Whether you are considering working in Thailand or are already immersed in its business landscape, understanding the fundamentals of Thailand's Employment Law is crucial. It provides a framework that balances the interests of employees and employers, ensuring a fair workplace environment.
In this article, we have included essential information about Thai labor law that employees and employers should know.
Types of employment contracts in Thailand
In Thailand, employment contracts are primarily categorized into fixed-term and permanent contracts, both written and verbal. Fixed-term contracts are typically used for specific projects or a predetermined period, whereas permanent contracts are for ongoing employment without a set end date.
These contracts serve to protect employees and employers from potential legal disputes. The absence of a well-defined contract frequently results in court decisions favoring the employee. For employers, it's advisable to steer clear of generic contract templates, as they often lack specific in-country requirements.
Under Thailand Employment Law, the contract must include basic parameters, such as:
The role and responsibilities of an employee
Work Hours and Overtime Compensation
The standard workweek in Thailand is typically forty-eight hours per week or eight hours a day, with regulations in place to govern overtime work. On top of that, employees are entitled to a minimum of one hour break after working for five consecutive hours.
Overtime compensation is a legal requirement of Thai labor law and is calculated at a higher rate than regular pay. Any extra hours are typically compensated at 150% of the employee’s hourly rate, and any additional overtime during holidays is calculated at 300% of the hourly rate.
Public Holidays and Leaves
Thai Labour Law states employees have the right to at least thirteen public holidays. Additionally, the country's law outlines various types of leaves, including:
Employees are eligible for sick leave. If the sick leave lasts longer than three days, the employer can request a medical certificate. Employees are permitted up to thirty days of sick leave per year.
Expectant mothers are entitled to ninety-eight days of maternity leave, including holidays and time for prenatal care. They are eligible for 45 days of their regular salary during this period.
Those who work in the public sector can take up to fifteen paid leave within thirty days after the child’s birth. In the private sector, paternity leave is not mandated, but employers may offer paid or unpaid leave.
4.Military service leave
Male employees are entitled to leave for military service activities such as inspections, drills, or readiness tests. During this leave, they will receive their basic salary for up to sixty days.
5.Personal business leave
Employees are entitled to three working days of personal business leave annually, which should not be deducted from their annual leave.
Employees can take leave for training or skill development in specific cases, such as skill development or increasing work efficiency, and for government-required educational level testing. However, this does not apply to training requested by the employee.
One of the key aspects of Thailand’s employment law is its social protection regulations. The employer is required to register their employees with the Workmen Compensation and Social Security Fund (SSF). The SSF provides a safety net for employees, offering benefits such as medical care, pension, and maternity benefits. Regarding payment of SSF, the employer must contribute five percent of the staff member’s income to the Social Security Office (up to 750 THB/month).
Termination of Employment
Termination of employment in Thailand is subject to specific legal provisions, including the payment of severance pay under certain conditions. The severance pay is depending on the employment period as follows:
120 days – 1 year employment is eligible for 30 days salary
1-3 years employment is eligible for 90 days salary
3-6 years employment is eligible for 180 days salary
6-10 years employment is eligible for 240 days salary
10-20 years employment is eligible for 300 days salary
20 years or more employment is eligible for 400 days salary
Employers are required to give a minimum of one pay period's notice before terminating an employee. An employer is not required to offer severance pay if an employee is dismissed due to misconduct or dishonest behavior. In contrast, in the event of wrongful dismissal, the employee can file a claim to the Labour Court.
Thai Labour Law for Foreigners
Thai Labour Law becomes even more intricate for foreigners working or planning to work in Thailand. It is imperative for foreign workers to understand the specific legalities that apply to them. This includes obtaining the correct type of visa and work permit, which are mandatory for legally working in Thailand (Learn more about work permit in Thailand requirements).
Navigating Thailand's employment laws can be complex, but understanding these fundamentals is essential for successful business operations in the country. ManpowerGroup Thailand offers comprehensive services to help businesses and individuals comply with these laws, ensuring a smooth and legally compliant working experience in Thailand.
ManpowerGroup Thailand’s Visa & Work Permit Service
ManpowerGroup Thailand offers a full range of work permit services in Thailand, including consulting, compiling, organizing, and expediting work permit and Non-B visa applications. We can also assist in obtaining Non-O visas for spouses and children of employees, as well as handling reports to immigration, re-entry permits for overseas travel, and application renewal.
At first, it may seem difficult to obtain a work permit in Thailand. Albeit, with ManpowerGroup’s services, issues can be anticipated and solved to make the process as easy as possible.
To see more details of our work permit service, click here.
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