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What are the labor laws in Thailand

Every country has a set of regulations governing and protecting worker’s rights. These labor laws apply both to domestic companies, as well as international companies hiring workers from the country.

Compliance and keeping track of the labor laws in Thailand can be challenging. This is where EOR services for Thailand come in. An EOR in Thailand can help companies hiring in Thailand with compliance and save the time and costs of keeping track. An EOR in Thailand will also take the legal responsibility of hiring workers in Thailand, so companies don’t have to face costly penalties in case of non-compliance.

Thailand's labor laws, founded on the Labor Protection Act, safeguard workers' rights, encompassing aspects like working hours, wages, and termination procedures. Let’s understand the various aspects of labor laws in Thailand in greater detail.

Understanding Thai Labor Laws

Broadly speaking, Thailand's labor laws cover the following:

Employment Contracts and Conditions

Thailand's Civil Commercial Code and Labor Protection Act states that the following statutory qualifications have to be included in the employment contract: Rest, illness, annual leave, and holiday rights.

n Thailand, employment contracts are primarily categorized into Fixed-term and Permanent (or Indefinite) contracts, both written and verbal.

1. Fixed-term contracts

Fixed-term contracts are typically used for specific projects for a predetermined period.

The Labor Protection Act (LPA) is the primary statute governing fixed-term contracts in Thailand. This Act dictates that fixed-term contracts have to be drafted in written form by the time the employment period commences. Such a written contract must clearly state that the employment is “fixed” by designating a predetermined employment period, that is when the employment period starts and ends.

Termination of employment is another significant feature of a fixed-term employment contract and it must state clearly that the employment contract will be terminated when the employment period comes to an end.

An employer cannot include a clause stipulating that the employment period may be extended by either the employer or the employee as it is strictly prohibited under Thai law. If such a clause is included, the employment contract is no longer considered “fixed,” as per the Thai Supreme Court.

A fixed-term employment contract may be applicable only in certain lines of work, such as:

The duration of work under a fixed-term employment contract should not exceed two years.

2. Permanent or Indefinite Employment Contract

This is a contract that is concluded without a fixed end date, allowing the employee to remain in the position as long as their work meets the employer’s requirements. In other words, permanent contracts are for ongoing employment without a set end date.

Wage Regulations and Benefits in Thailand

Thailand has a variety of wage regulations and benefits for employees. Here are the major ones:

1. Minimum wage

Wages vary by region and as of 2022, the minimum wage in Thailand is between 328–354 THB per day, or about $10.20 USD.

2. Overtime pay

Employees are entitled to overtime pay if they work beyond their stipulated work hours. Overtime pay is at least 1.5 times the employee's hourly wage for regular work days and at least three times the hourly wage for work on holidays and special days.

3. Payroll

The payroll cycle is usually a monthly one, and the salary disbursement date is determined by the contract between the employer and employee.

4. Benefits

Benefits include paid time off, sick leave, maternity leave, and retirement plans. Employees are entitled to 30 days of paid sick leave each year. Employees with more than 120 days of service but less than one year are entitled to 30 days of severance pay.

5. Social Security

Thailand’s social security system provides coverage for employees in the areas of health, disability, maternity, unemployment, and death. Employers and employees both contribute 5% of the employee's income, up to a maximum of THB750 per month, to register their employees with the Workmen Compensation and Social Security Fund (SSF).

6. Workers' Compensation Fund

In Thailand, the employer is responsible for paying annual premiums to the Workers' Compensation Fund (WCF). Employees are entitled to compensation benefits like medical benefits, rehabilitation, monthly compensation, and funeral benefits in case of work-related injuries

Working Hours and Leave Entitlements

In accordance with Thai labor laws, the regular workweek consists of 48 hours or 8 hours per day. After five consecutive hours of work, employees are entitled to a minimum one-hour break. Overtime pay is applicable for those working beyond 8 hours a day or 48 hours per week, with an increased hourly wage compared to the standard rate.

Leave entitlements

Thai employees are entitled to at least 15 paid holiday days per year. They are also entitled to six days of additional annual leave on completion of one year of service. The employee must be afforded one day off per week, and each day off cannot be more than six days apart.

Other leave entitlements in Thailand

Termination of an Employment Contract in Thailand

In Thailand, an employment contract can be terminated in two ways: either the employee resigns or an employer terminates an employee by dismissal.

If an employer wishes to terminate an employee without legal cause, they are required to provide notice at least one full payment cycle in advance, but not exceeding three months. The notice should be given on or before the wage payment day and becomes effective on the subsequent wage payment day. In cases where immediate departure is necessary, the employer must provide monetary compensation instead of advance notice.

If the employee's tenure in the company exceeds 120 days, the employer is obligated to provide a written notice containing termination details and the final date of employment. The notice period should not surpass three months unless a longer duration is specified in the employment contract. If a lengthier notice period is stipulated in the contract, the employer must adhere to the contractual terms.

Income tax applies to severance pay, yet employees terminated without cause can receive severance pay up to THB 300,000 or 10 months without being taxed.


If your application passes the screening and gets verified, the Immigration Department will issue an employment visa that gives you legal permission to work and stay in the country. The entry and work permit label you receive must be affixed to your travel documents before you arrive in Hong Kong. Upon your arrival in the region, your work visa gets activated as you start your employment journey.

Compliance Strategies for Employers

Here are some compliance strategies for employers in Thailand:

Expand Your Business with a Reliable EOR in Thailand

Hiring overseas employees in their country of residence has its pros and cons. While you get to sample diverse skills and talents, as an employer, you also need to be careful with that country’s laws and employment regulations. Having experts by your side considerably simplifies things while also safeguarding your business and keeping you on the right side of the authorities. So, if you are looking to hire employees to work remotely in Thailand, then look no further than a reliable and proven EOR partner like BGC, which has been helping businesses from hiring to onboarding to payroll, exit formalities, and more for employees in countries outside their area of residence. Call us today!