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Thai Companies in Southeast Asia: Access to Justice for Extraterritorial Human Rights Harms

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Thai Companies in Southeast Asia: Access to Justice for Extraterritorial Human Rights Harms Thai Companies in Southeast Asia: Access to Justice for Extraterritorial Human Rights Harms A Legal Analysis Composed of 60 eminent judges and lawyers from all regions of the world, the International Commission of Jurists (ICJ) promotes and protects human rights through the Rule of Law, by using its unique legal expertise to develop and strengthen national and international justice systems. Established in 1952 and active on the fve continents, the ICJ aims to ensure the progressive development and effective implementation of international human rights and international humanitarian law; secure the realization of civil, cultural, economic, political and social rights; safeguard the separation of powers; and guarantee the independence of the judiciary and legal profession. ® Thai Companies in Southeast Asia: Access to Justice for Extraterritorial Human Rights Harms © Copyright International Commission of Jurists, February 2021 The International Commission of Jurists (ICJ) permits free reproduction of extracts from any of its publications provided that due acknowledgment is given and a copy of the publication carrying the extract is sent to their headquarters at the following address: International Commission of Jurists P.O. Box 1740 Rue des Buis 3 1211 Geneva 1 Switzerland t: +41 22 979 38 00 www.icj.org Photo Credit: The Mekong Butterfy and ETOs Watch Coalition Thai Companies in Southeast Asia: Access to Justice for Extraterritorial Human Rights Harms A Legal Analysis 1 This report was researched and drafted by Sanhawan Srisod. Significant research assistance was provided by Asst Prof. Saovanee Kaewjullakarn. Legal review and direction were provided by Ian Seiderman, Carlos Lopez and Frederick Rawski. Editorial assistance in the finalization of the report was provided by Dhevy Sivaprakasam. 2 Contents 1. Background ....................................................................................................... 8 1.1 Human Rights Abuses Involving Transnational Companies ................................ 8 1.2 Thailand’s Cross Border Investment and Transnational Enterprises .................... 9 1.3 Allegations of Human Rights Abuses Committed by Thai Transnational Enterprises .................................................................................................................11 2. Overview of the International Human Rights Framework applicable to Thailand .............................................................................................................. 17 2.1 Treaties .................................................................................................17 2.1.1 The Maastricht Principles .................................................................17 2.1.2 UN Treaties ...................................................................................18 2.1.3 The Right to an Effective Remedy and Reparation.................................21 2.1.4 Access to Justice ............................................................................22 2.2 Investment and Human Rights ...................................................................22 2.3 Global and United Nations Initiatives on Business and Human Rights Relevant to the Analysis of Extra-Territorial Obligations .......................................................22 2.3.1 UN Guiding Principles on Business and Human Rights ...........................23 2.3.2 ILO Tripartite Declaration of Principles for Multinational Enterprises and Social Policy ..........................................................................................25 2.3.3 The United Nations Global Compact (2000) .........................................25 2.3.4 OECD Guidelines for Multinational Enterprises (2011) ...........................26 3. Overview of Legal Liability and Judicial Remedies for Abuses by Business Enterprises under National Law ......................................................................... 28 3.1 Thailand as a Jurisdiction for Claims ............................................................28 3.2 Thailand’s National Action Plan on Business and Human Rights ........................28 3.3 Civil Liability ...........................................................................................30 3.3.1 Civil and Commercial Code – The Use of Tort Law ................................30 3.3.2 Enhancement and Conservation of National Environmental Quality Act – The Use of Strict Liability ...............................................................................33 3.4 Criminal Liability ......................................................................................34 3.4.1 Criminal Code ................................................................................35 3.4.2 Enhancement and Conservation of National Environmental Quality Act .....36 3.5 Administrative Liability .........................................................................36 3.6 Liabilities of Company Officials..............................................................39 3.6.1 Limited Companies .........................................................................39 3.6.2 Liability of Company Officials in Environmental Cases ...........................41 3.6.3 Liability of Officials of State-Owned Enterprises....................................42 3 4. Obstacles to Accessing Justice ....................................................................... 44 4.1 Corporate Personality: Complex Corporate Structures and “Piercing the Corporate Veil” ...........................................................................................................44 4.1.1 Complex Corporate Structures ..........................................................44 4.1.2 Separate Legal Personality and “Piercing the Corporate Veil” ..................45 4.1.3 Establishing Parent Company Liability under Thai Law: International Law and Standards .......................................................................................50 Recommendation(s) ................................................................................53 4.2 Jurisdiction .............................................................................................53 4.2.1 Jurisdiction in Civil Cases .................................................................54 4.2.2 Jurisdiction in Criminal Cases ............................................................55 4.2.3 Jurisdiction in Administrative Cases ...................................................58 4.2.4 Choice of Jurisdiction ......................................................................60 Recommendation(s) ................................................................................61 4.3 Conflict of Laws .......................................................................................61 Recommendation(s) ................................................................................62 4.4 Statutes of Limitations ..............................................................................62 4.4.1 Limitation Periods under Thai Law .....................................................62 4.4.2 Inconsistency Between Limitation Periods in Different Jurisdictions ..........65 Recommendation(s) ................................................................................65 4.5 Collective Legal Actions .............................................................................66 Recommendation(s) ................................................................................67 4.6 State-Owned Enterprises (SOEs): Complexity of Civil Liability and Administrative Liability .......................................................................................................68 Recommendation(s) ................................................................................69 4.7 The Role of Justice Sector Actors ................................................................69 Recommendation(s) ................................................................................70 4.8 The Role of Human Rights Commissions .......................................................70 Recommendation(s) ................................................................................73 5. Conclusion and Recommendations ................................................................. 74 ANNEX ................................................................................................................. 78 Annex 1: Complaints submitted to the NHRCT and the NHRCT’s Findings ................79 Annex 2: List of Interviews and Workshop Participants .......................................90 4 LIST OF ACRONYMS USED IN THIS REPORT AEC ASEAN Economic Community ASEAN Association of Southeast Asian Nations CESCR Committee on Economic, Social and Cultural Rights CLMV Cambodia, Laos, Myanmar and Vietnam EIA Environmental Impact Assessments ETOs Extraterritorial Obligations ETOs-Watch Thai Extraterritorial Obligation-Watch Working Group GANHRI Global Alliance of National Institutions HRDD Human Rights Due Diligence ICCPR International Covenant on Civil and Political Rights ICESCR International Covenant on Economic, Social and Cultural Rights IGWG Inter-Governmental Working Group IEAT Industrial Estate Authority of Thailand ILO International Labour Organization JV Joint Venture MNC Multinational Corporation NAP National Action Plan on Business and Human Rights NHRCT National Human Rights Commission of Thailand NHRIs National Human Rights Institutions OECD Organisation for Economic Co-operation and Development SEC Securities
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