Foreign Clients Require RBA Compliance: What HR Changes Must Thai Suppliers Make?

Many parts manufacturing companies in industrial estates have received the same email from foreign customers, asking them to confirm compliance with the RBA Code of Conduct and to prepare for an assessment. Most HR departments are confident they will pass, because they already comply fully with Thai labor law.

The problem is that RBA does not only measure whether you comply with Thai law. In many areas, RBA standards are higher than the law, and when the two standards differ, the higher standard applies. This article summarizes the gaps commonly found in Thai factories.

What Is RBA, and Why Do Customers Ask for It

RBA, or the Responsible Business Alliance, is a coalition of major brands and manufacturers in supply chains, particularly in electronics and automotive. Its code of conduct covers 5 areas: labour, occupational health and safety, environment, ethics, and management systems.

RBA is not a law, but when a customer that is a member makes it a condition in a purchase agreement, failing an audit can mean having orders reduced or being removed from the supplier list.

Common gaps between Thai law and the RBA

1. Total weekly working hours

Under Thai law, total hours may exceed 60 hours per week without breaking the law, but this does not pass the RBA. Peak order periods are when factories most often fail this point, and auditors look at time records going back over time, not only at the month of the audit.

2. Recruitment costs

This is the most serious point for factories that employ migrant workers. The RBA requires that workers must not pay recruitment fees or costs, whether paid to a recruitment agency in Thailand, in the country of origin, or to an intermediary.

• Review the contract with the recruitment agency to establish who pays each item of cost
• Ask workers whether they paid money to anyone before travelling
• If payments are found to have been made, there must be a repayment plan

Thai law governing the management of the employment of foreign workers also prohibits collecting costs from workers, but the RBA's scope is broader because it covers costs incurred outside Thailand.

3. Retention of identity documents

Both systems prohibit this. Employers must not keep employees' passports, work permits or identity cards. If they wish to help store them safely, it must be voluntary, the documents must be returnable immediately, and there must be a record.

4. Deposits and wage deductions

• Work deposits Thai law allows them to be required only for certain types of work as prescribed, whereas the RBA does not want deposits that tie workers to the job.
• Wage deductions as a disciplinary penalty Neither Thai law nor the RBA accepts this.
• Uniform, equipment and accommodation costs deducted from wages must be checked to ensure they are lawful and that the employee has voluntarily agreed.

5. Employment contracts in a language the worker understands

The RBA requires workers to receive their employment contract or terms and conditions of employment in a language they understand, and for migrant workers this should be before departing the country of origin, and the conditions on arrival must not be less favourable than those agreed.

6. Freedom to resign

Workers must be able to resign in accordance with a reasonable notice period, without being fined, without their unpaid wages being withheld, and without being forced to repay recruitment costs.

7. Young workers and student interns

Thai law prohibits employing children under 15 years of age and restricts hazardous work and night work for employees under 18 years of age. The RBA applies the same principles but inspects in greater depth, for example age verification before hiring and the working conditions of student interns or dual vocational students.

8. Non-discrimination and grievance channels

There must be no pregnancy testing or medical testing to screen people out. There must be grievance channels that workers can genuinely use without retaliation, and freedom of association must be respected.

How the Assessment Works

The assessment most clients request is the VAP (Validated Assessment Program), conducted by an accredited auditor. It consists of:

• Document review — employment contracts, work rules, working time records, payslips, and contracts with recruitment agencies
• On-site walkthrough — covering production lines, dormitories, and canteens
• Worker interviews — conducted without supervisors present, which is the point at which the information in the documents and the reality on the ground often do not match

Assessment findings are graded by severity level, and the company must prepare a corrective action plan together with supporting evidence within a specified timeframe.

Recommended preparation sequence

1. Check the gaps first. Compare your current HR system against the RBA Code of Conduct your client references, point by point.
2. Fix labour recruitment fees first, because this is the most serious issue and takes the longest to remedy.
3. Adjust your time-recording and shift-planning systems so total hours do not exceed the threshold.
4. Review employment contracts and work rules so they comply with both Thai law and the RBA. Read more on work rules.
5. Audit recruitment agencies and labour contractors, because responsibility does not stop with your own employees.
6. Set up a grievance channel and train supervisors.
7. Keep evidence at every step, because auditors trust documents and interview statements, not assurances.

📌 See more: Labour law · Business law

If a client asks your company to comply with RBA standards and you need a labour law gap check before the actual audit, consult our team of lawyers.

This article provides general information, not a legal opinion for a specific case, and is not an RBA document.