Key Takeaways
- Dismissal without severance pay is only permitted under the six specific grounds listed in Section 119 of the Labour Protection Act; all other dismissals require severance
- For most minor violations, a written warning followed by a repeat offence is required before disciplinary dismissal (warnings are typically valid for one year)
- Written documentation is critical — verbal warnings alone cannot be proved in court
Introduction
While ordinary dismissal allows employers to terminate with compensation, disciplinary dismissal allows immediate termination without severance pay or payment in lieu of notice. However, this is only permitted where the dismissal falls within one of the limited statutory grounds. Treating a termination as disciplinary when the grounds are not met can result in a finding of wrongful dismissal by the Labour Court — with compensation and additional damages ordered against the employer.
Section 119: The Six Grounds for Disciplinary Dismissal
Section 119 of the Labour Protection Act limits the circumstances in which an employer may dismiss without paying severance to the following six grounds.
Ground 1: Dishonest Performance of Duties or Criminal Offence Against the Employer
This covers situations where an employee performs their duties dishonestly or intentionally commits a criminal offence against the employer.
Examples:
- Embezzling or misappropriating company funds
- Stealing company inventory or equipment
- Causing financial loss through fictitious transactions or inflated invoices
- Fabricating receipts for business entertainment expenses
Practical note: This ground can be difficult to prove. For embezzlement, it is important to gather multiple forms of evidence: company account records, receipts, and witness testimony.
Ground 2: Intentional Causing of Damage to the Employer
This covers situations where an employee intentionally causes damage to the employer. The requirement to prove intent is critical.
Examples:
- Deliberately destroying company machinery or equipment
- Intentionally leaking customer lists to a competitor
- Deliberately deleting or altering company server data
Ground 3: Gross Negligence Causing Damage
This covers situations where an employee’s gross negligence causes damage to the employer. The word “gross” is important — ordinary careless mistakes generally do not qualify.
Examples (likely to qualify):
- Violating safety rules and causing serious damage to factory equipment
- Driving a company vehicle while intoxicated and causing an accident
Examples (likely to fall short as ordinary negligence):
- Losses resulting from poor business judgment
- Data entry mistakes caused by inattention
Ground 4: Violation of Work Rules or Orders After Written Warning
This covers violation of the employer’s lawful and fair rules, regulations, or orders, but only where a written warning has previously been given, except in cases of serious violation (please verify with a professional for specific cases).
Examples where disciplinary dismissal after a prior warning is likely to be upheld:
- Repeated unauthorised tardiness or absences (continuing after a written warning)
- Workplace harassment (recurring after a written warning)
- Repeated refusal to comply with lawful work orders
Examples where dismissal without a warning may be upheld (serious violations — please verify):
- Physical violence in the workplace
- Disclosure of confidential information
- Serious sexual harassment
Ground 5: Abandonment of Work for Three Consecutive Working Days Without Justifiable Reason
This applies where an employee is absent without justifiable reason for three or more consecutive working days.
Practical note: The treatment of weekends or public holidays falling within the three-day period can be subject to varying interpretations (please verify). Also, if a justifiable reason subsequently comes to light (e.g., emergency hospitalisation), this ground may not apply.
Ground 6: Final Judgment of Imprisonment
This applies where an employee is sentenced to imprisonment by a final court judgment. Negligence offences and petty offences may be excluded (please verify the specific scope).
Summary Table: Six Grounds for Disciplinary Dismissal
| Ground | Key Requirement | Prior Warning Required? |
|---|---|---|
| ① Dishonest conduct / criminal offence | Proof of intentional act | No |
| ② Intentional damage | Proof of intent | No |
| ③ Gross negligence | Proof that negligence is “gross” | No |
| ④ Violation of work rules | Lawful, fair rules + prior warning | Generally yes |
| ⑤ Unauthorised absence (3+ days) | 3 consecutive days, no justifiable reason | No |
| ⑥ Final imprisonment judgment | Existence of final judgment | No |
Warning Letters in Practice
The Two Functions of a Warning Letter
A warning letter serves two important functions: (1) it satisfies the procedural requirement for disciplinary dismissal under Ground 4, and (2) it serves as evidence to reduce the risk of a wrongful dismissal finding.
Validity Period of Warning Letters
While Thai law does not specify a statutory expiry period for warning letters, court practice generally treats warnings as valid for one year from the date of issue (please verify; actual practice depends on the work rules and individual circumstances). If the same or a similar violation recurs within one year, the warning strengthens the basis for disciplinary dismissal.
What a Warning Letter Must Include
| Item | Specific Content |
|---|---|
| Employee information | Name, employee ID, department, position |
| Description of violation | Specific facts (date, time, location, conduct) |
| Applicable rule | Rule or regulation number violated |
| Future consequences | Consequences of repeat violation (e.g., dismissal) |
| Date and signatures | Issue date, supervisor signature, employee acknowledgment |
If the employee refuses to sign: Have a witness (e.g., another manager) present and document that the employee refused to acknowledge receipt. Retain the record.
Common Patterns in Employer Losses at Labour Court
Pattern 1: No Evidence
The most common scenario: “We knew the employee was problematic, but we never put anything in writing.” Verbal warnings are not evidence.
Pattern 2: Work Rules Not in Place
If the work rules that form the basis for disciplinary dismissal do not exist, are not in Thai, or have not been filed with the Labour Department, the court may refuse to recognise their binding effect.
Pattern 3: Improper Procedure
Disciplinary dismissal under Ground 4 without a prior written warning will likely be found wrongful if the violation is not serious.
Pattern 4: Dismissal Notice Does Not State the Reason
Failure to include the specific grounds for disciplinary dismissal in the dismissal notice can restrict the employer from raising those grounds later in court (please verify).
The Disciplinary Dismissal Process
flowchart TD
A[Violation occurs] --> B["Fact-finding,<br/>investigation,<br/>evidence collection"]
B --> C{Serious violation?}
C -- No --> D["Issue written warning<br/>(obtain employee signature)"]
D --> E{"Repeat offence<br/>within one year?"}
E -- No --> F["Retain warning<br/>(monitor ongoing)"]
E -- Yes --> G["Consider<br/>disciplinary dismissal"]
C -- Yes --> G
G --> H["Draft dismissal notice<br/>(state grounds and<br/>rule reference clearly)"]
H --> I["Immediate dismissal<br/>(no severance or<br/>notice pay required)"]What Must Appear in a Disciplinary Dismissal Notice
- Reason for dismissal: Which numbered ground under Section 119 applies, and the specific facts of the violation
- Applicable work rule provision: The rule or article number violated
- Effective date: Whether dismissal is immediate or from a specified date
- Statement that no severance is payable: And the reason why (i.e., the dismissal falls within a statutory ground)
Conclusion
Disciplinary dismissal is a valid tool that allows employers to terminate problematic employees without severance — but only when the statutory requirements are met. Failing to meet those requirements transforms the dismissal into a wrongful one, with potentially significant financial consequences. The single most important practical measure is the ongoing accumulation of written documentation: maintaining up-to-date work rules, properly issuing and retaining warning letters, and documenting counselling sessions. These practices form the foundation that makes a valid disciplinary dismissal possible when it is ultimately needed.
Next: Part 4 — “Redundancy, Business Relocation, and Mutual Agreement Termination: A Situation-Specific Guide”
If you are uncertain whether the grounds for disciplinary dismissal are met in your situation, we strongly recommend consulting a professional before proceeding.
This article is for general informational purposes about Thailand’s legal system and does not constitute legal advice under Thai law. For specific matters, please consult a Thai-qualified legal professional. Our firm works in collaboration with JTJB International Lawyers’ Thai-qualified attorneys.