Recently, many companies have announced sudden layoffs. Some employees who still have jobs may receive incomplete salaries, while in more severe cases, large companies have delayed salary payments for 4-5 months. Such issues frequently make headlines, prompting salaried workers to question whether companies are legally allowed to act this way and what rights and preparations employees should have.
Employees deserve compensation for their work. Importantly, the law states that employers must pay wages and related benefits on schedule. Failure to pay or delayed payment beyond agreed terms violates labor laws. According to data from FlowAccount this is summarized into three main cases.
1. Salary arrears
This violates the Labor Protection Act B.E. 2541 (1998). Employers who fail to comply face three penalties:
1.1 Interest Employers must pay employees interest at an annual rate of 15% on the overdue amount.
1.2 Additional payment If employers deliberately withhold payment without reasonable cause, they must pay employees an additional 15% of the overdue amount every seven days.
1.3 Criminal penalty If a labor inspector orders the employer to pay wages and the employer disregards this, the employer may be guilty of contempt of authority, punishable by up to one year imprisonment, a fine up to 20,000 baht, or both.
2. Request to delay salary payment
Employers may legally delay salary payments only with employees’ proper consent. Employers must inform employees in writing in advance, specifying the reasons and expected payment date. If employees refuse and the company delays payment unilaterally, employees have the right to claim default interest at 15% per year.
3. Partial salary payment (less than 100%)
This is critical because by law, employers may only deduct wages in certain cases, such as taxes, social security contributions, or agreed compensation for damages. Unjustified deductions violate Section 76 of the Labor Protection Act. In some cases where companies propose paying only part of the salary, e.g., 50%, with plans to pay the remainder later, employee consent is required since this alters employment conditions to the employee’s detriment.
If you encounter work-related payment problems, you can consult with the Department of Labour Protection and Welfare at any time. In cases where companies do not pay, delay, or underpay salaries, employees can file complaints with a “labor inspector” immediately at local offices or submit online throughan online systemdirectly.
There are two complaint levels employees should be aware of.
1. Filing a complaint with a labor inspector (Form Kor Ror 7) The inspector will begin investigating and reviewing the complaint within seven days, calling both employer and employee for further information. The inspector will issue a written order within 60 days from the complaint date (extensions may apply). If either party disagrees with the order, they may proceed to level 2.
2. Labour Court If dissatisfied with the labor inspector’s order, either employer or employee may appeal within 30 days of receiving the decision. Generally, the Labour Court aims to resolve cases within 3-6 months, depending on workload and case complexity.
To file a complaint with a labor inspector, prepare the following documents:
1. Identification card
2. Pay slips (if available)
3. Bank account details for wage payments (if available)
4. Evidence of employer’s refusal or delay in payment (if available)
5. Other employment or termination documents (if available)
6. Basic information about the employer, contact channels, and workplace location
7. Work time records (if available)
Of course, filing complaints or lawsuits involves statutes of limitation, such as:
- For wages, overtime pay, holiday pay, or overtime on holidays, the limitation period is two years. According to Civil and Commercial Code Section 193/34 (1), for example, if Company A fails to pay a salary installment due on 31 Jan 2026, the employee has two years from that date to file a claim.
- For unfair dismissal Although the Labour Court Act B.E. 2522 (1979) Section 49 does not specify a limitation period, the Civil and Commercial Code Section 193/30 applies, granting a 10-year limitation for claims not otherwise specified. (Counting from the dismissal date) .
A common question is whether employees without a written contract can claim unpaid wages. The answer is yes, since legally, if work is performed and compensation paid, employment exists. Employees should gather evidence such as pay slips and work-related chat messages to support their claim.
Ultimately, if unexpected issues arise, one of the employee’s key advisors is the Department of Labour Protection and Welfare. You can visit their regional offices or call the hotline at 1546 (wait times or alternative contact options viaFacebookmay also be available).
References: Department of Labour Protection and Welfare,FlowAccount
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