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Global HR Compliance in Thailand

Hiring workers in Thailand requires companies to navigate strict employment regulations, many of which are enforced rigorously through labour inspections, employee complaints, and statutory penalties. Contracts, benefits, leave, and termination processes must follow precise rules, and failure to comply can expose employers to fines, claims, or reputational damage.

For companies entering Thailand without a legal entity, whether to hire local sales reps, support project delivery, or onboard skilled professionals, the key challenge is how to engage workers legally, pay them correctly, and manage employment obligations without getting entangled in entity setup or legal ambiguity.

Acumen International’s Global Employer of Record (EOR) solution allows you to hire talent in Thailand with full compliance. We act as the legal employer on your behalf, managing contracts, payroll, benefits, taxes, and employment risk, so you can focus on operations while we handle the complexity of local employment law.

Why Companies Hire in Thailand

Businesses often need to hire in Thailand when:

  • Expanding regional teams into Southeast Asia and needing a local commercial or client-facing presence
  • Accessing specialised talent in engineering, logistics, or digital industries at a lower cost than in Western markets
  • Supporting clients, vendors, or joint ventures with locally based operational or compliance staff
  • Delivering international donor projects that require local hiring but restrict permanent establishment creation.

Employment Contracts

Contracts may be written or oral, but written agreements are strongly recommended and must include:

  • Job role and duties
  • Working hours and compensation
  • Leave entitlements and holidays
  • Termination conditions and severance terms
  • Duration of employment (if fixed-term)

Employees may be hired on fixed-term or open-ended contracts. Fixed-term employees are not eligible for severance unless the employer ends the contract early.

Working Hours and Overtime

  • Standard hours: Maximum 8 hours/day, 48 hours/week
  • Hazardous work: Capped at 7 hours/day, 42 hours/week
  • Overtime: Allowed up to 36 hours/week
    • Paid at 150% of base pay on regular days
    • Paid at 300% for work during public holidays.

Probation Period

Thai law allows for a probationary period of up to 120 days. During this time, either party may terminate the contract with notice, and without severance obligations.

Leave and Public Holidays

  • Public holidays: At least 13 days per year, including New Year, Songkran, Coronation Day, and others
  • Annual leave: Minimum 6 days paid leave after one full year of service (some employers offer more)
  • Sick leave: Up to 30 paid sick days per year
  • Maternity leave: Up to 90 days, with 45 days paid by employer and 45 by Social Security, subject to contribution eligibility
  • Paternity leave: No statutory entitlement, but may be granted by employer policy.

Minimum Wage

The minimum daily wage varies by province. As of 2024, rates range from 328 to 354 Thai baht per day, depending on the location. Employers must pay at or above the provincial minimum and issue payslips showing wage details and deductions.

Termination and Severance

Notice Period

  • Typical notice period is at least 1 full pay period, unless dismissal is for cause
  • Shorter or longer notice may be agreed contractually

Severance Pay

Severance is mandatory for eligible employees dismissed without cause, calculated as follows:

  • 120 days to <1 year: 30 days’ pay
  • 1 to <3 years: 90 days’ pay
  • 3 to <6 years: 180 days’ pay
  • 6 to <10 years: 240 days’ pay
  • 10+ years: 300 days’ pay

Employees dismissed for gross misconduct are not entitled to severance.

How Acumen International Can Help You Hire in Thailand

Legally Employ Without Setting Up a Local Entity
We act as your Employer of Record, enabling you to hire employees in Thailand without opening a company or navigating local registration procedures.

Full Payroll Processing and Tax Compliance
We manage salary calculations and payments, withhold income tax, remit social security contributions, and issue payslips, ensuring full compliance with Thai tax law and payroll regulations.

Benefits and Statutory Entitlements Administration
We ensure your employees receive all mandatory benefits, including paid leave, sick pay, maternity entitlements, and public holiday observance—managed in line with Thai labour law.

Locally Compliant Employment Contracts
We draft and maintain contracts that meet all legal requirements, aligned with your internal policies and adapted for Thai regulations.

Custom Employment Structures for Commission-Based or Project Roles
We help structure compliant arrangements for workers on incentive-based pay or short-term assignments, avoiding misclassification and regulatory exposure.

Work Permit and Immigration Support
For non-Thai nationals, we sponsor work permits and ensure visa compliance.

Pre-Hire Cost Modelling with Global Payroll Calculator
Get accurate estimates of employer costs in Thailand before you hire—including wages, taxes, benefits, and employment overhead with Global Payroll Calculator.

Global Coordination with Local Expertise
Operate in Thailand while managing your workforce from anywhere. One partner. One contract. Local compliance built-in.

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