Hire in Thailand

Employer of record in Thailand

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Thailand, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Thailand ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Thailand and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs. 

Hiring in Thailand

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).

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. 

Employment contracts in Thailand

As you look to hire employees in Thailand, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

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. Employees are entitled to one day off per week.

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. The total amount of overtime and holiday work must not exceed 36 hours per week.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:  

• The daily minimum wage increased to 400 baht.
• An employee who works overtime on a regular workday is entitled to one and a half times regular pay.  
• Work on a holiday is paid at twice the normal rate, and overtime work on a holiday at three times the normal rate. 

As your employer of record in Thailand, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

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.

Probationary period

There is no regulation on the trial period or probation, except that the Labour Protection Act provides that “a probationary contract shall also be deemed as an indefinite period contract of employment.” However, the maximum period of a probation period is generally up to 119 days in practice.

Termination and severance

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.

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 before 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
• 20 years or more: 400 days’ wages

Employee benefits and paid leave in Thailand

When negotiating terms of an employment contract with a candidate in Thailand, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

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 eligible women 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 to the system for at least seven of the 15 months preceding medical treatment for pregnancy.

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

The principal holidays, many based on the lunar calendar with varying dates year-to-year, are: 

• New Year’s Day 
• Makha Puja Day 
• Chakri Day 
• Songkran Festival (Thai New Year) 
• Labor Day 
• Coronation Day 
• Visakha Puja Day 
• Asanha Puja Day 
• Her Majesty the Queen’s Birthday 
• Chulalongkorn Day 
• His Majesty the King’s Birthday 
• Constitution Day 
• New Year’s Eve 

If a holiday falls on a weekend, its observance moves to a weekday.

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.

Health coverage

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% of the insured person’s average wage for the prior 60 months plus an additional 1.5% of wages for every 12 months of contributions over 180 months up to a maximum of 38%.

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 must contribute 5% 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.

Additional benefits

In addition to healthcare benefits, employees in Thailand are entitled to a pension, which is funded by government tax revenues, as well as workers' compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Thailand, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: May 09, 2024

Employee onboarding with an employer of record in Thailand

We write and validate all local employment contracts, streamlining the onboarding process for you and your Thailand employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Thailand, we will:   

• Schedule a welcome call to discuss HR and employment information for Thailand, as well as answer any questions 
• Prepare a customized employment contract in English or other local language 
• Share the employment contract and benefits information with the new employee for signature and review 
• Gather tax and banking information from the employee to set up payroll 
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll 

The entire onboarding process for the employee is often completed in as little as two weeks. 

Partner with Safeguard Global as your Thailand employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Thailand. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today. 

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.