and thanks. The original story can be viewed on the Bangkok Post website.

Related Professionals

Practices

Employment

Location

RELATED INSIGHTS​ 

September 9, 2026
On August 25, 2026, Thailand’s cabinet approved in principle a draft amendment that would extend mandatory social security coverage to three categories of workers currently excluded from Thailand’s compulsory social security system. The amendment, proposed by the Ministry of Labour, would modify the Royal Decree Prescribing Businesses and Employees Excluded from the Social Security Act B.E. 2560 (2017). Newly Covered Workers The cabinet-approved proposal would remove the exclusions for the following three categories of employees, bringing them within Thailand’s mandatory social security system: Workers in seasonal cultivation (pho pluk), forestry (pa mai), and livestock (liang sat) businesses that do not employ workers year-round and whose operations do not include other types of business activities. Notably, fishery (pramong) workers were excluded from this amendment following objections raised at a Social Security Board meeting on April 30, 2025, because employers and employees in the fishery sector can already agree to opt into social security coverage under fishery labor laws. Domestic workers and other employees of individual employers where the work performed is not part of a business operation (e.g., housekeepers, gardeners, drivers). This group has actively demanded inclusion in the social security system. Workers employed in street-stall businesses operating fixed street stalls (kan kha phaeng loi). The rationale for including street-stall workers is that their employers have fixed, identifiable places of business that can be inspected. Accordingly, workers engaged in itinerant street hawking (kan kha re) remain excluded. The expanded coverage would apply to both Thai and foreign employees who possess valid identity documents and work permits, including migrant workers who have been granted special permission to work in Thailand. The Social Security Act B.E. 2533 (1990) does not restrict social security registration based on nationality, allowing these workers to register as insured persons under section 33. Employer Obligations and Employee
Read More
September 4, 2026
Thailand’s cabinet has approved two draft amendments aimed at improving labor-related judicial proceedings. The proposed amendments to the Act on the Establishment of Labor Courts and Labor Case Procedure B.E. 2522 (1979) and the Act on Procedures for Human Trafficking Cases B.E. 2559 (2016) are intended to make the process more efficient, appropriate, and fair. Key elements of these proposed amendments are outlined below. Expansion of Labor Court Jurisdiction Under the current framework, labor courts generally hear labor disputes, while criminal offenses under labor laws are handled separately. Matters involving both labor and criminal issues may therefore require the parties to pursue proceedings before different courts. To address this, the proposed amendments would expand the jurisdiction of labor courts to cover certain criminal offenses under labor laws. The government states that the change is intended to allow related issues to be heard by judges with expertise in labor law and to reduce the need for parallel proceedings. The proposed amendments also set out the following rules for cases involving multiple offenses. Where a single act gives rise to multiple offenses and at least one of those offenses falls within the jurisdiction of the labor court, the labor court may hear the related offenses as part of the same case. Where multiple connected acts give rise to different offenses, the labor court may hear the matters together or transfer part of the case to the appropriate court, taking into account convenience and the interests of justice. Criminal Offenses Covered The proposed amendments would extend labor court jurisdiction to criminal offenses under 11 labor-related laws, including laws concerning: Home workers protection Labor protection Labor protection in fisheries work Employment and job-seeker protection Management of foreign workers Social security Occupational safety, health, and working environment Compensation Maritime labor State enterprise labor relations
Read More
August 31, 2026
Thailand has introduced a new regulatory framework that may expose foreign nationals who violate the Foreign Business Act (FBA) to deportation. The Regulation of the Office of the Prime Minister on Deportation B.E. 2569 was published in the Government Gazette on August 27, 2026. The regulation establishes an administrative process for referring foreign nationals for deportation where this is deemed necessary in the interests of public order or public morality. It does not create new substantive deportation powers, but it expressly identifies unlawful business conduct under the FBA—including nominee arrangements—as grounds for referral. Grounds for Deportation Referral The regulation sets out five grounds that may give rise to a referral to the relevant authorities: Unlawful entry into, or unlawful stay in, Thailand in violation of immigration laws. Unlawful employment or engagement in work in violation of laws governing the employment of foreign nationals. Carrying on business in violation of the FBA, including through the use of nominee arrangements. Forging official documents or using forged official documents. Committing an offense punishable by imprisonment of five years or more. The framework takes a broad approach, extending not only to the perpetrators of these acts but also to those who facilitate, instigate, or otherwise support such acts. Deportation Risk Following a Criminal Judgment Where a foreign national has committed any of the above offenses and has fully served the sentence imposed pursuant to a final judgment, the interior minister has the power to order deportation. This power also applies where a court has issued a final judgment sentencing a foreign national to imprisonment but has suspended the execution of the sentence, or has imposed a fine. A deportation order may also specify a period during which the foreign national is prohibited from reentering Thailand. FBA Noncompliance: Broader Consequences Noncompliance with the FBA—including
Read More
August 20, 2026
As part of its membership in Lex Mundi, Tilleke & Gibbins has released the latest edition of its Guide to Doing Business in Thailand, providing an overview of the legal, regulatory, and commercial considerations for companies establishing or expanding operations in Thailand. The 2026 edition offers practical insight into the country’s business environment, investment framework, and operational requirements. The guide covers a wide range of topics relevant to foreign and domestic investors, including: Investment incentives and promotion schemes Financial facilities and banking regulations Exchange controls and money transfers Import and export regulations Business structures and incorporation options Requirements for establishing a business Operational and compliance considerations Business cessation and insolvency procedures Employment and labor laws Taxation Immigration and visa requirements Prepared by Tilleke & Gibbins lawyers across multiple practice areas, the publication outlines key aspects of doing business in Thailand, including foreign investment restrictions, regulatory compliance obligations, corporate structures, employment requirements, and recent legal and economic developments affecting investors. The publication forms part of Lex Mundi’s Country Guides series, a global collection of jurisdiction-specific reference materials prepared by member firms around the world. Together, these guides help companies evaluate opportunities, compare regulatory environments, and plan international business activities across multiple markets. The full Guide to Doing Business in Thailand 2026 is available through the button below.
Read More