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Employment

Employment

Key Contacts

Cambodia

Laos

Myanmar

Thailand

Vietnam

Jay Cohen

     +855 23 964 210

     [email protected]

Prisna Sungwanna

     +66 2056 5656

     [email protected]

Yuwadee Thean-ngarm

     +95 9 772 440 002

     [email protected]

Chusert Supasitthumrong

     +66 2056 5793

     [email protected]

Pimvimol (June) Vipamaneerut

     +66 2056 5588

     [email protected]

Kien Trung Trinh

     +84 24 3772 5567

     [email protected]

OVERVIEW

We help you get the most from your best and brightest.

Business conditions, labor sentiment, and new opportunities evolve swiftly in the growing economies of Southeast Asia. Tilleke & Gibbins’ first goal is to help employers formulate long-term, yet flexible, strategies on conditions of employment, labor-management relations, and other critical employment issues. When conflict cannot be avoided, we assist our clients with employment claims in court.

We combine the strength of our dispute resolution and litigation team with the expertise of our employment attorneys to offer the following services:

  • Strategic Employment Advice.   Conditions of employment, work rules and regulations, employment agreements, benefit plans, executive compensation, labor protection, workers’ compensation, social security, provident funds, and safety issues.
  • Commercial Transactions.   Issues related to labor expansion, contraction, and integration due to mergers, acquisitions, and restructuring.
  • Labor-Management Relations.   Conflicts in the workplace, strike management and control, lockouts, and labor demands.
  • Immigration.   Work permits, visas, and permanent residence permits.
  • Employment and Labor Litigation.   Enforcement of restrictive covenants related to competition and trade secrets, termination of employment claims, and sexual harassment claims.
Case Studies
Thailand | Employment

Supreme Court Overrules THB 1.5 Million Unfair Termination Judgement

Represented a global clothing company in appeals before the Supreme Court in two related wrongful termination claims. As a result of our representation, the Supreme Court overruled the Labor Court’s judgement, saving our client's employer reputation and THB 1.5 million in damage awards.

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Experience

  • Assisted a client in its global restructuring, which required a reduction in the headcount of its Thai operations. The client sought our expertise in reducing the number of employees, while avoiding the potential for litigation relating to unfair termination. We crafted a multi-tiered solution involving voluntary resignation packages that employees would happily accept. As part of this solution, we advised the client on strategies for communicating with its employees regarding the restructuring. Ultimately, the client met its goal in headcount reduction and continues to operate in Thailand.
  • Developed a restructuring strategy to effect proportionate employee terminations at the intermediate management level for a  multinational financial services company. The restructuring would also give greater responsibility to senior managers. This created the dual objectives of (1) negotiating fair severance packages for intermediate-level management personnel in the face of strict labor laws and (2) imposing greater work requirements on senior-level managers without incurring claims of effective termination. We were successful in implementing the changes without any employee objection, and today our client’s employee culture is much improved.
  • Negotiated a favorable settlement of a highly contested termination of a company director involving our client, the director, and the company of the spouse of the director. The dispute included two criminal cases and two civil cases (one of which involved a claim of THB 20,000,000). We successfully gathered evidence of the director’s misconduct and leveraged that evidence to secure a favorable settlement for our client.
  • Prevailed in a highly publicized termination case wherein the client sought court permission to terminate the president of a labor union based on her television appearance while wearing a controversial T-shirt. The president maintained that she had given such interview on her own time and that her actions were protected by the Constitution. Although she was supported by many NGOs, the court ruled in favor of our client.
  • Defended a leading apparel company in a THB 50,000,000 labor claim and in a criminal case brought against the client’s director. We prevailed in both claims brought by the client’s former HR manager.
  • Advised a global telecommunications company on various labor and employment matters. Among them, we helped this client to rationalize a broad range of global employment policies. In addition, we consulted on the many issues inherent to multi-jurisdictional expatriate employment matters.
  • Concluded a case involving an employee safety allegation by a governmental authority against a multinational corporation.
  • Planned the layoff of approximately 1,000 persons and created a multifaceted strategy to manage the response of the employees and the labor union. The labor union mounted a strong challenge to our client’s activities. Nonetheless, we successfully responded to the opposition and completed the downsizing of the company without any employee claim.
  • Represented a manufacturer in negotiations with a labor union on strike. We successfully negotiated the terms of a collective bargaining agreement (CBA) and, thus, expedited the conclusion of the strike. In the CBA, we secured favorable terms for our client and the return of certain management rights.
  • Advised a leading high-tech company on HR matters, including drafting labor contracts, registering new staff members, preparing documents for employment termination, and registering staff resignations.
  • Prevailed in a labor dispute wherein a managerial-level employee claimed that he had been wrongfully terminated and sought severance and other monetary entitlements. Representing the employer, we proved that the employee had in fact resigned from the company.
  • Planned and executed the layoff of 1,900 employees. Thereafter, 279 of the affected employees submitted claims against the client in the total amount of THB 300,000,000. We successfully proved that our client had cause to terminate its employees and that such was done fully within applicable Thai law, resulting in judgment in our client’s favor. This was a high-stakes matter because, if we had lost the labor cases, the approximately 1,600 additional employees would have filed claims totaling approximately THB 2,000,000,000. We also act as ongoing labor compliance counsel.
  • Obtained a favorable judgment for the Thai affiliate of a leading animal health company in a case filed against a group of former executives who left to work for our client’s chief competitor. We secured this successful result even though there is still debate among Thai legal scholars as to whether noncompetition clauses are fair to employees.
  • Advised a multinational computer components manufacturer in Vietnam on the labor and workforce implications of its acquisition of a key supplier’s manufacturing facilities.
  • Consulted an international logistics services company in Vietnam on employee transfer and retention issues arising from the acquisition of its logistics services subsidiary.
  • Advised, negotiated, and successfully concluded several executive separations for numerous top-tier companies in Vietnam.

PROFESSIONALS

RELATED INSIGHTS

December 4, 2024
Thailand Legal Basics, a valuable primer for foreign investors, explores all aspects of living and doing business in Thailand. Written by specialists at Tilleke & Gibbins in Bangkok, it is the only comprehensive English-language guide to the Thai legal system with a focus on the concerns of foreign business and investment.
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October 1, 2024
Three of Tilleke & Gibbins’ labor and employment specialists in Vietnam have contributed the Vietnam chapter to the newly issued Labor and Employment Disputes 2024, a comprehensive guide from Lexology Panoramic to labor and employment dispute resolution in various jurisdictions around the world. The Vietnam chapter covers the following topics: Pre-action considerations: Key requirements, third-party funding, contingency fee arrangements Issuing a claim: Forum, territorial jurisdiction, standing, commencing claims, fees, service Defendants and legal personality: Types of claims, time limits, counterclaims Case management: Procedure, rules, amendments to claims, adding parties to proceedings, consolidating proceedings Class and collective actions: Special considerations Evidence: Witnesses, tactical considerations Interim relief: Availability, requirements Trial: Hearings conduct and typical time frames, confidentiality and public access, media reporting Elements of successful claims and burden of proof Alternative dispute resolution: Available types, requirements and expectations Enforcement: Collective employment and labor rights, enforcement of collective rights, standing Remedies and enforcement: Available remedies, assessing compensation, enforcement mechanisms Appeals: Appeal procedure and time frames, other means of challenge Update and trends: Recent cases and developments, technology developments, other issues The Vietnam chapter was authored by Truc Thi Thanh, Linh Ngoc Nguyen, and Kien Trung Trinh. Tilleke & Gibbins also contributed the Thailand chapter to Labor and Employment Disputes 2024.
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October 1, 2024
Four of Tilleke & Gibbins’ labor and employment specialists in Bangkok have contributed the Thailand chapter to the newly issued Labor and Employment Disputes 2024, a comprehensive guide from Lexology Panoramic to labor and employment dispute resolution in various jurisdictions around the world. The Thailand chapter covers the following topics: Pre-action considerations: Key requirements, third-party funding, contingency fee arrangements Issuing a claim: Forum, territorial jurisdiction, standing, commencing claims, fees, service Defendants and legal personality: Types of claims, time limits, counterclaims Case management: Procedure, rules, amendments to claims, adding parties to proceedings, consolidating proceedings Class and collective actions: Special considerations Evidence: Witnesses, tactical considerations Interim relief: Availability, requirements Trial: Hearings conduct and typical time frames, confidentiality and public access, media reporting Elements of successful claims and burden of proof Alternative dispute resolution: Available types, requirements and expectations Enforcement: Collective employment and labor rights, enforcement of collective rights, standing Remedies and enforcement: Available remedies, assessing compensation, enforcement mechanisms Appeals: Appeal procedure and time frames, other means of challenge Update and trends: Recent cases and developments, technology developments, other issues The Thailand chapter was authored by Eric M. Meyer, Chusert Supasitthumrong, Pathanin Sornchangwat, and Chayathorn Kruatao, all in the Thailand dispute resolution and litigation team. Tilleke & Gibbins also contributed the Vietnam chapter to Labor and Employment Disputes 2024. The full Thailand chapter is available below as a PDF.
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August 14, 2024
Myanmar has once again made significant amendments to its minimum-wage framework by introducing additional allowances for both public- and private-sector workers. On August 9, 2024, the National Committee for Setting the Minimum Wage issued Notification No. 1/2024, which entitles private-sector workers to a new additional daily allowance of MMK 1,000 (approximately USD 0.48). This increase is on top of the MMK 1,000 additional daily allowance introduced last year. As a result, workers at private-sector employers with more than 10 employees are now entitled to the base minimum wage of MMK 4,800 plus additional allowances of MMK 2,000, for a total of MMK 6,800 (approximately USD 3.20) per day for an eight-hour workday, effective August 1, 2024. A similar additional allowance had been announced for workers in government departments and organizations on July 26, 2024. Background The MMK 4,800 (approximately USD 2.29) minimum wage for an eight-hour workday (equivalent to MMK 600 per hour) was established in May 2018 for all workers, irrespective of location or job type. In September 2023, the Ministry of Planning and Finance announced an additional daily benefit of MMK 1,000 for workers in government departments and organizations, and on October 9, 2023, the National Committee for Setting the Minimum Wage extended this benefit to workers at private-sector employers with more than 10 employees, bringing the effective minimum daily wage to MMK 5,800 (approximately USD 2.77). These changes took effect on October 1, 2023. Applicability of Additional Allowances for Private-Sector Workers The latest announcement also entitles employees to the base minimum wage and additional allowances for days used from their entitlement to leave and holidays, in accordance with the 1951 Leave and Holidays Act. However, the daily allowances—totaling MMK 2,000—are not to be included when calculating overtime payments. Instead, overtime payments must be calculated based on
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AWARDS & RANKINGS
November 26, 2024
Tilleke & Gibbins has been named to the Asian Legal Business (ALB) Fast 30: Asia’s Fastest Growing Firms 2024. The ranking highlights law firms across Asia that have demonstrated significant growth and leadership in a competitive and evolving legal landscape. Selection for the ALB Fast 30 is based on metrics such as growth in fee-earners, new office openings, the addition of key partners and clients, revenue increases, and other measures of expansion. This is the second time Tilleke & Gibbins has been included on the list, having previously earned recognition in 2022. The Fast 30 ranking complements ALB’s annual Top 50 Largest Law Firms feature, which evaluates firms by total lawyer headcount. While not included among the region’s largest firms, Tilleke & Gibbins continues to be prominently ranked by ALB for its presence in Thailand and Vietnam. For more about the ALB Fast 30 and to see a full list of the Asia’s fastest growing law firms, please see the November 2024 issue of ALB.
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September 13, 2024
The 2024 edition of the IFLR1000 Asia-Pacific rankings, released by International Financial Law Review (IFLR), highlights Tilleke & Gibbins’ continued excellence in financial and corporate transactional work. The firm has retained its strong rankings across multiple jurisdictions and practice areas, reaffirming its position as a leading firm in the Asia-Pacific region. This year, Tilleke & Gibbins received firmwide rankings in key jurisdictions, including: Thailand Banking & Finance – Tier 3 Capital Markets: Debt – Tier 3 Capital Markets: Equity – Tier 3 M&A – Tier 2 Project Development – Tier 2 Restructuring & Insolvency – Tier 3 Vietnam Banking & Finance – Other Notable M&A – Tier 3 Project Development – Tier 3 Cambodia Financial & Corporate – Tier 2 Project Development – Tier 2 Laos Financial & Corporate – Tier 2 In addition to these firmwide rankings, Tilleke & Gibbins had several standout individual recognitions, with 10 lawyers honored in the 2024 individual rankings, including new entries for John Frangos, Niti Muangkote, Santhapat Periera, and Tram Ngoc Bich Nguyen. The full list is as follows: Charunun Sathitsuksomboon – Highly Regarded, M&A, Thailand Charuwan Charoonchitsathian – Rising Star, M&A, Thailand David Mol – Rising Star, Corporate and M&A, Cambodia Jay Cohen – Highly Regarded, Banking, Cambodia John Frangos – Notable Practitioner, Restructuring & Insolvency, Thailand (new ranking) Niti Muangkote – Rising Star, Financial & Corporate, Laos; Highly Regarded, Banking & Finance, Thailand (new ranking) Saithong Rattana – Notable Practitioner, Project Development and M&A, Laos Santhapat Periera – Highly Regarded, Banking, M&A, Laos; Highly Regarded, Banking & Finance, Thailand (new ranking) Supasit Boonsanong – Highly Regarded, Project Development, Thailand Tram Ngoc Bich Nguyen – Highly Regarded, M&A, Vietnam (new ranking) To see the full set of IFLR1000 rankings for Tilleke & Gibbins’ jurisdictions, please see the Cambodia, Laos, Thailand, and
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September 12, 2024
Tilleke & Gibbins has once again secured impressive rankings in the recently released Asialaw 2024 rankings. The firm has maintained its position as a top legal service provider across multiple jurisdictions, earning a total of 39 rankings in practice and industry groups, 19 of which are in the highest tiers. The firm’s performance continues to reflect its exceptional client service and legal expertise across Southeast Asia. Tilleke & Gibbins is recognized in all available categories for Cambodia, Laos, and Thailand, demonstrating the firm’s strong presence across the region. In the individual rankings, 22 of the firm’s practitioners have been recognized, including three notable promotions and three new entries: Charunun Sathitsuksomboon (Thailand), newly ranked as a Notable Practitioner for Corporate and M&A. Linh Thi Mai Nguyen (Vietnam), promoted to Distinguished Practitioner for Intellectual Property. Loc Xuan Le (Vietnam), promoted to Elite Practitioner for Intellectual Property. Niti Muangkote (Laos), a new entry as a Rising Star for Banking and Finance. Prisna Sungwanna (Laos), newly ranked as a Distinguished Practitioner for Corporate and M&A and Banking & Finance. Suebsiri Taweepon (Thailand), promoted to Distinguished Practitioner for Intellectual Property and Technology and Telecommunications. Client feedback remains a key component of the Asialaw rankings, with Tilleke & Gibbins earning high praise for its responsiveness and commercial awareness. The firm’s sector-specific knowledge also continues to stand out, with clients expressing their appreciation of the firm’s understanding of their businesses’ operational contexts. For more details and to browse the full rankings, please visit the Asialaw website.
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July 23, 2024
In the Who’s Who Legal (WWL) Southeast Asia guide for 2024, a total of 12 Tilleke & Gibbins lawyers have been distinguished as market leaders in various legal practice areas. The firm’s 12 recognized lawyers, singled out for their commitment to delivering exceptional legal services to Tilleke & Gibbins’ clients, are grouped into seven practice areas: Asset Recovery: Thawat Damsa-ard Data: Alan Adcock, Athistha (Nop) Chitranukroh Franchise: Alan Adcock, Jay Cohen Intellectual Property: Alan Adcock (Patents, Trademarks), Darani Vachanavuttivong (Patents, Trademarks), Kasama Sriwatanakul (Trademarks), Linh Thi Mai Nguyen (Trademarks), Somboon Earterasarun (Trademarks), Wongrat Ratanaprayul (Patents) Investigations: John Frangos and Thawat Damsa-ard Labor, Employment, and Benefits: Pimvimol (June) Vipamaneerut Life Sciences: Alan Adcock, Loc Xuan Le The annual WWL Southeast Asia rankings guide, published by the London-based group Law Business Research, aims to identify the foremost legal practitioners across a range of business law practice areas. The rankings are largely based on feedback and nominations received from other WWL-ranked and nominated attorneys around the world. These peer-driven recognitions highlight Tilleke & Gibbins’ dedication to maintaining the highest standards of legal service and helping clients achieve success. To read more about the WWL Southeast Asia guide, or to browse the full results, please visit the WWL website.
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