April 28, 2011

Constructive Dismissal in the Thai Context

Bangkok Post, Corporate Counsellor Column

To avoid lawsuits and damages, employers should be cognizant of the concept of “constructive dismissal” and its implied application in Thailand. Those from Western jurisdictions may be familiar with the concept of “constructive dismissal” in labor contexts. Constructive dismissal refers to a situation where the employer does not actually terminate the employee’s employment, but the employer’s conduct towards the employee is so bad that the employee feels that he or she has no choice but to resign. The employer’s conduct must also amount to a material breach of the employment contract. The employee may then file a claim for unfair dismissal and demand compensation from the employer. Although Thai law does not specifically include this concept, local provisions relating to “unfair dismissal” may be applicable.

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