Illegal Chinese Labor in Thailand: Legal Challenges Employers Need to Know!

On December 14, 2024, police officers apprehended five Chinese nationals aged between 34 and 61 in the Huai Khwang district of Bangkok. The individuals were found illegally working as construction laborers without valid work permits. This incident highlights the ongoing issue of employing foreign laborers without proper authorization in Thailand. 

Mr. Tanit Sorat, President of the National Labor Development Advisory Council, observed that the suspects possess specialized skills in the construction industry. This indicates the illegal importation of skilled labor without following proper procedures, especially considering that there are approximately 28,000 Chinese workers legally employed in Thailand. However, despite clear penalties under foreign labor laws, enforcement remains inconsistent, leading to gaps that result in repeated violations.

In addition to the issue of illegal labor, there is a growing trend of Chinese nationals investing in various businesses in Thailand, including restaurants, logistics, and retail. This development affects market competition, particularly impacting small and medium-sized Thai enterprises. Some Chinese workers exploit legal loopholes by disguising their roles, such as falsely claiming to be engineers to participate in construction projects.

Currently, the employment of foreign labor, especially Chinese workers, continues to rise across various industries. However, hiring workers without proper work permits is not only illegal but also poses several risks that employers should carefully consider before making such decisions.

Employing foreign workers without proper work permits in Thailand carries significant risks and consequences, including:

1. Risk of Fines and Imprisonment: Under the Royal Decree on the Management of Foreign Workers Employment B.E. 2560 (2017), employers hiring foreign workers without valid work permits may face fines ranging from 10,000 to 100,000 Thai Baht per worker. Repeat offenses can result in increased fines of 50,000 to 200,000 Baht per worker and a three-year ban on hiring foreign workers. Additionally, if the workers entered Thailand illegally, employers could be prosecuted for assisting in illegal activities, potentially leading to further imprisonment.
2. Business and Reputational Risks: Being apprehended or prosecuted can severely damage a company’s reputation. Negative publicity may erode trust among customers and business partners, leading to lost business opportunities and increased scrutiny from government authorities in the future.
3. Risk of Labor and Wage Disputes
   Undocumented workers are often not protected under labor laws. In cases of disputes over wages, benefits, or termination, legal action may be taken against the employer. This could result in negative consequences, such as being held liable for back pay and potentially having to pay higher-than-standard compensation.
4. Risk of being inspected by government agencies                                                 
   Hiring illegal foreign labor may cause the company to become a target of inspections by the Ministry of Labor, the Immigration Bureau, or related agencies. This could lead to the revocation of the business license or even partial suspension of operations.  
5. Risk of being blacklisted                                                                                                    
   If a company has previously faced legal action regarding illegal foreign labor, it may be placed on a government watchlist. This could result in future applications for foreign labor permits being denied or subject to stricter conditions.  
6. Risk of safety and labor accidents                                                                                  
   If illegal foreign workers are injured or killed on the job, the employer may be held fully responsible for all expenses, including medical costs and compensation to the worker’s family, which could be several times higher than normal wages. Additionally, if it is found that the workers do not have social security or are not covered by workplace safety protections, the employer may face further legal action under labor protection laws.

Avoid Risks by Complying with the Law

To prevent legal issues and potential damages, employers should hire foreign workers legally by verifying their work permits and complying with the requirements of the Ministry of Labor.

For those involved in hiring foreign workers—whether employers or businesses aiming to operate legally—it is crucial to thoroughly study labor regulations to minimize legal risks. If there are any uncertainties regarding compliance, seeking advice from labor law experts is highly recommended. This ensures business stability and safeguards against legal complications.  

By following the law, businesses can operate smoothly, avoid penalties, and maintain a strong reputation.

Reference https://news1005.mcot.net/news/18436/

Written by : Kannikar Charoenweerawong (Internship Student in Chinese Language)