New law looks to protect the interests of the foreigner
The Government Gazette published a Royal Decree on Recruitment of Foreigners on August 15th 2016.
Under the new law, which came into effect on the 16th of August, an employer wishing to recruit an alien to work under him must first gain permission from the Director General of the Department Employment. The company for must also be licensed by the Director General (DG).
The company, which may be from the public or private sector, must have a paid-up capital of THB1 million, three fourths of which are owned by a Thai national.
Thai law firm Chaninat & Leeds practice Thai labor and employment law handling employment contracts and severance matters
The licensed company should not demand payments other than those specified by the DG from the recruited foreigner and the company is also required to place a guarantee of not less than THB5 million with the DG against damages that may result from hiring the foreigner.
Inability to comply with the Royal Decree will result in both civil and criminal punishments. The maximum prison sentence is set at 3 years.
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