25/09/2026
⚖️ Navigating Thai Labor Law: Essential Guide for Employers
Running a business in Thailand comes with specific legal responsibilities once your team begins to grow.
To help you stay compliant and protect your interests, our experts at Expat Business Services have broken down the critical, up-to-date regulations regarding employee records and termination under the Thai Labour Protection Act (LPA).
📝 1. The "Rule of 10": Mandatory Documentation
Once your workforce reaches 10 or more regular employees, the law triggers major statutory requirements:
Work Regulations: You must establish written work regulations in Thai governing performance, discipline, and working conditions. These must be officially displayed on-site within 15 days of reaching the 10-employee threshold.
Government Filing: A copy of these rules must be submitted to the Department of Labor Protection and Welfare within 7 days of their announcement.
Employee Register: You are required to maintain a formal, up-to-date register in Thai, tracking detailed records of personal data, wages, overtime, and holiday pay.
Record Retention: These records must be kept for at least 2 years after an employee’s termination. Pro Tip: If there is an active labor dispute, inspection, or court case, retain these records until the legal matter is fully resolved.
⚖️ 2. Termination Without Severance (Section 119)
Standard labor protection entitles employees to severance pay upon termination. However, an employer is exempt from paying severance if the employee is terminated for specific "fault" grounds under Section 119:
1. Dishonesty or committing a criminal offense intentionally against the employer.
2. Willful damage or gross negligence causing serious financial or operational harm to the company.
3. Violation of lawful and fair work rules or regulations after receiving a written warning (valid for not exceeding 1 year from the date the offense was committed). Note: Severe violations do not require a prior warning.
4. Absence without justification for 3 consecutive working days, regardless of whether there is a holiday in between.
5. Imprisonment resulting from a final court judgment (excluding petty offenses or negligence).
Crucial Legal Tip: When terminating without severance, the exact statutory ground must be clearly stated in writing in the termination letter. Omitting this prevents the employer from using that defense in the Labor Court.
💰 3. Severance Pay Scale
If an employee is terminated without a valid "fault" cause under Section 119 (e.g., ordinary termination, restructuring, or poor performance), they are entitled to statutory severance pay calculated according to their consecutive length of service:
120 days to less than 1 year: 30 days’ wages
1 year to less than 3 years: 90 days’ wages
3 years to less than 6 years: 180 days’ wages
6 years to less than 10 years: 240 days’ wages
10 years to less than 20 years: 300 days’ wages
20 years or more: 400 days’ wages
🔄 4. Special Circumstances: Relocation & Tech Redundancy
Business Relocation: If a move substantially affects an employee's normal living conditions and they refuse to relocate, they are entitled to terminate their contract within 30 days of the announcement/relocation and receive special severance. Employers must provide 30 days' advance notice (or pay 30 days' wages in lieu).
Technology / Streamlining Redundancy: If reducing staff due to the introduction of machinery, new technology, or business restructuring, you must notify the Labor Inspector and the affected employees at least 60 days in advance.
Additional Compensation: Employees with more than 6 consecutive years of service are entitled to an additional special severance payment equivalent to at least 15 days’ wages for each complete year of service past the 6th year (subject to overall statutory caps).
🤝 Expert Support for Your Business
Managing labor compliance can be complex, but you don't have to navigate it alone.
Expat Business Services provides professional consulting to ensure your employment contracts and workplace regulations are airtight and fully compliant.
Contact us today for a consultation:
📞 Tel/WhatsApp: +66 99 429 4628
🟢 Line ID: pat.tippawan
📧 Email: [email protected]
🌐 Web: www.ExpatBusinessServices.com