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Pay-Cut as Constructive Dismissal
Employee v Employer
Composite summary — not a single reported case. This entry distils a settled line of Thai Supreme Court (Dika / ฎีกา) authority for legal education. It is not a transcript of one reported judgment, and the heading is not a citable case number. Do not cite it as specific case law — consult a Thai-qualified lawyer for the authoritative Dika number and current application.
Facts
Employer unilaterally reduced the employee's base salary citing financial constraints; employee resigned and claimed severance.
Legal Issue
Whether a unilateral material pay cut constitutes constructive dismissal entitling the employee to severance under the Labour Protection Act.
Holding
Supreme Court line confirms that a material unilateral change in essential terms (pay, role, location) constitutes constructive dismissal entitling the employee to statutory severance.
Reasoning
Labour Protection Act B.E. 2541 §118 statutory severance triggers on termination; case law extends 'termination' to substantial unilateral change in essential terms.
Significance
Employers cannot use pay cuts as a unilateral cost-saving measure without consent.
Practical Takeaway
Pay-cut needs employee consent or proper termination + severance; employees should reserve rights in writing before resigning.
Cited Statutes
- Labour Protection Act B.E. 2541 §118
- Civil and Commercial Code §575
This entry summarises a representative line of authority from the Thai Supreme Court (ฎีกา). It is intended for general legal education only and is not a substitute for advice from a Thai-qualified lawyer. Individual Dika case numbers are being verified against primary sources; until then these entries are presented as composite doctrinal summaries.
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