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 Cambodia and Vietnam chapters to Labor and Employment Disputes 2024. The full Thailand chapter is available below as a PDF.

Background Since Thailand’s accession to the Madrid Protocol in November 2017, the trademark registration landscape in the country has undergone significant transformation. Brand owners can seek trademark protection in Thailand through a streamlined international process in addition to the national route. This alignment with global practices has somewhat simplified the registration process, offering businesses a valuable pathway to safeguard their brands in this key Southeast Asian market. However, despite the streamlined process, a technical glitch at the Trademark Office in Thailand’s Department of Intellectual Property has caused delays in issuing local certificates and statements of grant following provisional refusals — commonly referred to as ‘Model Form 5’. These documents are crucial for finalising trademark registrations and confirming their validity within Thailand. It is important to note, however, that this technical issue did not affect the issuance of statements of grant for international registrations (IRs) that had not been provisionally refused. Recent developments The good news is that, as of 19 August 2024, the Trademark Office has successfully resolved the technical issues impacting the issuance of these essential documents. With the glitch now fixed, the office has begun to process the backlog of local certificates of registration and statements of grant for IRs designating Thailand following provisional refusals. What this means for brand owners The resolution of this technical issue represents a significant milestone for brand owners who have been waiting for their local certificates. As the Trademark Office works to clear the backlog, the issuance of certificates and statements of grant is likely to proceed more promptly. For those affected by the delay, the end is in sight. The issuance of these documents will enable brand owners to officially complete their trademark registration in Thailand and benefit from the protections offered under Thai law. In the meantime, brand owners needing a certificate of registration for specific

Indonesia enacted a new franchise regulation, Government Regulation No. 35 of 2024 on Franchising (“GR 35/2024”), on September 2, 2024. Franchising in Indonesia was previously governed by Government Regulation No. 42 of 2007 on Franchising (“GR 42/2007”), along with an implementing regulation, Ministry of Trade Regulation No. 71 of 2019 regarding Implementation of Franchising (“MOT Regulation 71/2019”). This new regulation repeals GR 42/2007. However, MOT Regulation No. 71/2019 remains in effect until a new MOT regulation can be enacted. The new franchise regulation contains several amendments and provides more detailed requirements to complement MOT Regulation No. 71/2019. Comparison of GR 35/2024 to GR 42/2007 Minimum years of business operation. The new regulation reduces the minimum duration that a franchise registration applicant must have been operating from five years to three years. Intellectual property (IP) status. Any relevant IP must now be registered before a franchise registration application can be submitted. This is a change from the previous regulations, under which it was possible to obtain a franchise registration (STPW) while an IP application was still pending, and if the IP application could not be registered, the STPW would be canceled. Registration requirements for foreign franchisors. Under the new regulation, foreign franchisors must provide a legalized or apostilled business permit document from the country of origin in addition to the previously required franchise offering prospectus and statement letter from the relevant Indonesian authority. Administrative sanctions. The new regulation has adjusted the three escalating stages of administrative sanctions to (1) two warning letters, (2) a 14-day suspension from business activities, and (3) STPW revocation. This varies from the three stages under the previous regulation (three warning letters, fine, and STPW revocation). The new regulation also expands the list of noncompliant actions that are subject to these administrative sanctions. In addition to the regulatory obligations detailed in the previous regulation,

On September 24, 2024, the government of Vietnam issued the first draft of a new Law on Personal Data Protection (“Draft PDPL”). As foreshadowed in our previous legal update, the Ministry of Public Security has been very active in developing this draft law. With this draft, they promise to continue their considerable efforts to establish a robust personal data protection culture in Vietnam, as the Draft PDPL indicates a tentative entry into force on January 1, 2026. With a tentative adoption by the National Assembly in May 2025, the Draft PDPL does not include any transition period, save for micro-enterprises, SMEs, and startups, which are only exempted from appointing a data protection department in their first two years of existence, while the timeline to comply with other obligations under the PDPL remains the same as for other enterprises. The Draft PDPL includes 68 articles, divided into seven chapters, making it more extensive than last year’s Decree No. 13/2023/ND-CP on Personal Data Protection (“PDPD”), and expressly addresses personal data protection in many fields, including marketing services, behavioral advertising, big-data processing, AI, cloud computing, labor monitoring and recruitment, financial and credit information, health and insurance, and others. It remains unclear how the PDPL will interact with the PDPD (whether it will replace its predecessor or coexist with it), although the Draft PDPL provides that it will prevail over any laws that have provisions on personal data protection that differ from the provisions of the PDPL. Among the important new developments of the Draft PDPL when compared to the PDPD, we note: Consent remains the main legal basis for processing, with limited exceptions (still not including “legitimate interest”). However, consent for cross-border transfer is further regulated under the Draft PDPL, including for intra-group sharing. Data processing impact assessment dossiers for controllers and processors (“DPIA”) and transfer impact assessment

In recent years, Thailand has witnessed significant developments in its personal finance sector, particularly in alternative lending options. This article explores two key concepts in the Thai financial landscape: nano finance and personal loans. These alternative lending models, regulated by the Bank of Thailand (BOT), aim to provide more accessible financial services to individuals and small entrepreneurs who might have limited access to traditional funding sources. Nano Finance: Empowering Small Entrepreneurs The nano finance scheme under the BOT’s supervision is designed to provide funding to small entrepreneurs who might have limited access to traditional financial resources. One of the key features of this scheme is the ability of licensed nano finance providers to use alternative data in assessing loan applicants’ ability to repay (information-based lending). To implement this approach, nano finance providers must have an internal policy on credit approval that supports: Identifying scope and processes for utilizing alternative factors or technologies in determining debt repayment capacity, credit line limits for each loan applicant and total credit limits, and acceptable debt repayment targets; Having resources and personnel with sufficient knowledge, capability, experience, and expertise to operate efficiently and effectively, as well as clear checks and balances; Establishing guidelines for selecting and analyzing factors or financial models to evaluate or predict loan applicants’ ability and willingness to repay; Having an internal sandbox to test key success factors of the selected factors or models; and Having a process for monitoring and reviewing the application of the selected factors or models in assessing debt repayment capability. This approach allows nano finance providers to make more informed lending decisions based on a broader range of data, potentially increasing access to finance for small entrepreneurs who may not have traditional credit histories or collateral. Personal Loans The personal loan scheme under BOT supervision aims to solve loan-shark problems by providing the public with access to

The General Department of Customs and Excise (GDCE) in Cambodia’s Ministry of Economy and Finance launched a trial phase of its Intellectual Property Rights Recordation System (IPRRS) on September 1, 2024. The system compiles necessary information and documents related to intellectual property rights in the country, enabling customs authorities to swiftly access these documents and enhance their ability to identify and intercept potential parallel imports and infringing goods at the border. This will also better facilitate ex-officio actions by customs authorities. The system is currently referred to as being in a “trial phase” to support further amendments or updates to address any potential technical errors that may arise from public use. However, the IPRRS is already fully operational. Types of Recordation Currently, the IPRRS allows two types of recordation: Intellectual property recordation is available for trademarks, geographical indications, copyrights, and related rights that are protected in Cambodia. It allows IP owners, authorized representatives, and legal representatives to record information and documents relating to such rights, including information on possible or potential counterfeit goods, with the GDCE. Recordation will give customs authorities quicker access to the information and enable them to promptly take action against potential counterfeit or infringing goods. Exclusive distributorship recordation is meant to streamline the process that takes place after the Ministry of Commerce issues a notice of the recordation of exclusive rights. Under the current practice, after receiving a copy of a notice of the recordal of an exclusive distributorship issued by the Ministry of Commerce (MOC), the GDCE needs to enter the information into their system manually to enable them to promptly identify or stop potential parallel importation at the border. This reportedly causes delays in border officers’ access to the necessary information. Recordation through the IPRRS, on the other hand, allows local exclusive distributors and their authorized or legal

On September 12, 2024, the Bank of Thailand (BOT) Notification Re: Virtual Bank Supervision Criteria took effect. According to this notification, virtual banks must adhere to standards for traditional commercial banks, along with additional requirements tailored to address virtual banks’ digital nature and corporate structure. Specific Requirements The concepts of supervision remain unchanged from the consultation paper titled “Criteria for Supervising Virtual Banks”. Some of the key additional provisions and details on supervision criteria relate to the following: Financial business groups: The notification identifies virtual banks as financial businesses, subject to the BOT’s regulations on financial business group supervision. If a virtual bank is a part of another financial institution’s financial business group, the virtual bank must be under a solo consolidated group. After the “initial phase” (see below), other financial institutions and companies within the financial business group are prohibited from extending credit to or engaging in transactions similar to lending activities with the virtual bank. Capital fund requirements: If other financial institutions’ investment in a virtual bank increases the capital fund in the financial system beyond a safe level and this poses a risk to other financial institutions, the BOT may order the relevant financial institution to maintain capital funds as the BOT deems appropriate. Service channels and outsourcing: Virtual banks must provide services solely through digital channels, except when necessary. For example, with the BOT’s approval, a virtual bank may use other commercial bank electronic branches via an ATM pool system, use a banking agent to serve customer needs for cash, or occasionally provide on-site services. Initial Phase The “initial phase” runs from the date that the virtual bank commences its operations until it receives the BOT’s approval to become fully operational. During this period, certain BOT supervisory requirements are relaxed as follows: Governance: Virtual banks in the initial phase may request permission from the BOT to appoint a manager

Following the endorsement of the report on the study of opening entertainment complexes by Thailand’s House of Representatives and Cabinet in early 2024, the draft Entertainment Complex Bill, B.E. … (the “Entertainment Complex Bill”) finally became open for public hearing and is now under the consideration of the Ministry of Finance. The Entertainment Complex Bill aims to liberalize and facilitate the establishment of entertainment complexes that include casinos, allowing participation from domestic and foreign investors alike. Key Takeaways Under the Entertainment Complex Bill, an “entertainment complex” is a venue that operates at least four types of entertainment businesses alongside a casino. These may include five-star hotels, restaurants and bars, game centers, and department stores, among others. Based on the information publicly available as of the date of this publication, the Entertainment Complex Bill and its prospective subordinate legislation should encompass the following key requirements. Licensing requirements: Business operators seeking to operate an entertainment complex business must first obtain a license. To qualify, applicants must: (1) be a company incorporated in Thailand and (2) have a minimum paid-up capital of THB 10 billion. This license will operate as a “super license” covering not only casino activities but also other operations within the complex, such as hotels, restaurants, bars, and game centers, which, under normal circumstances, may require separate licenses or permits. The license will be valid for 30 years and may be renewed for an additional 10-year term upon expiration. The license fees may depend on the location of the entertainment complex. Minimum investment requirements: Based on the preparatory works by the drafting committee, entertainment complex business licenses may be classified into four different categories based on the size of the investment: small, medium, large, and extra-large. At this stage, licenses for the extra-large category, requiring an investment of THB 100 billion, are anticipated to