Are You Ready to Step Foot into Thailand?
World economic growth has been largely driven by the developing economies of Asia. With the region growing in significance, now is the perfect time for businesses to expand their presence. Thailand is an excellent place for business due to the country’s stable economy, strategic location, and increasing ease of doing business. Before setting up in Thailand you should know more about the country’s culture and labour law.
Key Things You Should Know About Thailand’s Labour Law
Thailand’s labour law is mainly comprised of the following Acts and regulations:
- Thai Civil and Commercial Code
- Labour Relations Act 1975
- Act on Establishment of the Labour Court and Labour Dispute Procedure 1979
- Provident Fund Act 1987
- Social Security Act 1990
- Workmen Compensation Act 1994
- Labour Protection Act 1998 (LPA)
- State Enterprise Labour Relations Act 2000
- Skill Development Promotion Act 2002
- Occupational Safety, Health and Environment Act 2011
- Emergency Decree on Managing the Work of Aliens 2017
Who is Protected?
Under Thailand’s labour law all types of employees are protected whether they be permanent, part-time, or under a special employment contract.
Does an Employment Contract Need to be in Writing?
An employment contract does not need to be in writing, with a verbal agreement being sufficient to form a legally binding contract. However, a clearly written contract is recommended to avoid misunderstandings and disputes in the future.
Discrimination and Harassment
Thailand’s constitution prohibits discrimination based on the grounds of:
- Political Affiliation
- Physical or Health Condition
- Social or Economic Status
Employers are restricted from asking female or child employees to carry out certain dangerous jobs, which includes:
- Employ female workers to work on scaffolding over a certain height
- Employ female workers to work in unsafe underground construction
- Employ pregnant women to:
- work between 10 pm and 6 am;
- carry objects weighing over 15kg
- drive vehicles
Sexual harassment against any employee is strictly prohibited with violators facing possible criminal penalties under Thai law and a fine not exceeding 20,000 baht.
Employers can terminate an employee with or without a cause but need to carry out different obligations accordingly. Advanced termination notice and severance pay is required if an employee is terminated without cause, however, a letter of notice is not required the following acts are committed:
- Gross negligence
- Serious violation of the company’s work rules
- Dishonest performance of professional duties
- Intentional acts against the employer
- Intentional damage to the employer
- Absence from work for three consecutive days without sufficient reason
- Imprisoned by a final judgment
Terminated employees without a cause are entitled to the following severance pay:
|Length of Service||Less than 120 days||120 days <1 year||1 year – <3 years||3 years – <6 years||6 years – <10 years||10 years – <20 years||≥ 20 years|
|Entitled Severance Pay||No Severance Pay||30 Days’ Salary||90 Days’ Salary||180 Days’ Salary||240 Days’ Salary||300 Days’ Salary||400 Days’ Salary|
Outsourced staff are granted protection under the LPA. Businesses using outsourced personnel are considered to be the employer of the outsourced worker. The business operator and outsourcing company may come to an agreement on which party is responsible for the benefits and welfare of the worker and to what extent, but this must be arranged by the business operator.
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Information for Foreign Workers
Employees must obtain a Non-Immigrant Visa-B to enter the country and then obtain a Work Permit. Both processes are done separately, with a work permit only obtainable when the foreign national has arrived in Thailand.
Visas for Spouse/Family
For foreign nationals entitled to work in Thailand, their spouse, parents, or children who are unmarried and under 20 years old can apply for single entry Non-Immigrant O-Visa. If they also wish to work in Thailand, they must obtain a Work Permit separately.
Do you want to compare the labour laws of countries in Asia-Pacific? Download our APAC legislation comparison chart to see how laws vary between the countries at a glance!
Want More Information on Doing Business in Thailand and Labour Laws?
The information above was intended to provide a general guide to labour laws in Thailand. To learn more about Thailand join our upcoming webinar. Links International is partnering with Cater Investment Group to hold the webinar “Accessing New Markets: What You Need to Know About Doing Business in Thailand” on the 10th of September 2020.
Links International’s Tu Nguyen & Phawina Abudoem extensive knowledge and experience will cover the latest labour law and compliance updates in Thailand. Cater investment Group’s Principal and Managing Director, Alex Cater, will talk about the things you need to know for setting up and doing business in the country. Don’t miss this amazing opportunity to hear from experts on Thailand, and take a step closer to expanding your business.
Business Development Manager at Links International
Payroll Manager at Links International
Principal and Managing Director at Cater Investment Group
|Host:||Tu Nguyen (Links International), Phawina Abudoem (Links International), Alex Cater (Cater Investment Group)|
|Date:||Thursday 10th September 2020|
|Time:||10:00AM – 11:00AM Hong Kong Time|
|Location:||Online Webinar (Zoom)|
|Sign Up Here|
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Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, PEO/EOR Secondment, outplacement, recruitment and more! Contact us for more information on how we can help leverage your HR function.