Potential Liability for Termination: An Employer's Perspective

Many employers are unaware that terminations of employees, if not carefully considered and conducted, could not only lead to claims of civil liability for unfair termination but also potentially impose criminal liability on the company and its directors as an unfair act. It is extremely important to clearly understand what constitutes unfair termination and an unfair act, and their differences.

Under Thai law, unfair termination typically applies to situations in which the employee is terminated without cause, with insufficient cause, by grounds that are not stated in the employment contract, or in conflict with penalties stated in the work rules. Relief granted for unfair termination is typically in the form of compensation or can even extend to reinstatement of the employee.