Article by RSM Termination of Employment The Labour Protection Act B.E. 2541 (1998) (“the Act”) applies to all businesses operating in Thailand. The employer/employee relationship is regulated under Thai law, including matters relating to the termination of an employee. The main reasons why Thailand employers may consider payroll cuts by terminating staff can be summarised briefly as economic, poor performance or misconduct. It is common in the Thailand legal environment that the Labour Court tends to favour the employee and accordingly it is extremely important that business owners in Thailand adopt correct procedures insofar as termination of their employees. Termination Payment…