New Draft Factory Act Update
Keywords: Mazars, Thailand, Legal, Factory Act, National Legislative Assembly, Royal Gazette
18 April 2019
The key differences between the current Factory Act and new Amendment are summarized below:
Subject | Current | New |
| ‘Factory’ - A factory has a minimum of 7 workers, or machinery equivalent to 5 horsepower. | ‘Factory’ - A factory has a minimum of 50 workers, or machinery equivalent to 50 horsepower. |
‘Factory set-up’ – (1) Construction of buildings for the installation of machinery to engage in operating a factory; or (2) Installation of machinery for engaging in operating a factory in buildings, premises, or vehicles for engaging in such operations. | ‘Construction of buildings’ has been removed from the definition of ‘Factory set-up’. As a result, ‘Construction of buildings’ is no longer considered part of setting up a factory. | |
| - None –
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| The factory licence is valid for 5 years from the start of operations, except when it is relocated or ceases to operate, and the licence is considered expired on the issue date of a new factory licence or the date of cessation, as the case may be. | The factory licence does not expire until the factory ceases doing business.
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| A factory must obtain permission in advance from the licence grantor in order to expand for the following reasons:
| A factory must obtain permission in advance from the licence grantor in order to expand for the following reasons:
However, it is not necessary to obtain permission in advance for a factory to some things. Instead, the factory must give the licence grantor notice at least 30 days in advance before doing the following:
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| The application to transfer the factory licence must be submitted to the licence grantor within 7 days of the transfer date, and no fee will be charged for applying for a new licence. During the consideration process, the factory can continue to operate.
| The application to transfer the factory licence must be submitted to the licence grantor within 30 days of the transfer date, and no fee will be charged for applying for a new licence. During the consideration process, the factory can continue to operate. Furthermore, where the factory is not able to complete set-up, or is not able to start operating, the licensee can transfer its licence. The licensee must apply for a new licence within 30 days of the date on which the transfer occurred. |
| A factory must give the licence grantor at least 15 days’ advance notice in writing of ceasing to operate.
| A factory must give the licence grantor at least 30 days’ advance notice in writing of ceasing to operate. If the factory to cease operating is in a condition that would cause damage or a nuisance to a person, property, or its surrounding environment, the licence grantor is empowered to postpone the cessation of operations and to set a deadline by which the factory must be restored to a proper condition. |
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Remarks:
- The Amendment applies to any factory licence which was issued before the Amendment became effective and applies until the factory ceases operations or its licence is revoked.
- The Amendment applies to applications and notifications which were submitted before the Amendment became effective and which are currently being considered.
References: