Employment laws in Thailand

Understanding labor laws in Thailand is essential if you’re hiring full-time or contract workers in this region. Employment laws in Thailand dictate how employees should be contracted, managed, and paid, as well as what mandatory benefits every Thai employee is entitled to receive.

Hiring through an Employer of Record (EOR) can simplify hiring in Thailand. Whether you’re hiring one or one hundred Thai workers, Payoneer Workforce Management can help streamline the process and reduce administrative and compliance complexities.

Let’s take a look at the most important employment laws in Thailand.

Key labor laws in Thailand

Labor and employment laws in Thailand are applicable to all businesses operating within the country. This includes registered companies, commercial businesses, factories, and other places of industry.

The laws may apply to both Thai citizens and expatriates.

Employment laws in Thailand are outlined in the following key policies:

Labor laws in Thailand	Description
Labor Protection Act (LPA)	Detailing the rights and responsibilities of employers and their workers
Civil and Commercial Code	Covering legal aspects, including contracting and corporate law
Labor Relations Act	This policy covers workers’ rights, disputes, and the role of workers’ unions
Social Security Act	Employees in Thailand are supported by a social security and benefits system, outlined by this act
Workmen’s Compensation Act	Outlines an employer’s responsibilities in case of injury, illness, or fatalities at work
Occupational Safety, Health, and Environment Act	Governs workplace health and safety
Alien Working Act	Regulates the employment of foreign workers in Thailand
Minimum Wage Act	Mandates a minimum wage of 330 to 370 baht per day
State Enterprise Labour Relations Act	Applies to public/state sector companies, such as government organizations
Employment and Job Seeker Protection Act	Protects Thai job seekers and regulates overseas employment

Contract employment laws

Labor laws in Thailand may not mandate a written contract between the employer and the employee. However, contracts are typically advisable. They may help avoid disputes, clarify job roles and practices, and prove the worker’s job classification.

This contract may be written in Thai, if possible, particularly if Thai is the worker’s only language.

Types of contracts

In Thailand, employers may offer contract workers permanent, fixed-term, and temporary roles.

• Permanent contracts represent an open-ended and ongoing working relationship with no fixed end date. If you’re hiring a full-time employee in Thailand, this is likely the contract type to use.
• Fixed-term contracts employ a worker for a specific period, e.g., for seasonal or project work. Be sure to state the contract end date clearly.
• Temporary contracts are also fixed-term but for a shorter time.

Essential contract terms

It’s best practice for any Thai employment contract to include:

• Job title and description
• Compensation in baht (base plus bonus if applicable)
• Expected working hours 
• Expected working location
• Any benefits the worker will receive (plus a reference to where they can learn more)
• … or clarification that the worker will not receive benefits (in the case of independent contractors)
• Terms of employment and provisions for termination

Minimum wage in Thailand

Thailand’s minimum wage is reviewed each year. Employment laws in Thailand set the minimum working wage as between 330 and 370 baht per day. 

Typically, the rate varies across the country, and the rate an employer pays is based on the location of the workplace (not the employee’s residence).

Labor law in Thailand mandates overtime payments of:

• 150% for overtime on a normal working day
• 200% for work on a rest day
• 300% for overtime work on a public holiday

Working hours in Thailand

It may be illegal for a Thai worker’s core hours to exceed 48 hours a week. Additional overtime of up to 36 hours a week is also permitted.

Employment laws in Thailand are mindful of fair working hours and state that every employee must have 1 rest day per week. Typically, an employer cannot require a worker to work more than 6 days in a row.

In addition to rest days, Thai workers get 6 days of paid vacation plus 13 public holidays as paid time off per year. This is required under Thai employment law.

Find out more about the leave policy in Thailand here.

Mandatory benefits

Full-time employees in Thailand receive the following benefits:

• Social security: Both employers and employees contribute to the social security fund.
• Sick leave: Thai employees can take up to 30 days of paid sick leave per year.
• Maternity leave: New and soon-to-be moms can take up to 98 days of maternity leave. The employer must provide a full salary for the first 45 days.
• Workers’ compensation: Employers may have to contribute to this fund that covers Thai workers in the event of work-related illness, injury, or death.

Termination

Thai employees have certain rights regarding the termination of employment.

A worker may be dismissed based on:

• Repeated misconduct: That is, continuously acting outside of company rules or policies.
• Dishonesty: This covers acts of fraud, theft, or other deception.

In most cases, Thailand’s Labor Protection Act says employers must provide 1 to 3 months’ notice (after probation) before termination, unless serious misconduct has occurred.

Employers may be required to provide employees with severance pay, depending on the employee’s length of service and the reason for termination or redundancy. Severance pay is calculated on years of service and the employee’s last wage:

• Less than 120 days of employment: No severance pay
• 120 days to 1 year of employment: 30 days at their last wage
• 1 to 3 years of employment: 90 days at their last wage
• 3 to 6 years of employment: 180 days at their last wage
• 6 to 10 years of employment: 240 days at their last wage
• 10 to 20 years of employment: 300 days at their last wage
• Over 20 years of employment: 400 days at their last wage (This is applicable only if the employee is over 60) 

Navigate employment laws in Thailand with trusted support

Treating employees fairly and with respect is a great way to encourage employee productivity, engagement, and retention.

Violating employment laws in Thailand may have severe consequences. Organizations may be fined, and the business’s reputation can be damaged.

Partnering with an Employer of Record in Thailand can help, as we offer support to reduce the administrative burden. Payoneer Workforce Management’s expert team may assist with hiring in Thailand with compliance support.

Book a demo today!

FAQs

1) What are the employment laws in Thailand?

The key labor laws in Thailand include a working week of 48 hours maximum, a minimum daily wage of 330 to 370 baht, and social security contributions from the employer and employee.

2) What are the rules for working in Thailand?

To work in Thailand, an employee must be a Thai citizen with the right to work or a foreign worker with a Thai work visa and permit. Hires may be subject to a background check for this relevant documentation.