Employment Agreements in Thailand
In Thailand, the principle of the freedom of contract for employment cases is the basis of employment agreements. Employees and employers can come to an agreement to exchange services for remuneration as long as the activity is not contrary to the public order or morals.
There are two types of employment agreements. There is the “contract for work” which are for workers who are hired by the employer as independent contractors for specific jobs. And there is the “contract of services” which is the general employee-employer type of relationship. A “contract of services” may subject the employer to increased regulation and liability. However, Thai labor law generally protects all types of employment arrangements against abuses by employers.
The employer is required to meet the minimum requirements as required by the Labor Protection Act and ministerial regulations. For most employees, the working day should not exceed eight hours or forty-eight hours a week without overtime compensation.
The minimum wage in Thailand is 300 baht per day and wages need to be paid at least once a month. Employees are entitled to 13 holidays per year and after one year of employment, they receive a minimum of 6 days of paid personal leave. Employees are granted a minimum of 30 days of paid sick leave and an explanation or medical certificate is only required if the employee is absent for more than three or more days.
It is customary for employers and employees to give a minimum of 30 days’ notice if one party were to decide to terminate the employment. However, only the employer is legally provide notice or pay one pay period before they terminate an employment relationship without cause if the employment relationship does not have a fix term.
If the employee is terminated without cause, they may be able to obtain a legally mandated severance payment from the employer depending on how long they worked for the business. If the employee is terminated for misconduct, severance or notice may not be required.
Labor disputes are regulated in Thailand. Labor disputes can be mediated through local conciliation officers and settled by a labor dispute arbitrators. Another option is to go directly to labor court and allow a three judge panel decide the case.
Employment law in Thailand is complicated. If you have any questions on the employment process in Thailand, please feel free to contact the knowledgeable attorneys at Siam Legal.
Category: Labor Protection
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