Preventing Dismissal Disputes in Thailand: Work Rules, Evidence Management & Preventive Legal Practice [Series Part 5 — Final]

Key Takeaways

Workplaces with 10 or more employees are legally required to prepare work rules in Thai; disciplinary dismissal without work rules carries a significant risk of being found invalid

Wrongful dismissal damages are often estimated at roughly one month’s wages per year of service (please verify), but the actual amount depends heavily on the specific circumstances

Consistent written documentation in day-to-day HR management is the single most effective defence against dismissal disputes

Introduction

This is the fifth and final instalment of our series “Thai Dismissal Law in Practice.” We have covered the overall framework (Part 1), ordinary dismissal procedures (Part 2), disciplinary dismissal requirements (Part 3), and redundancy and mutual agreement termination (Part 4). This final part addresses the preventive legal practices that are common to all of these scenarios.

Most dismissal disputes do not originate at the moment of dismissal — they originate in the absence of proper groundwork during day-to-day HR management.

1. Work Rules: Thai Legal Requirements vs Japan

The Obligation to Prepare Work Rules

Section 108 of the Labour Protection Act requires all workplaces with 10 or more employees to prepare work rules (ข้อบังคับการทำงาน) in Thai, communicate them to employees, and submit them to the Labour Department. A copy of the submitted work rules must be displayed in a prominent location in the workplace.

Risks of not having work rules:

Loss of grounds for disciplinary dismissal (Ground 4 cannot be established)
Possible administrative penalties (fines)
Courts are less likely to find in the employer’s favour

What Work Rules Must Cover

Category	Examples of Required Content
Working hours	Start, end, breaks, definition of overtime
Holidays and leave	Weekly rest, annual leave, types and days of special leave
Wages	Payment dates, method of payment
Discipline	Specific list of prohibited conduct, graduated consequences
Dismissal and resignation	Dismissal procedures, notice period for resignation
Health and safety	Safety rules, accident reporting procedures

In Japan, amendments to work rules that are adverse to employees are assessed against a “reasonableness” standard. In Thailand, amendments that are disadvantageous to employees generally require the consent of all employees. Unilateral amendments carry a risk of being found invalid.

In particular, any reduction or revision of wages, allowances, or leave entitlements should be discussed with a professional before implementation.

2. Evidence Management Checklist

The greatest weakness on the employer’s side in dismissal disputes is insufficient documentation. Use the following checklist as a guide for consistent, day-to-day document management.

Recruitment and Onboarding Documents

Employment contract (including Thai-language version) — signed by employee
Acknowledgment of receipt of work rules — signed by employee
Job description — provided and confirmed

Day-to-Day HR Management Documents

Attendance records (including tardiness and absences) — maintained electronically
Performance reviews and MBO records — documented and signed
Regular one-on-one meetings and feedback — recorded
Performance improvement plans (PIPs) — documented and signed by employee

Documents When a Problem Arises

Record of verbal warnings (date, content, witnesses)
Copy of written warning letter (หนังสือตักเตือน) with employee signature
Written statement or acknowledgment by the employee
Minutes of disciplinary committee or fact-finding meetings
Preservation of evidence (emails, LINE messages, photos, CCTV footage, etc.)

Documents at the Time of Dismissal

Dismissal notice (date, reason, statutory ground clearly stated)
Severance pay calculation sheet
Proof of payment of all amounts (severance, unused leave, etc.)
Separation agreement (for mutual agreement termination)
Copies of social security and work permit cancellation applications

3. Damages for Wrongful Dismissal

Reinstatement vs Monetary Compensation

When a Thai Labour Court finds that a dismissal was wrongful, it may in principle order reinstatement. In practice, however, where the working relationship has broken down, monetary compensation is the more common outcome.

An Indicative Range for Damages

As a rough guide, courts in wrongful dismissal cases have sometimes ordered damages at a rate of approximately one month’s wages per year of service, though this is not a fixed statutory amount and may increase or decrease depending on the severity of the employer’s conduct, length of service, and other circumstances (please verify — actual amounts depend heavily on the specific case).

The relationship to statutory severance pay: In a wrongful dismissal, the court may order both statutory severance pay (Section 118) and additional damages. In other words, the total cost of a wrongful dismissal significantly exceeds what a properly conducted dismissal would have cost.

4. The Preventive Legal Practice Flowchart

%%{init: {'themeVariables': {'fontSize': '18px'}}}%%
flowchart TD
    A[Day-to-day HR management] --> B["Build up records:<br/>attendance, evaluations, meetings"]
    B --> C[Problem behaviour occurs]
    C --> D["Establish facts and document<br/>(when, where, what)"]
    D --> E{Serious violation?}
    E -- No --> F["Verbal warning<br/>+ written record"]
    F --> G{No improvement?}
    G -- No --> B
    G -- Yes --> H["Issue written warning<br/>(obtain employee signature)"]
    H --> I{Repeat offence?}
    I -- No --> B
    I -- Yes --> J[Consider dismissal]
    E -- Yes --> J
    J --> K{Select type of dismissal}
    K --> L["Ordinary dismissal<br/>severance + notice"]
    K --> M["Disciplinary dismissal<br/>confirm Sec. 119 grounds"]
    K --> N["Redundancy<br/>60-day advance notice"]
    K --> O["Mutual agreement<br/>execute separation agreement"]
    L --> P["Complete documentation,<br/>payments, and<br/>admin procedures"]
    M --> P
    N --> P
    O --> P

5. Full Series Summary

Part	Topic	Core Message
Part 1	Overview of Thai dismissal law	”Dismissal is permitted, but not free. Without evidence, employers lose.”
Part 2	Ordinary dismissal procedures and severance	”20+ years = 400 days. Pay everything within 3 days of termination.”
Part 3	Disciplinary dismissal requirements	”Only the 6 grounds under Section 119 apply. No warning letter = no valid dismissal (for minor violations).”
Part 4	Redundancy, relocation, mutual agreement	”60-day notice is non-negotiable. The separation agreement is everything.”
Part 5	Preventive legal practice	”Work rules and consistent documentation are the best defence.”

A Message to Japanese Companies in Thailand

Thailand’s labour law framework may appear to offer greater freedom to dismiss than Japan’s — and in some respects it does. But in practice, it is extremely demanding when it comes to written records, evidence, and proper procedure. The Japanese approach of “we can work it out through discussion afterwards” does not hold up in Thai courts.

That said, dismissal management in Thailand is far from impossible if you understand the rules and apply sound HR practices from day to day. Consulting a professional before problems escalate, and taking a proactive approach to preventive legal practice, can head off the vast majority of dismissal disputes before they begin.

We hope this series has been a useful resource for Japanese companies operating in Thailand.

If you are facing challenges with HR management or dismissal matters in Thailand, please do not hesitate to contact us. Initial consultations are available.

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.