“Forced labor” has many incarnations. Some forms are shocking, such as a case in 2021 where Vietnamese guest workers were brought to a Chinese-owned factory in Serbia that manufactured tires sold to European car companies. The guest workers allegedly had their passports taken away and were subjected to horrible living conditions, including a lack of food, forcing them to resort to hunting small animals in the nearby forest to survive. However, forced labor more often takes subtler forms, so that most people do not even recognize it as such. For example, a factory may receive an order with an extremely short production deadline, and the workers are instructed to work overtime hours. If the employees refuse to do so and stop working when their regular shift ends, they receive warning letters the next day. While less shocking than the situation of the guest workers forced to hunt squirrels to survive, it is also forced labor. ILO Convention No. 29 on Forced Labor defines forced labor as “all work or service…extracted from any person under the menace of any penalty and for which the said person has not offered…[them]self voluntarily.” The ILO names 11 indicators of forced labor: abuse of vulnerability, deception; restriction of movement, isolation, physical/sexual violence, intimidation and threats, retention of identity documents, withholding of wages, debt bondage, abusive working or living conditions, and excessive overtime. Excessive overtime in particular is common in the manufacturing sector in Southeast Asia, and debt bondage is also prevalent. Some companies demand employees provide a “training deposit” when they commence their employment, which they will have repaid provided they continue working for a minimum period. However, these common practices may soon be eradicated due to new supply chain due diligence legislation. Two such examples demonstrating this greater focus on forced labor within

On April 10, 2024, new minimum wage rates for workers in certain hotels in Thailand were published in the Government Gazette, taking effect on April 13, 2024. Under the Notification of the National Wage Committee on Minimum Wage Rate for the Hotel Industry, the new minimum wage rate is THB 400 per day, applicable to employees working in four-star (and above) hotels that have at least 50 employees and are located in the following specific areas: Bangkok: Pathumwan and Wattana districts Krabi: Ao Nang Subdistrict Administrative Organization areas Chon Buri: Pattaya city Chiang Mai: Chiang Mai municipality Prachuap Khiri Khan: Hua Hin municipality Phang-nga: Khukkhak sub-district municipality Phuket: Whole province Rayong: Phe subdistrict Songkhla: Hat Yai municipality Surat Thani: Koh Samui municipality Rationale The increase in the minimum wage is to drive and stimulate the economy in Thailand’s tourism industry, which is critical to the overall economy of the country. The ten areas identified above are those that earn a significant portion of their revenue from tourism. The decision underwent a public hearing process involving stakeholders. Although there were objections from some hotels claiming they were not yet ready to bear the increased costs, the law was enacted, taking effect on April 13, 2024. For more information on Thailand’s minimum wage regulations, or on any aspect of employment law in Thailand, please contact Pimvimol (June) Vipamaneerut at [email protected], Ketnut Pukahuta at [email protected], Dusita Khanijou at [email protected], or Chomanut Arif at [email protected].

Cambodia’s Ministry of Labor and Vocational Training issued the Notification on the Compensation for Terminating an Employment Contract on March 21, 2024, clarifying the compensation due to employees upon the termination of their employment contracts. The notification outlines different requirements depending on the nature of the termination and the type of employment contract, as laid out below. Termination without Valid Reason and in Absence of Serious Misconduct If an employment contract has been terminated by an employer without a valid reason and the employee did not commit any serious misconduct as defined under the relevant article of the Labor Law, the employer must compensate the employee as follows: Fixed-Duration Contract: Wages that have not yet been paid; Unused and unpaid annual leave through the termination date; Severance payment equal to at least 5% of the wages paid to the employee during the length of the contract; and Damages for being laid off before the expiration date of the fixed-duration contract, at least equal to the wages the employee would have received had he or she completed the original contracted term of employment. Unspecified-Duration Contract: Wages that have not yet been paid; Unused and unpaid annual leave through the termination date; Compensation in lieu of notice if the employer did not give prior notice in accordance with the Labor Law; Seniority indemnity for the semester that the employee is terminated and total seniority back payments that have not been paid; and Damages for being laid off, in an amount equal to the seniority payment received during the employment contract. Termination in Cases of Serious Misconduct Employees who commit any serious misconduct as defined under the Labor Law (regardless of whether they are under a fixed-duration or unspecified-duration contract) are entitled only to the following compensation: Wages that have not yet

Lawyers from Tilleke & Gibbins’ labor and employment team have contributed a new Vietnam chapter to Thomson Reuters Practical Law’s Employment and Employee Benefits Global Guide. The guide provides a high-level comparative overview of employment laws and regulations across various jurisdictions around the world. Tilleke & Gibbins also contributed the Myanmar chapter of the guide. The Vietnam chapter covers a wide range of typical employment matters, such as limitations on working hours, paid leave requirements, minimum wage, and health and safety obligations. In addition, the guide provides insight on a number of topics of special interest to foreign investors doing business in Vietnam, including the following: Mandatory contents of a labor contract; Visas and permits required for expatriate employees; Employers’ obligations for protecting employees’ privacy and personal data; Procedural requirements for the dismissal of an employee; Employer and parent company liability. To view the latest version of Employment and Employee Benefits, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.