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 in duty or an intentional criminal offence against the employer
Intentionally causing damage to the employer
Negligence causing serious damage to the employer
Breaching lawful and fair work rules, regulations or orders after a written warning (no warning needed in serious cases); a warning is valid for up to 1 year from the offence
Absence from duty for 3 consecutive working days, whether or not a holiday falls in between, without good cause
A final judgment of imprisonment (for negligent or petty offences, only where the employer was damaged)

If the employer did not state the reason in the termination letter or tell the employee at the time, it cannot rely on that reason later (Section 119, last paragraph).

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)

For an open-ended contract (including probation), the employer must give written notice under Section 17.

Notice is given on or before a pay date so that termination takes effect on the next pay date; notice need not exceed 3 months.
Without proper notice, the employer must pay what the employee would have earned from the day they were let go until the termination would have taken effect, paid on the day they leave (Section 17/1).
The amount depends on when notice was given and the pay cycle, which a lawyer can calculate. No notice is required for a Section 119 dismissal.

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 damages instead — where the parties cannot work together, the court sets the amount, considering the employee's age, length of service, hardship, the reason for dismissal and severance received. The law sets no fixed cap in months.

Steps After Dismissal

Receive the termination letter — Do not destroy or discard it.
Sign receipt only — never sign a resignation — a voluntary resignation is not a dismissal, so Section 118 severance does not apply
Collect documents — Employment contract, last 6 months of pay slips, employment certificate, performance documents.
Consult a labor lawyer or labor inspector — the local labour protection and welfare office where you work.
File a complaint or sue — with the labour inspector where you work or where the employer is domiciled, or in the Labour Court. Time limits differ by type of claim; a lawyer checks them against your dates.
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 — resignation counts as leaving voluntarily, so Section 118 severance does not apply. If you were pressured or misled into signing, note the dates, keep evidence and see a lawyer. Wages and other sums already due can still be claimed.
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 time pass without checking deadlines — each claim type has its own limitation period, and after a labour inspector's order you have only 30 days to go to court (Section 125).

Severance Calculation Example

Hypothetical figures: 4 years' continuous service at a final wage of THB 25,000/month falls in the 3-to-under-6-year band, so severance is at least 180 days ≈ 180 × (25,000 ÷ 30) = THB 150,000. Notice pay and unfair-dismissal damages depend on the facts and the court's discretion; a lawyer checks them.

Common Mistakes

Signing a resignation — loses Section 118 severance unless it can be shown the resignation was not voluntary
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.
Not checking deadlines — limitation periods differ by claim type.
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?
Filing and proceedings in the Labour Court are exempt from court fees (Section 27). If you hire a lawyer, the fee is agreed before work starts.

What if the employer refuses to pay severance?
File with the labour inspector where you work, or sue in the Labour Court. Labour Court proceedings are exempt from court fees (Section 27, Labour Court Act).

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?
Under 120 days' continuous service — no severance. From 120 days to under 1 year — at least 30 days' wages. A probation contract counts as open-ended, so written notice under Section 17 applies.

Conclusion

Thai labor protection law gives employees clear and strong rights. The most important rules when dismissed: do not sign a resignation without understanding its effect, do not sign documents you have not read, and check each claim's deadline with a lawyer. Consulting a lawyer or labor inspector before signing anything ensures you receive the full benefits the law provides.

Wrongful Termination — Know Your Rights