Thailand’s recent removal of cannabis from the list of narcotics represents a significant development for the country, and it has some human resources teams wondering whether they should prepare certain measures in order to prevent detrimental incidents from happening in their organizations. For example, some employees could still be under the influence of cannabis because they used it before coming to work. In the past, this was rarely a consideration as cannabis was clearly banned. Using cannabis or possessing cannabis inside the employer’s premises subjected employees to criminal liability including imprisonment and fines. However, now that the government has removed cannabis from the narcotics list under the Narcotics Act, such incidents are more likely to occur. This likelihood has led to concern among many employers about how they can prevent or handle these incidents. An employer does have the right to prohibit any employee from bringing cannabis inside its premises, as it is the property of the employer. The employer has the management right to do this, particularly as an employee’s use of cannabis may very well disturb other employees. But if the employer would like to set penalties for breaching the prohibition, the picture is more complicated. Employers’ Work Rules Under the Labour Protection Act (LPA), an employer who has at least 10 employees must have Thai-language work rules. These work rules must include the following items: Specification of working days, regular working hours, and rest periods; Holidays and rules for taking holidays; Rules concerning overtime work and work on holidays; Arrangements for payment of wages (i.e., schedule and location); Overtime pay, holiday pay, and holiday overtime pay; Leave and rules for taking leave; Discipline and disciplinary actions; Submission of grievances; and Termination of employment, severance pay and special severance pay. To issue or amend work rules (e.g.,

On October 3, 2022, Thailand’s Ministry of Labour issued an announcement canceling the prohibition on lockouts and strikes, which had been in place since the onset of the COVID-19 pandemic. While this cancellation does not apply to ongoing labor disputes already being considered under the interim arrangements, it will apply to all other labor disputes from October 5, 2022, when it was published in the Government Gazette. Lockouts and strikes are basic rights of employers and employees under the Labour Relations Act B.E. 2518 (1975). However, these rights can be suspended—as they have been since May 8, 2020, when the Ministry of Labour announced that all labor disputes that could not be resolved through negotiation must be presented to the Labour Relations Committee in lieu of organizing strikes or lockouts. The announcement referred to the necessity of such special administration during the COVID-19 situation in order to prevent possible negative impacts on both employers and employees. On September 30, 2022, Thailand ended its COVID-19 emergency decree and dissolved the country’s Centre for COVID-19 Situation Administration. In light of this, the Ministry of Labour decided to end the requirement that unresolved labor disputes be sent to the Labour Relations Committee. The ministry’s cancellation of the prohibition will once again allow employers and employees to organize lockouts and strikes under the Labour Relations Act, starting October 5, 2022. For more details on this development, or for assistance with employment-related questions or disputes in Thailand, please contact Tilleke & Gibbins at [email protected] or +66 2056 5555.

Impacts from the COVID-19 pandemic have led some manufacturers to reduce costs by changing production methods, designs, or machinery, or reducing the number of employees on payroll. While these strategies may reduce costs and help their business survive, they may also result to lower quality goods. In the worst case, however, these poor quality goods may cancel out or even outweigh a manufacturer’s cost savings if the products are deemed to be unsafe for consumers under Thailand’s Product Liability Act (officially the Liability for Damages Arising from Unsafe Products Act). The Product Liability Act has been in force for 14 years. However, there have been few landmark Supreme Court decisions related to it as most cases are settled before the final judgment. Consequently, most business owners have limited knowledge of the precedent cases and are unsure about what actions they can take to manage and mitigate the risk of being found liable for claims of damages due to an unsafe product. The Product Liability Act identifies several types of entrepreneurs and business operators (individuals and entities) as “potentially liable parties” (PLPs) who may be penalized under the law: Manufacturers or hirers Importers Sellers of goods for which the manufacturer, hirer, or importer cannot be identified; Any other party who uses the name, trade name, trademark, or statements of the alleged unsafe products, or acts in a manner that causes them to be seen as a manufacturer, hirer, or importer The Product Liability Act defines a “product” as any kind of movable property that has been manufactured or imported for sale—including agricultural products and electricity, but excluding those ruled out by ministerial regulations. Therefore, real estate and services are excluded from the Product Liability Act. However, real estate buyers are protected by the Civil and Commercial Code, and by the

In the course of our work, we often hear about consumers in Thailand lodging complaints with the Office of the Consumer Protection Board (OCPB) about problems with a purchased product or service. The OCPB is a government agency attached to the Office of the Prime Minister. Its main duties are to protect consumers in Thailand with respect to product advertising, product labeling, and contracts, and to handle consumer complaints. However, there are exceptions to the types of consumer complaints that the OCPB can handle. This is because some consumer complaints must by law be handled by certain specialized agencies. Examples of these exceptions include consumer complaints relating to: health products (food, drugs, cosmetics, medical devices, household dangerous substances, and narcotics); medical services; insurance; pricing of consumer products; condominium juristic person; public land; rail, water, and air transportation; tourism; education; banking and finance; telecommunications; and electricity and water consumption. Procedure When a consumer complaint that the office can accept comes to the OCPB, the officers first consider whether the business operator has violated any laws, in which case the relevant authorities, such as the police, should handle the matter. When the officers consider it appropriate, they may ask the parties to mediate the dispute. Complaints in Bangkok are mediated by officers at the Bangkok OCPB. For complaints lodged in other provinces, the governors of the provinces may assign officers or agencies under their supervision to mediate. The OCPB can mediate twice within 90 days. If the parties still want to continue with the mediation, a subcommittee of the Consumer Protection Board (CPB)—the body that directs the OCPB—will then conduct two more mediation sessions within 90 days. If a resolution is still not reached, the subcommittee can conduct one additional mediation session before declaring the mediation failed and ending the complaint