Labor Disputes in Thailand are governed by the Thai law and various government agencies. These laws establish the fundamental employment rights of workers and include severance pay, compensation for wrongful termination and minimum wage rates.
Though legal rights for worker organisations have improved since the mid 1970’s, when unionisation was actively suppressed, union strength remains weak.
Alternative Dispute Resolution
ADR is becoming an increasingly popular means of resolving disputes in Thailand. The process of pursuing litigation is often time-consuming, expensive, and emotionally draining for both disputing parties.
The legal system in Thailand allows for both court-supervised and private mediation, as well as conciliation. The courts have started a number of programs to encourage people to use mediation and conciliation rather than going through the lengthy litigation process.
Mediation is now part of the judicial case management system for all civil cases and family cases in the Supreme Court, the Court of Appeals, and the District Courts throughout the country. In addition, conciliation is practiced in the Central Labour Court and the Central Intellectual Property and International Trade Court.
At the time of the case management hearing, the judge will appoint a panel of three arbitrators or one arbitrator if the disputing parties do not agree on who should be chosen. Each party will be given a list of potential arbitrators and have fifteen days to remove the names of those they do not prefer.
Mediation and Conciliation
Out-of-court Thailand dispute resolution mechanisms such as mediation and conciliation are a popular method of resolving labor disputes in Thailand. These mechanisms are a cost-efficient alternative to litigation and help parties reach a compromise that is mutually satisfactory.
In conciliation, the conciliator is an active participant in discussions between the disputing parties. The main point of conciliation is to make both parties realize what they would like to achieve from their dispute case, and to conclude their cases in a fair and timely manner. The procedure of conciliation is outlined in Section 22 of the Thai Labor Protection Law.
During the conciliation process, disputing parties may invite anyone to be present. This includes doctors, lawyers, relatives, friends, and consultants. In addition, the disputing parties will decide whether to have one or three arbitrators. In case there are three arbitrators, the parties will have fifteen days to remove the names of potential arbitrators they do not prefer and add the names of those they do prefer.
Arbitration
As Thailand moves from agricultural to industrial and service sectors, state regulation of workplace conditions and employment policies is progressing rapidly. However, a large proportion of Thai workers still work in the informal economy – meaning their jobs are contingent, unregulated and outside of formal contracts. This can lead to higher levels of stress, risk and ill health and a lack of access to Government-provided protections such as worker’s compensation.
Many labor disputes in Thailand revolve around compensation issues, such as the minimum wage levels. The right to a living standard that is not compromised or eroded can foster high morale and boost productivity. It also helps to create a positive working environment and increase employee retention rates.
Court Trial
Although Thailand has a low rate of unionization, unions play a pivotal role both in securing legislated labor protections and rights such as safety and health, overtime, and family/medical leave. They also help to bolster worker confidence in the government by providing workers with a means of appeal when they feel their rights have been violated.
Court-supervised mediation is not a new process in Thailand, but it has become more common for parties involved in labour disputes to seek pre-litigation mediation rather than wait until their case is before the court. The judicial system encourages parties to attempt mediation to avoid the cost and hassle of lengthy litigation.
THAC generally encourages that any labour disputes be resolved through mediation at the Labour Department. However, if mediation fails, arbitration is an option. In the energy, mining and infrastructure sectors, arbitration is often favored as a mode of dispute resolution due to its high level of enforceability across borders and the preponderance of cross-border transactions in these industries.
