Regulation of working hours
If not contractually agreed otherwise, the usual working time per week in Thailand is 48 hours. This week period may be divided into five or six working days with at least one free day per week. Work on Sunday and holidays must be regulated individually. The same is applicable for over time and working after midnight.
An employee is entitled to paid leave only after one complete year of employment. It is also common practice in Thailand when a public holiday falls on a weekend the holiday will be moved up to the following Monday. This should not count as a vacation day. Furthermore additional free days need to be granted in case of death within the family, birth of their own children and some specific Buddhist ceremonies. Upon request we are more than happy to explain more to you personally.
In case of sick leave exceeding three business days, the employee must submit a doctor’s certification issued by an approved government hospital. If there is suspicion of abuse such attestation may be required beforehand by the employer. In the event of sickness, continued salary payments of a maximum of 30 days must be paid annually.
An expectant mother shall receive at least 90 days of maternity leave of which 45 days have to be paid.
Just like all contracts in Thailand labour agreements should be drafted in two languages. However in cases of a dispute only the Thai version is valid. We guarantee the correctness of all agreements drafted by us in all languages.
A non-competitive clause may not be imposed in Thailand. Nevertheless customer protection (for example with manager positions) may be appointed and enforced.
Trial contracts up to three months of employment may be entered and such can be extended once. The maximum trail contract period is therefore 6 months.
Internal agreements (Company agreements) or employment agreements
If a company employs more than ten employees then company agreements must be drafted to regulate all internal procedures. These include working hours, breaks, sick leaves, personal appearance, work clothes, private Internet and telephone use. Such internal agreements are also suitable for firms who occupy less than ten employees. Such agreements become binding with the signature of all employees (may be requested) and publicised in Thai language. Internal agreements may be altered if required.
Warning, dismissal and disputes
If internal agreements are not followed by the employee’s warnings may be issued. After three warnings dismissal of the employee is allowed, although it is recommended to work out a solution beforehand between the two parties which in the end will have a positive impact on the business.
Dismissals are usually issued with effectiveness within 30 days. Dismissal without notice may only be issued in serious cases.
If the total period of employment was not less than 120 days and did not exceed one year, a compensation payment in the amount of one month’s salary must be made to the departing employee. If the period of employment was more than one year but not exceeding three years the compensation payment is three month’s of the paid salary.
At least three years but not exceeding six years: six months salary.
At least six years but not exceeding ten years: eight months salary.
Ten years or more of company affiliation: ten months salary.
Please be aware of the fact that in all disputes with employees, that in particular Thai employees respond in a different fashion to rebukes, it is therefore advisable to handle this sort of situation with an understanding of Thai culture. We are glad to assist you with such negotiations.
Recruiting of employees
According to your specifications we will advertise in the suitable media for the recruitment of your employees. Furthermore we can make preliminary decisions based upon the submitted documents, manage hiring interviews and present suitable candidates to you for your final decision.
Arbitration and representation in court
In the case of Labour law disputes, the Thai Labour Department will always summon both parties with the goal of reaching an amicable settlement. In this mediation we will assist and protect your interests with all necessary evidences and reasoning.
If an amicable settlement may not be reached then we will represent you with our firm lawyers in the Labour court.