While the economic recovery measures have made the labour system flexible enough to allow growth, they have also meant that workers are now facing low and decentralized wages. Here we review the effects of 1998's historic Labour Law enactment as Thai law firms understand them, and see what it meant for workers around the country. We also see some of the limitations of the Law.



It was in August 1998 that the new Thailand laws took effect - employers were given 180 days notice of the laws, to consult with corporate legal services to gauge the effects on their businesses. The scope of enforcement of the laws was broadened, and the act was made to override any company regulations that may conflict with any part of it. Supreme Court judgements that Thai law firms fought for were also included in the Labour Law act.

The working hours provided for in the Act are one area that most impacts workers. This law modifies working hours -lawyers and business legal services in Thailand now tell their corporate clients that employees must not work more than 8 hours a day, in normal hours. They may also not work more than 48 hours a week normally. Employers can request the employees to work longer than the usual hours, however pregnant employees are exempt. Pregnant employees may also not work between 20:00 and 06:00 hours.

Under the labour laws, the minimum age of employment was modified. Previously, corporate legal services advised that it was legal to employ someone under the age of fifteen - now that is illegal. The Labour Inspector must also be informed if a person under the age of eighteen is to be employed. Under eighteens are not allowed to work overtime, work on holidays, or work between 22:00 and 06:00, just as for pregnant employees.

In the historic Labour Law amendment of 1998, two compensation payments were provided for under the new law. If the employee who has been terminated has worked for an unbroken period of 120 days, they are entitled to an amount between 30 day's wages and 300 day's wages, depending on their length of service.

With all of the extra monies that are due to many Thai workers, there was also the potential for debts to simply mount up and not be paid by employers. Corporate legal services now tell their clients that monies that are owed to employees have the same preferential ranking as any tax debts the company has incurred.

While all of the new labour laws are certainly commendable, the Thai Labour Campaign in particular is pushing for better laws in regards to labour. Some of the limitations of the Labour Law act are recognized by international law firms in Thailand, including the fact that many of the provisions will make little difference to employees if there is not a fair and equitable minimum wage to go along with them.

Business legal services have joined public and private enterprise unions, the Center for Labour Information, Service and Training, and the Electricity Generating Authority to provide coordination roles in the push for better worker protections.

Thai law firms are also pushing business clients to adopt a voluntary code of conduct, which should help protect workers and make legal standards better entrenched.