Employment Litigation in Thailand: PART 1 – procedure and timing

Employment Litigation in Thailand: PART 1 – procedure and timing

When a dispute between an employer and an employee in Thailand can’t be settled informally, either party may consider taking the matter to court. Under the Labor Court Establishment and Procedure Act (1979) (the “Act”), Thailand has established a special Labor Court and procedure specifically for resolving employment-related disputes.

The Labor Court has jurisdiction over disputes involving:

1. Employment contracts.
2. Wrongful acts between employers and employees in connection with a labor dispute, or with the performance of work under an employment agreement.
3. Appeals against a decision of a member of the Labor Relations Committee or the Minister of the Interior (where 1 or 2 above was first submitted to that Committee or Minister instead of going directly to the Labor Court).

A typical Labor Court case proceeds as follows:

1. The party initiating the case (the “Plaintiff”) files a “Plaint” detailing their grievance with the local Labor Court branch where the workplace is located. The Plaint can be filed either in writing or orally.
2. The Labor Court fixes a hearing date and time and, without delay, summons the Defendant to appear on that date.
3. The Defendant may file an Answer responding to and defending against the Plaint, within whatever time the Labor Court sets prior to the hearing.
4. Before the first hearing — and to help protect the relationship between the parties — the Labor Court requires the Plaintiff and Defendant to meet with a Labor Court representative to discuss a possible amicable settlement.
5. If the parties reach a settlement, they enter a compromise agreement and withdraw the case. Notably, such a compromise agreement becomes virtually automatically enforceable by the Labor Court if one party later fails to honor it.
6. If the parties can’t settle, litigation continues, and the parties submit any relevant evidentiary documents supporting their claims or defenses.
7. The first hearing of evidence then proceeds — possibly the same day as unsuccessful settlement talks, or at a later date set by the Labor Court. Once a hearing begins, it cannot be adjourned for more than seven days until completed.
8. Once all necessary evidence has been taken, the hearing is closed, and Judgment is pronounced within three days.
9. The Act requires the Judgment to be in writing, briefly specifying the relevant facts, decisions, and reasoning behind the Labor Court’s findings.
10. The Act directs the Labor Court to weigh an employee’s particular working conditions, cost of living, personal hardships, wage level, employment rights, and other benefits — compared against a similarly situated employee elsewhere — in reaching its decisions.
11. Either party may appeal the Judgment directly to the Supreme Court of Thailand within fifteen days of the Judgment’s pronouncement.
12. Timing from filing the Plaint to Judgment generally runs nine to twenty-four months, though complicated cases can take significantly longer — and completing an appeal will likely take several years.
13. Finally, the Act exempts all Labor Court cases from court filing fees.