Problems on Labor Laws related to the Mergers & Acquisitions of Private Hospitals

Abstract

Recently, the mergers and acquisitions of private hospitals occur and increase continually because a private hospital business has a high rate of business growth. A merger and acquisition is one of expansion strategies which is convenient, rapid, and admitted by investors. However, in a merger and acquisition, there are some labor issues regarding unclear words in the labor protection law.One of importance problems is the interpretation of the words “transfer” and “registration of any changes” under section 13 of the Labor Protection Act B.E. 1998. The law, currently, does not give any definition which causes the issue whether the asset or business acquisition is deemed to be a transfer or a registration of change under such law. If the asset or business acquisition is deemed to be a change of employer under section 13 of the Labor Protection Act B.E. 1998, the questions are whether the employee will be affected and how the law protects such employee. The author, therefore, makes this research for studying details of such issue in order to make the legal issues clear and gives some recommendations to related persons.