An EOR in Thailand simplifies the process of onboarding international talent. They handle legal, administrative, payroll, and regulatory compliance, ensuring a smooth transition for your company and your employees. By partnering with an EOR, you can take full advantage of Thailand's dynamic economy while maintaining compliance and reducing operational complexities.

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Expanding your team necessitates the right hires at the right moment and in the correct roles. In Thailand, navigating compliance, payroll, tax, and benefits management can be complex. Our global Employer of Record (EoR) service at Gloroots takes the burden of these tasks off your plate, ensuring compliance and allowing you to focus on what truly matters: your employees and business growth. With us, you can streamline the process and thrive in Thailand's dynamic market.

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"Risks of misclassification" refers to the inaccurate classification of workers, where employers label them as independent contractors or exempt from certain laws when they should be employees with legal rights. In Thailand, partnering with a PEO/EOR addresses these risks. It ensures compliance with labor laws, accurate employee classification, payroll processing, and benefits access, allowing employers to concentrate on core operations. By entrusting these responsibilities to experienced professionals, you can navigate the Thai labor market with confidence and efficiency.

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Thailand's employment laws prioritize fairness and employee protection. The rights and obligations of employers and employees are outlined in Thai labor laws, governing the employment landscape in the country.

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Employment contract

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Under Thailand's labor laws, employment contracts can be established in written or verbal forms as per the Industrial Safety and Health Act. These contracts, governed by Thailand's Civil Commercial Code and Labour Protection Act, are required to include specific statutory elements:

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1. Employee entitlements, such as rest days, sick leave, annual leave, and holidays.

2. Compensation details, covering wages, overtime pay, vacation allowances, and severance payments.

3. Provisions regarding notice periods and salary criteria upon employment termination.

4. Guidelines regarding suspension from employment, ensuring a clear understanding of the circumstances.

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Employers should take note of these key contract components to ensure compliance with Thai labor regulations.

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Working time

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According to Thai labor laws, the legal limit for daily working hours is eight hours, and the maximum for a week is 48 hours. Additionally, on regular workdays, employers are required to provide their employees with a break of at least one hour after five consecutive hours of work.

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Overtime

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In a given week, employees can work up to 36 hours of overtime, which is compensated at 150% of their regular salary on standard workdays and at varying rates ranging from 200% to 300% of their regular salary on holidays. Overtime rules typically do not apply to individuals in managerial positions.

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Public Holidays

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The country observes 18  public holidays employees can take as paid days off.

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Minimum Wage

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The national minimum daily wage in Thailand differs depending on the region within the country. It ranges from 328 THB in areas like Narathiwat, Pattani, and Yala to 354 THB in regions like Phuket and Chonburi.

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Annual Leave

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In Thailand, paid leave is stipulated in the employment agreement, entitling employees to a minimum of six days of paid annual leave each year after they've completed a full year of employment. For employees who haven't yet completed a full year, employers have the option to offer leave on a pro-rata basis. An arrangement for carrying over unused leave can be prearranged through mutual agreement between the employer and employee.

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Paid Sick Leaves

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In Thailand, all employees have the right to take unlimited sick leave, but the employer is responsible for covering up to 30 days of paid sick leave per year. However, if an employee takes sick leave for three days or more, the employer may request a medical certificate from a qualified healthcare provider.

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Maternity leaves

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Workers are eligible for 98 days of maternity leave. During the first 45 days, they receive full pay, while for the remaining days, social security covers 50% of their regular salary rate.

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Paternity leaves

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The availability of paternity leave for employees depends on the sector they are employed in. In the private sector, there is no legally mandated paternity leave. In contrast, employees working in the public sector are entitled to 15 days of paternity leave.

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Tax and Social Security contribution:

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Employee Income tax

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In Thailand, employment can be ended with "just cause," which includes:

• Criminal offenses
• Willful damage of property by the employee
• Negligence leading to serious harm to the employer or others
• Violation of work rules despite prior warnings
• Unexplained absence for three consecutive days
• Employee's sentencing to imprisonment

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If termination occurs without "just cause," the terminated employee can file an unfair dismissal claim in the labor court, as Thai labor law tends to favor the worker in such cases.

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Termination payments, which comprises of the current month's salary, unused annual leave, and severance pay, must be disbursed to the employee within three days of termination.

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Once employment is terminated, the employer must notify the Social Security Office. In the case of foreign workers, the employer also needs to inform the Immigration Bureau and the Department of Employment.

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Severance Pay

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In Thailand, severance pay is obligatory based on an employee's tenure with the employer. Employees who have worked for the same employer for less than 120 days are not eligible for severance pay.

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Severance pay is not required in cases of termination for just cause.

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Notice Period

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Typically, the notice period is around 30 days, but employers can define longer notice periods in the employment contract. This notice should be given before the next salary payment is due, to take effect for the subsequent salary payment date. 

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Additionally, employers can provide equivalent payment in lieu of notice is available.

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In Thailand, notice periods must be communicated in advance in written form. 

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Probation period

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While there is no obligatory demand to incorporate a probationary period, it is a common practice to include a probation period of up to, but not exceeding, four months.

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