by Stephen Frost, Bangkok International Associates
Introduction In March 2016, the Security Industry Business Act (2015) will come into force to regulate the security industry in Thailand. In this article, we consider the main provisions of the Act.
Definitions: The Act contains the following definitions:
security business means the business of providing security by arranging for licenced security operatives to safeguard the lives, bodies, or property of persons, by receiving money or any other benefits in return: but excluding provision of security services by government agencies as prescribed in regulations.
security company means a company licenced to operate security business.
Regulatory authority A Security Business Supervision Board will be set up as regulatory authority to draft and issue regulations under the Act, and to issue licences to companies that operate security services and individual security operatives. Foreigners are not eligible to be members of this regulatory committee.
Requirements to operate a security business The requirements to operate a security business are as follows:
Fees payable: The fee payable by a company to obtain a licence is 50,000 Baht and 1,000 Baht for each security operative. These fees are also payable upon licence renewal.
Enforcement The Act contains provisions for suspension and revocation of licences, appeals against such action, and fines, or in some cases, imprisonment, for breach of particular duties imposed under the Act. The directors, manager, or any person responsible for the operations of the company are also liable to punishment, where the breach was due to their orders, act or omission.
Unlicenced security operatives are also liable to fine or imprisonment.
In general, where a company breaches its duties under the Act, its directors, manager, or any person who is responsible for its operations is liable to the same punishment as the company.
Comment It is surely welcome that a degree of regulation of the security industry will now apply for the first time, particularly to exclude those with criminal records and to impose training requirements. However, the proposal for minimum educational requirements and Thai-only nationality requirements may be difficult to apply, as immigrants and those with low educational attainment have traditionally obtained work in this sort of industry. In addition, the increased wage costs for those with higher educational attainments, the compulsory training obligations, and licencing fees, are likely to be passed onto the customer by way of increased charges. The age of low-cost security services may now be over in Thailand!
© Stephen Frost, Bangkok International Associates Ltd. 2016
Bangkok International Associates is a general corporate and commercial law firm. For further information, please contact Stephen Frost by email at email@example.com or telephone (66) 2 231 6201/6455.