I have been living and working in Thailand as a teacher for five years. I am in my third year at the same government school. I have a TEFL certificate, but do not have a degree.
In the first year at the school, and after I had worked with them for a few months, they asked me about having a degree. To cut a long story short they became aware I didn't have a degree. I thought I was finished, but they wanted me to stay at the school. The director supported me and spoke to the Ministry of Education. I got a work permit, and have had it extended twice.
To be able to work for a third year the school paid for me to do the Thai Culture Course, which has entitled me to a two-year teaching licence. I am proof that if a government school is happy with you they can bypass hurdles to employ you. You have to be lucky, and liked! Today I was made aware of the new law, i.e. must have a degree in teaching. We all know that will create a shortage of farang teachers in Thailand.
As for me, my school is keeping their finger on the pulse as to how it will affect my situation. There's hope for us.