Legal Update May 2024

News Updates

Germany became third largest economy in the world

As a result of the 6.3% growth of its nominal GDP reaching over USD 4.46 trillion and the significant downfall of JPY, Germany has surpassed Japan (with a nominal GDP of USD 4.2 trillion) to become the third-largest economy in the world. As of April 2024, the top 4 countries with the highest GDP are as follows:

*The above statistics are derived from estimation of the International Monetary Fund (IMF) World Economic Outlook April 2024.

https://www.cnbc.com/2024/02/15/japan-loses-spot-as-worlds-third-largest-economy-to-germany.html

Cabinet Resolutions

Draft law on licensing and public service facilitation

The draft law is a major revision to its predecessor (The Act on Licensing Facilitation, the “Act”), aimed at simplifying the government requirement for doing business in Thailand. Some major revisions are as follows:

1. Broadening the applicable scope of the Act to cover the request for government agencies to undertake any action or public services under its authority;
2. Expanding the definition of “Government Agency” under the Act to include all government agencies;
3. Requiring a review of the law every five years, focusing on aspects such as the necessity of permits and exploring alternative measures, streamlining permit applications across various laws under a single agency, etc;
4. Introducing the option for a special express lane (“Fast Track”) to accommodate citizens seeking expedited processing;
5. Implementing default permission (“Auto Approve”) when the consideration process exceeds the stipulated timeframe;
6. Providing English-language request forms to enhance accessibility for non-Thai speakers;
7. Establishing a main permit system (“Super License”) to facilitate a business that requires several licenses. A business operator who obtains the main license will be assumed to also obtain other accessory licenses, to be specified in the Royal Decree. However, the license holder must pay the fee for all licenses in full as required by relevant laws.

https://www.bangkokbiznews.com/business/economic/1120728

New criteria for real estate expropriation

To support the construction of the Mass Rapid Transit (MRT) system and ensure fair compensation for individuals affected by the project without complete expropriation of their land, the Cabinet approved ministerial regulations outlining criteria and methods for determining compensation. These regulations cover cases where real estate use is diminished due to construction without full expropriation of the property. Compensation will be based on factors such as market price, official appraisal, size, location, condition, and use of the property, as well as surrounding real estate conditions.

https://www.matichon.co.th/politics/news_4545574

Government Gazette

Revision of the protection for housework employees

Under the labour law, employers are exempted from certain protections under the Labour Protection Act for employees who work on housework duties which do not involve business activities. The new Ministerial Regulation revokes some exemptions, so housework employees can now enjoy the below benefits/protections under the Labour Protection Act:

1. Announcement of the working time and maximum working time per week (Section 23);
2. Fixed resting period of not less than 1 hour per day (Section 27 para. 1);
3. Personal leave of not less than 3 working days per year (Section 34)
4. Prohibition of work from 10 p.m. to 6 a.m. for pregnant employees (Section 39/1);
5. Pregnancy leave of 98 days and shall receive wage from the employer of not more than 45 days (Section 41 and 59);
6. The employer is prohibited from terminating an employee due to pregnancy (Section 43);
7. The employer is required to notify the labour inspector regarding the employment and termination of employees below 18 years of age (Section 45 (1) (3) and para. 2);
8. Right of the employees under 18 years old to take leave to attend meetings or seminars, obtain education or training (Section 52);
9. Prohibition of wage deductions (Section 76);
10. The employer shall pay a wage of not less than the minimum wage;

Please note that this Ministerial regulation is an additional exemption from the Ministerial Regulations no. 14 under the LPA.

https://ratchakitcha.soc.go.th/documents/28791.pdf