Country Information

The Kingdom of Thailand is located in southeastern Asia and is made up of over 70 different provinces located entirely in the tropics. The official language is Thai, although there are roughly 60 different local languages spoken regionally. Thailand has made strides in recent years in transforming its economy into an industrialized powerhouse with a focus on the manufacturing and export of cars, computers, electrical appliances and agriculture. Thailand also has a robust tourism industry. Host to one of the largest economies in southeast Asia, Thailand is an integral country of the region and an excellent base for expansion throughout Asia.

Employment Contracts

Employment contracts in Thailand can be verbal or written. However, a written employment contract that specifies all the terms and conditions of employment is recommended and, in practice, most employment contracts in Thailand are written. Employment contracts can be for a fixed-term or an indefinite period, although there is a limit on the duration of fixed-term contracts.

Working Hours

The normal work period in Thailand is eight hours a day and 48 hours per week but can be less for employees who perform dangerous tasks or work that might harm their health. Overtime is limited to 36 hours a week. Employees who perform overtime are entitled to additional pay starting at 150% of their normal wage.

Sick Leave

Employees generally receive up to 30 days of paid sick leave a year. Employees must provide a medical certificate after missing three days of work due to illness.

Maternity/Paternity Leave

Female employees receive up to 98 days of fully paid maternity leave including weekends, with 45 days paid by the employer and the remaining 45 days paid by the social security fund. There is no paternity leave. Maternity leave is provided in addition to sick leave days.

Compensation

Employers are not required to pay employees bonuses but may choose to do so. A 13th month bonus or bonuses based upon performance are common in Thailand.

Vacation Leave

Eligible employees may also be entitled to 120 days of Monkhood leave or Hajj leave.

Public Holidays

The following public holidays are observed in Thailand:

  • New Year’s Day
  • Makha Bucha Day
  • Chakri Day
  • Songkran Day
  • Labor Day
  • Coronation Day
  • Visakha Bucha Day
  • Asarnha Bucha Day
  • M. Queen’s Birthday
  • Chulalongkorn Day (Rama V Day)
  • M. King’s Birthday
  • Constitution Day
  • New Year’s Eve
Health Insurance Benefits

The state provides universal healthcare through the civil welfare system for civil servants, social security for private employees (expats and nationals), and a universal health scheme to all other citizens. Employers often elect to provide supplementary healthcare.

Employment / Termination / Severance

An employment contract may be terminated at the end of the contract period (if the employment contract is for a fixed term), by the employer or by the employee. An employer may dismiss an employee without providing notice or paying severance for cause or misconduct. Otherwise, the employer must provide notice. The notice period is based on the employee’s pay interval up to three months. Severance is between 30 and 300 days depending on the employee’s length of service.

Local Laws & Regulations

We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

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Partnering with Atlas when expanding into Thailand, can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.
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