Under the Thailand Labour Law, employers and employees have fair and safe rights and are aware of their roles and duties at work. Detailed information on key Thailand Labour Law topics is included in this guide to help both workers and companies comply with the rules.
Overview of Thailand Labour Law
Most parts of the Thailand Labour Law come from the Labour Protection Act B.E. 2541 (1998) which covers employment contracts, wages, hours, leave schedules, ending employment and safety while working.
Important recent updates to the Thailand Labour Law include:
- Digital Contracts Thailand: Employment contracts are now considered legal in Thailand if employers and employees sign them electronically.
- Regulations for Remote Work Thailand: Thai companies must clearly write down policies for remote work such as hours, data security and communication.
- Employee Welfare Fund Thailand: It was established to offer financial assistance to employees who need it and funds this assistance through employer payments.
Stricter rules are implemented for employers who delay paying their workers or don’t send their social security payments on time.
Ensured protection from unfair treatment at work for employees because of their gender, being pregnant, their sexual orientation or union activity.
Employment Contracts Under Thailand Labour Law
Thailand Labour Law states that contracts for employment can either be spoken or written, but having a written contract is recommended to prevent disputes.
Key contract components include:
- Job position and responsibilities
- Monthly salary or daily wage
- Standard working hours (not exceeding 8 hours/day and 48 hours/week)
- Probation period up to 119 days (typically 90 days)
- Details of leave entitlements (annual, sick, maternity, personal)
- Conditions for termination and severance pay
According to the Thailand Labour Law, contracts entered electronically on supported digital platforms are valid for recruiting and keeping records.
A company may use fixed-term contracts, but they should not extend them constantly to avoid permanent employment laws. When a fixed-term contract legally meets the minimum length, workers have the same protections as permanent staff.
Leave Entitlements
The Thailand Labour Law requires employers to provide at least these minimum leave benefits:
- Annual Leave: After working continuously for one year or more, employees can use six paid working days as annual leave each year. Several companies go beyond offering benefits.
- Sick Leave: Employees are allowed unlimited time off sick, but you’ll only get paid for a maximum of 30 days per year and for any absence beyond three days, a medical certificate is required.
- Maternity Leave : All female employees can get 45 days of leave before the birth of their child and 53 days after. Often, the Social Security Fund awards maternity benefits which replace half of the employee’s regular income.
- Paternity Leave: Male employees an get 3 days of paid leave after birth of their child.
- Personal Business Leave: Employees have the right to personal business leave for urgent personal reasons at least 3 times per year.
Also, under Thailand Labour Law, when an employee leaves the company, employers may either credit their unused leave in a following year or receive pay for the vacation time not taken.
Wages and Payment Regulations
The Thailand Labour Law mandates strict compliance regarding wages:
- Employers are required by the Thailand Labour Law to pay salaries precisely as set by law.
- Minimum wage rates in Thailand are set by province and now range from 337 to 400 Baht each day.
- Staff should get their wages on a monthly basis or earlier without being denied or having them delayed.
- An employer can only deduct wages from an employee’s pay if the employee agrees or if the law requires it, for taxes or social security, for example.
- Wage calculations must be shown on the pay slip given by employers.
- Employers may use bonus payments and incentives, but these must be required only if mentioned in either contracts or collective agreements.
Breaking wage laws may lead to lawsuits, fines and records at the Labour Protection Office.
Working Hours and Overtime Pay
Under Thailand Labour Law, people may only work for a certain number of hours per day:
- Most employees work 8 hours a day and 48 hours a week as standard.
- Those working hazardous shifts or at night usually work for 7 hours.
Rules for extra/overtime working hours include premium wages:
- Employees doing overtime should be paid extra for their hours.
- Overtime work on regular workdays is paid at a rate 1.5 times the usual wage.
- For work on holidays, employees get paid twice their regular hourly wage.
- An extra 200 percent is paid for work performed on the following special holidays set by the government.
Employers should note working time properly and pay their staff their rightful percentage for overtime as required by the Thailand Labour law.
Termination and Severance Pays
Termination under the Thailand Labour Law requires:
- The minimum notice period that is the same length as the employee’s pay period (often 30 days) or the employer can pay the worker instead of having them work the notice period.
- If an employee acts with serious misconduct, immediate termination without notice is permitted (e.g., theft, violence, gross negligence.).
- Those leaving the company must follow their agreements regarding giving notice.
Severance pays depends on tenure:
Length of Service | Severance Pay |
120 days – 1 year | 30 days’ ages |
>1 year – 3 years | 90 days wages |
>3 years – 6 years | 180 days wages |
>6 years – 10 years | 240 days wages |
>10 years | 300 days wages |
Workplace Safety and Health Regulations
The Thailand Labour Law requires employers to:
- Ensure sure the workplace is free of dangers.
- Give staff the right safety gear for the job they are completing.
- Places of work with over 50 employees should set up safety committees.
- Set up first aid kits and train the workforce in their use.
- Inform the Labour Inspectorate the moment any accident takes place at the workplace.
Failure to follow the rules can result in penalties, shutdown of a business or legal action.
Social Security and Insurance Benefits
The Thailand Labour Law requires employers and employees to contribute to the Social Security Fund (SSF):
- Under the Thailand Labour Law, both employers and employees must add funds to the Social Security Fund (SSF).
- Each party pays 250 Baht a month for every employee earning less than 15,000 Baht.
- Among its benefits, the SSF gives access to medical care, maternity pay, disability help, unemployment coverage and a retirement pension.
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If a company has ten or more staff members, it must pay into the Employee Welfare Fund Thailand which helps people in financial difficulty.
Besides SSF, many companies provide supplementary insurance:
- Group health insurance plans covering treatments not fully paid by SSF.
- Life insurance
- Work-related accident insurance
These additional benefits are encouraged to promote employee welfare beyond the minimum legal requirements of the Thailand Labour Law.
Labour Dispute Resolution
Workers and employers can resolve disputes through:
- If violations are suspected, a case can be filed with the Labour Protection and Welfare Office which will investigate the situation.
- Mediation or arbitration procedures organized by the Ministry of Labour are available.
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Workers can turn to the Thai labour court to deal with situations of unfair dismissal, discrimination or very serious violations by their employers.
Raising complaints cannot lead to retaliation for workers protected by law.
Work Permits for Foreign Employees
Under the Thailand Labour Law, foreign nationals must have:
- A correct Non-Immigrant B visa
- A ministry permit issued by the Ministry of Labour
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Only specific jobs are available to them other than jobs reserved only for Thai people
It is the employer’s job to get the proper visa for each employee and keep everything legal.
Trade Union Rights and Collective Bargaining
The Thailand Labour Law guarantees worker’s rights to:
- Form and join trade unions without employer interference.
- Engage in collective bargaining over wages and working conditions.
- Strike within legal frameworks after fulfilling procedural requirements.
Trade unions must register with the Department of Labour Protection, and employers are legally prohibited from discriminating against union members.
Conclusion
Making sure you understand and obey the Thailand Labour Law is very important for fairness and lawfulness at work. Those who employ people in Thailand need to prepare clear contracts, keep to minimum wage regulations, manage employee schedules and overtime, honor leave time and offer safe working areas.
If employees feel that their rights have been violated, they can use formal methods to resolve the problem. To include both remote work and digital jobs, the Thailand Labour Law keeps evolving, reflecting the country’s wish for fair workplaces and to support workers.
FAQ's (Frequently Asked Questions)
What is the standard workweek in Thailand?
The standard workweek is 48 hours, with a maximum of 8 hours per day. Certain jobs allow only 7 hours per day.
Are employees entitled to paid leave in Thailand?
Yes, employees are entitled to at least 6 days of paid annual leave after one year of service, plus public holidays.
What is the minimum wage in Thailand?
Thailand’s minimum wage varies by province, ranging from approximately THB 337 to THB 400 per day
How can Zimyo help businesses comply with Thailand’s labour laws?
Zimyo offers HR and payroll software that automates compliance with Thai labour laws, including leave management, wage calculations, and statutory reporting.
