Employment Termination in Thailand

• Legal Grounds for Termination

Under the Labour Protection Act B.E. 2541 (1998), employers can terminate employees on the following grounds:

• • Termination with Cause (Section 119):
    • Dishonesty or intentional criminal offenses against the employer.
    • Intentional damage to the employer.
    • Gross negligence causing serious harm to the employer.
    • Violation of work regulations or orders.
    • Absence from duty without justifiable reason for three consecutive working days.
    • Being sentenced to imprisonment by a final court judgment.

In such cases, employers are not obligated to provide severance pay.

• • Termination without Cause:
    • Occurs when an employee is dismissed for reasons not specified in Section 119, such as business restructuring or redundancy.
    • Employers must provide advance notice and severance pay as stipulated by law.

• Notice Period Requirements

  • Standard Notice:
    • Employers must provide written notice of termination at least one pay period in advance (typically 30 days) but not more than 3 months prior the cycle payment.
    • If the employer fails to provide advance notice, they must pay wages in lieu of notice equivalent to the employee’s regular wages for the notice period.

• • Immediate Termination:
    • In cases of termination with cause (as per Section 119), employers may terminate employment without advance notice or payment in lieu of notice.

• Severance Pay

Employees terminated without cause are entitled to severance pay based on their length of continuous service:

• • 120 days to less than 1 year: 30 days’ wages.
  • 1 year to less than 3 years: 90 days’ wages.
  • 3 years to less than 6 years: 180 days’ wages.
  • 6 years to less than 10 years: 240 days’ wages.
  • 10 years to less than 20 years: 300 days’ wages.
  • 20 years or more: 400 days’ wages.

• • Employees terminated with cause (Section 119) are not entitled to severance pay.
  • Employees under fixed-term contracts that conclude as scheduled are generally not entitled to severance pay unless the contract does not meet legal criteria for fixed-term employment such as Nature of Work: The work performed is part of the employer’s regular business activities, Duration Exceeds Two Years: The employment period exceeds two years and Renewals or Extensions: The contract is renewed or extended, indicating an ongoing employment relationship.

• Termination Payments:

Upon termination, employers are obligated to settle the following payments:

• • Unpaid Wages: All outstanding wages up to the termination date.
  • Unused Annual Leave: Compensation for any unused annual leave.
  • Severance Pay: As outlined above.
  • Payment in Lieu of Notice: If applicable.
  • Other Benefits: Any other contractual benefits, such as bonuses or allowances.

These payments must be made:

• Severance & Notice in-lieu: within the termination date
• Deposit fund, Overtime, Unuse Leave, Wages: within 3 days

• Special Severance Pay

In certain situations, employees may be entitled to additional compensation:

• • Relocation of Workplace:
    • If an employer relocates the workplace and the relocation significantly affects the employee’s normal living conditions, the employee may choose to terminate the contract and is entitled to special severance pay equal to the standard severance pay section 118. When an employer plans to relocate the place of business, a public notice must be posted to inform employees at least 30 days in advance. The notice must clearly state the new location and the date of relocation. Simply informing employees during a meeting does not qualify as a public notice.
  • These payments must be made within seven days from the termination date.
  • Temporary closed business: Severance equal to 75% of wages per Labour Protection Act B.E. 2551 (2008).

• Technological Changes: If termination is due to improvements in production, distribution, or service processes resulting from the adoption of machinery or technology, and the employee has worked for more than six years, they are entitled to additional special severance pay of 15 days’ wages for each year of service beyond six years, not exceeding 360 days’ wages in total and employee must notify employees in advance for 60 days.

Unfair Dismissal and Legal Remedies:

Employees who believe they have been unfairly dismissed can file a complaint with the Labour Court. If the court finds the dismissal unjustified, it may order:

• • Reinstatement of the employee.
  • Payment of additional compensation beyond statutory severance pay.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Thailand employment laws and regulations, please visit the official governmental websites.

Updated on: June 2025