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Rolling Fixed-Term Contracts Treated as Indefinite Employment
Long-Service 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 Do not cite it as specific case law — consult a Thai-qualified lawyer for the authoritative Dika number and current application.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
Employee served 8 years under successive 1-year fixed-term contracts; non-renewal triggered severance claim under the LPA.
Legal Issue
Whether sequential fixed-term contracts constitute indefinite-term employment for severance purposes.
Holding
Supreme Court line treats sequential / rolling fixed-term contracts performing core operational functions as indefinite-term, with statutory severance on non-renewal.
Reasoning
Labour Protection Act §118 statutory severance protections cannot be circumvented by formalistic contract structuring; the substance-over-form principle applies.
Significance
Limits employers' use of fixed-term contracts to defeat severance obligations.
Practical Takeaway
Fixed-term contracts justified only for genuinely project-based or seasonal work; rolling use defeats their formal effect.
Cited Statutes
- Labour Protection Act B.E. 2541 §118
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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