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 13, 2020

COVID-19: Thailand Eases Provident Fund Requirements and Prohibits Strikes and Lockouts

Subscribe to Updates

In the latest of a suite of measures designed to help employers and employees weather the COVID-19 crisis, the Thai government has published legislation allowing the temporary cessation of provident fund contributions for employers and employees in crisis and preventing the use of strikes or lockouts in employment disputes while the government’s emergency decree is in force.

Provident Fund Measures

On May 5, 2020, the Announcement on Designation of Types of Business, Duration, and Conditions for Employees or Employers to Cease or Postpone the Submission of Savings or Contributions to the Provident Fund in Areas Affected by Economic Crisis, Disaster, or Other Severe Events Affecting Economic Conditions was published by the Ministry of Finance in the Government Gazette.

This announcement exempts both employers and employees from their duties to submit contributions to the provident fund between May 5 and December 31, 2020, subject to certain criteria and their agreement to make use of the exemption under the announcement. The provident fund membership status of employers and employees who avail themselves of these measures will not be affected.

In order to make use of the exemption under the announcement, employers will have to certify that they meet the following conditions:

  • The business is facing an operational crisis because of the COVID-19 pandemic; and,
  • The business is facing a financial crisis.

The exemption also requires a resolution of approval from either:

  • A resolution by a general meeting of the provident fund members, held in accordance with the fund’s regulations, resolved in accordance with the regulations for counting votes in general meetings or by at least half of the meeting attendees if the fund regulations are silent on vote counting; or,
  • A unanimous vote from all members of the fund committee if the meeting cannot be held for any reason.

In addition, if the provident fund is a pooled fund consisting of more than one employer, resolutions must be obtained from meetings of the members of each employer, or from the fund committee of each employer.

The employer or the fund committee must notify the registrar that they have resolved to make use of the exemption, attaching the following documents:

  • A certification, signed by the employer’s directors, certifying that the business is facing operational difficulties because of the COVID-19 pandemic, and is thus facing a financial crisis; and,
  • The meeting report for the resolution with details of the acknowledgement of the employer’s situation and details of the resolution to use the exemption (showing the decision on whether to cease or postpone contributions, and the decision on the duration of the cessation or postponement).

The employees and employer can resume their contributions to the provident fund before the end of the agreed period by jointly agreeing and notifying the registrar. In addition, during the temporary cessation or postponement of contributions by employers, employees can still submit their contributions to the provident funds. The employer has full discretion over whether to submit employer contributions in that circumstance. 

Strikes and Lockouts

In addition, on May 8, 2020, the Announcement on Determination of Unsettled Disputes to be Resolved by Labor Relations Committee and Forbidding Lock Outs or Strikes during the Announcement of Emergency Situation under the Law Regarding Public Administration in Emergency Situations, issued by the Labor Ministry, was published in the Government Gazette.

This announcement prohibits employees and employers from using strike or lockout measures under the Labor Relations Act B.E. 2518 (1975) during the emergency situation period announced under the Emergency Decree, currently set to expire on May 31, 2020 (subject to extension). The announcement also states that any strike or lockout that commenced before May 8, 2020, must end, and that all employees must return to work or employers must reinstate the employees. Any unsettled disputes under the Labor Relations Act that occurred during the emergency situation period must now be considered and resolved by the Labor Relations Committee.

Download Full Article
Related Professionals

Practices

Employment

Location

RELATED INSIGHTS​ 

September 2, 2025
On August 26, 2025, the Thai cabinet approved a one-year postponement of mandatory contributions to the Employee Welfare Fund. Originally scheduled to take effect on October 1, 2025, the enforcement date has been deferred to October 1, 2026. The decision to delay the implementation stems from ongoing economic uncertainties in Thailand, driven by several external and domestic factors. These include increased trade tariffs imposed by the United States, the recent rise in the national minimum wage, and continued geopolitical tensions resulting from unresolved disputes with neighboring countries. These challenges have placed significant pressure on both businesses and the labor market, prompting the government to offer temporary relief through this deferral. As a result of the postponement, the following regulations will now come into effect on October 1, 2026: Royal Decree determining the Commencement Period for Savings and Contributions to the Employee Welfare Fund; Ministerial Notification specifying the Rates of Savings and Contributions; and Ministerial Notification outlining the Criteria and Procedures for Employers to Provide Assistance in Cases of Termination of Employment or Death. The Labour Welfare Fund Committee has formally endorsed the postponement. Contribution Rates Unchanged Although the implementation has been delayed, the contribution rates remain unchanged: October 1, 2026–September 30, 2031: Employers and employees each contribute 0.25% of the employee’s wage to the fund. From October 1, 2031, onward: Contributions increase to 0.5% of the employee’s wage for both parties. All other rules and conditions concerning the Employee Welfare Fund remain in full effect.
Read More
August 29, 2025
On August 15, 2025, Laos’ Immigration Police Department introduced a pilot online arrival registration system for foreign passport holders entering the country. Under the new system, visitors to Laos will be able to register their arrival online up to three days in advance and will be exempt from filling out paper forms at the border. Starting September 1, 2025, online registrations will be accepted at four major international border checkpoints: Wattay International Airport in Vientiane, Luang Prabang International Airport, Pakse International Airport in Champasak Province, and the First Lao-Thai Friendship Bridge linking Vientiane and Nong Khai Province in Thailand. Foreign passport holders arriving in Laos from this date onward will be able to complete the online registration via the official website of the Department of Immigration: http://www.immigration.gov.la/. Upon successful registration, travelers will receive a QR code valid for three days, which must be presented to border authorities upon arrival to verify the registration. During the pilot phase, which is expected to run until early 2026, travelers who have not registered online will still have the option to complete a paper form at the checkpoint. After the pilot phase, the online registration system will become mandatory nationwide, and paper forms will no longer be accepted. This initiative marks a significant step toward modernizing Laos’ immigration procedures. Transitioning from traditional paper-based entry forms to a streamlined digital system will greatly enhance efficiency at border checkpoints. The submission of traveler information ahead of arrival is expected to drastically reduce processing times and alleviate congestion at arrival counters, especially during peak travel periods.
Read More
August 20, 2025
On August 7, 2025, the government of Vietnam promulgated Decree No. 219/2025/ND-CP on foreign workers working in Vietnam (Decree 219), introducing substantial reforms to the management of foreign employees. Taking immediate effect upon issuance, and superseding earlier regulations on foreign employees under Decree No. 152/2020/ND-CP as amended by Decree No. 70/2023/ND-CP (collectively referred to as “Decree 152”), Decree 219 sets out clear timeframes and application requirements for work permit issuance, while adopting more flexible policies to support business operations. The key new provisions are as follows: 1. Relaxed Requirements Regarding Job-Posting Under Decree 152, employers were required to follow a complex process to apply for work permits or work permit exemption certificates for foreign employees. This included posting an advertisement for any position the employer wished to fill with a foreign employee on a designated online portal for a given amount of time, to demonstrate that the company tried, but failed, to find a suitable Vietnamese candidate for the position. This job-posting step now only applies when the foreigner will work in Vietnam under a local labor contract. Foreigners coming to Vietnam as intra-corporate transferees (i.e., as secondees) or working under service contracts are exempt. The job-posting period is also reduced from 15 calendar days to five business days. Employers may also now post the advertisements on multiple websites instead of only the online portal of the Ministry of Labor, Invalids and Social Affairs (now the Ministry of Home Affairs after government restructuring) or the provincial-level employment service center. 2. Work Permit Application Dossier Previously, employers were required to complete a preapproval step, whereby they had to submit a dossier explaining their foreign labor demand that required approval from the labor authority. Once approval for the foreign labor demand was granted, the approval dossier was an integral part of
Read More
August 20, 2025
With the shift in US policy to discourage DEI programs among government and private-sector employers, some companies have been cutting back. But US companies should be cautious in eliminating their DEI programs globally, as some elements of these programs are obligations under local laws in Vietnam, Thailand, and Cambodia.
Read More