What do you have to consider when concluding an employment contract?

What should be considered when entering into an employment contract?

You founded the company and now it's time to employ Thai and foreign employees. What do you need to keep in mind when you need employees?

1. An employment contract does not have to be in writing. It is sufficient to register an employee with the Social Security Fund.

2. An employment contract shall be deemed to be termless, unless otherwise specified in the contract.

3. Thai and foreign employees have the same rights in labor relations.

4. The minimum wage for a Thai employee is 330 Baht per day (Pattaya, Phuket). For a foreign employee depends on the nationality, for example Russian - 35,000 baht\per month.

5. Dismissing an employee without his consent is not so simple. 4 months after hiring (registration with the social insurance fund), an employee can claim compensation in the amount of 1 salary, after 1 year - 3 salaries, after 3 years - 6, after 6 years - 8, after 10 years - 10 salaries.

6. 1 month notice must be given before dismissal (or pay additional compensation in the amount of 1 salary). If an employee is fired without notice, for example, on the eve of the completion of 1 year from the date of commencement of work, compensation will be paid for a full year of work (3 salaries) plus one salary for not being notified in advance.

To protect the interests of both the employer and the employee and to avoid misunderstandings and disputes, we recommend you to sign an employment contract.

For all employment issues in Thailand, please call:

+66 87-348-57-03 (WhatsApp, Viber)

Author: Alelsandra Agapitova

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