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Permission to Resume Strike and Lockout

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Permission to Resume Strike and Lockout

According to Section 5 of the Labour Relations Act B.E. 2518 (1975) (the “LRA”), the statutory definition of ‘labour dispute’ is a dispute between an employer and employees relating to conditions of employment; and ‘employment conditions’ is legally defined as conditions of employment or work, working days and hours, wages, welfare, termination of employment, or other benefits of the employer or employee which are related to employment or work. Based on the LRA, if a labour dispute under the LRA cannot be settled, it may be solved as follows:

  • a.Submitting the dispute to the Labour Relations Committee;
  • b.Appointing a Labour Dispute Arbitrator; or
  • c.Implementing a strike or lockout by the employees and employer, respectively.
     

Regarding (c), a ‘strike’ is an act where employees collectively refuse to work temporarily due to an unsettled labour dispute; while ‘lockout’ is an act where the employer does not allow the employees to perform their work temporarily due to an unsettled labour dispute. Consequently, during a strike or lockout, the employees will not perform their work for the employer for a certain period and therefore the employer is not obliged to pay wages to the employees on the principle of ‘no work, no pay’.

During the COVID-19 pandemic, the Prime Minister declared an Emergency Decree under the State of Emergency via the Announcement of the Ministry of Labour dated 8 May 2022, in which it was stated that strikes and lockouts are prohibited in all localities throughout Thailand. In the event that a strike or lockout is implemented prior to the effective date of said announcement, the employer who carries out the lockout must accept the employees back to work and the employees who go on strike must return to work as usual. Moreover, the said announcement also stated that any unsettled labour dispute shall be submitted to the Labour Relations Committee for its decision only.

However, on 23 September 2022, the Centre for the Administration of the Situation due to the Outbreak of COVID-19 passed a resolution to cancel the declaration of the State of Emergency in all localities throughout Thailand. Consequently, effective from 5 October 2022 onwards, employees and employers are now able to go on strike or perform a lockout as normal, by virtue of the Announcement of the Ministry of Labour dated 5 October 2022. Regarding any labour dispute that cannot be settled and was still under consideration of the Labour Relations Committee before the Announcement of the Ministry of Labour dated 5 October 2022 came into force; the Labour Relations Committee shall continue to have the power to consider the matter, and the decision of the Labour Relations Committee shall be deemed final.

This is intended merely to provide a regulatory overview and not to be comprehensive; it is NOT a provision of legal advice. Should you have any questions on this or on other areas of law, please do not hesitate to contact the following:

Chanakarn Boonyasith
Partner

Pattaranun Hanwongpaiboon
Associate

Authors

チャナカーン・ブーンヤシット

Chanakarn has particular in-depth expertise in the practical side of the legislative system of labour & employment law and personal data protection law. For the Labour & Employment practice, she engages in both advisory work and litigation, as well as drafting and reviewing legal documents, negotiating settlements, interviewing employees (particularly those accused of wrongdoing), managing whistleblowing hotlines and processes, providing trainings and various types of employment law advice, and representing clients in numerous court cases and in hearings before the labour authorities. For the Personal Data Protection practice, she assists her clients through the entire process, from providing training, analysing how clients handle personal data transactions, summarising clients’ data flow, providing legal advice, and drafting necessary legal documents for her clients. Chanakarn’s strategy is to provide detailed, accurate advice and flexible solutions, adapted to meet her clients’ needs. She excels in simplifying complex matters and equipping her clients to make the right decisions. She receives consistently strong feedback from her clients regarding the quality of her work. She has been ranked for labour and employment practice in Chambers Asia Pacific 2022 and 2023.