What Is Unfair Dismissal?

Unfair dismissal under Thai labor law refers to termination by the employer without sufficient justification or for a reason prohibited by law. An employee terminated unfairly is entitled to three main remedies: severance pay, payment in lieu of notice, and additional damages.

Understanding labor law rights is critical because many employees accept the employer's terms immediately upon dismissal without knowing they are entitled to more than what was offered.

Applicable Law

Labor Protection Act B.E. 2541 (1998) (as amended) — Sections 17, 17/1 (notice), Section 118 (severance), Section 119 (just-cause termination without severance).
Labor Relations Act B.E. 2518 (1975) — Sections 121, 123 prohibit dismissal due to union activity.
Establishment of Labor Court Act B.E. 2522 (1979) — Section 49 empowers the court to order reinstatement or additional damages.

Three Categories of Termination

1. Just-Cause Dismissal Without Severance (Section 119)

For serious misconduct, the employer may dismiss without severance or notice. Statutory grounds include:

Dishonesty or intentional criminal acts on duty
Willful damage to the employer
Gross negligence causing serious damage
Violation of work rules after written warning (or, in serious cases, without warning)
Absence without good cause for 3 consecutive days
Final criminal conviction with imprisonment

2. Ordinary Dismissal (Severance Required)

If Section 119 grounds do not apply, the employer must pay severance and notice. Even legitimate business reasons (e.g., restructuring) require severance.

3. Unfair Dismissal

A special category — beyond severance and notice, the employee may claim additional damages from the Labor Court. Examples of unfair grounds:

Termination because of pregnancy
Termination because of union membership or office
Termination for complaining about working conditions or unpaid wages
Termination based on false accusations
Discriminatory termination (gender, religion, race, disability)
Termination of a satisfactory performer without legitimate business cause

Severance Pay Under Section 118

Length of service	Severance (days of wages)
120 days — under 1 year	30 days
1 year — under 3 years	90 days
3 years — under 6 years	180 days
6 years — under 10 years	240 days
10 years — under 20 years	300 days
20 years or more	400 days

Calculated on final wages. Example: 5 years' service at THB 30,000/month = 6 months × 30,000 = THB 180,000.

Pay in Lieu of Notice (Section 17)

If the employer dismisses without giving advance notice, the employee is entitled to pay equal to one pay period:

One pay cycle — Monthly = 30 days; semi-monthly = 30 days.
The employer may choose to pay in lieu instead of giving notice.

Additional Damages for Unfair Dismissal

Under Section 49 of the Labor Court Act, the Labor Court may:

Order reinstatement — If the employee wishes to return and can continue working.
Order additional damages in lieu of reinstatement — Generally up to 10 months of final wages, considering length of service, hardship, and circumstances.

Steps After Dismissal

Receive the termination letter — Do not destroy or discard it.
Sign receipt only — never sign a resignation — Resignation forfeits severance rights.
Collect documents — Employment contract, last 6 months of pay slips, employment certificate, performance documents.
Consult a labor lawyer or labor inspector — Department of Labor Protection and Welfare offices in every province (free).
File a complaint — At the Labor Department or directly with the Labor Court within 1 year of dismissal.
Mediation — The Labor Court attempts mediation first; many cases resolve here.
Trial and judgment — If mediation fails, the court rules on the evidence.

What You Must Never Do

Never sign a resignation when you are being dismissed — Even if the employer says "for goodwill," resignation means voluntary departure and forfeits all severance.
Never sign a release without reading — Some documents include sweeping waivers that bar future claims.
Never accept a lump sum without calculating your statutory entitlement — Employer offers are often below the legal minimum.
Do not let the 1-year deadline expire — Labor claim limitation is short.

Hypothetical Case Studies (Educational)

Case 1 — Pregnancy dismissal: Mrs. A worked 4 years at THB 25,000/month and was dismissed after disclosing her pregnancy. She files in Labor Court and recovers severance of 180 days × 25,000/30 = THB 150,000, plus notice pay of THB 25,000, plus 8 months × 25,000 = THB 200,000 in unfair-dismissal damages — total THB 375,000.

Case 2 — Restructuring: A company restructures and dismisses Mr. C, who has 8 years' service at THB 50,000/month. He receives 240 days' severance = THB 400,000, plus THB 50,000 notice. This is ordinary lawful dismissal; no additional damages apply.

Case 3 — Embezzlement: Mr. D is caught embezzling. The employer dismisses him under Section 119 without severance or notice. Mr. D sues but loses because the evidence is clear.

Common Mistakes

Signing a resignation — Forfeits all rights. The most common mistake.
Accepting a settlement without checking statutory rights — Companies often offer below the legal minimum.
Not preserving evidence — Deleting work chats, emails, and pay slips makes proving service and wages difficult.
Letting 1 year pass — Limitation expires.
Believing the employer's representations — "The company has no money" or "the law only requires this much" — verify with a lawyer.

Frequently Asked Questions

Are there fees to file a labor case?
No court filing or stamp fees — the Labor Court Act exempts employees fully. You pay only your lawyer's fees, generally THB 10,000–50,000 or a percentage of recovery.

What if the employer refuses to pay severance?
File with the labor inspector in the province of employment, or sue directly in Labor Court. Both channels are free.

Is a contract clause "no severance payable" enforceable?
No. Contract terms below statutory minimums are void. Labor rights are floors, not ceilings.

Are senior executives entitled to the same protections as ordinary employees?
Yes — the Labor Protection Act covers all levels, except company directors who are not employees.

Is severance owed during the probation period?
Probation under 120 days — no severance. Beyond 120 days, the employee qualifies for 30 days' severance. Notice obligations still apply.

Conclusion

Thai labor protection law gives employees clear and strong rights. The most important rules when dismissed: do not sign a resignation, do not sign documents you have not read, and act within 1 year. Consulting a lawyer or labor inspector before signing anything ensures you receive the full benefits the law provides.

Wrongful Termination — Know Your Rights