Global PEO Services (GPS) helps companies hire employees in Thailand without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by our Thailand PEO, while the new hires and headquarter teams focus on your business goals. Using a Thailand PEO is the fastest and most efficient way to develop a workforce in Thailand.
When hiring employees in Thailand, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Thailand labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Thailand. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Thailand - Country Overview
Thailand is a country in Southeast Asia, with Bangkok as its capital. The country is a popular tourist destination and Thai cuisine is well-known around the world. Its beaches and resorts are popular amongst both foreigners and locals.
Thai Baht (฿)
Employment Contracts in Thailand
In Thailand, an employment contract can be either in writing or verbal.
However, Thailand’s labor law does not require that all employment contracts be in writing.
Some of the details typically mentioned in the written employment contract in Thailand include:
- Employment or working conditions
- Employee welfare benefits
- Termination condition
- Petition procedure
- and more
The different types of employment relationships are:
- Permanent Employment: Unless specified in the employment contract, employment in Thailand is deemed indefinite.
- Fixed-Term Contracts: Per Thailand’s law, fixed-term contracts should not exceed 2 years.
- Temporary Employment: Thailand’s labor law does not specifically address the issue of temporary work agency employment. Per the Labour Protection Act, a user company is responsible as an employer for the workers of a temporary agency when they are employed in an essential part of the user company’s business.
In Thailand, a probationary period lasts up to 119 days.
Working Hours in Thailand
Thailand’s labor law states that a usual working day lasts 8 hours and cannot exceed 9 hours. The total standard working hours per week cannot exceed 42 hours.
Employee Leave in Thailand
Employees in Thailand are entitled to the following leaves:
- Annual leave in Thailand: Per Thai labor law, an employee is entitled to at least 6 days of annual leave after working for the same employer for an uninterrupted period of 1 year. The employer must either fix the employee’s leave days in advance or reach an agreement with the employee regarding the leave days.
- Maternity leave in Thailand: Female employees are entitled to no more than 90 days of maternity leave for each pregnancy.
- Sick leave in Thailand: Per the labor law of Thailand, employees are entitled to up to 3 days of sick leave without the need for a certificate from a physician or medical establishment. If an employee wishes to take more than 3 days of paid sick leave, they must provide their employer with a certificate detailing the illness or injury.
- Paternity leave in Thailand: In the private sector, Thailand’s labor law makes no provision for paternity leave. Employees in the government sector are entitled to paid paternity leave for up to 15 consecutive working days, which must be taken within 90 days of the birth.
The following are the statutory national holidays in Thailand:
- January 1 – New Year’s Day
- February 12 – Chinese Lunar New Year’s Day
- February 26 – Makha Bucha
- April 6 – Chakri Day
- April 12 – Songkran Holiday
- April 13 – Songkran
- April 14 – Songkran
- April 15 – Songkran
- May 1 – Labor Day
- May 3 – Labor Day observed
- May 4 – Coronation Day
- May 10 – Royal Ploughing Ceremony Day
- May 26 – Visakha Bucha
- June 3 – Queen Suthida’s Birthday
- July 24 – Asalha Bucha
- July 25 – Buddhist Lent Day
- July 26 – Asalha Bucha observed
- July 28 – King Vajiralongkorn’s Birthday
- August 12 – The Queen’s Birthday
- September 24 – Mahidol Day
- October 13 – Anniversary of the Death of King Bhumibol
- October 23 – Chulalongkorn Day
- October 25 – Chulalongkorn Day observed
- December 5 – King Bhumibol’s Birthday/Father’s Day
- December 6 – King Bhumibol’s Birthday/Father’s Day observed
- December 10 – Constitution Day
- December 31 – New Year’s Eve
Employee Termination in Thailand
According to Thai labor law, if a termination date is specified in the employment contract, the employer is not required to provide advance notice of dismissal. Where no period is specified in the employment contract, either the employer or the employee may terminate the employment contract. The advance notice period in Thailand need not be longer than three months.
Global Mobility in Thailand
There are typically the following categories of visas in Thailand:
- Non-quota immigrant visas
- Transit visas
- Non-immigrant visas
- Tourist visas
- Courtesy visas
- Official visas
- Diplomatic visas
To work in Thailand, foreigners must obtain a work permit from the Director-General of Labor. An employer who wishes to hire a foreigner as an employee must apply for the permit and pay the applicable fees. To apply for a work permit in Thailand, foreigners must first obtain a non-immigrant visa.
Employee Benefits in Thailand
Thailand has a mandatory social security scheme known as the Social Security Fund, which is overseen by the Ministry of Labor and Social Welfare. The Social Security Fund provides insured employees with retirement benefits in the form of a monthly superannuation pension or a lump-sum allowance (superannuation gratuity).
Some examples of social insurance programs in Thailand are:
- Dependents’/Survivors Benefit: The Social Security Fund of Thailand pays benefits to survivors in the event of an insured person’s death that is not the result of a work-related accident or disease, provided that the deceased paid contributions for at least one month in the 6 months preceding their death. Surviving employees may include their parents, spouses, or children.
- Life and Disability Insurance/Benefit: The Social Security Fund in Thailand provides life and disability benefits to insured persons who have paid contributions for at least 3 months in the 15 months preceding the onset of disability, provided that the reasons for disability are not work-related.