No.

Factory Act, current

Draft/proposal

1

Section 1 This Act is called the “Factory Act (No. …) B.E...
Section 2 This Act shall come into force after the expiration of one hundred and eighty days from
the date of its publication in the Government Gazette.

2

Section 5 “Third-party auditor” means a person who has a license for inspection or verification under this Act”.

Section 3
Definitions of “Third-party auditor” specified in Section 5 of the Factory Act B.E. 2562 (No.2) shall be revoked and replaced by followings:
“Third-party auditor” means a A juristic person who has obtained an inspection license or certificate under the National Standards Act and has registered with the Department of Industrial Works.

3

No amendment

Section 4
Definition of “Registration”, “Fund”, “Guarantee”, “Fund committee”, “Office” and “Fund manager” shall be added between the definitions of  “Third-party auditor” and “Competent official” in Section 5 of the Factory Act B.E. 2535.

"Registration" means the registration of Third-party auditor.

"Fund" means the Fund for solving problems relating to factory operations.

“Guarantee” means the money deposited in the  Fund for Compensation Damage Preliminary.

"Fund Committee" means the Committee of the Fund for solving problems relating to factory operations.

"Office" means the Office of the Fund for solving problems relating to factory operations.

"Fund Manager" means manager of the Fund for solving problems relating to factory operations.

"Operator of Industrial Area" means a person who is announced by the Director-General of the Department of Industrial Works to be an operator in an industrial area.

4

No amendment

Section 5
Section 9, Section 9/1,Section 9/2, Section 9/3, Section 9/4, Section 9/5 and Section 9/6 of the FACTORY ACT (NO. 2)
B.E. 2562 (2019) shall be revoked

5

No amendment

Section 6
Following texts shall be added as paragraph two of Section 27 of the Factory Act B.E. 2535
"In the case where a factory is moved in accordance with paragraph one, it is a factory move from outside the industrial estate in accordance with Section 30 to factory setting up or operate a factory in the industrial estate in accordance with Section 30, the factory operator shall be exempt from fees in accordance with this Act for a period of 10 years."

6

No amendment

Section 7
Following texts shall be added as paragraph 4, 5, 6, 7, 8, 9 and 10 of Section 30 of the Factory Act B.E. 2535

7

No amendment

Section 8
Following texts shall be added as Chapter 1/1 "Third-party auditor" Section 31/1 to 31/13 of the Factory Act B.E. 2535

8

Section 9 In case where any provisions in this Act prescribe the inspection of factory or machinery or any other related performance is required, it may assign a third-party auditor to carry out the inspection and produce the inspection report on behalf of the competent official under regulations prescribed by the Minister which are published in the Government Gazette. 

In case where any provisions in this Act requires a factory operator to carry out any duties, the factory operator is required to report the result of such performances that has been verified by the third party auditor to the competent official.

The third-party auditor specified in paragraph one and paragraph two shall have a license for inspection or for verification issued by a license grantor.

Applying for and granting a license for inspection or verification, inspection methods, inspection period, preparation of the inspection report, reporting and reporting scheduling of the result of performances carried out by the factory operator as well as verification and determination of rates of inspection or verification services shall be in accordance with rules, procedures and conditions prescribed in Ministerial Regulations.

Chapter 1/1 "Third-party auditor"
Section 31/1
Under paragraph 2 in case where any provisions in this Act prescribe the inspection of factory or machinery or any other related performance is required, it may assign a third-party auditor to carry out the inspection and the inspection report or produce on behalf of the competent official under regulations prescribed.

In the case where the order is issued under paragraph one of section 37 or paragraph one of section 39 and the person who gave the order see as appropriate to determine the person receiving the order to have a Third-party auditor under paragraph one inspect the factory or machinery or perform other actions, including preparing a report of the results of the inspection or perform, at the expense of the person receiving the order to prove or demonstrate that the person receiving the order has performed the above-mentioned order completely and correctly.

The inspection or other actions and the preparation of reports under paragraph one or paragraph two shall be in accordance with the criteria, methods and conditions determined by the Minister by announcement in the Government Gazette.

9

No amendment

Section 31/2
The registration of Third-party auditor shall be in accordance with the criteria, methods and conditions determined by the Minister by announcement in the Government Gazette.

Registration fees shall be in accordance with the Ministerial Regulations.

10

Section 9/1 A person applying for a license for inspection or verification who is an ordinary
person shall have following qualifications and shall not be under the following prohibitions:

Section 9/2 A person applying for a license for inspection or verification that is a juristic
person shall have following qualifications and shall not be under the following prohibitions:

Section 31/3
Juristic person applying for a license or certificate under the National Standards Act that can be registered as Third-party auditor under Section 31/2 must have the following qualifications and not have the following prohibited characteristics:

11

No amendment

Section 31/4
A person under Section 31/3 ก (3) must have the following qualifications and not have the following prohibited characteristics:

12

Section 9/3 License for inspection or verification according to Section 9 shall be valid until
the end of the third calendar year as from the insurance date of the license.

Section 31/5
The registration of a Third-party auditor shall be  three years from the date of registration and shall be renewed for a Third-party auditor three years at a time.

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Section 9/5 License grantor shall have a power to suspend a license for inspection or verification when it appears that any third-party auditor has been with any of the following circumstances:
(1) violate or fail to comply with this Act despite being warned in writing by a license grantor to perform in compliance with the Act within a specific period but fail to do so in such period;
(2) mistakenly report the results of inspection or verification and consequently the competent official must issue the order under Section 37 and Section 39;

Suspension of license for inspection or verification according to paragraph one shall not exceed 90 days per one suspension order and during the suspension period, an application for a new license is not allowed.

Section 31/6
During the registration period, the Department of Industrial Works may temporarily suspend the registration when it appears that any third-party auditor has been with any of the following circumstances:
(1) violate or fail to comply with this Act despite being warned in writing by DIW total three times.
(2) mistakenly report the results of inspection or verification and consequently the competent official or license grantor must issue the order under Section 37 and Section 39;

Suspend the registration according to paragraph one shall not exceed 90 days and during the suspend the registration, an application for a new registration is not allowed.

14

Section 9/6  License grantor shall have a power to withdraw a license for inspection or verification when it appears that such third-party auditor: 

Section 31/7
Provide DIW shall have a power to withdraw a registration when it appears that such third-party auditor:  

15

No amendment

Chapter 1/2
Section 31/8
To setting up the fund in the Ministry of Industry called "the Fund for solving problems relating to factory operations".

16

No amendment

Section 10
Following texts shall be added as Chapter 1/3 “Guarantee” Section 31/28 to 31/29

Section 31/28
For the benefit of preliminary compensation for damages to persons, property and the environment resulting from factory operations, the factory operators of category 2 factory or 3 factory are required to deposit a guarantee with the fund in an amount not less than five times the annual fee each year for use in preliminary compensation.

Section 31/29
In the case that a factory operator has notified the close down of factory operations or has been ordered to close the factory under Section 39 or has had its notification or license revoked by a court order or other law and still has a guarantee, the guarantee shall be returned to the factory operator without having to return any interest.

17

No amendment

Section 11
Following texts shall be added as paragraph 4 of Section 39 of the Factory Act B.E. 2535
"Within thirty days from the date of the order to close the factory under paragraph three, the competent official shall inspect the factory that the said order to close."

18

Section 42 In the case where the factory operator fails to comply with the order of the competent official under section 37, if there is ground for the Government to take over the operation, the Permanent Secretary or the person entrusted by the Permanent Secretary shall have the power to order the competent official or to entrust any person to carry out the rectification in order to conform to such order. Such being the case, the factory operator shall bear the expenses for such takeover in the amount actually paid together with a penalty at the rate of thirty percent per annum of the said amount.
If the Government has undertaken to resolve the pollution problems or the impacts on the environment caused by the factory, it shall request a subsidy from the Environmental Fund under the law on the Enhancement and Conservation of the Environmental Quality Act for the costs of its operation and upon receipt of the money under paragraph one from the factory operator, the Government shall repay the Environment Fund for the subsidy so received.

Section 12
Section 42 of the FACTORY ACT B.E. 2535 shall be revoked and replaced with followings:
In the case where the factory operator or operator of industrial area fails to comply with the order under section 37 or section 39, if there is ground for the Government to take over the operation, the Permanent Secretary or the person entrusted by the Permanent Secretary shall have the power to order the competent official or to entrust any person to carry out the rectification in order to conform to such order. Such being the case, the factory operator or operator of industrial area shall bear the expenses for such takeover in the amount actually paid together with a penalty at the rate of thirty percent per annum of the said amount.
If the Government has undertaken to resolve as paragraph one, it shall request a subsidy Fund  for the costs of its operation and upon receipt of the money under paragraph one from the factory operator or operator of industrial area, shall repay the Fund for the subsidy so received.

19

No amendment

Section 13
Following texts shall be added as "Chapter 2/1 Duties and Responsibilities"  Section 44/1 to 44/4

Section 44/2 Factory operators are jointly accept responsibility for the consequences of any tort by their employees or any person under their control in the operation of the factory.

Section 44/3
In the case where the factory operation causes others to suffer harm to their lives, health or property, or damages the environment, the factory operator must pay compensation.

20

Section 45  Any person violating or failing to comply with the Ministerial Regulations issued pursuant to section 8 (1) (2) (3) (4) (5) or (8) or the Notifications of the
Minister issued under the said Ministerial Regulations shall be liable to a fine not exceeding two hundred thousand baht.

Section 14
Section 45 of the FACTORY ACT B.E. 2535 shall be revoked and replaced with followings:

Any person violating or failing to comply with the Ministerial Regulations issued pursuant to section 8 (1) (2) (3) (4) (5) or (8) or the Notifications of the Minister issued under the said Ministerial Regulations shall be liable to a fine not exceeding six months or to a fine not exceeding five hundred thousand baht, or to both.
Any person violating or failing to comply with the Ministerial Regulations issued pursuant to section 8 (5) or the Notifications of the Minister issued under the said Ministerial Regulations shall be liable to a fine not exceeding one year or to a fine not exceeding one million baht, or to both.

If the offense under paragraph two is offense related to dumping or storage pile or manage of waste it without legal authority shall be liable to a fine not exceeding two years or to a fine not exceeding from two hundred thousand baht but not more than 20 million baht, or to both.
Including land owners and building owners.

21

Section 47 Any person conducting an inspection or verification or producing an inspection or verification report without a license for inspection or verification according to Section 9 shall be liable to an imprisonment in a term of not exceeding two years or a fine of not exceeding two hundred thousand baht, or to both.

Section 15
Section 47 of the FACTORY ACT (No.2)B.E. 2562 shall be revoked and replaced with followings:
Any person conducting an inspection or verification or producing an inspection or verification report without registering for according to Section 31/2 shall be liable to an imprisonment in a term of not exceeding five years or a fine of not exceeding five million baht, or to both.

22

Section 47/1 Any factory business operator failing to comply with Section 9 paragraph two shall be liable to a fine of not exceeding fifty thousand baht.

Section 16
Section 47/1 of the FACTORY ACT (No.2)B.E. 2562 shall be revoked and replaced with followings:

Any factory business operator failing to comply with Section 31/1 paragraph two shall be liable to a fine of not exceeding fifty thousand baht.

23

Section 47/2 Any third-party auditor failing to comply with Section 9/4 paragraph one shall be liable to a fine of not exceeding five thousand baht.

Section 17
Section 47/2 of the FACTORY ACT (No.2)B.E. 2562 shall be revoked and replaced with followings:

"Section 47/2 Any factory business operator failing to comply with Section 31/1 paragraph four shall be liable to a fine of not exceeding five thousand baht."

24

No amendment

Section 18
Following texts shall be added as Section 53/1 and 53/2 of the FACTORY ACT B.E. 2535 and replaced with followings:

Section 53/1 Any person violating or failing to comply with the Ministerial Regulations issued pursuant to section 30 paragraph four or the Notifications of the Minister issued under the said Ministerial Regulations shall be liable to a fine not exceeding two hundred thousand baht.

Section 53/2
Any person who fails to comply with the order of section 30 paragraph five shall be liable to a fine not exceeding two years or to a fine not exceeding from two hundred thousand baht but not more than 5 million baht, or to both and to fine another 100,000 baht per day for the duration of the violation or failure to comply with the law.

25

Section 19  
The Minister of Industry shall have control and charge for the execution of this Act.