Many of us encounter employment law issues at some point in our careers, which may have legal consequences. In such situations, employees often make mistakes that can lead to misunderstandings and resentment towards the employer. This can be detrimental to both sides.

For employers, it is a disadvantage that stories about poorly handled disciplinary measures or dismissals spread quickly and can deter qualified applicants from applying to the company.

There are several approaches. First, it's important to note that an employment contract applies to both full-time and temporary employees, as full-time employees typically have a contract. Even without a written contract, a tacit agreement exists between employee and employer that governs the employment relationship.

While Thai law allows for oral or written contracts, it strongly recommends written agreements. Thai labor law recognizes two main types of breach of contract: serious misconduct and incompetence, or failure to fulfill obligations.

Investigating the effects and consequences of a breach of contract requires examining all relevant labor laws and regulations. The most important law is the Labor Protection Act BE 2541 (1998), while the binding provision is found in the Civil and Commercial Code.

The termination procedures for such a violation depend on the respective company policies. However, if the employee repeats the alleged misconduct after the first warning or shows no improvement, the employer is generally entitled to terminate the employment relationship within a reasonable period after delivery of the warning.

Legally, one warning is sufficient, although many believe three are necessary. Sometimes, however, the company stipulates three warnings. Regardless of the violation and any prior warnings, the employee must be paid severance after termination.

According to Section 118 of the Occupational Health and Safety Act, severance pay must also be paid if the employee is dismissed due to a breach of duty. This applies to minor breaches, but not to serious ones.

Exceptions to the severance pay rule exist, for example, when an employee is dismissed after a certain period of work on a special project, such as a fashion show or the construction of a house. The project must be of a limited duration.

If the employment is not for a specific project and is temporary, the employer may be obligated to pay severance depending on the employee's length of service. A special severance payment is payable if employees are dismissed for operational reasons due to technological developments. The amount of this special severance payment is not legally defined, but it is paid in addition to the regular severance payment according to Section 118. A special severance payment is also due if the employer does not grant the employee at least 60 days' notice before the dismissal.

From a Western perspective, it seems strange that Thai law awards money to employees who fail to fulfill their duties. Under British employment law, there is no basis for compensation for breaches of duty, she said.

Even from a Western perspective, severance payments under Thai law for wrongful dismissal are very low. The severance payment does not compensate the employee for the consequential damages and losses incurred as a result of the wrongful dismissal, such as the loss of housing, family, partner, self-respect, self-confidence, and health.

In the event of a breach of a confidentiality clause, it must be proven that the information was indeed confidential and not merely part of the employee's general knowledge, regardless of whether he acquired it in the course of his work or not.

To avoid conflicts and labor disputes, the terms of an employment contract should be reviewed annually to ensure they accurately reflect the employee's duties and position within the company. Detailed work rules and conditions, as well as detailed grievance and disciplinary procedures, should be communicated to employees in writing.

A standardized employment contract should be drawn up for each employee level and position, outlining the respective expectations of employment. This simplifies matters for both parties. Employment contracts with foreign employees should be written in clear English to avoid disputes.

In a so-called constructive resignation, a term that may be unfamiliar in a legal context, an "inactive position" can play a role. Essentially, this refers to cases in which an employee's working life is made so difficult that they refuse to work or are transferred to a position that offers them no real fulfillment. Affected employees often see no other option than to resign. However, this method should not be misused to force an employee to quit.

The so-called "constructive dismissal" is a term from common law and is not universally applicable in Thailand. Some Western companies use this tactic, but while the term is recognized in the West, it is largely unknown in Thailand. Under Thai law, a forced dismissal is not legally considered a dismissal, but rather an unlawful termination of the employment relationship.