Employing staff in Thailand is straightforward, but not without rules. The Labour Protection Act B.E. 2541 (1998) is the core law governing employees’ rights and employers’ obligations. It applies to all companies operating in Thailand, including those owned by foreigners, regardless of the nationality of the employer or the law chosen in the employment contract. Thai labour courts are known to favour employees. For a foreign employer, understanding these obligations before hiring is essential to avoid costly disputes and criminal penalties.
Last updated: October 2026
For the specific rules on hiring foreign staff in a BOI-promoted company, see our article on hiring foreigners in a BOI company.
The basics: who is covered and which law applies?
The Labour Protection Act applies to employment relationships in Thailand. A foreign-owned company that employs Thai staff, or foreigners working in Thailand, is subject to all the obligations of Thai labour law, whatever law the employment contract chooses.
There are two main types of employment contract:
- Open-ended contract: the standard form, with no end date. It can be terminated by either party with notice and, where applicable, severance pay.
- Fixed-term contract: allowed, but it does not in itself avoid severance pay. The exemption from severance only applies to specific, non-recurring projects, seasonal work or work outside the employer’s normal business, completed within two years and agreed in writing at the start. Labour courts readily treat other fixed-term contracts like open-ended ones.
Working hours, rest and overtime
Normal working hours
- 8 hours a day and 48 hours a week for standard work
- 7 hours a day and 42 hours a week for work that is hazardous to health or safety
- at least one weekly rest day
- overtime and holiday work limited to 36 hours a week in total
Overtime and holiday pay
- Overtime on a working day: at least 1.5 times the normal hourly rate
- Work on a rest day or public holiday: at least 1 extra time the normal rate for employees entitled to pay on those days (usually monthly-paid staff), or 2 times for those who are not (usually daily-paid staff)
- Overtime on a rest day or public holiday: at least 3 times the normal hourly rate
Minimum wage
Thailand’s minimum wage is set per day and varies by province. It is reviewed by the tripartite Wage Committee. The current rates range from 337 to 400 baht a day:
- 400 baht a day in Bangkok (since 1 July 2025), Chachoengsao, Chonburi, Phuket, Rayong and Koh Samui
- 400 baht a day nationwide in certain hotels and entertainment businesses
- between 337 and 400 baht a day in the other provinces
For foreign employees, the authorities apply minimum salary levels when issuing visas and work permits, which depend on nationality and on whether the company is BOI-promoted. For example, a monthly salary of around 50,000 baht is commonly expected for many European nationals in a standard company. BOI-promoted companies follow their own thresholds, set by BOI Announcement Por. 8/2568.
Leave
Annual leave
After one year of continuous service, every employee is entitled to at least 6 working days of paid annual leave a year. Employers can grant more by contract or in their work rules. Unused leave must be paid out when employment ends, unless the employee is dismissed for one of the causes in Section 119.
Public holidays
Employers must give at least 13 public holidays a year, including National Labour Day on 1 May. When a public holiday falls on a weekly rest day, employees get the next working day off. Employees are paid for public holidays.
Sick leave
Employees can take sick leave as needed, with pay for up to 30 working days a year. For sick leave of three working days or more, the employer can ask for a medical certificate.
Maternity leave
Since the Labour Protection Act (No. 9) B.E. 2568 came into force in December 2025, maternity leave is 120 days per pregnancy, up from 98 days. The employer pays full wages for up to 60 days, up from 45. The Social Security Fund pays a maternity benefit under its own rules, subject to contribution conditions. A mother can also take up to 15 more days if her newborn has a medical condition, paid at 50% of her wage, with a medical certificate.
Paternity leave
The same amendment created, for the first time, paid parental leave of up to 15 days for an employee whose legally married spouse has given birth. It must be taken within 90 days of the birth, and the employer pays full wages.
Personal leave
Since the 2019 amendments, employers must grant at least 3 working days of personal business leave a year, paid at the normal rate.
Probation: the 120-day threshold
Thai law does not formally regulate probation periods. In practice, employers usually set probation at 119 days. The reason is simple: from 120 days of continuous service, an employee who is dismissed without one of the causes in Section 119 is entitled to statutory severance pay.
An employee dismissed before 120 days of service is not entitled to statutory severance pay, but must still receive notice or pay in lieu of notice. After 120 days, severance pay is due according to the statutory scale, unless the dismissal falls under Section 119.
Termination: a strict procedure
“At-will” termination does not exist in Thai law. Every dismissal must follow the rules of the Act.
Notice
For open-ended contracts, the employer must give written notice of at least one pay period, given on or before a payday to take effect on the next payday. Employers can pay wages in lieu of notice. A longer notice period in the contract or the work rules must be respected.
Dismissal for cause (without severance pay)
Section 119 of the Act sets out the cases in which an employer can dismiss without notice or severance pay:
- dishonesty in performing duties or an intentional criminal offence against the employer
- intentionally causing damage to the employer
- negligence causing serious damage to the employer
- breach of the work rules or a lawful order after a written warning, valid for one year (no warning is needed for serious cases)
- unjustified absence for three consecutive working days
- a final prison sentence (except for offences of negligence or petty offences)
Key point: if the employer does not state the reason for dismissal in the termination letter at the time of dismissal, it cannot rely on that reason later before the labour court.
Dismissal without cause: statutory severance pay
Any dismissal without one of the causes in Section 119 triggers severance pay according to the following scale (Section 118):
| Length of service | Severance pay |
|---|---|
| 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 |
Severance pay is calculated on the employee’s last wage rate. It is paid in addition to notice (or pay in lieu of notice), unused annual leave and any other contractual benefit.
Restructuring and new technology
When jobs are cut because of a reorganisation linked to new machinery or technology (Section 121), the employer must notify the labour inspector and the employees concerned at least 60 days before the termination date. If it does not, it must pay special severance equal to 60 days’ wages, on top of the statutory severance. Employees with more than six years of service also receive additional special severance of at least 15 days’ wages per full year of service beyond six years, capped at 360 days’ wages.
Unfair dismissal
In addition to statutory severance pay, if the labour court finds a dismissal unfair, it can order:
- the reinstatement of the employee in their previous position and salary
- additional compensation for unfair dismissal, set at the court’s discretion
Thai labour courts are known to favour employees: employees do not pay court fees and can bring a claim without a lawyer. The risk of a dispute is real, even for dismissals that seem justified.
Social security: contributions in 2026
Every employer in Thailand must register its employees with the Social Security Fund under Section 33 of the Social Security Act. Contributions are shared between the employer, the employee and the State.
Rates and ceilings
Under a ministerial regulation issued at the end of 2025, the wage ceiling for contributions is rising in three steps:
| Period | Monthly wage ceiling | Maximum monthly contribution (each party) |
|---|---|---|
| Until 31 December 2025 | 15,000 baht | 750 baht |
| 1 January 2026 to 31 December 2028 | 17,500 baht | 875 baht |
| 1 January 2029 to 31 December 2031 | 20,000 baht | 1,000 baht |
| From 1 January 2032 | 23,000 baht | 1,150 baht |
The contribution rate remains 5% of wages for the employer and 5% for the employee.
What social security covers
Thai social security covers sickness, disability, maternity, child allowance, old age, unemployment and death. For BOI-promoted companies, proof of social security contributions must now also be provided to the BOI.
The Employee Welfare Fund
Since 1 October 2026, employers with 10 or more employees must contribute to the Employee Welfare Fund, created under the Labour Protection Act to provide financial support to employees when their employment ends or in the event of death. Contributions are made by both the employer and the employee:
- 0.25% of wages each from 1 October 2026 to 30 September 2031
- 0.5% of wages each from 1 October 2031
Employers that already have a provident fund for their employees, or a separate support scheme for termination or death, are generally exempt. Check that all employees are covered by the provident fund; those who are not may need to be registered with the Fund.
Work rules
Every business with 10 or more employees must have written work rules in Thai and make them available at the workplace. They must cover:
- working days, normal working hours and breaks
- holidays and rules on taking them
- overtime and holiday work rules
- pay dates and places of payment
- leave and the rules on taking it
- discipline and disciplinary measures
- complaint procedures
- termination of employment, severance pay and special severance pay
Failing to have compliant work rules can lead to a fine of up to 20,000 baht. Work rules must be updated to reflect the new maternity and parental leave introduced in December 2025. They are also the reference document in a dispute: a dismissal for a breach of the rules without a prior written warning can be found unfair.
Prohibited practices
Some dismissals and practices are strictly prohibited:
- dismissing a female employee because she is pregnant
- dismissing an employee because of trade union activities or because they filed a complaint
- treating men and women differently in employment, unless the nature of the work makes it impossible
Penalties
Employers that do not comply with the Labour Protection Act face fines and, for some breaches, imprisonment, depending on the provision breached. Directors and managers can be held personally liable. In a dispute, the labour court can also order reinstatement, payment of unpaid wages and benefits, and additional compensation for unfair dismissal.
Tax exemption on severance pay
A ministerial regulation of 17 July 2024 increased the personal income tax exemption on statutory severance pay. The exemption now covers severance pay of up to the last 400 days’ wages, capped at 600,000 baht, up from 300 days and 300,000 baht. It applies to income received from 1 January 2023.
Key points
- “At-will” termination does not exist in Thailand: every dismissal must follow the Labour Protection Act, or the employer risks penalties and court-ordered reinstatement.
- Severance pay ranges from 30 to 400 days’ wages depending on length of service, from 120 days of continuous service.
- The reason for dismissal must be stated in the termination letter, or the employer cannot rely on it in court.
- Since December 2025, maternity leave is 120 days (60 paid by the employer) and spouses get 15 days of paid parental leave.
- Since January 2026, the maximum social security contribution is 875 baht a month for each party, on a wage ceiling of 17,500 baht.
- Since 1 October 2026, employers with 10 or more employees contribute to the Employee Welfare Fund, unless they have a provident fund.
- Thai labour courts favour employees: careful documentation of every disciplinary decision is essential.
Frequently asked questions about Thai labour law for employers
Can you dismiss a Thai employee without severance pay?
Yes, but only in the cases set out in Section 119 of the Labour Protection Act, such as dishonesty, intentional damage, serious negligence, unjustified absence for three consecutive working days, or a repeated breach of the work rules after a written warning. The reason must be documented and stated in the termination letter at the time of dismissal.
What is the maximum probation period in Thailand?
The law does not set one, but in practice probation is usually 119 days, because employees become entitled to severance pay from 120 days of continuous service.
Does Thai labour law apply to foreign employees working in Thailand?
Yes. Employees working in Thailand are protected by the Labour Protection Act, whatever their nationality. An employment contract governed by a foreign law cannot take away their minimum rights under Thai law.
Does the employment contract have to be in Thai?
The law does not require employment contracts to be in Thai, and a contract in English is valid. However, work rules must be in Thai for businesses with 10 or more employees.
What are the minimum leave entitlements?
At least 6 days of paid annual leave after one year of service, 13 public holidays, sick leave with pay for up to 30 working days a year, 120 days of maternity leave (60 paid by the employer), 15 days of paid parental leave for a spouse, and 3 days of paid personal leave a year.
How should a restructuring with job cuts be handled?
Statutory severance pay applies to each employee according to their length of service. When job cuts result from new machinery or technology, the employer must also give 60 days’ notice to the labour inspector and the employees, or pay special severance, and pay additional special severance to employees with more than six years of service. Get legal advice before any restructuring.
Conclusion
Thai labour law protects employees, more than many foreign employers expect at first. The obligations are precise, the courts are accessible to employees, and the penalties are real. Good HR management in Thailand relies on well-drafted contracts, compliant work rules in Thai, documented handling of disciplinary matters, up-to-date payroll and social security, and a clear understanding of the severance scale.
If you want to bring your HR practices into compliance, or need support with recruitment, payroll, social security or a termination in Thailand, contact our team at our offices in Thailand.
