Labour Protection Act (No. 7), B.E. 2562 (2019) is a landmark legislation, which came into effect on May 5, 2019. It has, among others, increased the maximum statutory severance pay to 400 days for employees with 20 or more years of service.

▷ The Labour Protection Act (LPA) applies to all employers, regardless of the number of employees. Even very small employers (e.g., with only 1 or 2 employees) are subject to the main rules on termination, severance pay, notice periods, and unfair dismissal.

▶ Labour Protection Act, B.E. 2541 (1998)
→ Section 4 LPA excludes from its scope:
▻ Government officials and employees who are subject to other specific laws;
▻ Employees of State enterprises (who are covered by the State Enterprise Labour Relations Act B.E. 2543 (2000));
⫸ Ministerial Regulation No. 9 (B.E. 2541) B.E. 2541 (1998) - Issued under the Labour Protection Act B.E. 2541 (1998)
→ The Ministerial Regulation No. 9 (B.E. 2541) provides that: The Labour Protection Act B.E.2541 (1998) shall not apply to employers who employ employees to perform the following work:
(1) agricultural work; or
(2) homework (home-based work). (Home workers (covered by the Home Workers Protection Act B.E. 2553 (2010)).
▶ Labour Relations Act, B.E. 2518 (1975)
→ Section 4 LRA indicates that: This Act shall not apply to:
(1) Central Administration
(2) Provincial Administration
(3) Local Administration, including Bangkok Metropolitan and Pattaya City Administration
(4) State Enterprises under the law on State Enterprises Labour Relations, except the Labour Federations enrolled into Employment Council membership under section 120 ter
(5) Other activities as may be prescribed in the Royal Decree.

▷ A significant amendment to the Labour Protection Act was adopted in April 2019 (Labour Protection Act (No. 7), B.E. 2562). While this amendment introduced important changes (particularly to severance pay under § 118 and to the rules on the relocation of the employer’s establishment under § 120), it did not modify the scope of application or the categories of workers excluded from the Act.

▶ Labour Protection Act (LPA), B.E. 2541 (1998), as amended by Labour Protection Act (No. 2), B.E. 2551 (2008) and Labour Protection Act (No. 7), B.E. 2562 (2019)
→ Fixed-term contracts are regulated under the LPA, particularly in connection with section 118 LPA regarding severance pay, and sections 17 and 17/1 LPA regarding termination of employment. Section 17/1 LPA, as amended, deals with termination of employment without prior notice.
▶ Civil and Commercial Code (CCC), Book III
→ Under title VI on "Hire of Services", section 575 CCC provides that: A hire of services is a contract whereby a person, called the employee, agrees to render services to another person, called the employer, who agrees to pay remuneration for the duration of the services.
→ Under title VII on "Hire of Work", section 587 CCC indicates that: The hire of work is a contract whereby a person, called contractor, agrees to accomplish a definite work for another person, called employer, who agrees to pay him remuneration for the result of the work.

▶ Labour Protection Act (LPA), B.E. 2541 (1998)
▻ LPA provides that an employee employed under a fixed-term contract is not entitled to severance pay. Fixed-term employment is permitted for work on specific projects which do not fall within the normal activities of the employer’s business or trade and which have a definite time for commencement and completion of the work, or for occasional work, or for seasonal work. Such work must be completed within a period of not more than two years, and the employer shall enter into a written contract with the employee upon the commencement of employment.
→ Section 118 LPA (last two paragraphs) indicates that: The provisions of paragraph one of this Section shall not apply to an Employee whose employment is for a definite period and the employment is terminated at the end of that period.
Employment for a definite period under paragraph three is allowed for employment in a specific project which is not the normal business or trade of the Employer and requires a definite date to commence and end the work, or for work which is occasional with a definite ending or completion, or for work which is seasonal and the employment is made during the season. Such work shall be completed within a period not exceeding two years, and the Employer shall make a written contract with the Employee at the beginning of the employment

▷ No limitation on the maximum number of FTCs.
▶ Civil and Commercial Code (CCC), Book III
→ Section 581 CCC provides that: “If after the end of the agreed period the employee continues to render services and the employer, knowing thereof, does not object, the parties are presumed to have made a new contract of hire on the same terms, but either party can terminate the contract by giving notice in accordance with the following section.”

▶ Labour Protection Act (LPA), B.E. 2541 (1998)
→ Under Section 118 LPA, fixed-term work (for specific projects, occasional work, or seasonal work) must be completed within a period of not more than two years. This two-year limitation applies only to fixed-term contracts concluded for specific projects which are not part of the employer’s normal business or trade, for occasional work, or for seasonal work. It does not apply to all fixed-term contracts.

▷ Fixed-term contracts in Thailand are governed by both the Labour Protection Act and the Civil and Commercial Code. While there is no general statutory limit on the number of successive fixed-term contracts, section 118 LPA restricts the use of fixed-term contracts to specific types of work and excludes such employees from entitlement to severance pay. In addition, section 581 of the Civil and Commercial Code creates a presumption that a new contract on the same terms has been concluded if the employee continues to work after the expiry of a fixed-term contract without objection from the employer.

▶ Labour Protection Act (LPA), B.E. 2541 (1998)
→ Under the labour law, probation is not explicitly regulated, and the LPA does not prescribe any maximum duration for a probationary period.

▷ Agricultural workers and homeworkers (home-based workers) are excluded from the application of the Labour Protection Act pursuant to Ministerial Regulation No. 9 (B.E. 2541).
▷ Government officials, employees of central, provincial and local administration, and employees of state enterprises are excluded from the Labour Protection Act and are governed by separate legislation (Civil Service Act and State Enterprise Labour Relations Act B.E. 2543).
▻ Agricultural workers and homeworkers (home-based workers) are excluded pursuant to Ministerial Regulation No. 9 (B.E. 2541) issued under the Labour Protection Act. However, homeworkers are covered by the Home Workers Protection Act B.E. 2553.

▶ Labour Protection Act (LPA), B.E. 2541 (1998), as amended
→ No general obligation exists to inform the employee of the grounds for termination of an indefinite-period contract (§ 17 LPA), provided notice or payment in lieu of notice is given.
▷ However, reasons must be provided in the following cases:
▻ In cases of summary dismissal without severance pay, the employer is required to specify the exact cause in the termination letter or inform the employee at the time of termination. Failure to do so means the employer cannot afterwards rely on or claim that cause.
→ Section 119 [last paragraph] provides that: Upon termination of employment without severance pay under paragraph one, when the Employer fails to specify the fact which is a cause of termination in a letter of termination of employment or fails to inform the cause of termination to the employee at a time of termination of employment, the Employer cannot afterwards claim for such cause.
▻ In cases of termination for economic/restructuring reasons, the employer must notify the employee (and the Labour Inspector) in advance (minimum 60 days), stating the date, reasons, and list of affected employees. Non-compliance triggers additional special severance pay in lieu of notice.
→ Section 121 [second paragraph] LPA indicates that: Whereas an Employer contemplates termination of employment as a result of the reorganisation of an undertaking, production line, sale or service due to the adoption of machinery or the change of machinery or technology which causes a reduction of the number of Employees, Section 17 paragraph two shall not be applied, and the Employer shall notify the Labour Inspector and the Employees in advance of not less than sixty days before the date of contemplated termination, giving the date of the contemplated termination, the reasons for termination and a name list of the Employees.

▶ Labour Relations Act (LRA), B.E. 2518 (1975)
→ Section 121 LRA prohibits termination of employment as an unfair labour practice indicating that: No employer shall:
(1) terminate the employment or act in any manner which may cause an employee, a representative of the employee, a director of labour union or a director of labour federation being unbearable to continue working with due to the fact that the employee or labour union calls for a rally, files a complaint, submits a demand, participates a negotiation or institutes a law suit or being a witness or submits evidence to the competent officials under the law on labour protection or to the Registrar, conciliation officer, labour dispute arbitrator or Labour Relations Committee under this Act or to the Labour Court, or due to the fact that the employee or Labour union preparing to do so;
(2) terminate the employment or act in any manner which may cause an employee being unbearable to continue working with due to the fact that such employee is a member of the labour union;
(3) obstruct the employee from being member of the labour union or cause the employee to resign from membership of the labour union, or give or agree to give money or property to the employee or officer of the labour union in lieu of the refusal to apply for membership, or to admit the applicant to be membership, of the labour union or in lieu of the resignation from the labour union;
(4) obstruct the operation of the labour union or labour federation or obstruct the exercise of the right of the employee in applying for membership of the labour union; or
(5) illegally interfere the operation of the labour union or labour federation.
▶ Labour Protection Act (LPA), B.E. 2541 (1998)
→ Section 43 LPA provides that: An Employer shall not terminate the employment of a female Employee on the grounds of her pregnancy.

▶ Labour Relations Act (LRA), B.E. 2518 (1975)
→ Section 52 LRA provides that an employer cannot, except with the approval of the Labour Court, terminate the employment, reduce the wages, or impose disciplinary punishment on a member of an employees’ committee. Such committees must be established in establishments employing at least 50 employees (§ 45 LRA).
→ Sections 31 and 123 LRA provide protection against termination or transfer of duties for employees, their representatives, and union/federation committee members who are involved in the presentation, negotiation, or reconciliation of demands concerning conditions of employment. Termination is permitted only in specific cases (e.g. dishonesty, wilful commission of a criminal offence against the employer, serious damage caused to the employer, or absence without justification for three consecutive working days). Generally, it requires a prior written warning (except in severe cases).
▶ Labour Protection Act (LPA), B.E. 2541 (1998)
→ Section 43 LPA protects female employees from termination on the ground of pregnancy.

▶ Labour Protection Act (LPA), B.E. 2541 (1998), as amended by Labour Protection Act (No. 2), B.E. 2551 (2008)
→ Section 17 LPA requires that advance notice of termination of an indefinite-period contract must be given in writing.
→ Advance notice is not required in the case of termination under section 119 LPA (summary dismissal for serious misconduct). In such cases, the employment may be terminated immediately, subject to the conditions set out in section 119.

▷ Dismissal not based on economic reasons:
▶ Labour Protection Act (LPA), B.E. 2541 (1998), as amended
→ For termination not based on economic reasons, section 17 LPA provides that where the period is not specified in the contract, notice must be given in writing at or before any due date of wage payment in order to take effect on the following due date of wage payment. Advance notice shall not exceed three months.
▷ Dismissal for economic reasons:
▶ Labour Protection Act (LPA), B.E. 2541 (1998)
→ For termination due to economic reasons under section 121 LPA (reorganisation resulting from the introduction or change of machinery or technology), the employer must notify the employee in advance of not less than 60 days before the date of contemplated termination.
▷ Note: The statutory notice period generally corresponds to one full wage payment cycle. However, advance notice shall not exceed three months. The table below shows the minimum notice period for monthly paid workers.

▶ Labour Protection Act (LPA), B.E. 2541 (1998)
▷ The LPA allows an employer to terminate the employment of employees when it is necessary to reduce the number of employees due to the reorganisation of the work unit, production process, or distribution or provision of services resulting from the introduction or change of machinery or technology.
→ Section 121 (paragraph 1) LPA indicates that: Whereas an Employer contemplates termination of employment as a result of the reorganisation of an undertaking, production line, sale or service due to the adoption of machinery or the change of machinery or technology which causes a reduction of the number of Employees, section 17 paragraph two shall not be applied, and the Employer shall notify the Labour Inspector and the Employees in advance of not less than sixty days before the date of contemplated termination, giving the date of the contemplated termination, the reasons for termination and a name list of the Employees. (...).

▷ No statutory provisions were found in the examined legislation in this respect.

▶ Labour Protection Act (LPA), B.E. 2541 (1998)
→ Section 121 LPA requires the employer to notify the Labour Inspector and the employees whose employment is to be terminated, in advance and in writing, not less than sixty days before the date of contemplated termination. The notification must include the date of termination, the reasons for termination, and the names of the employees concerned.

▷ No statutory provisions were found in the examined legislation in this respect.

▷ No statutory provisions were found in the examined legislation in this respect.

▷ No statutory provisions were found in the examined legislation in this respect.

▷ No statutory provisions were found in the examined legislation in this respect.

▷ No statutory provisions were found in the examined legislation in this respect.

▷ No statutory provisions were found in the examined legislation in this respect.

▶ Labour Protection Act (LPA), B.E. 2541 (1998), as amended in 2019
→ Under section 118 LPA, an employee whose employment is terminated (except in cases under § 119) is entitled to severance pay as follows:
(1) if the Employee has worked for an uninterrupted period of one hundred and twenty days but less than one year, he or she shall be entitled to receive payment of not less than his or her last rate of Wages for thirty days, or of not less than his or her Wages for the last thirty days for an Employee who receives Wages on a piece rate basis;
(2) if the Employee has worked for an uninterrupted period of one year but less than three years, he or she shall be entitled to receive payment of not less than his or her last rate of Wages for ninety days, or of not less than his or her Wages for the last ninety days for an Employee who receives Wages on a piece rate basis;
(3) if the Employee has worked for an uninterrupted period of three years but less than six years, he or she shall be entitled to receive payment of not less than his or her last rate of Wages for one hundred and eighty days, or of not less than his or her Wages for the last one hundred and eighty days for an Employee who receives Wages on a piece rate basis;
(4) if the Employee has worked for an uninterrupted period of six years but less than ten years, he or she shall be entitled to receive payment of not less than his or her last rate of Wages for two hundred and forty days, or of not less than his or her Wages for the last two hundred and forty days for an Employee who receives Wages on a piece rate basis; or
(5) [as amended in 2019] an employee who has worked for a continuous period of ten years but less than twenty years, shall be paid for the amount of not less than his or her last rate of wages for three hundred days, or of not less than his or her wages for the last three hundred days for an employee who receives wages on a piece rate basis.
(6) [as added in 2019] 6) an employee who has worked for a continuous period of twenty years and more shall be paid for the amount of not less than the last rate of wages for four hundred days or of not less than his or her wages for the last four hundred days for an employee who receives wages on a piece rate basis".

▶ Labour Protection Act (LPA), B.E. 2541 (1998)
→ In addition to severance pay under section 118 LPA, an employee whose employment is terminated under section 121 LPA (reorganisation due to the introduction or change of machinery or technology) and who has worked for more than six years is entitled to Special Severance Pay under section 122 LPA.
→ Section 122 LPA provides that: Whereas the Employer terminates the employment of an Employee under Section 121 and such Employee has worked for uninterrupted period of more than six years, the Employer shall pay Special Severance Pay in addition to Severance Pay under Section 118 of not less than the Employee’s last rate of Wages for fifteen days for each year of employment or of not less than the Employee’s Wages for the last fifteen days for each year of employment for an Employee who is paid on a piece rate basis. The total Severance Pay under this Section shall not exceed the Employee’s last rate of Wages for three hundred and sixty days, or the Employee’s Wages for the last three hundred and sixty days for an Employee who is paid on a piece rate basis.
For the purposes of calculation of Special Severance Pay, where a period of employment is less than one year, a fraction of the period of employment of more than one hundred and eighty days shall be counted as one year of employment.