Dispute Resolution is an alternative to traditional litigation where parties settle disputes outside the classical judicial system. Alternative Dispute Resolution includes arbitration and conciliation.
The Thai government tries to solve this issue by increasing public participation, economic development, apologizing and ending the blacklisting of Muslim, opening a dialogue with insurgents but the violence persists.
Arbitration is frequently used to resolve disputes in the banking, financial and technology sectors due to a high level of expertise required. However, it is also often preferred by employers to avoid the cost and time burden of a prolonged dispute over issues such as work time, overtime, relocation of offices and other commercial matters.
Arbitration proceedings are usually conducted in a private setting and the information, evidences and statements made during an arbitration hearing are kept confidential. Unless stipulated by the parties, a court cannot exclude its powers to enforce or set aside an arbitration award. However, the latest legislative improvements and recent enforcement decisions suggest a growing pro-arbitration attitude amongst Thai courts.
Conciliation is an alternative to litigation and is a more informal process that can save time and money. It is also usually conducted in a private setting, which means that any information or evidence that is presented can be kept confidential.
It is a legal option in Thailand and can be ordered by a trial judge. A judge can convene closed door sessions with disputing parties and facilitate a compromise. Conciliation is now practiced in courts of justice nationwide with encouraging figures. It is particularly popular in the banking, finance and technology sectors, where a high level of expertise is required. It is also used by employers with employees who are not nationals of Thailand to settle disputes arising out of their terms and conditions of employment.
Juslaws & Consult recommends incorporating a dispute resolution mechanism into your contract with a Thai company, as this is one of the best ways to settle disputes out of court. The Dispute Mediation Act 2562 (2019) enables the court to order out-of-court mediation of civil disputes at the appeal level, but only if both parties consent.
Mediation is a process in which a neutral third party will try to bring disputing parties to an acceptable compromise. It is generally less formal than arbitration and not binding unless the parties enter into a settlement agreement.
Conciliation is already being practised at the court level, particularly by the Central Labour Court and the Central Intellectual Property and International Trade Court. It is a fast and cost-efficient alternative to lengthy litigation.
As Thailand does not have a jury system, criminal and civil cases are considered by the court presiding over the case. If a party loses the verdict, it may appeal at the court of appeal or the Supreme (Dika) Court.
The new law, which took effect on 23 January 2023, outlines specific timeframes for a judge to conduct proceedings and render a verdict. This is expected to improve the Court’s credibility and the public’s perception of it as a sanctuary for people.
In Bangkok, the courts include the City Courts and the Central Courts covering both criminal and civil cases; 96 provincial and 27 Kweang courts which cover both civil and criminal cases; and seven specialized courts including labor, family, and inheritance.
While Thailand is not a litigious society, in practice it is common for disputes to reach the courts. However, the court-supervised mediation process aims to settle the dispute before it escalates to litigation.
This new procedure allows both parties to present evidence in a confidential setting, and keeps sensitive information private from the public. This makes arbitration a suitable option for businesses with reputations to protect.
It also offers more cost-effective options. This is particularly important for international businesses that are heavily involved in the banking, financial and technology industries. The Court of Appeals judges intellectual property and international trade cases that fall outside the jurisdiction of other Thai courts.
The Supreme Court is Thailand’s final appeal court for all cases. The court has the authority to re-hear questions of law and fact, although it will generally not reconsider any case that has already been heard by the Court of Appeals or Specialized Courts.
Moreover, the court has the right to review cases that are of significant interest. For example, the court has ruled on organic acts (rules of near-constitutional value placed above legislation in the hierarchy of norms).
In addition, the courts have established a timeframe for considering litigation cases at each level. This is intended to expedite legal proceedings and reduce the costs for businesses and individuals.