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With the deepening of globalization, when enterprises expand their business in multiple countries, cross-border labor compliance has become one of the most complex and severe challenges. To help enterprises systematically address this issue, we have collaborated with top labor lawyers from over 50 major jurisdictions worldwide (all recommended by Chambers, The Legal 500, or equivalent institutions) to jointly compile a Chinese-English labor & employment compliance guide exceeding 1 million words, and we will continuously update relevant key points.

This article publishes the key points of labor & employment compliance by September 2025 in Thailand. 

01 Overview of the Labor Law System

1.Legal System

In Thailand, the legal system is based on civil law system. Thailand also tends toward the character of common law systems, as the interpretation of law relies heavily on court decisions.

2.Resources and Agencies

The main statutes relating to employment include applicable provisions under the Civil and Commercial Code (the “CCC”), the Labour Protection Act 1998 (the “LPA 1998”), the Labour Relations Act 1975 (the “LRA 1975”), the Social Security Act 1990, the Workmen’s Compensation Fund Act 1994, and numbers of their related subordinate regulations.

02 Employment Qualifications and Classification

1.Employment Age

Thai labour laws strictly prohibit child under an age of fifteen to be hired. Therefore, individuals aged fifteen or older may be legally employed.

There is no age limit for older employees. Thai law does not set a mandatory retirement age. It will be determined by agreement between the employer and the employee. Typically, retirement is described in the employer’s work rules and regulations.

2.Qualifications for Foreign Employers

Thai laws do not stipulate the requirement for a foreign employer to set up a local entity to employ local workers. Accordingly, local employees may be hired directly by a foreign employer, its branch office, or through an agency.

3.Classification of Employment

The most common misclassification issue is distinguishing an employment contract from a service or independent contractor agreement. They are somewhat similar to a certain extent. Hence, employers should be aware that, regardless of any contractual clauses between the parties, Thai courts will examine the actual practices and the way the parties conduct their relationship in determining whether an employment relationship exists.

4.Foreign Workers

Foreign employees must hold a valid visa and work permit in order to lawfully stay and perform work for the employer.

03 Recruitment and Employment Contracts

1.Background Examination

Thai labour law does not impose any specific requirements or restrictions regarding background checks during the hiring process. Under the PDPA 2019, health data and criminal records are considered ‘sensitive personal data’, and in principle employers must obtain explicit consent from job applicants before conducting background checks.

2.Contract Types

Thailand’s labour law does not formally categorise employment contracts into multiple types. In practice, several distinct arrangements are commonly used, based on their key terms and conditions, and are primarily designed to address the employer’s business needs. 

The common types of employment are as follows:

? Fixed-term vs. Non-fixed-term Employment;

? Part-time or Temporary vs. Permanent Employment;

? Secondment or Dispatch Employment;

? Outsourcing Agreement.

3.Probationary Period

Thai labour law does not prescribe any specific requirements regarding a “probationary period.” Whether an employer adopts a probationary period depends on their discretion. Most importantly, the law does not differentiate between probationary and non-probationary (permanent) employees; these classifications are essentially defined by employers, not by law.

04 Working Standards

1.Remuneration

The structure of remuneration may vary depending on the employer’s business and industry. Daily, weekly monthly payments are all possible in Thailand. The most common form is a fixed salary. However, for certain groups of employees, such as blue-collar workers, daily wages are also commonly used.

2.Statutory Benefits and Social Security

In terms of benefits provided in addition to an employee’s remuneration, there is no legal requirement for employers to provide them, except for mandatory contributions to certain funds, namely:

? The Social Security Fund;

? Workmen’s Compensation Fund;

? The Employee Welfare Fund.

3.Working Hours

It is important the employers must not fix the working hours exceeding mandatory maximum working time per day. Mandatory limits depend on type of work of employee. In principle, they are as follows:

? For non-hazardous work is 8 hours per day and 48 hours per week;

? For hazardous work is 7 hours per day and 42 hours per week.

4.Rest and Leave

An employer is obliged to provide an employee with the following holidays:

? A weekly holiday;

? A traditional holiday; 

? An annual holiday.

05 Occupational Health and Special Protection

1.Occupational Health and Security

Regarding the general health and safety rules applicable in the workplace, Thailand has a specific law, namely, the OSHA 2011, requiring the employer to be responsible for, among other things, providing and maintaining safe and hygienic working conditions and environments for their workplaces and employees.

2.Special Protection

In terms of special protection, the LPA 1998 grants specific protections to female and child employees. For female employees, the LPA 1998 is devoted to their protection. These protections include prohibiting work considered hazardous to health or safety. In addition, the LPA 1998 prohibits employers from terminating employment on the grounds of pregnancy.

06 Personal Information and Privacy

Under the PDPA 2019, transferring of personal data outside Thailand is not entirely prohibited. However, the employer must ensure that the transfer complies with the restriction provided under the PDPA 2019. The main principle is that the employer can transfer personal data outside Thailand where the recipient country has adequate data protection measures.

07 Anti-Discrimination and Anti-Harassment

1.General Rules

Under the Constitution of Thailand, all persons are equal before the law. Men and women shall enjoy equal rights. Unjust discrimination against a person on the grounds of origin, race, language, gender, age, physical or health condition, personal status, economic or social standing, religious belief, education or political view is not permitted.

2.Protective Characteristics

In the area of labour law, anti-discrimination and anti-harassment protections in the workplace are relatively limited. The only form of discrimination expressly addressed is gender discrimination.

08 Internal Policies

1.Applicability

The employment relationship is governed by various documents, including the employment contract, work rules and regulations, company policies, collective bargaining agreements (if any), and internal orders or announcements.

2.Validity

Thai labour law takes precedence over internal company policies, whether those policies are local or global. If there is a discrepancy between company policies and Thai statutory requirements, the provisions of Thai law apply. Employers may establish internal policies that offer employees benefits beyond those mandated by law; when this occurs, such policies become part of the employment conditions.

3.Whistleblowing

There is no specific law in Thailand that requires employers to establish whistleblowing channel or provides protection for whistleblowers.

09 Transactions

1.Employment Relationship

There is no automatic transfer in the case of M&A transactions. By virtue of Section 13 of the LPA 1998 and Section 577, paragraph one, of the CCC, the provisions apply in cases involving transfer of employment, including situations where the transaction results in employees having a new employer entity. In such case, the prior consent of each employee is required.

2.Compensation

If the employee does not agree to the change of employer, they will remain employed by their original employer. In case where the original employer ceases to exist and has not terminated the employee before, the employee’s employment will be considered as being terminated following the effectiveness of the transaction, when the original employer no longer exists. This will trigger statutory payments arising from the termination of employment, including, but not limited to, severance pay to be made by the original employer to the terminated employees.

10 Termination of Employment

1.Termination Grounds

Strictly speaking, under Thai law, an employer may dismiss an employee for any reason. There does not need to be a justification for the termination in order for it to be valid and enforceable. However, the grounds for termination will affect the employer’s liability.

2.Termination Procedure

For non-fixed term employment, the employer is required to serve a timely notice of termination in writing to the subject employee at or before any time of payment, for the termination to take effect at the following time of payment; or make payment in lieu of such notice to terminate the employees immediately.

For fixed-term employment, it shall end upon the agreed period, without the need to provide any advance notice of termination.

3.Termination Protection

Employers may not dismiss female employees on account of pregnancy. Likewise, pursuant to the LRA 1975, if demands for improvement of conditions of employment have been submitted and said demands are in the process of negotiation, the employer cannot dismiss employees involved with the demands, except in the case of gross misconduct transacted by the employees in question, nor they cannot dismiss members of an employees’ committee unless permission has been obtained from the Labour Courts.

4.Severance and Compensation

An employee terminated without cause is entitled to severance pay. The amount of severance pay to be paid to the terminated employee varies depending on the length of service and the employee’s last rate of wages.

5.Wrongful Termination

There is no statutory definition of “unfair dismissal”. Based on several Supreme Court’s decisions, a termination would be regarded as unfair if an employee was terminated without justifiable reason or with a view to harass the employee.

6.Mass termination and Layoffs

There is no separate category of termination expressly prescribed under Thai law for mass termination or layoffs. Accordingly, both fall within the general category of termination of employment.

11 Confidentiality, Non-Compete, and Non-Solicitation

1.Confidentiality

It is not mandatory for employers to require employees to sign a confidentiality agreement; this decision is at the employer’s discretion. In practice, however, it is advisable to include confidentiality clauses in employment agreements to safeguard the employer’s proprietary and confidential information including trade secrets.

2.Non-Compete and Non-Solicitation

In connection with restrictive covenants such as non-compete and non-solicitation clauses, these are generally enforceable under Thai law, provided that they are fair and reasonable in light of the circumstances.

When determining whether such a clause is fair and reasonable, the criteria may be assessed with reference to the provisions of the Unfair Contract Terms Act 1997.

12 Work Representation and Trade Unions

1.Work Representation

Employees in Thailand enjoy the right to freedom of association and representation. Employees can join labour unions and elect representatives to negotiate with employers. Workplaces with 50 or more staff may set up ‘employee committees’ to improve communication, address welfare and working conditions, and ensure compliance with labour laws.

2.Trade Unions

Under the LRA 1975, trade unions may be established by employees with the objective of protecting their interests in relation to conditions of employment, as well as promoting good relations between employers and employees, and among employees themselves. A labour union can be established by a minimum of ten promoters, each of whom must be of legal age and hold Thai nationality. Union membership requires individuals to be at least 15 years old.

13 Dispute Resolution

1.Procedures & Enforcement

The general procedures for labour disputes fall under three channels, as follows:

? Employee Lodging a Complaint with the Labour Inspector;

? Filing a Lawsuit with the Labour Court;

? Submitting a Case for Arbitration.

2.Waiver & Enforcement

As a general rule, employee rights under labour law cannot be waived. However, Thai courts may enforce certain waivers under specific circumstances, such as when the employer demonstrates that no rights are affected or that individuals are no longer in a subordinate position when agreeing to such waivers.

14 Others

1.Latest Development & Trends

Recent trends in Thailand reflect the Government’s attempt to adopt and formalise its policies during the election period. These include increasing minimum rates of wages and expanding leave entitlements such as maternity leave and paternity leave.

2.Cultural and Religious Considerations

Thai employment law incorporates certain cultural and religious aspects into workplace regulations. For example, employees are entitled to have the days off on traditional holidays, and in practice many employers also provide leave for religious reasons.

* To avoid ambiguity, this article should not be regarded as legal advice.

Authors

Chanakarn Boonyasith is a partner in Nishimura & Asahi’s Labour & Employment practice and Personal Data Protection team. With more than 15 years of experiences, she supports her local and international clients, in various complex advisory work and disputes matters, both in and out of court. For the Labor & Employment practice, she engages in both advisory work and litigation, as well as drafting and reviewing legal documents, negotiating settlements, interviewing employees, managing whistleblowing hotlines and processes, providing trainings and various types of employment law advice, and representing clients in numerous court cases and in hearings before the labor authorities.

Pitchabsorn Whangruammit is a member in Nishimura & Asahi’s Labour & Employment practice and Personal Data Protection team and specializes in relevant legal matters. Apart from employment law and personal data protection law, Pitchabsorn’s practice areas extend to international arbitration as well as trade and commercial law.

Atthawut Wuvanich is a member in Nishimura & Asahi’s Labour & Employment practice and Personal Data Protection team and provide relevant services to clients.

Translator

Jin Dongjie, Master of Laws, associate at Anli Partners. Area of expertise: Labor Law, ESG Compliance, Dispute Resolution.