Work Conditions Agreement and Labor Disputes

A work conditions agreement is an agreement between an employer and an employee or an employer or an employer’s association or union. An employer with 10 or more employees is required to establish a work conditions agreement at the place of employment. It must provide at least the minimum conditions as required by Thai law. The work conditions agreement must contain the following:

1. Work days, work hours, break periods
2. Holidays and rules for taking holidays
3. Rules for overtime and working on holidays
4. Date and place of payment of wages and special pay
5. Rules regarding leave and taking of leave
6. Discipline rules and measures
7. Grievance procedures
8. Procedures for termination of employment
9. Procedures to amend or renew the agreement

A Labor Dispute is a dispute between an employer and an employee relating to the work conditions of employment. Under Thai law, an unsuccessful negotiation is when there has not been any negotiations within three days of receiving notice of the dispute or if there has been no agreement after negotiations.

If there is an unsettled labor dispute, a party can contact the local conciliation officer in writing of the failed negotiations. The conciliation officer will attempt to mediate with the parties in pursuit of an agreement. If there is no agreement after five days, the dispute will be considered an impasse.

At this point, three things can happen. The parties can agree to a labor dispute arbitrator where an odd number of arbitrators make a legally binding decision after both parties make their arguments. The employer can lock out the employees or the employees can go on strike. And if the labor minister believes that a strike or lock-out threatens the economy, the dispute can be sent to the Labor Relations Committee for a decision.

Another option would be for a party to go directly to Labor court. Labor court is comprised of three judges; a professional judge and two associate judges. The professional labor court judge is generally knowledgeable on labor law and understand the issues involved. The two associate judges are not professional judges but elected representatives from employer and employee groups. There is a large backlog of cases with most cases pending over five years.

As a result of the backlogs, judges constantly push the parties to come to an agreement. There is mandatory mediation for any cases brought before the court. At the conclusion of a trial, the court will render a decision which can be appealed to the Supreme Court within 15 days.

 
See also Labor Court Litigation.

Category: Litigation