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

April 23, 2020

COVID-19: Laos Releases Requirements for Companies Seeking to Resume Normal Operations

Subscribe to Updates

On April 21, 2020, following the Prime Minister’s extension of the lockdown measures in Laos to May 3, the National Taskforce Committee for COVID-19 Prevention and Control (the Taskforce) issued guidance on what companies must do to be allowed to operate during the lockdown, entitled Instructions on the Conditions and Measures for Eligible Private Companies to Operate during the COVID-19 Outbreak. 

The instructions, which are effective from April 21, provide a set of requirements that private sector businesses, projects (e.g., concession activities), legal entities, and factories (collectively called Operators) must comply with to resume operations. Operators must be inspected by a specific unit mandated by the Taskforce before resuming any operations, and an agreement or memorandum between the Operators and the Taskforce unit must be signed to confirm that the Operators are compliant. Although not expressly indicated in the instruction, we understand that all companies may need authorization from the Taskforce to resume operations after the lockdown ends. Further information is expected on this in the coming weeks.

Conditions for Operation

  1. Operators must have a designated working area, and staff dormitories must be of a good standard. Those with a large workforce, or a high enough risk factor, must have an isolated quarantine area and an emergency transportation vehicle on standby. The original text does not clarify what is meant by “large workforce”, as it does not provide a threshold thereof, or “high risk,” but we understand that these recommendations must be implemented as practically possible, and that the authorities will not expect, for example, small enterprises to have a staff dormitory.
  2. The working environment must be spacious enough to guarantee social distancing of at least one meter.
  3. Dormitories must be sufficiently spacious and beds must be at least one meter apart.
  4. The canteen must be sufficiently spacious, and Operators must guarantee good hygiene, prohibit the common use of utensils, and ensure one-meter social distancing.
  5. If dormitories are not situated on site, employee transportation must provide sufficient space to enable one-meter social distancing.
  6. Sufficient 24-hour clean water, handwashing stations, alcohol gel, and masks must be available for all employees.
  7. 24-hour security must be provided, authorization to leave must be required the workplace, and outsiders must be prohibited.
  8. Cleaners must properly dispose of waste that may cause COVID-19 infections, such as by providing covered trashcans.
  9. Operators must facilitate inspections and visits from medical teams from the relevant authority. We understand that expenses linked to inspections must be borne by the Operators.

Measures that Operators Must Implement 

  1. Body temperature must be checked, and alcohol gel must be provided to all employees, prior to entering or leaving the working area, dormitory, and canteen, from morning to evening every day. Operators must also keep a written record the symptoms of each person. If any employee exhibits a fever (above 37.5 degrees), cough, or difficulties in breathing, they must be separated from the working area and put in isolated quarantine. Operators should immediately alert the authorities by using emergency numbers 165 and 166, and arrange to have the person examined by a doctor.
  2. Masks must be provided to all employees during working times, and other times when people must be in the same location as others. Handwashing stations must be situated at convenient locations for the employees.
  3. Social distancing of one meter must be guaranteed for employees. Activities where this social distancing requirement cannot be guaranteed are prohibited. The regulation provides a non-exhaustive list of examples, such as sports and celebrations. However, this requirement may be broadly interpreted—we understand that social drinking after work with colleagues is not permitted, for example.
  4. Specific prevention measures for suppliers from outside the company must be put in place, similar to those required for employees.
  5. Working areas, canteens, toilets, dormitories, warehouses, and storage rooms must be cleaned every day after working hours.
  6. Hiring new employees, consultants, and specialists, from abroad or from Laos, must be postponed until the outbreak is contained.

There are no details on when inspections will take place, and further guidance is expected in due course. Tilleke & Gibbins will continue to keep you informed as the situation develops.

Related Professionals

Practices

Corporate/M&A

Employment

Location

RELATED INSIGHTS​ 

November 7, 2025
Thailand and the United States signed a memorandum of understanding (MOU) titled “Cooperation to Diversify Global Critical Minerals Supply Chains and Promote Investments” on October 26, 2025, signaling a new strategic alignment aimed at developing Thailand’s mineral sector, particularly in rare earth elements (REEs). The MOU has implications for investments in technology, manufacturing, and other related sectors. This update outlines the key provisions of the MOU and the potential opportunities and legal navigating points for businesses. Objectives The primary driver of this agreement is the US initiative to diversify global supply chains for critical minerals and reduce reliance on current market leaders, particularly China. For Thailand, it represents a major opportunity to attract high-tech investment and develop its downstream processing industries. The cooperation is set to focus on five main areas: Technical knowledge: Exchange of technical expertise and international best practices to strengthen Thailand’s mining and processing sector. Joint cooperation: Establishing workshops, seminars, and scientific collaboration to boost innovation. Regulatory practice: Promoting good governance and streamlining regulatory and licensing procedures. Information sharing: Sharing data on potential projects and global market prices. Full-value chain: The MOU covers the entire mineral lifecycle, from exploration and extraction to processing, refining, and recycling. “First Opportunity to Invest” Clause The most debated provision within the MOU states that “participants expect to have the first opportunity to invest . . . in critical minerals assets that may be sold in Thailand.” Business implications: This clause is widely interpreted as granting US companies a first look or preferential access to investment opportunities in Thailand’s critical minerals sector. This could be a significant advantage for US-based or affiliated companies in mining, technology, and energy seeking to secure a foothold in a developing REE supply chain. Thai government position: Thai officials, including the prime minister, have publicly clarified
Read More
October 31, 2025
On September 29, 2025, Thailand’s Office of the Personal Data Protection Committee (PDPC Office) published its Regulations on the Review and Certification of Binding Corporate Rules B.E. 2568 (2025) (the Regulations). The Regulations provide clarity on the PDPC Office’s approach to reviewing and certifying binding corporate rules (BCRs) under Section 29 of the Personal Data Protection Act B.E. 2562 (2019) (PDPA), and aim to facilitate international data transfers within a group of undertakings or enterprises (a “corporate group”). In conjunction with this development, the PDPC Office also approved BCRs for two companies operating in Thailand on September 30, 2025. This milestone represents the first concrete progress since the PDPC’s Notification on Criteria for the Protection of Personal Data Sent or Transferred to a Foreign Country pursuant to Section 29 of the PDPA B.E. 2566 (2023) came into effect in March 2024. Some key features of the Regulations are set out below. Categorization of BCRs BCRs are classified into two types: (1) BCRs for Controllers (BCR-C) and (2) BCRs for Processors (BCR-P). The category must be clearly specified when submitting the BCRs to the PDPC Office. Documentation Requirement The applicant must prepare and submit the application (a standard template may be provided by the PDPC Office in the future) along with supporting documents for review and certification in the Thai language. If the supporting documents are in a foreign language, a certified Thai translation should be provided. The translation must be notarized by a notary public or qualified person. Supporting documents may include, among others, a binding instrument such as an intra-group agreement, or a list of entities subject to the BCRs. Expedited Process Requirement Organizations with existing BCR approvals under the EU or UK GDPR, or from countries announced by the PDPC under Section 28, may apply through an
Read More
October 30, 2025
Recent events at a Thai listed company, where a proposal to remove the director was not successful, amid claims that a competitor was attempting to gain control of the company, illustrate how disputes over corporate control can unfold differently at the board level and shareholder level. At the board level, removing directors of a listed company mid-term to gain corporate control is not an easy task under Thai law, as it requires a higher threshold than appointing a new director, which typically only requires a simple majority vote in a listed company. At the shareholder level, Thailand’s tender offer and competition regimes add complexity where different shareholder groups act in concert to remove opposing board representatives or otherwise influence control. In this article, we will explore why the attempted removal of a director may fail, and how the tender offer regime may apply. Key Issues at a Glance Shareholder groups may seek to convene meetings to propose changes to board composition or company authority. Such proposals can be delayed or complicated by regulatory requirements and the need for additional disclosures. Regulatory authorities and minority shareholders may raise concerns when major shareholders coordinate to influence board control, especially if such actions could trigger tender offer or merger control obligations. Companies often respond by seeking further information on shareholder relationships and potential conflicts before proceeding. Why the Director Removal Failed Under Section 76 of the Public Limited Companies Act B.E. 2535 (as amended), the early removal of a director requires two conditions to be satisfied at the same meeting of shareholders: Headcount test: At least 75% of shareholders attending and entitled to vote must vote in favor. If multiple shareholders appoint the same person as proxy, each proxy is counted as a separate head for the purpose of the headcount test,
Read More
October 29, 2025
On September 15, 2025, Thailand’s Senate approved a draft amendment to the Labor Protection Act (LPA), which is currently awaiting publication in the Government Gazette. The amendment, which will take effect 30 days after publication, extends labor protections to certain service contractors working for state entities, enhances maternity and spousal support leave, and updates employer reporting obligations. Expanded Protections for State-Contracted Service Providers The amendment adds a section to the LPA that extends core labor protections to individuals engaged by government bodies under service contracts. This provision covers workers hired by central, regional, and local government agencies; state enterprises governed by the State Enterprise Labor Relations Act; public organizations; and other state agencies when these entities retain individuals under service procurement contracts (or similar arrangements) and exercise supervision, direction, and control over their work. In such cases, the hiring agencies must provide terms no less favorable than those required under the LPA for remuneration, weekly holidays, traditional holidays, annual leave, sick leave, maternity leave, working days and hours, and rest periods. Ministerial regulations will establish specific criteria for implementation. Disputes regarding rights and duties under this provision will fall under Labor Court jurisdiction. This change aligns the treatment of controlled service contractors with that of regular employees, addressing a longstanding coverage gap in the public sector. Enhanced Maternity Leave and New Caregiving Provisions The amendment includes a maternity leave entitlement of up to 120 days per pregnancy (an increase from the previous 98 days), unless otherwise prescribed by royal decree, and also introduces a new postnatal caregiving leave for mothers in complex medical situations who have used their childbirth leave, granting up to 15 additional days to care for children who are at risk of complications, have abnormalities, or have disabilities. This supplemental leave requires support from a medical
Read More