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

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 INSIGHTS​ 

July 7, 2025
On June 20, 2025, Cambodia’s Ministry of Economy and Finance issued Instruction No. 19116 to clarify when board members and company directors must receive salaries and pay payroll taxes. Board members and company directors who are not considered employees are subject to a withholding tax. This category consists of people who complete services for a nonresident individual and people who perform independent work for a company in Cambodia. Board members and company directors who are considered employees, including those appointed by a foreign head office to temporarily manage a company in Cambodia, must pay payroll taxes on any salary they receive, regardless of whether they are paid by a local or foreign branch of the company. The above obligations apply regardless of whether the person has a work permit. Board members and company directors are exempt from paying payroll tax if they: Are not present and not performing a regular management role at the company despite being registered on the company’s statutes or patent tax card; Participate only in board meetings and occasional shareholder meetings; and Do not receive a salary from a company in Cambodia. Overall, this instruction provides an important clarification regarding the tax obligations of board members and company directors. Companies should pay attention to the classification of their board members and directors and be mindful of the exemption.   This article was written with the assistance of Tilleke & Gibbins interns Amelia Gemma Erickson and Amrin Keat.
July 7, 2025
On June 27, 2025, Thailand issued the new Ministerial Regulation Prescribing the Criteria and Rates for Receiving Unemployment Benefits (No. 2) B.E. 2568 (2025), which amended a similarly named ministerial regulation by boosting the rate of social security benefits to alleviate hardships for employees who are terminated. The new ministerial regulation took effect the following day. Under this new ministerial regulation, eligible terminated employees are entitled to receive unemployment benefits under the Social Security Fund (SSF) for a maximum of 180 days per year, at the rate of 60% of the employee’s monthly wages at the time of termination, up from 50% previously. However, the maximum wage used as the basis for calculating the benefit remains capped at THB 15,000 per month. Therefore, the maximum unemployment benefit that an employee can receive from the SSF is now THB 9,000 (up from THB 7,500) per month for a period of up to six months. To qualify for the unemployment benefits from the SSF, employees must be registered with the Social Security Office and must have contributed to the SSF for at least six months within the 15 months prior to the start date of the relevant unemployment period. This new ministerial regulation was enacted to increase the amount of financial support provided to insured persons in the case of termination, as part of the government’s objective of alleviating economic hardship under current economic and social conditions in Thailand. For more details on unemployment benefits in Thailand, or on any aspect of employment law in the country, please contact Pimvimol (June) Vipamaneerut at [email protected], Dusita Khanijou at [email protected], Ketnut Pukahuta at [email protected], or Chomanut Arif at [email protected].
July 4, 2025
On July 1, 2025, new minimum daily wage rates for Bangkok and certain business types nationwide were published in the Government Gazette, taking effect on the same day. The daily minimum wage rate for Bangkok has been increased to THB 400 per day, while the minimum wage rates for other provinces remain unchanged from the rates that took effect on January 1, 2025. However, daily minimum wage rates have also been increased to THB 400 nationwide for type 2, type 3, and type 4 hotels under the Hotel Act and for entertainment establishments under the Entertainment Place Act. This THB 400 rate applies to all businesses that meet the criteria, even if the province’s general rate is lower. The new minimum wage rates supersede any lower wages agreed upon in existing employment contracts or conditions of employment that were in force before this announcement came into effect. As a result, these employees must be paid their wages at the newly prescribed rate for work performed from July 1, 2025, onward.
July 2, 2025
On June 17, 2025, Cambodia’s Ministry of Economy and Finance issued Instruction No. 18574 on Tax Obligations for Share Premiums to clarify that enterprises are not required to pay any income tax on share premiums that meet the conditions set out in the instruction. As outlined in the relevant provisions of the Law on Taxation (Royal Kram No. NS/RKM/0523/004) and Prakas No. 578 MEF.PrK.GDT on Tax on Income, taxable income is the difference between an asset’s value at the beginning and end of a period. This calculation deducts capital contributions, which are not taxable. A share premium is the amount of money that a company receives in excess of the par value of a share when the company issues new shares to a shareholder through a share subscription. In other words, share premiums are capital contributions made by shareholders into the equity of the company and, as a result, are not taxable. However, the government may nevertheless view share premiums as taxable if the company fails to meet certain legal conditions. Cambodian law requires share subscriptions to be properly recorded in the company’s accounting books and supported by documentary evidence. The recent instruction states that if an enterprise does not have proper documentation, any increase in equity, such as a capital increase through share premiums, will be treated as taxable income in accordance with the law. The instruction provides the following example: Enterprise A issues 200,000 new shares to an investor. The shares were registered with a par value of KHR 4,000 per share and were sold for a sale price of KHR 10,000 per share. The share premium of KHR 1.2 billion, which is calculated by subtracting the total par value (KHR 800 million) from the total value of the new capital (KHR 2 billion), is a capital