NEWS

FAQ and What You Need To Know about Thai Employment Law

FAQ and What You Need To Know about Thai Employment Law

FAQ and What You Need To Know about Thai Employment Law


Understanding Thai labour laws is essential for employers, as these rules help ensure fair, compliant, and well- governed workplaces. Employment-related issues arise regularly, making it important for organizations to stay informed and aligned with legal requirements.

This Q&A article brings together some of the most frequently asked questions by employers, providing practical explanations to help organizations navigate both current legal requirements and the upcoming legal changes that could significantly impact workplace policies.

 

Question 1. What should employers know before preparing an employment agreement in Thailand?

Thai law does not require an employment agreement to be in writing. An employment contract may be oral or written, and it will still be legally valid as long as there is a mutual agreement between employer and employee. However, having a written employment agreement is strongly recommended, as it clearly sets out the terms and conditions of employment (e.g., position, salary, benefits, termination clause) and serves as crucial evidence in case of a labour dispute before the Labour Court.

 

Question 2. What is the difference between probationary employees and full-time employees under Thai law, and does this apply to foreign employees?

Under Thai law, there is no legal distinction between “probationary” and “permanent” employees. Both are equally protected under the Labour Protection Act B.E. 2541 (1998) (“LPA”), meaning that probationary employees are entitled to the same statutory rights as permanent employees — such as minimum wage, working hours, overtime pay, and leave entitlements.

These protections apply equally to foreign employees legally working in Thailand, provided they hold the appropriate work permit and visa.

 

Question 3. How long is the probationary period under Thai law, and how can probationary employees be terminated?

  • Probation Period – Thai law does not prescribe or limit the length of the probation period. Employers and employees may agree on any reasonable length.
  • Termination of On-Probation-Employee – It is worth noting that termination during probation period is legally treated as a termination of an indefinite employment contract. Accordingly, the employer must give proper advance notice (one pay cycle) or payment in lieu of advance notice in accordance with the LPA.

 

Question 4. What are “Work Rules” under the Thai labor law?

Under Section 108 of the LPA, employers with 10 or more employees must establish written Work Rules in Thai within 15 days and make them accessible at the workplace. The Work Rules must cover:

  • Working days and hours;
  • Holidays and wage payment;
  • Overtime;
  • Leave;
  • Disciplinary measures and penalties;
  • Grievance procedures; and
  • Termination, including severance pay

Failure to implement Work Rules may result in a fine of up to THB 20,000.

 

Question 5. What are the minimum wage rates in Thailand for 2025, and how do they differ across regions and professions?

As of November 2025, Thailand’s minimum wage ranges from THB 337 to THB 400 per day, depending on the province, as prescribed under the Notification of the Wage Committee No. 14 B.E. 2568 (2025). Examples include:

  • Bangkok, Phuket, Chonburi: THB 400 per day
  • Chiang Mai, Samut Prakarn, Nakhon Pathom: approximately THB 357–380 per day
  • Lower-wage provinces such as Nan, Payao, Nakhon Sawan: THB 337–345 per day


In addition to these general provincial rates, Thailand also prescribes specific minimum wage rates for certain skilled occupations, based on certified skill standards announced by the Ministry of Labour. Examples include:

  • Industrial Robot Operator: THB 605 per day
  • Truck Driver: THB 485 per day
  • Electronics Technician: THB 500 per day

 

Question 6. How should employers handle wage deductions in cases where an employee causes damage?

Under Thai law, an employer cannot unilaterally deduct an employee’s salary even if the employee causes damage to company property. Salary deductions are strictly regulated under Section 76 of the LPA, which permits deductions only in limited circumstances such as income tax, social security, provident fund contributions, or contributions to employee welfare funds.

Where damages are caused by an employee, wage deduction is allowed only if the employee provides explicit written consent. Without such consent, the employer must not deduct wages, even if the damage appears clear, intentional, or negligent. In cases where consent is not obtained, the employer must seek compensation through appropriate legal processes rather than making unilateral deductions.

 

Question 7. What should employers know about retirement in Thailand?

Under Thai law, the retirement age is primarily determined by agreement between the employer and employee, as reflected in the company’s work rules, or employment agreement. If the employer specifies a retirement age below 60, that agreed age will apply.

Nevertheless, if the employer sets a retirement age above 60, or does not specify any retirement age, employees have the right to elect to retire at 60 years of age, and the employer must honour this request.

Retirement is legally treated as a form of termination initiated by the employer, meaning the employee is entitled to statutory severance pay based on their length of service pursuant to Section 118 of the LPA.

It is also important to note that if an employer rehires an individual who has already retired and received statutory severance pay, the new engagement is treated as a new employment relationship. The employee’s previous years of service are not carried over, and calculations for severance pay and other seniority-based entitlements must be based solely on the new period of employment.

 

Question 8. Looking ahead, what labour-law themes should employers in Thailand keep on their radar?

A key legislative development that employers should closely monitor is the new amendment to the LPA, which expands maternity and paternity leave entitlements. This amendment will come into force on 7th December 2025. The table below highlights the key differences between the current law and the new provisions.

In addition to the above amendments, employers should also be aware that another draft amendment to the LPA is currently open for public hearing. Key proposed changes include:

  • reducing the maximum working hours from 48 hours per week to 40 hours per week;
  • increasing the minimum weekly rest from one day to two days; and
  • revising annual leave entitlements so that employees who have completed 180 days of continuous service will be entitled to at least 10 days of annual leave per year (instead of the current 6 days after one full year of service).



Authors:


Bunnasomboon Chaiparinya  │Partner & Head of Corporate Department  │E: [email protected]


Phasit Akaraphasit  │ Associate  │E: [email protected]


Ornpilas Sawastham │Associate  │E: [email protected]

Previous Article

Celebrating Two Deca