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SUWANVARA LAWFIRM
Suwanvara Law Firm Co., Ltd.
SUWANVARA LAWFIRM
SUWANVARA LAWFIRM
Suwanvara Law Firm Co., Ltd.
Labor Law

Relocating Your Factory or Office in Thailand: Notice to Employees, Who May Refuse, and Special Severance

Moving a plant to an industrial estate or an office across town has a specific procedure under Thai labour law. The notice you must post and when, which employees may refuse to move, what they are entitled to, and how to plan the move so it does not become a severance bill.

Suwanvara Law Firm— Employment & Corporate TeamSeptember 18, 20268 min read

Relocation is a labour law event

Companies usually plan a relocation around the property: lease end, a new building, an industrial estate with better infrastructure. Thai labour law adds its own procedure, and skipping it turns a move into a severance claim.

The rules apply when an employer relocates its place of business to a new location or to another of its existing premises.

1. The notice

Post a notice at the workplace, in a place employees can clearly see:

  • At least thirty days before the relocation date
  • Stating which employees move, to where, and when
  • Clear enough that each employee can understand how it affects them

If the notice is not posted as required, the employer must pay affected employees special severance in lieu of notice equal to thirty days' wages at the latest rate.

Send a written copy to each affected employee as well. Posting is the legal requirement; individual copies are the evidence.

2. Who may refuse, and what they receive

Where the relocation materially affects the normal living of an employee or their family, the employee may decline to move and terminate the employment within the period the law allows. That employee is entitled to special severance, calculated by reference to the ordinary severance they would have received for their length of service.

The key question is always whether the effect is material. Factors considered include:

  • Distance and commuting time from the employee's home
  • Cost of travel or of moving
  • Family circumstances, such as children in school or a spouse's job
  • Support offered by the employer

3. Reducing the effect before it becomes a claim

What the employer offers can change whether an effect is material:

  • Transport — company buses or shuttle routes from the old area
  • Allowances — travel or relocation allowances for a defined period
  • Accommodation — dormitories or housing support near the new site
  • Schedules — shift times that fit the new commute

Put these in the notice. An offer made after employees have already resigned is too late to change the analysis.

4. Planning the move: a sequence

  1. Map the workforce by home location and commuting options to the new site
  2. Estimate impact and the likely number of employees who may refuse
  3. Design support — transport, allowances, accommodation
  4. Budget for special severance for those who will not move
  5. Prepare the notice and individual letters
  6. Post the notice at least thirty days ahead and deliver copies
  7. Record responses, including written agreements to move
  8. Update work rules, workplace details and social security registration

5. What else moves with the workplace

A relocation touches permissions tied to the site:

6. Relocation combined with restructuring

Some moves are also used to reduce headcount. Keep the two apart in planning and documents. A relocation handled under this procedure and a reduction handled as a redundancy follow different rules, and mixing them invites the argument that the relocation was a disguised dismissal. See planning a restructuring or redundancy.

Checklist

  • Relocation date fixed with at least thirty days' margin for notice
  • Workforce impact map prepared
  • Support package decided and written into the notice
  • Notice posted and individual copies delivered
  • Budget for special severance approved
  • Work permits, factory licence, promotion and estate permissions scheduled
  • Work rules and registrations updated

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Frequently asked questions

Do we need employees' consent to relocate the workplace?+

Not in the sense of needing a yes from each employee before moving. The law sets a procedure instead: advance notice posted at the workplace, and a right for employees whose normal living is materially affected to refuse and leave with special severance. Consent still matters in practice, because employees who agree in writing to the move and its terms are far less likely to claim later.

How much notice must we give?+

The notice must be posted clearly at the workplace at least thirty days before the relocation date, stating which employees move, where and when. If the notice is not posted, the employer must pay special severance in lieu of notice equal to thirty days' wages at the latest rate to the affected employees.

Who can refuse to move?+

Employees for whom the relocation materially affects their normal living or that of their family. Such an employee may terminate the employment within the period the law allows and is entitled to special severance calculated by reference to the ordinary severance they would receive. Whether the effect is material depends on facts such as distance, commuting time and cost, and family circumstances.

Does moving a few kilometres count?+

Not necessarily. A short move within the same area, with similar commuting, is less likely to materially affect normal living. A move to another province, or one that doubles travel time without support, is more likely to. Offering transport, allowances or accommodation can reduce the effect, and should be documented in the notice.

What about foreign employees and our licences?+

A relocation changes more than the workplace. Work permits state the place of work and need to be updated, and a factory licence, investment promotion certificate and estate permissions are tied to the site. Plan these alongside the employee notice, not after it.

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