The main sources of employment law in Thailand are the Labour Protection Act B.E. 2541 (LPA) and the Thai Civil and Commercial Code (CCC), which covers common issues in Industrial relations, leave entitlement, wage payment and etc. Under Thailand’s labor law all types of employments are protected whether they be permanent, part-time, or under a special contract. To work in Thailand, all foreign nationals are required to hold a visa & work permit. Going for a PEO in Thailand means you don’t need to struggle to learn all these rules.
Holidays & Leaves
According to the Labor Protection Act, employees working in Thailand are entitled to at least 13 paid public holidays per year. Every company can select a minimum of 13 days within the 25 public holidays per year.
Employees who have worked continuously for at least one year are entitled to a minimum of 6 days per year annual leave. However, this is a statutory requirement and in practice, most employers offer professionals around 10-15 days of paid annual leave per year. It is possible to carry over annual leave in Thailand. Other types of leave including Marriage Leave, Compassionate Leave, and Hospitalization Leave are granted at the discretion of the Thai employer.
Female pregnant employees in Thailand are entitled to a maximum period of 90 days of maternity leave. The employer covers the first 45 days at the pregnant employee’s regular wage rate and the Thai Social Security Fund covering the remaining 45 days.
Under Thai labor law, an employee is entitled to 30 days’ paid sick leave per year. If an employee is absent from work due to sickness/illness for more than 3 days, the employer has the right to request a medical certificate.
Employer and employee can agree on regular working hours. By law, working hours must not exceed 8 hours per day, from Monday to Saturday, or a total of 48 hours per week. To be noted office employees would be working from Monday to Friday 40h/week.
Regular overtime must be paid at a rate of 1.5 times the employee’s base salary. On weekends this rises to 3 times base salary.
Thailand provides universal healthcare through three different schemes: the civil service welfare system for government employees and their families, Social Security for private employees (expats included 750B paid by the employer and 750B pay by the employee),
It is recommended for Expats working in Thailand to get private health insurance for access to a higher standard of healthcare. This can be negotiated as part of an employment contract. Or you can look at getting it by yourself. In both cases, many options are available.
Employers are responsible for registering new employees with the local social security office as well as any changes to employment and monthly submission of wage information.
All employees are required to contribute to a social security fund in an amount equal to 5% of their salary, up to a maximum contribution of THB 750 per month.
Employees working under fixed-term contracts who have their contracts terminated upon expiry are not entitled to a severance payment. Employers also have the option of giving employees payment instead of requiring the employee to work during the notice period.