Factory Act Penalties

These are the penalties under the Factory Act when you break the law. We have added the infractions of the law below with the fines. Note that these are rewrites so don’t bookmark this page as this is for references purposes only. The Thai courts only accept the original Thai version of the law. Likewise also see the articles that we wrote on supervision of the factory as well as the running a factory in Thailand as well. Lastly we also wrote a number of articles on the business license Thailand process as well as the business accounting service which we offer. 

Section 45

Any person who violates or fails to comply with the ministerial rules under Section 8 (1), (2), (3), (4), (5), or (8), or announcements by the Minister based on these rules, is liable to a fine not exceeding 200,000 Baht.

These are the Sections that is is referring to.

• Section (1). Set Standards for Factory Location and Environment: Where the factory can be located as well as the factory building structure as well as the layout of the factory.
• Section (2). Set Standards for Machines and Equipment: This states what machines can be used in the factory. The factory operations must be as defined when it was started.
• Section (3). Set Requirements for Skilled Workers: This is where the need for specialized workers based on the type, kind, or size of the factory.
• Section (4). Establish Safety Standards for Production: Outline safety guidelines for production processes, including the use of equipment and tools to prevent injuries.
• Section (5) Set Standards for Waste and Pollution Control: Establish rules and methods for managing waste as well as pollutants. Likewise also see the Cleanliness and Orderliness Act as well on here.
• Section (8). Implement Additional Safety Rules: Add any other necessary requirements to protect safety in factory operations, aiming to prevent injuries.

The following penalties have a smaller fine or only 20,000 THB.

Section 46

Violators of the ministerial rules under Section 8 (6) or (7), or related announcements, face a fine not exceeding 20,000 Baht.

• Section (6). Require Necessary Documents for Compliance Checks: Show documents that you have compliance with the law.
• Section (7). Specify Reporting Requirements: Ensure that information about factory operations have been reported periodically or as needed.

Section 47

Failing an inspection result under Section 9 may result in imprisonment for up to two years, a fine not exceeding 200,000 Baht, or both.

• Section (9): An appointed individual may inspect the factory or machines and report findings, substituting for official duties.

Section 48

Engaging in a Group 2 factory business without notifying the authorities under Section 11 may lead to imprisonment for up to six months, a fine not exceeding 50,000 Baht, or both.

• Section (11): This is where a person operating a group 2 factory must follow the criteria set in the Ministerial rules under Section 8.

Section 49

This is where there is incorrect or incomplete notification of a Group 2 factory business, or failure to comply with Section 11 (2) and (5) or Section 33, results in a fine not exceeding 20,000 Baht.

• Section (33): If a group 2 or group 3 factory stops operations for over one year, the business operator (group 2) or permit holder (group 3) must notify the authority in writing within seven days after the one-year mark.

Section 50

This is where you are operating a Group 3 factory without a permit under Section 12 (1) or establishing a factory without a permit under Section 12 (2) may lead to imprisonment for up to two years, a fine not exceeding 200,000 Baht, or both. For factories regulated by announcements under Section 32 (1), penalties can be increased to a maximum of four years imprisonment or a 400,000 Baht fine.

Section 51

Those holder of permits who fail to comply with Section 13 (1) or (2), Section 19, Section 28, or Section 33 may be fined up to 20,000 Baht.

• Section (13/1):A permit holder under Section 12 must notify the authority at least 15 days before starting any part of the factory business.
• Section (13/2):If a machine operation test is needed before starting, the permit holder must also notify the authority of the date, time, and duration of the test at least 15 days in advance. The test must follow the criteria and duration set in the ministerial rules.
• Section (19): If a permit holder increases, changes, or modifies production or power-generating machines without expanding or constructing a new factory building, but increases the factory area by 50% or more (if the factory is 200 square meters or smaller), or 100 square meters or more (if the factory is over 200 square meters). Notice in 7 days.
• Section (19): Likewise a permit holder stopping factory operations must notify the Grantor in writing within 15 days of cessation. If a permit holder wants to change a group 3 factory to a group 1 or group 2 factory, they must first notify the Grantor of the cessation

Section 52

Expanding a factory without the necessary permit under Section 18 can result in imprisonment for up to two years or a fine not exceeding 200,000 Baht, or both. For regulated types of factories under announcements in Section 32 (1), penalties increase to four years imprisonment or 400,000 Baht fine.

Section 53

Likewise failing to comply with Section 23, Section 24, or Section 25 may lead to a fine not exceeding 5,000 Baht.

Section 54

Where is non-compliance with Section 34 (1) in factory operations can incur a fine not exceeding 20,000 Baht.

• Section (19): In the event of a factory accident, regardless of factory group, if the accident and causes death, illness, or injury preventing a person from returning to their duties after 72 hours. Likewise, the factory operator must notify the authority in writing within three days of the death or after the 72-hour period, as applicable.

Section 55

Continuing factory operations after an order to cease may result in imprisonment for up to two years, a fine not exceeding 200,000 Baht, or both, plus a daily additional fine of 5,000 Baht until compliance is achieved. Architects or engineers who continue working in a non-compliant factory are subject to the same penalties. Workers present during violations may be presumed accomplices but may receive reduced penalties based on various factors.

Section 56

Obstructing or failing to assist authorities under Section 35 can lead to imprisonment for up to one month or a fine not exceeding 20,000 Baht, or both.

Section 57

Failing to comply with orders from authorities under Section 37 (1) may result in imprisonment for up to one year, a fine not exceeding 100,000 Baht, or both, with an additional daily fine of 5,000 Baht for continued non-compliance.

Section 58

Reactivating machinery bound and stamped by authorities under Section 37 (2) may incur imprisonment for up to one year, a fine not exceeding 100,000 Baht, or both.

Section 59

Obstructing a person assigned by the Permanent Secretary from executing orders under Section 42 can lead to imprisonment for up to one year, a fine not exceeding 100,000 Baht, or both.

Section 60

Causing damage to an order to stop factory operations or close a factory may result in imprisonment for up to six months or a fine not exceeding 50,000 Baht, or both.

Section 61

Architects or engineers working on a factory committing an offence will face the same penalties as the factory operator unless they prove ignorance of the offence. The Permanent Secretary will notify relevant boards of such incidents.

Section 62

Repeat offenders may face increased penalties, with a minimum of one-third additional imprisonment or half for fines.

Section 63

In cases of offences committed by partnerships, companies, or other juristic persons, responsible directors or managers are also liable for penalties unless proven otherwise.

Section 64

Individuals residing near an offending factory are considered injured parties under the Criminal Procedure Code.

Section 65

Committees for case processing will be appointed by the Minister, consisting of three legal scholars for a term of two years, with provisions for fines as an alternative to prosecution.

Transitory Provisions

Section 66

Pending applications and permissions under previous laws are deemed valid under this Act, with the Grantor authorized to amend as necessary.

Section 67

Permits for engineering in factory businesses issued prior to this Act will remain valid until expiration, and existing factory establishment permits will be recognized under this Act.

Section 68

Previous ministerial rules and announcements remain valid unless conflicting with this Act’s provisions.

Fees

• Application Fee: 100 Baht
• Factory Permit or Expansion Permit: 100,000 Baht
• Substitute for a Permit: 1,000 Baht
• Renewal of Permit: Based on the above rate
• Annual Fee for Engaging in a Factory Business: 30,000 Baht
• Different rates may be established based on factory size and business type.

Lastly we have written a number of articles on a number of issues with business. These include the articles on the starting a business in Thailand as well as business tax Thailand. Likewise there is also the starting a business in Thailand as a foreigner if you are a foreigner starting a factory production business in Thailand.

The information contained in our website is for general information purposes only and does not constitute legal advices. For further information, please contact us.