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

March 2, 2021

Thai Employment Law: The Employee Committee and the Special Rights of Its Members

Informed Counsel

Maintaining positive employee relations is a top concern for virtually all companies. Many companies in Thailand—especially those located in the country’s industrial estates—have labor unions, while others rely on other non-union pathways for attending to the concerns of employees. In all of these cases, the union or collective group of employees also chooses members of the “employee committee” that is charged with fostering good relations and open communications with the employer through regular meetings dedicated to discussion of workplace matters.

Companies with a workforce of 50 or more employees need to understand the roles of the employee committee and the specific rights accorded to the committee members, which are different from the rights of the other employees. Besides the obvious benefits that this understanding has for relations with their employees, it is also important if an employer takes disciplinary action against employee committee members, as violation of a committee member’s rights could result in the employer facing criminal penalties.

The legal basis for these employee committees is the Labor Relations Act B.E. 2518 (LRA), which stipulates that in any workplace with at least 50 employees, the employees or their labor union of the business establishment is entitled to establish an employee committee. Members are elected (or, in the case of a labor union, appointed) to three-year terms on the committee, with the total number of committee members depending on the size of the workforce, as shown in the table.

Membership Requirements

Among partially unionized workforces, labor unions are generally given precedence when it comes to control of the committee. If a labor union whose members account for more than 20% of the total employees in a workplace, the union gets to appoint the majority of the employee committee members (e.g., four out of a seven-person committee, five of a nine-person committee, etc.). Moreover, if a union’s membership accounts for more than 50% of the employees, it is entitled to appoint all employee committee members. Any labor union appointees would have their term begin on the date of their appointment, regardless of when an election is held for the non-union members of the employment committee.

In a situation where a workplace has multiple labor unions that have appointed separate employee committees, exceeding the number of the employee committee members stated by the LRA, the employer is entitled to refuse to recognize the employee committees.

Employers must meet with their employee committee at least once every three months, or whenever the labor union or more than 50% of employee committee members request it. The topics to be discussed include employee welfare, new work rules, employee complaints, and disputes and compromises in the workplace.

If an employee committee considers that an employer has acted unfairly against or caused excessive trouble for employees, the committee (or the relevant employee or the labor union) may lodge a petition with the Labor Court.

Protection of the employee committee

The LRA requires employers to first obtain permission from the Labor Court before terminating the employment of committee members, reducing their wages, taking disciplinary actions against them, otherwise obstructing them from carrying out their duties, or performing any act resulting in a committee member being unable to continue working.  If an employer breaches the LRA by doing one of these things without permission from the court, the employer (including directors or authorized persons who act on behalf of the juristic person) risks facing criminal penalties, such as imprisonment for up to one month, a fine of up to THB 1,000, or both. These penalties will remain even if the employer later succeeds in obtaining permission from the Labor Court to terminate the employee—a position upheld by the Supreme Court because the offense was committed before the court issued an order, thus constituting a violation of the LRA.

This court order requirement extends to any scenario wherein an employee committee member violates company work rules, and the disciplinary action ultimately taken against that employee depends on both the employer’s work rules and the consideration of the court. This means that even if the work rules state that an offence can be punished by termination, the court may still opt to punish the offender less severely than what the rules would otherwise prescribe, particularly if it considers that the offence is not grievous enough to warrant outright termination. (This position is again supported by Supreme Court precedent.) If, on the other hand, the court does issue an order permitting the termination of an employee, any subsequent termination would not be considered an unfair labor practice, and the employee would not be entitled to submit a complaint to the Labor Relations Committee.

Some employers may also be surprised to learn that even if they close down their business permanently and terminate all employees, they must ask the Labor Court for permission to terminate the employee committee as well. Otherwise, the employer may face the criminal penalties described above.

Consequently, an employer should be aware of the potential risks before considering any type of disciplinary or other action against a member of an employee committee, as it can be construed as a violation of the LRA and punished with criminal penalties accordingly. Some might find this difficult to remember when involved in the thick of a labor dispute, a situation of employee wrongdoing, or simply the day-to-day challenges of running a business with a large workforce, but staying in control and acting prudently—with foresight into legal requirements and consequences—can help employers stay on the right side of the law.

RELATED INSIGHTS​ 

December 4, 2024
Thailand Legal Basics, a valuable primer for foreign investors, explores all aspects of living and doing business in Thailand. Written by specialists at Tilleke & Gibbins in Bangkok, it is the only comprehensive English-language guide to the Thai legal system with a focus on the concerns of foreign business and investment.
October 1, 2024
Three of Tilleke & Gibbins’ labor and employment specialists in Vietnam have contributed the Vietnam chapter to the newly issued Labor and Employment Disputes 2024, a comprehensive guide from Lexology Panoramic to labor and employment dispute resolution in various jurisdictions around the world. The Vietnam chapter covers the following topics: Pre-action considerations: Key requirements, third-party funding, contingency fee arrangements Issuing a claim: Forum, territorial jurisdiction, standing, commencing claims, fees, service Defendants and legal personality: Types of claims, time limits, counterclaims Case management: Procedure, rules, amendments to claims, adding parties to proceedings, consolidating proceedings Class and collective actions: Special considerations Evidence: Witnesses, tactical considerations Interim relief: Availability, requirements Trial: Hearings conduct and typical time frames, confidentiality and public access, media reporting Elements of successful claims and burden of proof Alternative dispute resolution: Available types, requirements and expectations Enforcement: Collective employment and labor rights, enforcement of collective rights, standing Remedies and enforcement: Available remedies, assessing compensation, enforcement mechanisms Appeals: Appeal procedure and time frames, other means of challenge Update and trends: Recent cases and developments, technology developments, other issues The Vietnam chapter was authored by Truc Thi Thanh, Linh Ngoc Nguyen, and Kien Trung Trinh. Tilleke & Gibbins also contributed the Cambodia and Thailand chapters to Labor and Employment Disputes 2024.
October 1, 2024
Four of Tilleke & Gibbins’ labor and employment specialists in Bangkok have contributed the Thailand chapter to the newly issued Labor and Employment Disputes 2024, a comprehensive guide from Lexology Panoramic to labor and employment dispute resolution in various jurisdictions around the world. The Thailand chapter covers the following topics: Pre-action considerations: Key requirements, third-party funding, contingency fee arrangements Issuing a claim: Forum, territorial jurisdiction, standing, commencing claims, fees, service Defendants and legal personality: Types of claims, time limits, counterclaims Case management: Procedure, rules, amendments to claims, adding parties to proceedings, consolidating proceedings Class and collective actions: Special considerations Evidence: Witnesses, tactical considerations Interim relief: Availability, requirements Trial: Hearings conduct and typical time frames, confidentiality and public access, media reporting Elements of successful claims and burden of proof Alternative dispute resolution: Available types, requirements and expectations Enforcement: Collective employment and labor rights, enforcement of collective rights, standing Remedies and enforcement: Available remedies, assessing compensation, enforcement mechanisms Appeals: Appeal procedure and time frames, other means of challenge Update and trends: Recent cases and developments, technology developments, other issues The Thailand chapter was authored by Eric M. Meyer, Chusert Supasitthumrong, Pathanin Sornchangwat, and Chayathorn Kruatao, all in the Thailand dispute resolution and litigation team. Tilleke & Gibbins also contributed the Cambodia and Vietnam chapters to Labor and Employment Disputes 2024. The full Thailand chapter is available below as a PDF.
August 14, 2024
Myanmar has once again made significant amendments to its minimum-wage framework by introducing additional allowances for both public- and private-sector workers. On August 9, 2024, the National Committee for Setting the Minimum Wage issued Notification No. 1/2024, which entitles private-sector workers to a new additional daily allowance of MMK 1,000 (approximately USD 0.48). This increase is on top of the MMK 1,000 additional daily allowance introduced last year. As a result, workers at private-sector employers with more than 10 employees are now entitled to the base minimum wage of MMK 4,800 plus additional allowances of MMK 2,000, for a total of MMK 6,800 (approximately USD 3.20) per day for an eight-hour workday, effective August 1, 2024. A similar additional allowance had been announced for workers in government departments and organizations on July 26, 2024. Background The MMK 4,800 (approximately USD 2.29) minimum wage for an eight-hour workday (equivalent to MMK 600 per hour) was established in May 2018 for all workers, irrespective of location or job type. In September 2023, the Ministry of Planning and Finance announced an additional daily benefit of MMK 1,000 for workers in government departments and organizations, and on October 9, 2023, the National Committee for Setting the Minimum Wage extended this benefit to workers at private-sector employers with more than 10 employees, bringing the effective minimum daily wage to MMK 5,800 (approximately USD 2.77). These changes took effect on October 1, 2023. Applicability of Additional Allowances for Private-Sector Workers The latest announcement also entitles employees to the base minimum wage and additional allowances for days used from their entitlement to leave and holidays, in accordance with the 1951 Leave and Holidays Act. However, the daily allowances—totaling MMK 2,000—are not to be included when calculating overtime payments. Instead, overtime payments must be calculated based on