BOI: New Regulations Governing Land Ownership for Foreign Juristic Persons
On 9 December 2024, the Board of Investment (BOI) enacted Notification No. 16/2567, establishing new criteria for granting permission to promote foreign juristic persons to own land for office and residential purposes. This notification supersedes the previous Notification No. 6/2565, which had been in effect since 2022.
The Investment Promotion Act B.E. 2520 (1977) grants special privileges to BOI-promoted businesses, allowing foreign entities to own land beyond the limitations imposed by general land laws. This amendment aims to facilitate business operations while enhancing clarity and flexibility in the regulatory framework.
Key Provisions of the Amendment
Eligibility
Foreign juristic persons with a minimum paid-up registered capital of 50 million baht are eligible to own land.
Land Ownership Limits
Office Use: Up to 5 rai.
Residential Use: Up to 20 rai for constructing accommodation specifically for operational-level employees in a building form.
Land designated for office and residential use may be located within or outside the same area as the business premises.
Special Considerations
The BOI may grant exceptions on a case-by-case basis if special reasons or necessities arise.
Land Disposal
Foreign juristic persons must dispose of or transfer the land within one year after ceasing to qualify for investment promotion.
Further Regulations
The BOI Office has the authority to issue additional criteria such as the type of business, distance from the business site, and residential unit specifications.
Key Amendments from the Previous Notification
Repeal of Provisions for Executive and Expert Accommodation
Clause 1.2 of the previous notification, which allowed land ownership for accommodation of executives and experts, has been repealed.
Restriction on Residential Use
Land ownership for residential purposes is now limited to the construction of accommodation exclusively for operational-level employees, replacing the broader term “workers”.
Supplementary Regulations
Additional criteria will be issued to provide further clarity on business types, land specifications, and proximity to business operations, ensuring compliance with operational and environmental requirements.
Conclusion
This announcement takes effect immediately. Supplementary regulations may be further issued, so promoted enterprises are encouraged to stay informed of any subsequent notices to ensure compliance with the regulations.
Waste Management: Bangkok Strengthens Regulations to Enhance Sustainability
Bangkok Metropolitan Administration initiated a public hearing on a new draft regulation aimed at improving waste management at the source. This regulation addresses the city’s growing waste problem by closing gaps in current practices and setting clear, sustainable standards.
Applicability
The draft regulation will apply to:
Restaurants and places for preparing, storing and selling food and beverages
Shopping malls and department stores
Hotels
Educational institutions (schools, colleges and universities)
Government offices and state enterprises
Markets
Large buildings producing over 2 cubic meters of waste daily
Residential buildings with 80+ rooms or over 4,000 square meters of usable space
Industrial plants
Land developers or juristic persons of housing estates
Waste Separation Requirements
Businesses must separate waste into four categories:
Organic Waste: Food scraps, garden waste, and other biodegradable materials, which should be composted or processed to reduce landfill waste.
Recyclable Waste: Plastics, paper, glass, and metals, which should be sorted cleanly to support recycling and conserve resources.
Toxic/Hazardous Waste: Batteries, chemicals, and e-waste, which must be stored and disposed of properly to avoid environmental and health risks.
General Waste: Non-recyclable materials that must be managed responsibly to minimize their impact.
Key Waste Management Guidelines
To comply with the new regulation, businesses must implement the following management measures:
Storage: Provide safe, secure, and well-ventilated waste storage areas that can handle the volume of waste generated.
Collection and Disposal: Use appropriate methods for non-separable waste to avoid pollution and health hazards.
Leachate Management: Ensure proper collection and treatment of leachate to prevent contamination.
Pest Control: Implement measures to prevent infestations and maintain cleanliness.
Compliance: Follow all local and national regulations to avoid penalties.
Implications for Affected Businesses
Businesses such as hotels, educational institutions, shopping malls, department stores, and industrial plants will need to invest in waste management systems. Hotels and educational institutions must designate areas for composting organic waste and ensure that recyclable materials like plastics and glass are sorted. Shopping malls and department stores will need to set up waste storage and disposal systems to manage large volumes of waste. Industrial plants may require specialized methods for handling hazardous waste. Compliance will require ongoing monitoring, and businesses may need to engage in specialized waste management services.
Key Takeaways
Wide Reach: The regulations affect many types of businesses and residential buildings.
Mandatory Waste Separation: Businesses must separate waste into organic, recyclable, hazardous, and general categories.
Defined Disposal Standards: Clear guidelines for waste storage, collection, and disposal ensure better waste management.
Sustainability Focus: These regulations aim to reduce waste, promote recycling, and move Bangkok toward sustainability.
Increased Responsibility: Businesses must take proactive steps to comply and avoid penalties.
On 1 December 2024, the Social Security Office (SSO) under the Ministry of Labor opened a public hearing to gather feedback on a draft Ministerial Regulation aimed at replacing Ministerial Regulation No. 7, which has been in effect since 1995. The proposed regulation introduces changes to the minimum and maximum wage bases used for calculating contributions to the Social Security Fund (SSF). The goal is to ensure that the regulation reflects current economic conditions and enhances benefits for insured individuals. Ministerial Regulation No. 7 (1995) set the wage base for insured individuals under Section 33 at a minimum of 1,650 THB per month and a maximum of 15,000 THB per month.
Proposed Changes to the Wage Base
To adapt to current economic conditions and improve benefits, the SSO proposes gradual adjustments to the wage base as follows:
1 January 2026 – 31 December 2028:
Minimum: 1,650 THB/month
Maximum: 17,500 THB/month
1 January 2029 – 31 December 2031:
Minimum: 1,650 THB/month
Maximum: 20,000 THB/month
From 1 January 2032 onwards:
Minimum: 1,650 THB/month
Maximum: 23,000 THB/month
These adjustments will result in higher contributions from both employers and employees but will also lead to enhanced benefits for insured individuals. The increase in the wage base will gradually improve benefits across various categories.
Employer’s Obligations under the Social Security Act
Under Thailand’s Social Security Act, employers are required to deduct contributions from employees’ wages and contribute an equal amount to the SSF on behalf of their employees. Non-compliance, such as failing to register employees or remit contributions, may lead to fines or legal action. Compliance ensures employees’ financial security.
Key Takeaways
Purpose: To align with the current economic situation and improve benefits for insured persons.
Changes: Increased wage ceiling, higher contributions, and increased benefits.
Benefits: Increased compensation for sickness, maternity, disability, death, unemployment and higher pension.
Implementation: Gradual increase in wage ceiling over several years.
Telemedical Services: Navigating the Digital Healthcare Frontier
With the integration of technology into virtually every aspect of life, it is undeniable that the medical sector also requires technological innovations to reform traditional medical practices. This transformation necessitates close monitoring and regulation to ensure that service recipients are well protected—not only in terms of health and safety but also in safeguarding their personal information and privacy. The Ministry of Public Health recognizes the importance of establishing standards for both public health services and private telemedical service providers to ensure that telemedical services are efficient, convenient, fast, safe, standardized, verifiable, and in line with the principles of good governance. As a result, the Ministry has issued the Announcement on the Service Standards for Telemedical Service Providers and Telemedicine Public Health Services (the “Announcement”).
Under the Announcement, Telemedical Services refer to the provision of medical consultation, examination, diagnosis, treatment, nursing, disease prevention, health promotion, and physical rehabilitation remotely, using a digital system to transmit audio and video data.
The Announcement outlines the criteria required for telemedical service providers and the systems they use. Some of these criteria are:
There must be a sufficient number of medical practitioners to provide telemedical services without disrupting normal operations at each medical establishment.
There must be a registration and identity verification process for both service recipients and providers. This system must comply with the standards prescribed by the Electronic Transactions Development Agency and the Digital Development Agency.
A communication system must be established between service recipients and providers. This system must be integrated with identity verification and appointment scheduling in an appropriate manner.
Date, time, medical reports, verification results, and other relevant information must be recorded in audio, picture, text, or video format.
A process must be in place to explain the details, procedures, potential effects, and risks to the service recipient before telemedical services are provided, including obtaining consent.
A document, manual, or guideline for providing telemedical services must be created, in accordance with the standards set by the Office of Permanent Secretary, Ministry of Public Health.
Telemedical services must include the delivery of medicines and medical supplies to patients’ house.
Although detailed criteria for each qualification are yet to be fully outlined, this Announcement effectively serves as a checklist for telemedical service providers to assess whether their systems align with the regulated standards.
It is recommended that the telemedical service providers conduct comprehensive internal audits, develop adaptive compliance strategies, maintain flexible operational frameworks, and anticipate future regulatory refinements.
Ministry of Finance: Update on Excise Tax in the Fields of Public Health, Environmental and Economic
On November 5, 2024, the Deputy Minister of Finance presented key policies to the Excise Department, emphasizing its crucial role in driving the transformation of the country’s economic structure, environmental sustainability, and public health. This will involve in studying new tax collection mechanisms, continuing the existing mechanisms, and adjusting the tax collection system to achieve such goals. The policy primarily focused on 3 key areas – health-related tax, environmental-related tax, and economic-related tax. The details are as follow:
1.Heath-Related Tax
Fat Tax Consideration: The Excise Department was advised to consider taxation mechanism for the fat tax to combat rising rates of fat consumption which are linked to increase a burden healthcare cost. The fat tax will be collected based on the type of fat in foods and products.
Expanding the Scope of Sodium Tax: Thailand’s current sodium tax will mainly target at four main product groups (i.e., instant noodles, frozen foods, snacks, and sauces). The policy is suggested to impose a sodium tax on products outside the current controlled lists, and prioritizing items with high sodium levels while considering the accessibility of essential goods for low-income individuals which will be calculated based on the level of saltiness.
Approving of the 4th Phase on the Sugar Tax: The sugar tax was implemented to encourage beverage manufacturers to reduce sugar content in 2017, in order to provide businesses and consumers time for adapting to the potential increases of the price, the sugar tax will be implemented into 4 phases which step-up system with rates increasing every 2 years. The implementation of sugar tax is currently in the 3rd phase, and the sugar tax has been approved for the 4th phase, commencing on April 1, 2025. This progressive approach aims to achieve the goal of reducing sugar content in packaged beverages.
Tobacco Tax System Development: Thailand’s tobacco tax structure consists of 2 main types: (1) a blended tax which considering both value and quantity, and (2) a single-rate tax which specific rate taxes, The policy requires the implementation of a blended tax system for tobacco product while stipulating the development of a single-rate tax system that aims to reduce price distortions, boost market competition, support local tobacco farmers, and increase government revenue.
Track & Trace system for Tobacco Products: Previously, Thailand’s tobacco verification system relied solely on stamps to confirm tax payment, with information accessible only to the Excise Department and manufacturers. To enhance transparency and traceability, a QR code tracking system has been implemented and enforced. This new system facilitates the process of verification, including allows the public to independently monitor product authenticity.
2. Environmental-Related Tax
Establishment of Carbon Pricing Mechanism: The Excise Department was advised to establish a carbon pricing mechanism in the excise tax on 6 different types of oil products to reduce the emission of Carbon dioxide gas from both the public and business operators. The initial carbon price is set at 200 baht per ton of carbon.
Reconsideration of Tax Rate for Battery Products: Currently, the tax rate for battery products is set to be at the rate of 8% for all types of batteries according to Ministerial Regulation regarding the Excise Tax Tariff Rates B.E.2560 (2017). However, the tax rate will be changed into a tiered tax system considering the characteristics of the batteries such as life cycle, weight, types, and energy used.
3. Economic-Related Tax
Investment Incentive for Automobile Industry: The policy using tax incentives to attract investment in the domestic automotive industry, particularly for Plug-in Hybrid Electric Vehicle (PHEV), Battery Electric Vehicle (BEV), Fuel Cell Vehicle (FCEV) vehicles, and Hybrid Electric Vehicle (HEV) while maintaining the production base for Internal Combustion Engine (ICE). However, to support long-term restructuring, the policy will be exposed to short-term revenue losses.
Strategic Objectives:
Promote preventive healthcare
Modify consumer behavior
Support environmental sustainability
Drive economic transformation
Ensure balanced revenue collection
Implementation Considerations:
The phased approach to allow business adaptation
Targeted reduction of sodium consumption by 30% by 2025
Collaborative approach with relevant government agencies
Conclusion
The November 2024 excise tax policy update represents a sophisticated, multi-dimensional approach to addressing national challenges through strategic tax mechanisms, balancing public health, environmental sustainability, and economic development.
Economic: Comprehensive Strategy Proposed by Thailand’s Private Sector to Drive Sustainable Growth
As Thailand grapples with a complex web of economic challenges, including a global economic slowdown, weak domestic recovery, and constraints faced by small and medium-sized enterprises (SMEs) in accessing credit, the country’s private sector has come together to present a comprehensive strategy to revitalize the economy.
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), a coalition of prominent business associations, has compiled a detailed White Paper, outlining a multi-faceted approach to tackle the pressing issues and unlock Thailand’s full economic potential. This White Paper was recently presented to the Prime Minister during a meeting between the Prime Minister and JSCCIB.
The JSCCIB’s White Paper identifies four key areas of focus: economic problem-solving, assistance for SMEs, water management, and enhancing the country’s competitiveness. Within these areas, the private sector has proposed a range of policy measures, including:
Reducing the burden of living costs for the public and operating costs for businesses i.e. controlling essential goods and services prices, restricting electricity and diesel fuel prices, increasing the minimum wage, and solving debt problems, especially non-performing auto loans.
Implementing energy price reductions and restructuring.
Implementing economic stimulus measures e.g. digital wallet, increasing purchasing power, Easy e-receipt, and other tax incentives.
Enhancing the competitive capabilities of entrepreneurs e.g. using data-driven strategies to promote Thai products on e-commerce platforms, increasing investment measures with a focus on local content, and imposing taxes on foreign digital services.
Supporting SME development i.e. easing loan approval requirements, promoting and pushing entrepreneurs towards adopting Smart SMEs, and improving laws and regulations to facilitate ease of doing business.
Developing a corporate digital authentication system (Corporate Digital ID).
Urgently overhauling regulations and procedures related to licensing and the use of technology in government operations.
Enhancing investment in the Eastern Economic Corridor (EEC) i.e. improving large-scale infrastructure, proposing incentives to encourage and attract investment in the EEC, and expanding the EEC to include Prachinburi province, which would significantly boost investment in the region.
Facilitating trans-shipment i.e. establishing a transshipment sandbox for container ships at Laem Chabang Port for a 1-year period.
Developing logistics infrastructure and promoting border trade, resolving restrictions and obstacles in transporting goods from Thailand to neighboring countries, and amending regulations to enhance the efficiency of importing and exporting goods.
Safeguarding domestic industries and enhancing the global standing of Thai products.
Promoting the transformation of the automotive industry e.g. transitioning from combustion engines to future vehicles, expanding and maintaining the automotive production base.
Promoting a Green Economy or Eco-friendly Economy, including bioeconomy, circular materials, and waste symbiosis.
Implementing policies to foster a cashless and digital economy and providing tax incentives for businesses adopting transition finance and green investments.
Implementing policies to attract foreign investment and establish Thailand as a regional economic hub.
The JSCCIB believes that the partnership between the government and the private sector will effectively implement the proposed measures to address economic challenges and revitalize Thailand’s economy. The ambitious target is to achieve a sustainable GDP growth rate of 3-5% or more in the near future.
Key Takeaways from the White Paper:
Easing the Burden: The strategy calls for measures to reduce the burden of living costs for the public and operating costs for businesses. This includes controlling the prices of essential goods and services, restricting electricity and diesel fuel prices, increasing the minimum wage, and solving debt problems, particularly non-performing auto loans.
Boosting Competitiveness: The proposals aim to enhance the competitive capabilities of entrepreneurs and promote Thai products. This involves using data-driven strategies to market Thai goods on e-commerce platforms, increasing investment measures with a focus on local content, and imposing taxes on foreign digital services.
Empowering SMEs: The White Paper emphasizes the need to support SME development, including easing loan approval requirements, promoting the adoption of smart technologies, and improving laws and regulations to facilitate ease of doing business.
Strengthening Infrastructure and Trade: The strategy underscores the importance of developing logistics infrastructure and fostering cross-border trade. This includes facilitating transshipment at Laem Chabang Port, resolving restrictions in transporting goods to neighboring countries, and amending regulations to enhance the efficiency of importing and exporting.
Regulatory Overhaul: The JSCCIB calls for an urgent overhaul of regulations and procedures related to licensing and the use of technology in government operations, recognizing the need to streamline bureaucratic processes.
Embracing Sustainability: The proposals incorporate a strong emphasis on promoting a green and sustainable economy, including the transition towards a circular economy, the bioeconomy, and the transformation of the automotive industry.
Digital Transformation: The strategy underscores the significance of digital transformation, with initiatives such as the development of a corporate digital authentication system and the promotion of a cashless and digital economy.
Cyber Security: Thailand Strengthens its Cyber Defense
In a significant move to bolster its national cybersecurity infrastructure, Thailand’s National Cyber Security Agency (NCSA) has unveiled comprehensive guidelines for information system security assessment. Published in the Royal Gazette on November 11, 2024, these guidelines mark a pivotal shift in how the kingdom approaches digital security and critical infrastructure protection.
The announcement is at a time when nations worldwide are grappling with increasingly sophisticated cyber threats. This initiative demonstrates Thailand’s proactive stance in safeguarding its digital assets and critical infrastructure.
The Framework’s Foundation
The new guidelines are built upon the foundation laid by the Cybersecurity Act of 2019, representing a mature evolution of Thailand’s cybersecurity framework. At their core, these guidelines establish mandatory security assessment protocols for a broad spectrum of organizations, including government agencies, critical infrastructure operators, and regulatory bodies.
What sets these guidelines apart is their comprehensive approach to security assessment. Organizations are now required to evaluate not just their computer systems, but their entire digital ecosystem – including networks, programs, and data storage facilities. This holistic approach reflects a modern understanding of cybersecurity, where vulnerabilities can exist at multiple levels of an organization’s digital infrastructure.
Implementation and Organizational Impact
The immediate implementation requirement of these guidelines signals the government’s urgency in addressing cybersecurity concerns. Organizations falling under this framework must now integrate security assessments into their operational DNA, with reviews mandated at least every three years. However, the guidelines go further by requiring additional assessments whenever significant changes occur in an organization’s information systems – a dynamic approach that acknowledges the rapid pace of technological change.
Critical infrastructure organizations face particularly stringent requirements. They must establish detailed security assessment procedures and implement classification systems for their data and systems based on importance levels. This tiered approach ensures that resources are allocated appropriately, with the most critical systems receiving the highest levels of protection.
A New Era of Accountability
Perhaps the most significant aspect of these guidelines is their emphasis on accountability and documentation. Organizations must maintain detailed records of their security measures and regularly evaluate their effectiveness. This requirement creates a paper trail of security decisions and their outcomes, enabling better oversight and continuous improvement.
The NCSA, through its Secretary-General, has been empowered with significant authority to ensure effective implementation. This includes the power to issue additional directives, clarify requirements, and make binding decisions on any implementation disputes. This centralized authority structure aims to ensure consistent application of the guidelines across different sectors.
Looking Forward
The introduction of these guidelines represents more than just a regulatory change – it signals Thailand’s commitment to creating a robust digital infrastructure capable of meeting modern cybersecurity challenges. By establishing clear standards and accountability measures, Thailand is positioning itself as a leader in regional cybersecurity governance.
For organizations affected by these guidelines, the path forward involves significant adjustments to their security protocols and organizational processes. The requirement for regular assessments and documentation will necessitate new workflows and possibly additional resources dedicated to cybersecurity compliance.
The Broader Impact
These guidelines will likely have ripple effects beyond their immediate scope. Private sector organizations not directly covered by the regulations may choose to adopt similar frameworks voluntarily, recognizing them as best practices in cybersecurity management. This could lead to an overall elevation of cybersecurity standards across Thailand’s digital landscape.
Furthermore, the emphasis on regular reviews and updates acknowledges the dynamic nature of cyber threats. By building flexibility and regular assessment requirements into the framework, Thailand has created a living document that can evolve alongside emerging security challenges.
As nations worldwide grapple with cybersecurity challenges, Thailand’s comprehensive approach provides a potential model for other countries looking to strengthen their digital defenses. The success of these guidelines could influence regional cybersecurity policies and contribute to the development of international cybersecurity standards.
The true test of these guidelines will lie in their implementation and the ability of organizations to meet their requirements effectively. However, their introduction marks a significant step forward in Thailand’s journey toward a more secure digital future.
Key Takeaways:
Strategic Implementation
Immediate enforcement following the Royal Gazette publication
Mandatory security assessments every three years minimum
Additional assessments are required after significant system changes
Comprehensive coverage of digital infrastructure including systems, networks, and data
Organizational Requirements
Mandatory risk assessments for government agencies and critical infrastructure
Implementation of data and system classification frameworks
Regular monitoring and documentation of security measures
Development of detailed security assessment procedures
Thailand’s Digital Economy Promotion Agency (DEPA) is spearheading efforts to revolutionize the country’s gaming industry through a comprehensive draft bill. The proposed legislation, aimed at supervising and promoting the gaming sector, is expected to play a pivotal role in establishing Thailand as a regional gaming hub.
DEPA, along with other government authorities, such as the Ministry of Commerce, Revenue Department, Cybercrime Investigation Bureau, and Bank of Thailand, announced that the agency is in the process of drafting the bill, which is aimed to come into effect by 2025. The legislation is designed to address the rapid changes in the digital landscape, acknowledging that gaming has evolved beyond internet cafes to encompass various online platforms.
A key component of the draft bill is the registration of game entrepreneurs, developers, and platform providers operating in Thailand. This measure is intended to create a structured framework for the industry while offering benefits to registered entities. These benefits include tax deductions and other fiscal privileges aimed at fostering the development of the gaming sector and promoting employment opportunities.
Content regulation forms another crucial aspect of the proposed bill. DEPA plans to implement a game rating system and measures to prevent issues such as online gambling and excessive violence in games. To ensure effective supervision, the agency will collaborate with relevant authorities, including cybercrime units and digital payment agencies.
The draft bill also focuses on enhancing the competitiveness of Thai entrepreneurs in the global market. It aims to promote various aspects of game development, including storytelling, character design, animation production, and esports tournaments. This comprehensive approach is designed to attract foreign game developers and solidify Thailand’s position as a regional gaming hub.
To gather input from stakeholders, DEPA has scheduled public hearings on the draft bill for September 2024. Following these consultations, the bill will be presented to the Cabinet, the Office of the Council of State, and the House of Representatives for consideration and approval.
The proposed legislation represents a significant step towards creating a well-regulated gaming ecosystem in Thailand. By balancing supervision with promotion, the bill aims to foster a thriving gaming industry that adheres to local laws and societal standards while attracting investment and driving economic growth in the digital sector.
As the gaming landscape continues to evolve, this forward-thinking approach positions Thailand to capitalize on the opportunities presented by the global gaming market while ensuring a safe and regulated environment for consumers and industry players alike.
Key Takeaways:
The Digital Economy Promotion Agency (DEPA) is drafting a bill to supervise and promote Thailand’s gaming industry.
The bill aims to establish Thailand as a regional gaming hub and is expected to come into effect by 2025.
Public hearings on the draft bill are scheduled for September 2024.
Key features include registration requirements, tax incentives, and content regulation measures.
Collaboration between various government agencies is planned to ensure comprehensive oversight.
Technology: Thailand Accelerates Digital Transformation through National Digital Economy and Society Committee Initiatives
Thailand’s National Digital Economy and Society Committee (NDESC) recently convened its third meeting of 2024, steering the country’s digital transformation agenda forward on multiple fronts. Chaired by the Deputy Prime Minister and Minister of Digital Economy and Society, the high-level committee reviewed and endorsed several key initiatives aimed at modernizing government operations, enhancing public service delivery, and bolstering the nation’s digital infrastructure and cybersecurity.
e-Office:
A primary focus of the meeting was the expanded use of electronic documents within the government’s e-Office system, which operates on the Government Data Center and Cloud Service (GDCC) platform. The committee set an ambitious target of reaching 3 million e-Office users by 2027, underscoring the administration’s commitment to digitalizing public administration and transitioning towards a truly paperless governance model.
Cloud First Policy:
In parallel, the NDESC oversaw the progress of various specialized sub-committees tasked with driving specific aspects of the digital agenda. This included the Cloud First Policy committee, which is working to establish legal frameworks and management standards for the government’s adoption of cloud computing services. Additionally, a dedicated sub-committee was formed to oversee the integration and optimization of the country’s nationwide network of closed-circuit television (CCTV) systems, aimed at reducing redundancies, lowering costs, and enabling more effective data utilization.
Smart City:
Beyond the digitalization of government operations, the NDESC also prioritized the acceleration of smart city development across Thailand. Recognizing the transformative potential of connected urban environments, the committee placed this strategic initiative under the purview of the Committee for Promotion and Development of Digital for Economy and Society, ensuring a coordinated, whole-of-government approach to urban modernization.
Cybersecurity Safeguards:
Complementing these technological advancements, the NDESC also addressed the critical issue of cybersecurity. Tasking the National Cyber Security Agency (NCSA) to develop comprehensive guidelines for government agencies, the committee aimed to bolster the protection of personal data and mitigate the risks of information leaks, a pressing concern in the digital age.
Through these multifaceted initiatives, Thailand’s National Digital Economy and Society Committee is spearheading the country’s digital transformation journey, leveraging the power of technology to modernize public services, enhance economic competitiveness, and safeguard national interests in the rapidly evolving digital landscape.
Key Takeaways:
The National Digital Economy and Society Committee (NDESC) chaired a meeting to discuss important initiatives for driving the country’s economic and social development through digital transformation.
The meeting reviewed the progress on the use of electronic documents in the e-Office system under the Government Data Center and Cloud Service (GDCC), aiming to have 3 million users by 2027.
The committee discussed the progress of various sub-committees established under the Digital Development for Economy and Society Act, including those focused on cloud computing policies, legal frameworks for government cloud procurement, and cloud service management standards.
The NDESC endorsed the acceleration of smart city development, with the Smart City initiative now falling under the purview of the Committee for Promotion and Development of Digital for Economy and Society.
The committee also addressed the need to integrate and optimize the use of closed-circuit television (CCTV) systems nationwide, to reduce duplication and enable effective data management and utilization.
Regarding cybersecurity, the NDESC tasked the National Cyber Security Agency (NCSA) to propose guidelines for government agencies to prevent personal data leaks, which will be reviewed by the National Cyber Security Committee and the Cabinet.
In the intricate world of labor law, a case emerged that would challenge the principles of fair treatment and equality in the workplace. This is the story of a quality control inspector who fought for his rights and set a precedent for labor practices in Thailand.
The Employment Journey:
The plaintiff, once an employee of the first defendant and later a contract worker for the second defendant, was sent to work in the production department of the second defendant on 25 January 2017. His final position was as a quality control inspector. On 6 May 2020, the second defendant returned the plaintiff to the first defendant. During his tenure with the second defendant, the plaintiff received a housing allowance of 750 baht per month, while direct employees of the second defendant received 2,300 baht per month. The plaintiff never received annual bonuses or diligence allowances from either defendant.
The Dispute:
The plaintiff filed a lawsuit seeking for housing allowances, diligence allowances, and bonuses. The labor court found that the defendants were not liable for the housing and diligence allowances. However, the court ruled that the second defendant’s failure to pay bonuses to contract workers, who performed the same tasks as direct employees, constituted discriminatory treatment under Section 11/1 of the Labor Protection Act B.E. 2541 (1998).
The Appeal:
The second defendant appealed, arguing that under the Labor Relations Act B.E. 2518 (1975), they had the right to set different criteria for union members and non-members. Since the plaintiff was not a union member, he was not entitled to the bonus. The Specialized Court of Appeal dismissed this argument, stating it was a factual dispute rather than a legal one.
The Supreme Court’s Decision:
The Supreme Court had to determine whether the second defendant’s appeal was a legal issue. The court found that the second defendant’s argument was indeed a legal one, as it involved the interpretation of the Labor Relations Act B.E. 2518 (1975) and the Labor Protection Act. B.E. 2541 (1998). The Supreme court ruled that the second defendant’s practice of not paying bonuses to contract workers was discriminatory and violated Section 11/1 of the Labor Protection Act B.E. 2541 (1998). The Supreme Court also addressed the second defendant’s claim that applying the employment conditions agreement to non-union members violated the Constitution. The Supreme Court found that this was not a constitutional issue but rather a matter of legal interpretation.
The Outcome:
The Supreme Court upheld the lower court’s decision, ordering the second defendant to pay the plaintiff a bonus of 124,796 baht, with interest. The Supreme Court also adjusted the interest rate to comply with the new Civil and Commercial Code amendments, which reduced the default interest rate from 7.5% to 5% per year.
Key Takeaways:
Equality in Benefits: Employers must provide equal benefits and welfare to contract workers and direct employees performing the same tasks.
Legal Interpretation: Disputes involving the interpretation of labor laws can be considered legal issues and are subject to higher court review.
Non-Discrimination: Discriminatory practices in the workplace, such as unequal bonus payments, are prohibited under labor protection laws.
Constitutional Claims: Arguments based on constitutional grounds must clearly demonstrate a conflict with constitutional provisions to be considered valid.
This case underscores the importance of fair treatment in the workplace and the legal avenues available to employees’ seeking justice. It serves as a reminder that equality and non-discrimination are fundamental principles in labor law.
