In Thailand working conditions are governed more by law than by collective agreements negotiated with trade unions. While Thai labour law offers employers significant freedom regarding employment terms and conditions, care should nevertheless be taken to comply with the law where it applies as the Thai Labour Court will always try its best to see the employee’s point of view when a claim is brought.
The main source of law is the Labour Protection Act 1998 which covers all employment arrangements other than household employment. It provides for working conditions, employment records, hours and holidays, terminations, severance pay and the employee welfare fund.
Thailand has a minimum wage which applies to all businesses. It is set at provincial level and therefore varies across the country. Businesses that employ 10 or more people must comply with statutory publicity and record keeping rules including publishing the works rules and regulations of the employment in the Thai language.