Labour Protection Act B.E. 2541 (1998), as amended
Sets severance by length of service, notice, holidays and the narrow no-severance grounds.
Practice area
Employment & Labour Law
Advising employers and employees under the Labour Protection Act.
Most labour disputes begin with incomplete paperwork: employment contracts that leave key terms unstated, work rules that were never updated, or terminations carried out without the statutory steps. We advise and litigate in the Labour Court for both employers and employees — from drafting employment contracts and work rules through to mediation and claims for severance pay and unfair dismissal.
What this practice covers
- Drafting employment, executive and confidentiality agreements
- Preparing work rules that comply with the Labour Protection Act
- Advising on warnings, suspension and termination procedures
- Calculating severance and end-of-employment entitlements
- Labour Court litigation and dispute mediation
- Work permits and employment of foreign nationals
- Matters before labour inspectors and appeals against their orders
How we work on your matter
- 1Initial case assessment of the contract, correspondence and timeline
- 2A written summary of each side’s rights and exposure
- 3Negotiation or mediation to settle before court where appropriate
- 4Filing the claim or defence and conducting the Labour Court proceedings
- 5Acting on the judgment and enforcement where required
Documents to prepare
- Employment contract and all annexes
- Work rules and internal announcements
- Payslips and payment records
- Warning letters, termination letters and meeting minutes
- Relevant correspondence between employer and employee
Points to watch
- Terminating without stating the reason in writing can prevent the employer from relying on that reason later.
- Some claims are subject to time limits; delay can forfeit the right to bring them.
- Overly broad non-compete clauses may be narrowed by the court.
- Outcomes depend on the evidence and the court’s discretion; we do not guarantee results.
Typical timeframe
Mediated labour disputes can conclude within weeks, while cases that proceed to hearing follow the Labour Court’s calendar and the number of witnesses, typically measured in months.
Timeframes are indicative only and depend on the authority, the court calendar and the completeness of your documents.
The documents that decide labour cases
In labour cases documentary evidence usually carries more weight than testimony, because the court looks at what was recorded at the time. Warning letters specifying the conduct and the date, meeting minutes signed as acknowledged, and termination letters stating the full reason can each change the outcome. Verbal warnings with no record, by contrast, are difficult to prove at trial.
We therefore advise employers to put a documentation routine in place in advance, and employees to keep copies of the contract, payslips and important messages from the start. Preparing records early affects a case far more than searching for evidence after a dispute has already begun.
Options before the Labour Court
Not every dispute should end in litigation. A complaint to the labour inspector or mediation often takes less time and preserves the relationship better. We weigh the value of the claim, the strength of the evidence and the time cost of each route, then set out the most reasonable option for the client to decide on.
If proceedings are necessary, the Labour Court’s procedure emphasises speed and in-court conciliation, so clients should have their figures and documents ready from the first hearing — that is often where the dispute can be resolved.
Laws that govern this matter
Summarised for general understanding only. The application of each provision depends on the facts of your case.
Act on Establishment of Labour Courts and Labour Court Procedure B.E. 2522 (1979)
Labour cases are heard expeditiously with mediation emphasised before trial.
Labour Relations Act B.E. 2518 (1975)
Applies to employment-condition agreements, unions and collective disputes.
Example situations and how they are handled
These are constructed examples used to explain procedure. They are not client matters, and no outcome is implied or guaranteed.
Illustrative scenario: dismissal for underperformance
Situation: An employer dismisses for performance without any warnings or improvement plan on file.
Usual approach: The key is documentation: measurable criteria, warnings and a chance to improve. Without them, dismissal is commonly treated as unfair with severance exposure. (Hypothetical.)
Advice for your specific situation
Employees
- Request a dismissal letter stating reasons and date — later-added reasons are hard to rely on.
- Labour claims have filing deadlines — seek advice immediately after dismissal.
Employers
- Keep work rules current and properly communicated — this matters in disputes.
- Calculate severance by service length before giving notice to reduce litigation risk.
Every matter — what to do in the first 7 days
- Gather every original document in one place, keep scanned copies, and note the date you received each one.
- Write a dated timeline — the date you received a notice or learned of the event usually starts the limitation or appeal clock.
- Do not sign a settlement, debt acknowledgement or withdrawal before a lawyer reviews it — it may extinguish existing rights.
- Preserve digital evidence unaltered (full screenshots, original files, emails with headers) — edited files are easy to challenge.
This service in your province
Province pages set out the courts and authorities with jurisdiction locally, and answer the questions people in that area ask.
Employment & Labour Law — BangkokEmployment & Labour Law — Chiang MaiEmployment & Labour Law — PhuketEmployment & Labour Law — ChonburiEmployment & Labour Law — Khon KaenEmployment & Labour Law — Udon ThaniEmployment & Labour Law — Nakhon RatchasimaEmployment & Labour Law — SongkhlaEmployment & Labour Law — Surat ThaniEmployment & Labour Law — Chiang RaiEmployment & Labour Law — RayongEmployment & Labour Law — Nonthaburi
Frequently asked questions
When is an employee entitled to severance pay?
Generally when the employer terminates and the employee has not committed one of the statutory disqualifying acts. The rate depends on length of service under the Labour Protection Act; resignation generally does not attract severance.
Must an employment contract be in writing?
The law does not require every employment contract to be in writing, but in practice clear documentation substantially reduces disputes, particularly over wages, position and termination conditions.
What must a foreign employer do to hire Thai staff?
Register as an employer with the Social Security Office, withhold tax from employees’ income, and comply with the Labour Protection Act on the same terms as a Thai employer.
Related services
Other practice areas
Litigation & Court RepresentationCivil, criminal, labour, family, succession and land disputesCorporate & CommercialIncorporation, contracts, foreign business, BOI and complianceImmigration & Foreign NationalsVisas, work permits, residency and lawful statusIntellectual PropertyTrademarks, copyright, patents and enforcementLand & Real EstateTitle due diligence, sale, lease and transfer at the Land OfficeFamily & SuccessionMarriage, divorce, custody, wills and estate administrationMediation, Arbitration & EnforcementResolving disputes outside court and making awards effectiveNotarial Services & International DocumentsSignature and document certification, translation, consular and embassy legalisationBOI Promotion & Foreign Business LicensingStructuring foreign investment in Thailand correctly from day one.Tax, Accounting & Employer ComplianceKeeping every statutory tax and accounting deadline under control.PDPA & Data Protection ComplianceBuilding data protection practices that match Thailand’s PDPA.Condominium & Foreign Property OwnershipChecking title, documents and transfer before a major payment is made.Integrated Legal Support ServicesInterpreters, documents, agency runs and case tracking in one place.Judgment Enforcement & Asset TracingTurning a judgment into actual recovery through lawful tracing, seizure and attachment.M&A & Legal Due DiligenceChecking what you are buying and structuring the deal so it can actually close.Administrative Law & Appeals Against State DecisionsChallenging unfair administrative decisions through the correct procedure and deadlines.Cybercrime, Online Fraud & Asset RecoveryActing quickly when money is transferred by deception or rights are violated online.Company Secretarial & Corporate RegistrationsKeeping registrations, meetings and statutory records complete and on time.Wills, Succession & Estate AdministrationDrafting wills that hold up, and administering estates correctly under Thai law.Monthly Retainer Counsel for Businesses & ExpatriatesA standing legal team that knows your business, without hiring in-house staff.
Speak with an attorney about your matter
Tell us the facts and we will explain the options, the documents required and the realistic timeframe before you decide.