Updated on: 2025/08/04 14:03 (UTC)
Overview
The employment relationship in Thailand is governed by express provisions of the 2007 constitution, as well as by statutes and conditions-of-employment agreements. The central employment statute is the Labor Protection Act.
Other relevant employment statutes include the Persons With Disabilities Empowerment Act (2007), the Unfair Contract Terms Act (1997), the Workers’ Compensation Act (1994), the Social Security Act (1990), the Act for the Establishment of and Procedure for the Labor Court (1979) and the Labor Relations Act (1975).
Hiring
Employment Contracts
There is no requirement under Thai law that an employment contract be in writing. Even if there is no written contract, however, an implicit agreement is understood to exist between employer and employee, and employment lawyers advise that written contracts be entered into to avoid misunderstandings of the terms of employment. Thai law also does not specify the content of an employment contract.
Under Thai law, a foreign employee is entitled to have a contract in English, but a Thai copy should be made available if requested by the Department of Employment for a work permit to be issued.
Effective Apr. 18, 2023, employment contracts may include provisions governing remote-work arrangements between the employee and the employer. Remote workers have the same workplace protection rights as on-site employees, according to amendments to the labor protection code.
Restrictions on Hiring
Employers may not hire youths under the age of 15.
Workers under 18 must be given an hour’s break for every four hours worked, cannot work between 10 p.m. and 6 a.m. unless permission has been received from the Department of Labor Protection and Welfare or the child is employed as an actor, may not work overtime or on holidays, and cannot work in hazardous workplaces or in slaughterhouses, gambling houses or places of recreation. Young employees are entitled to up to 30 days’ paid leave per year to attend educational programs.
Wages must be paid directly to the young employee and not to any other person.
General restrictions are placed on the sort of work women may perform and further restrictions on work pregnant women may perform.
Employers also generally are prohibited from requiring pregnant employees to work between 10 p.m. and 6 a.m., to work overtime or to work on holidays. Pregnant employees who work in executive positions, in academic or clerical work or in work relating to finance or accounting, however, may agree to night, overtime or holiday work if there is no ill effect on their health.
Recordkeeping
Employers with 10 or more employees are required to:
- maintain for at least two years after employment ends employee records in the Thai language containing each employee’s name, sex, nationality, date of birth, current address, date of hire, position, wage rate, description of benefits, and date of termination;
- keep documentation of payment of wages, signed by each employee upon receipt of a paycheck, for at least two years after the payment is made;
- post written work rules in the Thai language addressing work hours, holidays, criteria for overtime and holiday pay, days and places for payment of wages, criteria for taking leave, disciplinary rules, complaint procedures and rules for termination of employment and compensation after termination;
- submit a report to the Department of Labor Protection and Welfare every January on conditions of employment and working conditions and
- notify the department in writing within one month when there is a change in conditions of employment or working conditions.
Background Checks
There are constitutional and statutory privacy protections in Thailand, so an employer is best advised to obtain written consent from an employee or job applicant before conducting a background check and to keep any information obtained confidential.
Noncompetition Agreements
A noncompetition agreement is enforceable only to the extent it is fair and reasonable and does not cause an employee to bear more of a burden than could reasonably have been anticipated. In determining enforceability, courts take into consideration the geographic and temporal scope of the agreement, whether the employee has other work opportunities and other effects of the agreement on both parties.
Reference Citations
Employment Contracts: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 5
Restrictions on Hiring: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 44
Recordkeeping: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 108, 114-115
Noncompetition Agreements: Unfair Contract Terms Act, 1997, B.E. 2540, § 4
Immigration and Work Permits
In General
Non-nationals wishing to work or conduct business in Thailand must obtain a B visa. The employer submits the application for the visa on the prospective employee’s behalf. The period of stay is not longer than 90 days for a single entry or not longer than one year for multiple entries.
Visas and Work Permits
Foreign nationals seeking to work in Thailand must apply for a nonimmigrant visa, category “B” (for business). The B visa allows a holder to enter and stay in Thailand for up to 90 days.
To obtain a B visa, a foreign worker must get a letter of approval from the Ministry of Labour. The letter of approval must first be obtained by the worker’s prospective employer in Thailand, who is required to submit Form WP3 to the Office of Foreign Workers Administration within the Ministry of Labour, or to a Provincial Employment Office in the respective province.
Within the 90-day period, the B visa holder cannot legally work. Separately, the foreign worker must also apply for a work permit sponsored by a qualified employer in Thailand. Work permits are valid up to one year.
For the work permit, the applicant must produce:
- a letter of invitation or acceptance from the concerned company or organization,
- a copy of the work permit issued by the Ministry of Labor and the alien income tax form,
- a letter of approval from the Ministry of Labor and
- copies of the corporate documents of associated partners/companies in Thailand, such as:
business registration and business license,
list of shareholders and
company profile.
The employer must notify the Registrar of the Employment Department within 15 days from the date when employment begins, and also within 15 days from the date when the employment will cease. The foreign worker also must notify the registrar of the name of his or her employer, place of work, and type of work within 15 days from the date of being hired, and also within 15 days from the date of leaving that employer for another.
Separately, 15-day visas can be issued for urgent and necessary work. The visas can be extended for an additional 15 days if the work is not finished on time. Notice of the urgent work must be provided to the registrar.
Effective Feb. 1, 2018, Thailand introduced a new SMART visa for highly skilled foreign workers. The SMART visa is valid for four years and does not require the holder to obtain a separate work permit or report to immigration authorities every 90 days (extended to one year). Applicants must work in one of 10 target industries, including automotive, electronics, medical, and aviation.
Dependents of SMART visa holders are allowed to live and work in Thailand.
Effective Sept. 1, 2022, Thailand launched a new long-term visa program that offers 10-year work permits for:
- highly skilled professionals who work in targeted industries and meet minimum salary, work experience, and education requirements; and
- qualified foreign employees seeking to work remotely in Thailand for a foreign company that does not have operations in the country.
Foreign nationals working in Thailand must notify the Immigration Police Bureau every 90 days. Employers must notify labor officials within seven days of the end of a work permit holder’s employment.
Post-Entry Requirements
Non-nationals who wish to extend their stay or change their type of visa must apply at the Office of the Immigration Bureau or online at http: //www.immigration.go.th .
Reference Citations
Visas and Work Permits: Management of Alien Work, 2016 (Thai)
Nondiscrimination
In General
The Thai constitution prohibits unjust discrimination on the basis of origin, race, language, sex, age, physical condition or health, economic or social status, religious belief, education or political views.
Disability Discrimination
The 2007 Persons with Disabilities Empowerment Act bars discrimination against persons with disabilities, including actions—or instances of failure to act—that have a negative impact on the disabled even if there was no discriminatory intent. Exceptions exist for “discrimination that may arise from or for reasons of science and knowledge, custom and tradition or public interests” that is “performed in a necessary and proper way.”
The act also requires employers to:
- employ a proportionate number of disabled persons, as defined by the Ministry of Labor;
- make payments to a government fund designed to improve the quality of life of persons with disabilities or
- “grant concessions, arrange a place to supply goods or services, employ under a temporary employment contract, [or] provide training or any other assistance to disabled persons or their caregivers.”
Gender Discrimination
Employers, company officials, supervisors, and work inspectors are prohibited from committing sexual abuse or harassment, although employment law fails to define what constitutes harassment. Infractions are punishable by a fine of up to 20,000 baht.
An employer may not terminate a female employee because she is pregnant.
Pay Discrimination
The Labor Protection Act requires equal pay for “work which has the same characteristics and quality and when the amount of work is the same, regardless of whether those employees are male or female” and requires employers to treat male and female employees equally except when the nature or conditions of the work require different treatment.
Reference Citations
Nondiscrimination: Constitution of Thailand, 2007, B.E. 2550, § 30
Gender Discrimination: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 15-16
Disability Discrimination: Persons with Disabilities Empowerment Act, 2007, B.E. 2550, § 15
Pay Discrimination: Labor Protection Act, 2019 (as amended), B.E. 2541, § 53
Employee Privacy
Employee Data
Thai law does not address protection of employee data.
Employee Monitoring and Surveillance
Thai law does not address employee monitoring and surveillance.
Reference Citations
Employee Data: Constitution of Thailand, 2007, B.E. 2550, § 30
Compensation
Hours of Work
Thai law establishes regular working hours of eight per day and 48 per week. For hazardous work, the regular workday cannot exceed seven hours and the regular workweek cannot exceed 42 hours.
An employee is entitled to a rest period of at least one hour after working five consecutive hours. The rest period is not counted as working time. If an employer has requested overtime work of at least two hours, the employee also is entitled to a 20-minute rest period before beginning the overtime work.
Employees are entitled to one day off per week. The interval between days off may not be more than six days. The weekly holiday is with full pay except for employees who receive a daily wage, an hourly wage, or a wage paid for piecework.
Minimum Wage
Effective Jan 1, 2024, the daily minimum wage varies by province from 330 baht to 370 baht, up from 328 baht to 354 baht.
Overtime
Overtime is generally voluntary. An employer may require an employee to work overtime only in an emergency or if the nature of the work requires that it be performed continuously.
An employee who works overtime on a regular workday is entitled to 1 1 / 2 times regular pay. For overtime on a holiday, the rate is three times regular pay.
Supervisors or salesmen paid by commission are not entitled to overtime or holiday overtime pay.
The total amount of overtime and holiday work must not exceed 36 hours per week.
Wage Payment
Wages must be paid no less than once a month. Employers must pay employees at the place of work unless otherwise decided between the employer and the employee. An employer that fails to pay an employee’s wages, including holiday or overtime pay, in the legally required time must pay 15 percent interest on the late payments.
Payroll deductions may include only:
- income taxes;
- trade union dues;
- compensation for damages caused to the employer as a result of deliberate or grossly negligent acts of the employee, if consent has been obtained from the employee for such deductions and
- deposits to a retirement fund on behalf of the employee under an agreement with the employer.
With the exception of deductions for income tax, no deduction may exceed 10 percent of the amount of wages due to the employee, and the total amount of those deductions may not exceed 20 percent unless the employee has given consent.
Mandatory Bonuses
There is no requirement under Thai law that employers pay bonuses.
Some employers voluntarily offer annual employee bonuses, which may be tied to employee performance or may be automatic, the latter often in the form of a month’s salary at the end of the year. The trend is toward performance-related bonuses.
Reference Citations
Hours of Work: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 23-25, 27-29
Overtime: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 61-63
Wage Payment: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 9, 70, 76
Benefits
Vacation
After one year of employment, an employee is entitled to take at least six days per year of paid annual leave. Employers may grant additional vacation time in subsequent years. Unused vacation can be accumulated from year to year. Employers may grant vacation on a pro rata basis to employees who have not completed a full year of service.
Holidays
Employees are entitled to a minimum 13 paid holidays per year, and the government often provides more. The principal holidays, many based on the lunar calendar with varying dates year-to-year, are:
- Jan. 1: New Year’s Day
- Makha Puja Day
- Chakri Day
- Songkran Festival (Thai New Year)
- May 1: Labor Day
- Coronation Day
- Visakha Puja Day
- Asanha Puja Day
- Aug. 12: Her Majesty the Queen’s Birthday
- Oct. 23: Chulalongkorn Day
- Dec. 5: His Majesty the King’s Birthday
- Dec. 10: Constitution Day
- Dec. 31: New Year’s Eve
If a holiday falls on a weekend, its observance moves to a weekday.
An employer may not require an employee to work on a holiday unless work must be performed without interruption, an emergency is involved or the employee works in a hotel, an entertainment establishment, a shop that sells food or drinks, a club or an association, a medical facility or the transportation industry.
Work on a holiday is paid at twice the normal rate, overtime work on a holiday at three times the normal rate.
Maternity Leave
Women are entitled to take up to 98 days of maternity leave for each pregnancy. The employer provides full pay for 45 days, and women who are eligible may receive a lump sum from the social security system that is equivalent to full pay for the remaining days.
To be eligible for the social security benefit, insured persons or their spouses must have made contributions into the system for at least seven of the 15 months preceding medical treatment for pregnancy.
Paternity Leave
There is no provision for mandatory paternity leave for private-sector employees.
Sick Leave
Employees are entitled to unlimited sick leave but only 30 days of paid sick leave per year. If an employee is out sick for three consecutive days, the employer can require a doctor’s certificate.
Other Leave
Personal leave. Employees are entitled to three days’ paid leave for essential errands in accordance with the employer’s work rules and regulations. Employees may take more than three such days but they will not be paid.
Military service leave. Employees are entitled to take paid leave of up to 60 days per year for military service.
Sterilization leave. Employees are entitled to take paid leave in order to be sterilized. The length of the leave is determined by a physician.
Training leave. Employees are entitled to take unpaid leave for training. Such training must consist of a course or program with a definite duration. The employer may deny training leave if the employee has already taken such leave for 30 days or more or on three or more prior occasions or if granting such leave would adversely affect the employer’s business operations.
Pensions and Social Security
The legal retirement age is 60 unless the employer has set another age. Old-age benefits consist of either a lump-sum payment or a monthly pension, the amount of which depends on the length of time the insured person contributed to the fund. A retiree may claim the pension if he or she made contributions for at least 180 months, which need not be consecutive. The pension is paid monthly at the rate of 20 percent of the insured person’s average wage for the prior 60 months plus an additional 1.5 percent of wages for every 12 months of contributions in excess of 180 months up to a maximum of 38 percent.
The Social Security Act of 1990 established a fund to provide benefits for death, disability, injury or sickness, maternity, old age and unemployment. Funding comes from the government, employers and insured persons. To be eligible, a person must be an employee between the ages of 15 and 60, a person who continued to work for his or her employer past age 60 or a person who is not an employee but voluntarily makes contributions.
Employers and employees are required to contribute 5 percent of the employee’s gross monthly income to social security.
No benefits are payable if the insured person intentionally caused his or her own injury, illness, disability or death.
Workers’ Compensation
Thailand’s workers’ compensation scheme is funded entirely by contributions from employers, which range from 0.2 percent to 1 percent of annual payroll depending on the business’s degree of risk. Employees who suffer a work-related injury or illness are entitled to compensation for medical expenses, as well as monthly payments from the Compensation Fund. If a worker dies as a result of a work-related injury or illness, his or her survivors are entitled to compensation.
Reference Citations
Vacation: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 30, 56
Holidays: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 29, 56, 61-63
Maternity Leave: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 41, 59, 65
Sick Leave: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 32, 57
Other Leave: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 33-35, 57-58
Pensions and Social Security: Social Security Act, 1990, B.E. 2533, §§ 33, 46, 54, 73-77
Workers’ Compensation: Workmen’s Compensation Act, 1994, B.E. 2537, arts. 15-18, 22,
Labor Relations
In General
The Thai constitution expressly grants employees the right to form a union, which must be registered with the Department of Labor Protection and Welfare.
An employer with 20 or more employees is required to negotiate a written agreement relating to conditions of employment including working conditions, working days and hours, wages and termination of employment. The agreement may be valid for between one and three years.
Employers, employers’ associations, groups of employees representing at least 15 percent of the total number of employees, and unions representing at least 20 percent of the total number of employees involved have the right to submit a demand for a new employment agreement or to amend conditions of an existing agreement, which triggers a duty to begin negotiations within three days. If a labor dispute cannot be settled by conciliation, employees may go on strike or the employer may institute a lockout.
Right to Organize
The 2007 constitution expressly grants the right to form a union and states that the right shall be restricted only to protect the public interest or maintain public peace.
Labor unions must be registered with the Department of Labor Protection and Welfare. To register a union, at least 10 employees who have a right to establish a labor union must submit a written application plus three copies of the union’s draft regulations. To be eligible to establish a union, individuals must be of Thai nationality and be either employees of the same employer or employees in the same line of work.
An employer with 20 or more employees is required to negotiate a written agreement relating to conditions of employment that addresses:
- employment or working conditions,
- working days and hours,
- wages,
- welfare,
- termination of employment,
- submission of complaints by employees and
- amendment or renewal of the agreement.
Once an agreement is reached, it must be registered with the Department of Labor Protection and Welfare within 15 days and displayed in the workplace for at least 30 days. Negotiations for an employment agreement occur between up to seven representatives of the employer and up to seven representatives of the employees. Employer representatives may be directors, shareholders or partners of the company; committee members of an employers’ association; or members of an employers’ federation. Employee representatives may include employees themselves or committee members of their labor union or federation. The duration of the agreement may not exceed three years. If no duration is stated, the agreement is deemed to be in effect for one year. If the sides have not negotiated a new agreement on the date the current agreement ends, the current agreement is automatically extended for another year.
Works Councils
Thailand’s labor laws do not address works councils.
Dispute Resolution
In situations not addressed by collective labor agreements, employment disputes may be taken to the labor courts.
Employers, employers’ associations, groups of employees representing at least 15 percent of the total number of employees, and unions representing at least 20 percent of the total number of employees involved have the right to submit a demand for a new employment agreement or to amend conditions of an existing agreement, which triggers a duty to begin negotiations within three days.
If negotiations do not begin within the specified time or are unsuccessful, the party that submitted the demand must notify a conciliation officer within 24 hours. The conciliation officer will attempt to settle the dispute within five days.
If a settlement cannot be reached within five days, the next step depends on the type of employer.
For most employers, the parties may agree to appoint one or more labor dispute arbitrators, the employer may institute a lockout or the employees may go out on strike. If the parties appoint arbitrators, the arbitrators must provide the parties with an opportunity to submit evidence and present witnesses. At the end of the arbitration proceedings, the arbitrators issue a written decision containing the date of the award, the issues, the facts of the dispute, the reasons for the award, and any actions required by one or both parties. Within three days of issuing the ruling, the arbitrators must provide each party with a copy of their decision and post a copy in the workplace. Within 15 days of issuing the award, the arbitrators must register it with the Department of Labor Protection and Welfare. An award by labor dispute arbitrators is binding on the parties for one year.
If the labor dispute involves railroads, ports, the telecommunications industry, production or distribution of electricity, water works, production or refining of oil fuel or hospitals or clinics, it must be referred to the Labor Relations Committee for a decision within 30 days. Any party dissatisfied with the decision of the Labor Relations Committee may file an appeal with the minister of the interior within seven days. The minister must consider the appeal and notify the parties of a decision within 10 days. Decisions of the Labor Relations Committee not appealed in a timely fashion and all decisions of the minister are final and binding on the parties for one year.
When a demand for a new or amended agreement has been submitted and is in negotiation, settlement or arbitration, an employer may not terminate or transfer any employee, representative of the employee or committee member of the labor union or federation involved in the demand unless that person has performed his or her duties dishonestly, intentionally caused damage or committed a crime against the employer, violated the employer’s rules after having received a written warning or neglected his or her duties for three consecutive days without justification.
An employer may not terminate or make work unbearable for an employee, representative of the employee or committee member of the labor union or federation because the employee or the employee’s union called a rally, filed a complaint, submitted a demand, filed a lawsuit or provided evidence to government authorities or because the employee or union was about to take such action. An employer also may not terminate—or constructively discharge—an employee because of union membership, prevent an employee from joining a union, take action to cause an employee to resign from a union or interfere with the operation of a union.
If an employer has engaged in such unfair practices, the injured party may file a complaint with the Labor Relations Committee within 60 days. The Labor Relations Committee then must make a decision and issue an order within 90 days, although the minister may extend the deadline. If an employer investigates an employee accused of an offense, the employer may not suspend the employee from work during the investigation unless the company’s rules and regulations or the employment contract so provides. If suspension is provided for, the employer must issue a written suspension notice stating the offense and the period of suspension, which cannot exceed seven days, prior to placing the employee on suspension. The employer must pay the suspended employee at least 50 percent of wages earned prior to suspension. If the employee is cleared of the offense, the employer must make up the difference in pay.
Strikes and Lockouts
When a labor dispute cannot be settled before a conciliation officer, employees may go on strike. If the employees are members of a labor union, they may strike if a resolution to do so is approved by more than half the total union membership. A vote to strike must be conducted by secret ballot.
Similarly, an employer may institute a lockout when a labor dispute cannot be settled before a conciliation officer.
Before a strike or lockout begins, the other party to the dispute and the conciliation officer must be given at least 24 hours’ notice.
A strike or lockout is not permitted if:
- a demand has not been presented to the other party;
- there has been an agreement reached between the parties with regards to one of the party’s demands, a settlement of a dispute has been reached through a conciliation officer or labor dispute arbitrators have rendered an award decision; or
- a decision by the Labor Relations Committee or labor dispute arbitrators is pending or a decision by the Labor Relations Committee or minister of the interior has been made.
If the minister of the interior decides that an otherwise legal strike or lockout may adversely affect the economy, cause hardship to the public, endanger the security of the country or pose a threat to the public order, the minister may order the lockout or strike to cease, arrange for replacement of the employees who are not working because of the strike or lockout or order the Labor Relations Committee to settle the dispute.
Successorship Clauses
In cases where a business is sold or transferred, the successor employer becomes responsible for its predecessor’s rights and duties towards the employees under the collective agreement. Transfers of employees from one business entity to another may only be carried out with the employee’s consent. If an employee does not consent, the transfer cannot take place. If their employment will be subsequently terminated, they will be entitled to severance pay.
Reference Citations
Right to Organize: Labor Relations Act, 1975, B.E., 2518, §§ 10, 86-89
Dispute Resolution: Labor Relations Act, 1975, B.E., 2518, §§ 21-23
Strikes and Lockouts: Labor Relations Act, 1975, B.E., 2518, §§ 34-36
Successorship Clauses: Labor Relations Act, 1975, B.E., 2518, § 13
Safety, Health and Security
In General
The Ministry of Labor issues regulations setting standards for workplace safety, occupational health and environmental conditions. If a labor inspector discovers violations of the regulations, the inspector may issue a written order requiring the employer to rectify the situation.
All employers with more than 50 employees must establish a joint employee-management welfare committee to discuss proposed and existing employee welfare benefits and arrangements.
Workplace Safety and Health
The Minister of Labor has the authority to issue regulations setting standards for workplace safety, occupational health, and environmental conditions. Whenever a labor inspection officer discovers that an employer is in violation of the regulations, the officer may issue a written order requiring the employer to rectify the situation or order the employer to cease operations until the situation is rectified. If an employee will lose work as a result of such an order, the employer must pay the employee’s wages until it has complied with the order and the employee can return to work.
All employers with more than 50 employees must have a welfare committee including at least five employee representatives, five employer representatives, and four professionals appointed by the Minister of Labor. The welfare committee is required to meet with the employer at least once every three months to discuss proposed and existing employee welfare benefits and arrangements.
Drug and Alcohol Use
Ministry of Health Notice Number 19, issued in 2010, bans smoking in all workplaces in Thailand.
Reference Citations
Workplace Safety and Health: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 96-98
Drug and Alcohol Use: Ministry of Health Notice Number 19, 2010, art. 2 (3.5)
Termination
Termination by Employer
Employment may be terminated by the employer by giving one pay period’s advance notice in writing. Advance notice of termination is not required when the employee is terminated for cause, however. The employer may also terminate an employee immediately upon payment of the wages that otherwise would have been due during the notice period.
Plant Closings and Mass Layoffs
If an employer decides to terminate employees as a result of business restructuring due to automation or changes in machinery or technology, the Labor Inspection Office and affected workers must be given at least 60 days’ notice. If the employer fails to provide 60 days’ notice, terminated employees are entitled to 60 days’ pay in lieu of notice in addition to their regular severance.
An employee who has worked continuously for at least six years is entitled to additional compensation of 15 working days’ wages at his or her most recent wage rate for each full year of service up to 365 days’ wages.
If it suspends operations for any reason other than force majeure, an employer must give employees at least three working days’ written notice and pay them at least 75 percent of their regular wages for the duration of the suspension.
If an employer moves to a new location and relocation would significantly disrupt any of the employees’ or their family members’ lives, the employer must give those employees 30 days’ notice of the move. If an employee does not wish to move to the new location, he or she may resign and receive a special compensation payment equal to the severance pay to which he or she would be entitled if the employer had terminated the employment. If the employer fails to give the requisite notice, the employee is entitled to an additional 30 days’ pay.
Payment on Termination
When an employee is terminated, the employer must pay within three days all accrued wages, overtime, holiday pay, holiday overtime pay, and compensation for vacation time accrued prior to the year of termination but not yet taken.
If not terminated for cause, the employee also is entitled to payment on a pro rata basis for vacation earned in the year of termination and to severance pay in an amount determined by the employee’s length of service as follows:
- 120 days of continuous service to one year: 30 days’ wages,
- one to three years: 90 days’ wages,
- three to six years: 180 days’ wages,
- six to 10 years: 240 days’ wages,
- 10 years or more: 300 days’ wages, and
- 20 years or more: 400 days’ wages.
An employer is not required to pay severance, make a pro rata payment for vacation accrued during the year of termination, or give advance notice if an employee is terminated for any of the following reasons:
- dishonesty or deliberate commission of a crime against the employer;
- intentionally causing the employer to suffer damage;
- negligence resulting in serious damage to employer property;
- serious violation of a work rule, regulation, or order of the employer;
- a less serious violation of a work rule, regulation, or order of the employer when the offender has received a written warning within the previous year;
- absence from work for three consecutive working days without justifiable reason; or
- being sentenced to imprisonment by a final court judgment, although if the imprisonment is for negligence or a petty offense, the offense must have been against the employer.
To terminate an employee for just cause and avoid paying severance, the employer must specify the reason for termination no later than the date of termination.
Employers that fail to pay severance to their retiring workers face a potential fine of up to 100,000 baht and/or imprisonment of one or more company directors for up to six months.
Unemployment Insurance
An insured person is entitled to unemployment benefits if he or she:
- works for an employer who employs at least 10 people;
- has paid contributions for at least six of the 15 months preceding unemployment;
- is able to work and ready to take a suitable job, has no objection to job training, and has been registered with the Government Employment Service Office for at least one month;
- is not unemployed as the result of termination for cause;
- is not eligible for old-age benefits; and
- received coverage through employment, not through voluntary contributions.
Benefits are payable from the eighth day of unemployment. An insured person who was terminated is entitled to 50 percent of wages for up to 180 days, an insured person who resigned to 30 percent of wages for up to 90 days. The maximum daily benefit is 250 baht.
Reference Citations
Termination by Employer: Labor Protection Act, 2019 (as amended), B.E. 2541, § 17
Plant Closings and Mass Layoffs: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 121-122
Payment on Termination: Labor Protection Act, 2019 (as amended), B.E. 2541, §§ 118-120
Unemployment Insurance: Social Security Act, 1990, B.E. 2533, §§ 78-79
Personal Taxes
Residency Requirements
An individual is considered a resident of Thailand for tax purposes if he or she is present in the country for a total of 180 days in any calendar year
Taxable Income
Residents must pay taxes on income from Thailand as well as the portion of income from foreign sources that is brought into Thailand. A nonresident is required to pay taxes only on income from sources in Thailand.
Taxable income includes any remuneration given to an employee by the employer, including bonuses, holiday pay and allowances.
Tax Rates
Tax rates in Thailand vary on a progressive scale from 5 to 35 percent depending on annual income:
Employees and employers are required to pay contributions to Thailand’s Social Security Fund based on wages paid to employees. The total Social Security Fund contribution rate for an employee is 5 percent of the employee’s gross monthly income, up to a monthly income cap, and the employer is required to pay to the fund an amount that matches the amount the employee is required to pay.
Personal income tax returns must be filed and the tax paid by March 31 in the year following that in which the income was earned.
Reference Citations
Residency Requirements: Income Tax Code, 2013, § 41
Web References
Law and Regulation
Constitution of Thailand
Labor Law Procedure for the Court
Labor Protection Act
Labor Relations Act
Occupational Safety, Health and Environment Act
Social Security Act
Unfair Contract Terms Act