Author: Ryan Crowley

The Labour Relations Act (B.E. 2518) of Thailand (LRA) provides that in a place of business which has 50 or more employees, the employees can (but are not obligated to) establish an Employee Committee. This article shall examine key aspects of these Committee’s including their objectives, membership, rights & obligations and legal requirements for their meetings. Purpose of the Employee Committee The main objective of an Employee Committee is to foster and sustain good relations and communication between staff and their employer through meetings which must be held from time to time in accordance with the law. Such meetings provide a forum in which the employees and their employer can discuss various matters affecting the workplace such as welfare, staff complaints, staff suggestions/ recommendations and other issues impacting the workplace such as upcoming changes in the workplace. Membership of the […]

When a party is considering whether to purchase shares in a private limited company in Thailand there are a number of important issues which they should consider and prepare for in order to safeguard their legal position in the transaction. This article shall discuss some of the most important issues which a buyer should contemplate before they enter into a share purchase transaction, including the need for a suitably drafted share sale & purchase agreement to underpin the transaction as well as the need to check if such shares are encumbered. Share Transfer Instrument At a bare minimum, we advise that a buyer should insist that the share sale and purchase transaction should be evidenced by a share transfer instrument which is signed, witnessed and dated by both the buyer and the seller (one original for each party to retain). […]

When litigating a civil case in Thailand it is important to understand the hierarchy of courts and the appeal process so that a litigant can better understand the steps involved and their rights to appeal a decision. At present, Thailand has a civil court hierarchy comprising three levels of courts, these are as follows: 1. The Courts of First Instance which comprise various courts in the Kingdom including the Civil Court, District Court, Provincial Court and various other specialized courts; 2. Appeal Courts; and 3. The Supreme Court of Thailand. In the past, Thai civil law granted the parties to a civil case the right to initially appeal their case from the Court of First Instance to the Appeal Court provided that they were appealing a question of law or a question of fact, subject to the condition that if […]

In the current economic environment, many companies in Thailand are facing considerable challenges; in light of this, some companies may regrettably need to be dissolved and liquidated. This article will provide a basic overview of the dissolution and liquidation process including the main steps involved and key issues which shareholders and directors should be aware of before embarking on this course of action. Dissolution of a Company Limited In order for a company limited to be dissolved, it must have a suitable reason. Thailand’s Civil and Commercial Code (CCC or the ‘Code’) provides for various cases where a company may be dissolved, these are as follows: 1. If the company’s Articles of Association (AoA) provide for its dissolution in a certain case such as an event occurring; 2. If the company is established for a certain period of time then […]

Overview of the Entitlement over Immovable Property Act B.E. 2562 (2019) The Entitlement over Immovable Property Act B.E.2562 (2019) (the “Act”) was enacted on 30 April 2019. This legislation, which became effective on 27 October 2019 has created a new category of property rights in Thailand for the purpose of enhancing and developing investment in immovable property. This article shall examine this Act including how to initially register such rights, the rights that are granted to the holder (of the rights), rights retained by the owner of the asset and what type of immovable property can have such rights registered. Rights over the Immovable Property Asset The Act permits the legal owner of certain types of immovable property (as detailed below) to establish and register a transferrable right over their asset (the “Asset”) for a maximum period of thirty (30) […]

Defamation in Thailand: An Overview Defamation under the Criminal Code In Thailand, defamation is a criminal offense which is addressed under sections 326 -333 of Thailand’s Criminal Code (the “Code”). Under the Code, a distinction is drawn between two types of defamation, these are as follows: Slander/ Ordinary Defamation – This crime is covered under section 326 of the Code, where it provides that “whoever, imputes1 anything to the other person before a third person in a manner likely to impair the reputation of such other person or to expose such other person to be hated or scorned, is said to commit defamation”. This type of defamation is less serious than libel and basically covers situations where a person verbally damages/undermines another person’s reputation in front of another person (3rd person). Libel –This crime is addressed under section 328 of […]

When an employer is going to hire a new employee on a fixed term basis then there are several key things which it should be careful of in the contract to ensure that it is legally protected. This article shall provide employers with some tips on how to ensure a fixed term agreement is not interpreted as an ongoing employment agreement and as well as advice on how to ensure that employee allowances are not considered as wages when calculating severance pay under the Labour Protection Act (LPA). Tips to help ensure that a fixed term contract is not interpreted as an ongoing employment contract If an employer wishes to employ an employee on a fixed term basis rather than an ongoing basis then it should be careful of the following matters to ensure that the employment relationship is interpreted […]