A Thai company exists since years, Thai employees, a few farang employees. For years business is fine, and everybody gets paid.

Then the boss makes not so smart business decisions, and the company does not make any profit anymore.

The salaries are paid late, and then, for some employees, not paid at all.

And then the boss decides to fire people because he can't pay them anymore.

 

Salaries are outstanding, and severance payments should be paid to some ex-employees.

A few people are still working in the company, and they still receive their salaries, maybe late.

 

The boss tells the fired employees: I can't pay you now. Wait until I make money and then I will pay you. He refuses to make any promises when and how much money will be paid.

 

And now?

As far as I know the ex-employees can go to the labor department, tell the officials the situation, and then those officials will write a letter to the company that those outstanding salaries and severance payments have to be paid.

But the company has no money and can't pay.

And then? What happens next?

Will the employer be forces to pay first old outstanding salaries for ex-employees before current salaries are paid? How about severance payments? When does the company have to pay?

And if the company just can't pay, will the director(s) be held personally responsible? Or the shareholders?

Will the labor department shut down the company?

What can the ex-employees do to get the money they earned?

Liquidation....Anyone that has money owned to them will have to get in line and eventually they'll be lucky to get pennies to a dollar.

Sad but that's what happens. 

You can't squeeze water out of a rock....

Somehow, the business owners always seem to be able to hang on to their mansions, holiday condos, and flash cars.

Is it a Limited liability company, or is the owner responsible for all debts?  has the owner declared bankruptcy?

Far too many unanswered questions to give any opinion.

Well, the Farangs can just go cry in their beers, because they have almost no rights, and seeking a court settlement here is utter madness, even if you win you lose. 

Go to the Labour department and find out. If there is any money and he won't pay, he can go to jail.

34 minutes ago, Robin said:

Is it a Limited liability company, or is the owner responsible for all debts?  has the owner declared bankruptcy?

Far too many unanswered questions to give any opinion.

Yes, a limited company. Until now there is no bankruptcy. 

1 hour ago, flyingtlger said:

Liquidation....Anyone that has money owned to them will have to get in line and eventually they'll be lucky to get pennies to a dollar.

Sad but that's what happens. 

You can't squeeze water out of a rock....

Do you know if there is an order when people are paid?

I know tax payments are highest priority.

But then, will employees who didn't receive their salary for 5 months get their money before employees who didn't receive money for 1 month? Something like that?