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Summary of Labor Relations Act B.E. 2518
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Summary of Labor Relations Act B.E. 2518 And the Notification of National Security Council Volume 54

Note: This summary is for informational purposes only.
In practice, the full version of the law will be followed.
The full version can be viewed on the Department of Labour website.


Amendment of Labor Relations Act B.E. 2518
Agreement on Terms and Conditions of Employment 

  1. An organization having 20 or more employees shall arrange an agreement on terms and conditions of the employment. In case of doubt, it shall be held that the working regulation is the agreement on terms and conditions of the employment. 

  2. The agreement on terms and conditions of employment shall contain at least agreement on terms and condition of employment; working days and working hours; wages; welfare; complaints; termination of employment; and amendments and renewal of the employment 

  3. The agreement on terms and condition of employment shall be applicable 

    4. (1) Not longer than three years.
    (2) If the period is not specified, it shall be implied that the agreement on terms and conditions of employment shall be effective for another year from the date of agreement.
    (3) In case that the period is specified in the agreement and the agreement of the employment expires without further negotiation. Such agreement shall continue for one more year. 

Demands 

  1. In case of redetermining or amending of the agreement on terms and conditions of the employment, either the employer or the employees shall advise another party in writing. 

  2. In case the employee (exclude the labor union) submits, on employees' behalf, notice of the demands, at least 15% of participants' name and signatures should be included. 

  3. The employers' association or labor union may submit such demands to the other party on behalf of the employee. In case of doubt, a request shall be submitted to the labor dispute conciliator to examine and issue a letter of certification. In case of the labor union, the number of members must not be less than 1/5 of the total number of the employees. 

Representatives of Employers who Participate in the Negotiations 

  1. Persons who participate in the negotiations for employers may be appointed as representatives under the following conditions: 

    2. (1)  Director, shareholder, partner or permanent employee of the employer, a committee member of the employers' association or a committee member of employers' federation;
    (2) Not more than 7 persons;
    (3) Names of the participants shall be included in the demands.

Representatives of Employees who Participate in the Negotiations 

  1. Persons who participate in the negotiations for the employee may be appointed as representatives under the following conditions: 

    2. (1) The employee concerned with the demands, a committee member of the labor unions or a committee member of labor federation;
    (2) Not be more than 7 persons;
    (3) Selecting representative process, may be organized by employees or the labor dispute conciliator.
    (4) Names of the representatives shall be included in the demands.
    (5) If they are members of other labor unions, the representatives of the employees must be appointed by the Labor Inspection Officer. 

Negotiations 

  1. After receiving the demand, the party receiving the demands shall inform the party tendering their representative's names in writing without delay, both parties shall start negotiations within 3 days from the date of receiving the demand. 

Advisors 

  1. The employer or the employee may appoint advisors not exceeding 2 persons for each party to give advice to their own representatives, the advisors' names shall be stated in the demand or the letter. The advisors shall have the period of time as advisors for 2 years from the appointment date. 

Agreement 

  1. If both parties are able to agree on demands. 

    2. (1) The agreement on terms and conditions of employment shall be made in writing and signed by both parties.
    (2) The agreement shall bind both the employer and the employee who sign their name in the demand, and include all employees who take part in the appointment of participants in the negotiation meeting.
    (3) The employer must openly display the notification of the agreement at the workplace for at least 30 days. 
    (4) The employer shall register the agreement with the Director-General of the Labor Protection and Welfare Department or persons in charge from the date of the agreement within 15 days.
    (5) The employer shall not issue any employment contract, which violates the agreement unless the employment contract is more beneficial to the employees.

Labor Dispute Settlement Procedures 

In case the agreement can not be reached 

  1. In case where negotiations do not take place in the period of time or the negotiations take place but no agreement can be reached, a labor dispute shall be regarded as having occurred. 

    2. (1) The party tendering the demands shall notify the labor dispute conciliator within 24 hours after the period has elapsed or from the time the agreement can not be reached. 
    (2) After the conciliation officer received the notification, he shall proceed to reconcile both parties so that an agreement may be reached within 5 days from the date of receiving the notification.
    (3) If an agreement can be reached, the agreement on terms and conditions of the employment shall be made.
    (4) In the case where an agreement can not be reached , such labor dispute shall be declared as the could not be settled
    (a) both parties may agree to appoint labor dispute conciliators
    (b) the employer may effect a lock-out
    (c) the employees may go out on strike
    (d) in case the irreconcilable labor dispute occur in the following business activities which are railway ; port; telephone and telecommunications production or distribution of energy or electricity; waterworks; producing or refining fuel oil; operation of hospitals or clinic; the labor dispute conciliator shall refer the labor dispute to the Labor Relations Committee for consideration and the decision shall be notified to both parties within 30 days. However, both parties have the right to appeal to the Minister of Ministry of Labor and Social Welfare within 7 days and the Minister shall consider appeal and notify both parties the decision within 10 days.
    (e) When there is an irreconcilable labor dispute in any undertaking other than those stated above.
    (f) The Minister of Ministry of Labor and Social Welfare think that such irreconcilable labor dispute may affect the national economy or public order, the Minister shall have the authority to order the Labor Relations Committee to decide such labor dispute.

Results of the Demands 

  1. If the demand is in the process of consideration, negotiation, settlement, employer shall not terminate employment or transfer from duty of the employee who are involved with the said presentation of demands, except where such persons: 

    2. (1) perform their duties dishonestly
    (2) intentionally commit a criminal offense against the employer;
    (3) intentionally cause damage to the employer;
    (4) violate the rules, regulations or lawful orders that the employer gives after caution except in a severe case;
    (5)  neglect their duties for 3 consecutive days without valid reasons.

Other persons shall not be involved 

  1. Other persons (who are not employer, employee, committee member of the employers' association, committee member of the labor union, committee member of the employer's federation, committee member of labor relation, representative or adviser) shall not involve the presentation of demands, negotiation, reconciliation, the arbitrative decision on labor dispute, lock-out or strike 

No lock-out, no strike is allowed 

  1. Employer shall not lock-out nor employees strike under the following cases: 

    2. (1) when the demands have not yet been submitted to the other party
    (2) when the labor dispute has yet to become an irreconcilable labor dispute
    (3) when the party have to comply with the agreement 
    (4) when the matter is pending on the decision
    (5) without a submitted notice to the labor dispute conciliator and to the other party at least 24 hours in advance. 
    (6) in the case of a declaration of marital law under the law on marital law or proclamation of the Minister shall have the power to issue a Notification prohibiting a lock-out by employer or employees from striking

Lock-out or strike may cause damages 

  1. In case the lock-out or strike may affect the national economy or public or endanger the national security or against public order, the Minister shall have the following authority: 

    2. (1) Order the employer who lock-outs to re-engage their employees and pay wages at the rate previously received. 
    (2) Order the employee on strike to return to work 
    (3) Arrange for persons to replace the employees who are not working due to a lock-out or strike;
    (4) Order the Labor Relations Committee to decide on such labor dispute.

Labor Relations Committee 

  1. The labor relations committee shall have the following duties: 

    2. (1) Consider the labor dispute
    (2) Decide on the labor dispute
    (3) Consider and decide on an unfair event, and is empowered to order employer to re-engage their employee or pay compensation or compel the employer to perform or not perform any act as deemed appropriate
    (4) submit opinion concerning the demands, the negotiations, the settlement of labor disputes, the strike and lock-outs as given by the Minister of Ministry of Labor and Social Welfare 

Employees Committee 

  1. In case of an organization employing 50 or more employees, the employers may establish an employee's committee, which entitle for the period of 3 years. The employer must arrange for a meeting with the employee's committee at least once every 3 months or when there is more than half of the total of all employee's committee or when ever requested with appropriate in order to; 

    2. (1) Provide welfare for the employees;
    (2) hold discussions on the working regulations;
    (3) consider complaints of the employees 
    (4) compromise the disputes 
     
  2. If an action of the employer is unfair or causing damage and difficulties, the employees committee, the employees or the labor union shall have the right to request for legal process by the labor court. 

Employers' Association and Labor Union 

Objectives 

  1. The objectives of the employees' association and the labor union shall be to acquire and protect the benefits related to the terms and conditions of employment and promote better relations between the employer and the employee, among the employers' association, as well as between employees themselves. 

Require Registration 

  1. The employers' association and the labor union must set up a regulation and shall be registered with the registrar. After registration, the employers association and the labor union shall become a juristic person. 

Persons entitled to form 

  1. Persons who entitles to establish an employers' association and the labor union shall attain majority and are Thai nationals. They shall engage in the same description of business (for the employers' association), and they shall be employees working for the same employer or employees working in the same description of work, regardless of the number of employers (for the labor union). 

Registration 

  1. For the application of registration, at least 3 persons (for the employers' association) and at least 10 persons (for the labor union as founders submit the application together with at least 3 copies of the draft of regulations. 

Regulations 

  1. The regulations must contain at least the name (of the employers' association or the labor union), the objectives, office address, procedures for the admission of members and termination of membership, the rate of admission fee and subscription and the method of payment, regulation on rights and duties of members, expending, handling of money and other properties, the keeping of accounts and the auditing, procedures of considering a lock-out (for the employers' association) and procedures of considering a strike (for the labor union), an approval of an agreement on terms and conditions of the employment, general meeting, the number of committee, the election, the term of office, retirement from office and the meeting of committee members. 

  2. Any amendment of the regulations shall be made by the resolution of the general meeting and registered within 14 days. 

Authority 

  1. The employers' association and the labor union shall have the following duties: 

    2. (1) demand, negotiate for an agreement and acknowledge decision or settle an agreement;
    (2) manage and carry out activities for the benefit of its members subject to the objectives; 
    (3) provide information service for members
    (4) provide advisory service for solving problems or eliminating conflicts in management and working method.
    (5) provide welfare service of allocating funds or properties for members or for public interest;
    (6) collect membership and subscription fees.

Members 

  1. The members must be employers engaging in the same description of business (for the employers' association), or shall be the same employees or employees working in the same description of work and shall be 15 years old or over (for the labor union). 

  2. The members shall have the right to inspect the membership registration, documents or accounts during working hours. 

Register of members 

  1. The employers' association and the labor union shall arrange to maintain a register of members and shall keep and maintain same at the office for inspection during working hours. 

The First General Meeting 

  1. Within 120 days from the registration day, the first general meeting shall be organized to 

    2. (1) elect committee members
    (2) assign all kinds of work to the committee
    (3) approve the draft regulations and submit to the registrar
    (4) supply the copies of the regulations and name list of the committee for the registration within 14 days

Activities at the General Meeting 

  1. The activities at the general meeting are as following: 

    2. (1) Elect committee members;
    (2) Approve the balance sheet, the annual report and the budget;
    (3) Allocate funds or properties for welfare of the members or the public benefit
    (4) Carry out activities which may affect the interests of the members;
    (5) Amend regulations
    (6) Establish the employers' federation or be its members (for the employers' association) or establish the labor federation or be a member (for the labor union);
    (7) Dissolve employers' association (for the employers' association) or dissolve labor union (for the labor union);
    (8) Strike when there is a labor dispute, which can not be settled. But there shall be a vote of over half of all members of the Labor Union, and it must be a confidential vote. 

Committee Members 

  1. The committee members shall have the following qualifications: 

    2. (1) Being a member (or a representative of the juristic person which is a member of the employers' association);
    (2) Being Thai nationals;
    (3) At least 20 years of age (only for the committee members of the labor union);
     
  2. There shall be a committee and a representative of the juristic persons to carry out activities involving outside persons . The committee may assign one or several committee member to act on its behalf. 

Auditing of Accounts 

  1. An employers' association and the labor union shall arrange for an annual account activity and submit the balance sheet together with an audited report of the auditor. 

  2. A complete copy of same shall be submitted to the Registrar after the general meeting has given its approval. 

Resignation of Committee Members 

  1. The registrar shall have the power to order any committee members to resign when they do the followings. 

    2. (1) Commits an unlawful act which obstruct duties of the labor dispute conciliator, the labor dispute arbitrator or the labor relations committee;
    (2) Carried out activities which are not in accordance with the objectives, violates the law or against any public orders which may harm national economy or security
    (3) Allow any persons, who are not committee members to carry out any activities in employers' association or the labor union.

Dissolution of the Employers' association or the Labor Union 

  1. The employers' association shall be dissolved for any one of the following reasons: 

    2. (1) It is prescribed in the regulations;
    (2) A decision of general meeting to dissolve.
    (3) An order of the registrar
    (4) Being bankrupt

Being Dissolved by the Registrar 

  1. The registrar is empowered to order the dissolution of the employers' association or the labor union in the following cases: 

    2. (1) When it is found that the administration is contrary to the objectives, or violate the law or against any public order which may affect national economy or security. 
    (2) When the registrar has ordered a new election of committee members but it has not happened within the prescribed period.
    (3) When the administration has not carried out activities for longer than 2 consecutive years.

Liquidation 

  1. When the employers' association or the labor union is dissolved, a liquidator must be appointed to carry out the liquidation. The remaining property shall be transferred to other juristic persons as stated in the regulations or a resolution of the members in the meeting. If the regulations does not specify any recipients or none of other juristic person has been nominated, the liquidator shall hand over the property to the Department of Labor Protection and Welfare. 

Employers' Federation and Labor Federation 

  1. Two or more employers' associations with members engaging in the same description of business activity, which jointly establish, by registration, an employers' federation to promote the better relations between the employers' associations and protect the interests of the employers and the employers' association; and two or more labor unions; and each union: 

    2. (1) have members who are employees of the same employer, whether or not such employees are in the same description of work, or;
    (2) have members who are employees in the description of work, whether or not such employees have the same employer. They may jointly register together as a labor federation to promote better relations between the labor unions and protect interests of both the labor union and the employees.
  2. The establishment or being a member of the employers' federation or labor federation shall be approved by more than one-half of the votes of the total members of each of the employers' associations or the labor unions. 

  3. The employers' federation and the labor federation shall become a juristic person after registration. 

  4. The committee of the employers' federation shall be elected from representatives of the employers' association which is a member of such federation. The labor federation committee shall be elected from representatives of the labor unions, which is a member of such federation. 

Congress of Employers Organization 

  1. Not less than 5 employers' association or employers' federations may establish the congress of employers organization to promoting educational and labor relations. 

  2. The congress of employers' organization must have the regulations and must register with the registrar. After having been registered, the Congress shall be a juristic person. 

  3. The committee members of the employers' association, federation of employers and council of employers, whom the registrar orders to terminate their membership due to violation of the Labor Protection Act B.E. 2541, may resume being the committee members after a year from the date that the registrar ordered their termination. 

Congress of Employees Organization 

  1. No less than 15 labor unions or employees' federations may form a congress of employees' organization to promote educational labor relations. 

  2. The congress of employees' organization must have the regulations and must register with the registrar. After having registered, the congress shall be a juristic person. 

  3. The committee members of the labor union, federation of employee and council of employee, whom the registrar orders to terminate their membership due to violation of the Labor Protection Act B.E. 2541, may resume being the committee members after a year from the date that the registrar ordered their termination. 

Unfair Acts

Prohibition 

  1. It is prohibited that the employers: 

    2. (1) Terminate employment or take any actions , which may cause the employee to be unable to continue working, by the reason that he rally, file a compliant or submitted demands, negotiating or filing legal proceedings or being a witness or producing evidence to competent officials under the law on labor protection, or to registrar, the labor dispute conciliators, labor dispute arbitrators, or members of labor relations committee or to the Labor Court, or by the reason that he/she is going to perform such acts;
    (2) terminate employment or take any actions which may cause the employee to be unable to continue working by the reason that employee is a member of the labor union;
    (3) prevent the employee from becoming a member or cause the employee to resign from membership of the labor union, or give or agree to give money or property to the employee to refrain from applying for membership, or to the officials of the labor union to refuse the application for membership of the employee or to make the employee resign from being a member in the labor union;
    (4) prevent proceeding of the labor union or federation or preventing the employee from exercising the right of becoming a member. 
    (5) not interfere with the activity of the labor union or labor federation.
  2. A person shall not

    3. (1) threaten directly or indirectly, the employee to become a member in the labor union or to resign from being a member in the labor union, or 
    (2) take an action, causing the employer to violate the above.
  3. While the agreement on terms and conditions of employment or the decision is underway, the employer must not terminate any employee due to any matters involving the demand, except he/she 

    4. (1) performs his/her duty dishonestly
    (2) commits a criminal offense against the employer;
    (3) intentionally causes damage to the employer;
    (4) violate the rules, regulations or orders that the employers warn in writing, except in a severe case;
    (5) neglect his duties for 3 consecutive working days without reasonable causes;
    (6) perform any acts of incitement, encouragement or persuasion to create a violation of the agreement on terms and conditions of employment or the arbitration decision.

Violation 

  1. Where there is a violation, the damaged party may file a complaint against the violator with the labor relations committee with 60 days of from the date of violation. 

  2. Upon receipt of the complaint, the labor relations committee shall make decision and issue an order within 90 days. 

  3. In case where an accused complies with the order of the labor relations committee, the criminal prosecution against an accused shall be proceeded. 

  4. In case of violations, a criminal prosecution shall be proceeded, when an accused fails to comply with the order of the labor relations committee. 

  5. If anyone acts as advisor to the employer or advisor to the employees without a registration, he/she must be punished by 1 year imprisonment at most or be fined at not more than 20,000 Baht, or both. 

Remarks 

The summary is to inform what the law has prescribed about and how. However, in practice or how to conduct correctly, it shall be studied from the law.