Termination of Employment in Thailand — What You Need to Know

Thailand’s employment landscape is carefully regulated to balance employer flexibility with employee protection under the Labour Protection Act B.E. 2541 (1998) and related laws.

Types of Termination

With cause (“statutory cause”)
Employers may immediately terminate employees without advance notice or severance for serious misconduct—including dishonesty, criminal acts, gross negligence, work-rule violations after warning, extended absence (3+ days), or imprisonment. These grounds must be explicitly stated in the termination document.

Without cause
If termination occurs for any other reason, employers must provide advance notice (at least one pay period) and make statutory payments.

Statutory Payments at Termination

Final wages and overtime: Pay within 3 days after termination

  1. Notice pay: Equivalent to one wage cycle if notice is not given

  2. Severance (for termination without cause, after ≥120 days): Up to 30 days’ wages (120 d–1 yr), scaling to 400 days (>20 yrs service)

  3. Unused annual leave: Paid out under Section 67

  4. Withholding tax certificate: Required on compensation

  5. Job certificate: Must be provided upon request, outlining employment details.

  6. Provident fund notice: Member deregistered within 30 days of termination

Unfair or Wrongful Dismissal

Even if legally paid, a dismissal without valid cause or fair process can lead to an unfair termination claim:

  • The Labour Court may order reinstatement or financial compensation (often about 1 month’s salary per year of service)

  • Common pitfalls include:

    • No formal warnings for performance issues;

    • Minor infractions used as grounds;

    • Redundancy without fair evidence/process;

    • Coerced resignations

  • Criminal penalties (fine up to THB 200,000, imprisonment) can apply for wrongful dismissal

Best Practices for Employers

  1. Document performance issues and issue written warnings when needed

  2. Ensure lawful notice and all statutory payments

  3. For redundancy or reorganization, notify both employees and the Labour Inspection Officer 60 days in advance, and possibly pay special severance

  4. Offer mutual separation agreements to mitigate disputes

How We Can Help?

Our team, specializing in Thai labour and employment law, offers comprehensive support:

  • Pre-termination advice: Assess legal risks and optimal strategy.

  • Documentation: Draft notices, warnings, termination letters, and mutual separation agreements.

  • Payment audits: Ensure accurate severance, leave payouts, tax compliance.

  • Labour Court defense: Represent employers in disputes and filings.

  • Proactive HR support: Performance management, redundancy planning, and compliance frameworks.

With deep experience handling termination and dispute resolution, we ensure your process is legally sound, documented, and defensible.