Introduction
Whistleblowing has become a key element of modern corporate governance, globally recognised as a critical mechanism for promoting integrity, transparency, and accountability within organisations. In many jurisdictions, comprehensive legal frameworks clearly define the rights, duties, and responsibilities on whistleblowing systems.
In Thailand, there is currently no specific legislation that directly governs whistleblowing systems. Nonetheless, certain provisions under existing Thai labour laws, along with established good practices, can provide a practical foundation for supporting whistleblowing systems and enabling companies to implement effective and reliable internal whistleblowing mechanisms.
For example:
- Labour Relations Act B.E. 2518 (1975)
Section 121 prohibits employers from terminating employees or taking actions that would prevent employees from working due to protesting, filing complaints, or serving as witnesses in labour law matters.
Act on Establishment of Labour Courts and Labour Court Procedure B.E. 2522 (1979)
Section 49 empowers the Court to grant remedies to employees in cases of an unfair dismissal claim, including reinstatement or financial compensation.
Accordingly, if an employee is dismissed for reporting misconduct or cooperating in an internal or legal investigation arising from a whistleblowing matter, provided such actions are taken in good faith and there are no other legitimate grounds for dismissal, such termination may be considered unfair. In such cases, the employee may seek reinstatement or appropriate compensation as provided under the law.
While these laws were not specifically enacted to address whistleblower protection, they may nonetheless provide a legal basis for redress in circumstances where employees suffer retaliatory consequences for making good-faith disclosures of wrongdoing.
Whistleblowing as a Vital Risk Management Strategy
From a practical standpoint, whistleblowing is one of the most effective tools for uncovering corporate misconduct, fraud, unethical behaviour, and regulatory violations. In many cases, internal reports through whistleblowing channels have served as the first line of defence, enabling companies to detect and address issues early, potentially mitigating legal exposure, reputational harm, and financial loss. Without such mechanisms, misconduct may go undetected or be discovered only by external authorities at a much later stage, often when the damage has already become extensive. Thus, establishing and maintaining an effective whistleblowing system is also a vital risk management strategy that can reduce exposure to legal liabilities, reputational damage, and the company’s damage resulting from undetected misconduct.
Beyond the legal perspective, ensuring the practical effectiveness of a whistleblowing system requires attention to the following essential components:
- Purpose and scope: Clearly define the types and scope of misconduct that may be reported, in order to provide a clear understanding of what issues are reportable.
- Reporting channels: Provide multiple and accessible means for reporting, such as confidential hotlines, secure email addresses, third-party platforms, or in-person reporting.
- Investigation procedures: Outline clear procedural steps for the receipt, assessment, and investigation of reports, including responsible personnel, investigation timelines, and communication protocols.
- Protection against retaliation: Incorporate express assurances that employees who report in good faith will not be subject to retaliation, including threats, harassment, demotion, or termination. Set out disciplinary consequences for anyone found to have retaliated against a whistleblower.
- Confidentiality measures: Emphasise the company’s obligation to maintain the confidentiality of the whistleblower’s identity, except where disclosure is required by law or in the course of legal proceedings.
Key Strategies for Strengthening and Sustaining an Effective Corporate Whistleblowing System
To effectively mitigate risks and cultivate a culture of compliance and accountability, companies should consider the following key strategies to ensure their whistleblowing systems remain strong, effective, and aligned with international standards:
- Implement a formal whistleblowing policy
Develop a clearly articulated policy that outlines the scope of reportable concerns, available reporting channels, roles and responsibilities, and procedural steps. Ensure the policy is well-communicated and accessible to all levels of the organisation.
- Provide compliance training
Conduct regular training programs to raise awareness of the whistleblowing system and the importance of reporting misconduct. Employees should understand both how and why to use the whistleblowing system.
- Investigate promptly and impartially
Ensure that all reports are systematically logged, monitored, and assessed. Investigations should be conducted promptly, objectively, and without bias, with appropriate remedial action taken based on the findings.
- Review and enhance the system periodically
Perform regular (at least annual) reviews of the whistleblowing system to evaluate its effectiveness. Incorporate updates based on regulatory developments, emerging risks, and feedback from employees and stakeholders.
If you have any queries or need clarifications on the above, please contact our Partner whose contact detail is set out on this page.
The Chinese version is available here, and the Japanese version is accessible here.
Contribution Note
The Legal Update is contributed by the listed Contact Partner, with the assistance of Irawin Vinitkul (Associate, Rajah & Tann (Thailand) Limited).
Disclaimer
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Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.
