泰互帮Thai Labor Law for Employers: Wages, Working Hours and Severance Pay
Why Employers Must Know Thai Labor Law
Thailand's Labour Protection Act protects employees more strongly than many foreign employers expect: severance scales up with tenure, the Labour Court is employee-friendly, and procedural missteps can turn a lawful dismissal into a compensation award. In Thailand, labor compliance failures tend to bite faster and harder than tax issues.
Wage and Working-Hour Red Lines
- Minimum daily wage is set per province, mostly in the 330-400 THB range in recent years — check the Ministry of Labour's latest announcement
- Standard hours: max 8 per day and 48 per week (42 for hazardous work)
- Overtime: 1.5x on workdays, 2x for working on a holiday, 3x for overtime on a holiday
- At least 1 rest day per week and no fewer than 13 public holidays per year
- Wages must be paid on time; arrears accrue 15% annual interest
Leave Obligations
| Leave type | Statutory standard |
|---|---|
| Annual leave | At least 6 working days/year after 1 year of service |
| Sick leave | Up to 30 paid days/year (doctor's note can be required beyond 3 days) |
| Maternity leave | 98 days; employer pays 45 days' wages, social security covers part |
| Personal leave | At least 3 paid working days/year |
| Military service, sterilization leave, etc. | As separately provided by law |
The Truth About Probation
Thai labor law has no probation concept. The customary 119-day probation is reverse-engineered from the severance rule: an employee who completes 120 consecutive days qualifies for severance on dismissal. So a probation dismissal must be completed by day 119 — and it still requires notice one pay cycle in advance (or payment in lieu). Many employers miss that second part.
Dismissal and Severance: Count the Cost First
Statutory severance for no-fault dismissal (redundancy, role elimination, restructuring):
| Continuous service | Severance |
|---|---|
| 120 days to under 1 year | 30 days' wages |
| 1-3 years | 90 days' wages |
| 3-6 years | 180 days' wages |
| 6-10 years | 240 days' wages |
| 10-20 years | 300 days' wages |
| 20+ years | 400 days' wages |
On top of severance, add payment in lieu of notice (where notice wasn't given a full pay cycle ahead) and payout of unused annual leave. Serious misconduct (fraud, intentional damage, 3 consecutive days' unjustified absence, etc.) allows dismissal without severance — but the specific grounds must be stated in the dismissal notice. Reasons added later are disregarded by the Labour Court.
What Happens at the Labour Court
The Thai Labour Court is free for employees and moves quickly. In unfair dismissal claims, it can order reinstatement or damages beyond statutory severance. Employers usually lose because: the dismissal reason differs from the written notice, disciplinary action was never documented, or work rules were never lawfully published. Written warnings and appraisal records kept in the ordinary course are your best defense.
Other Compliance Points
- 10+ employees: written Work Rules must be prepared, displayed and filed
- Social security: register employees within 30 days of hire; 5% employer + 5% employee (base capped at 15,000 THB)
- Employee welfare fund and workmen's compensation fund contributions as prescribed
- Dismissing a pregnant employee because of pregnancy is illegal
- Verify work permits when hiring foreigners — illegal employment exposes the employer too
FAQ
Does an employee who resigns get severance?
No severance on voluntary resignation, but unused annual leave and worked days are still payable. Keep the signed resignation letter — disputes where a verbal resigner later claims dismissal are not rare.
Is a contract clause waiving severance enforceable?
No. The Labour Protection Act is mandatory law; any term below the statutory floor gets no support in court. Note that non-renewal of a fixed-term contract also triggers severance in most situations.
Can I fire an underperforming employee on the spot?
No. Issue written warnings with signed acknowledgment, accumulate the record, then dismiss per your work rules with the grounds stated in the notice. Skip the procedure and you're most likely writing a Labour Court check.
Need Help?
TaiHuBang works with licensed Thai lawyers and HR consultants on employment contracts and work rules drafting, dismissal compliance review, and labor dispute defense referral. See our legal consulting service, or submit an inquiry — a consultant will reply within 24 hours.
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