Legal Measures for Employer to Reach Fair Practice in Organizational Restructuring in Thailand

Abstract

Restructuring, a normal managerial task of entrepreneurship, can lift up an enterprises’ competitiveness potential in business societies. Restructuring will affect to the rights of all people in the enterprise. Labor laws and regulations not only provide adequate protection for employees, but also promote the flexibility to the business sectors. The employment relationships are involved with the actions of three parties - employees, employers and the government - that must substantially cooperate in order to establish efficient labor regulations. Thai labor laws which relate to working condition adjustment and dismissal are obsolete. It provides too much power for the courts in making decisions over dismissal cases. Moreover, Thai labor laws do not lay the provisions necessary to support economic reasons and cope with the changes in today’s business societies. Such insufficiency in economic functions might cause serious social problems in the long term. Thus, Thai labor laws should be amended to lay the provision for supporting economic reasons. In other countries and upon the International Labor Organization (ILO) guideline, many legal measures and mechanisms are prescribed to handle restructuring. Those models can be adopted in to Thai law as the rules or measure to deal with all economic matters in labor problem in Thai labor laws.