Legal Section - Doing Business
You will find here a series of summaries providing an overview of useful legal regulations, processes and legal issues for Doing Business in Thailand.
The legal impact of work rules or policy on an employer’s obligations to pay a bonus
Although employers in Thailand are not required to give bonuses to employees, bonuses are a strategic tool for employers to manage their employees. A company’s work rules or policies on annual bonuses may include things such as conditions for being eligible to receive bonuses, the timing of bonuses, and the employer determining bonus amounts at its discretion. Even if the employer makes employees aware that they are eligible to receive a certain amount as a bonus, actually receiving the bonus remains contingent upon employees meeting the conditions set out by the employer.
BOI measures to increase competitiveness in the automotive industry
The Board of Investment (“BOI”) recently took measures to encourage investment in industries deemed crucial to national development. On 12 December 2023, the BOI issued Announcement No. 2/2566 outlining investment incentives aimed at increasing competitiveness in the automotive industry. These measures support manufacturers in adopting automation and robotics to improve efficiency in production.
Employers deducting the value of annual holiday already taken when paying compensation to terminated employees
Under Section 67 of the Labour Protection Act, 2541 B.E. (1998) (“the LPA”), when employers terminate employees for reasons other than the fault of the employee as set out in Section 119 of the LPA, the employer is required to pay compensation to the employee for any unused annual holiday, in proportion to the length of time they were employed for that year. However, in some cases, the employee has already used annual holiday in excess of what they would be entitled to as of the date that the employer terminates employment.
Guidelines on the conditions for applying for BOI investment incentives for developing software, a digital platform, or content
The Board of Investment (“BOI”) recently issued Notification No. Por. 12/2566 (“the Notification”) pursuant to Notification Nos. Sor. 4/2564 and 9/2565 to establish clear guidelines for applying for investment incentives for digital and software businesses. The Notification became effective on 3 October 2023.
Governance of Digital Platforms
Over the past few years, the number of digital platform service providers has increased rapidly, and the Thai government is seeking to monitor those platforms to prevent possible damage to the public.