Overview of Thailand's Labour Law Framework
Thailand’s employment laws are governed primarily by the Labour Protection Act B.E. 2541 (1998), along with the Civil and Commercial Code, the Labour Relations Act, and various ministerial regulations. These laws apply to nearly all private-sector employers and employees in Thailand.
The main goals of the laws include:
Ensuring fair treatment of employees
Establishing minimum working standards
Providing a structured process for employment disputes and termination
Employment Contracts in Thailand
While Thai law allows verbal agreements, written employment contracts are strongly recommended—especially for foreign-owned companies. A bilingual contract (Thai and English) is best practice, and in case of dispute, the Thai version will prevail in Thai courts.
Key provisions to include in employment contracts:
Job title and responsibilities
Work location and hours
Salary and payment method
Overtime policy and compensation
Leave entitlements (annual, sick, maternity, etc.)
Termination clause and notice period
Confidentiality, non-compete, and probationary terms
💡 Pro tip: Clearly define the employment relationship to avoid misclassification and potential legal claims.
Working Hours, Wages & Overtime
Thai law limits standard working hours to 8 hours per day or 48 hours per week for most jobs. For hazardous work, the maximum is 7 hours per day and 42 hours per week.
Minimum Wage
Thailand sets a regional minimum wage that is reviewed periodically. Employers must ensure full compliance with the minimum wage laws and issue detailed payslips each month.
Overtime
Employees working beyond normal hours are entitled to overtime pay, often at 150%–300% of their regular wage, depending on the time and day (e.g., weekends or public holidays).
Leave and Employee Benefits
Thai employees are entitled to the following types of leave:
Annual leave: Minimum 6 days per year (after one year of service)
Sick leave: Up to 30 paid days per year
Maternity leave: 98 days (45 paid by employer)
Personal leave: Often granted at the company’s discretion
Public holidays: At least 13 days per year
Employers must also register employees with Thailand’s Social Security Fund, which covers medical care, unemployment, and retirement contributions.
Termination & Severance Pay
Notice Period
Unless terminated with cause, employers must provide at least one pay period’s notice or payment in lieu of notice.
Severance Pay
Employees terminated without cause are entitled to severance pay based on their length of service:
Service Duration Severance Pay
120 days – <1 year 30 days’ wages
1–3 years 90 days’ wages
3–6 years 180 days’ wages
6–10 years 240 days’ wages
10–20 years 300 days’ wages
More than 20 years 400 days’ wages
Unused annual leave must also be paid out upon termination.
❗ Employers that fail to follow proper termination procedures may be subject to wrongful dismissal claims, fines, or court-ordered compensation.
Unfair Dismissal & Labour Disputes
Employees who believe they’ve been unfairly terminated may file a complaint with the Labour Court, which has broad discretion to order reinstatement or award monetary compensation.
To reduce risk, employers should:
Issue written warnings and maintain proper records
Use mutual separation agreements where appropriate
Seek legal advice before terminating long-serving employees or those in sensitive roles
How Our Firm Can Help Employers in Thailand
Our law firm specializes in Thai labor law and HR compliance. We advise both local and foreign companies on employment best practices and help employers navigate the complexities of:
Employment contract drafting and review
Internal HR policy development
Labour law compliance audits
Termination and severance risk management
Representation in labour disputes or court proceedings
With years of experience assisting employers in Thailand, we provide practical, legally sound solutions tailored to your business needs.