Labor laws


Labour relations and working conditions

Labour legislation

The Labour legislation of Thailand is governed by the Civil and Commercial Code, the Labour Relations Act 1975, the Social Security Act 1990, the Workmen's Compensation Fund Act 1994 and the Labour Protection Act 1998. The Department of Labour Protection and Welfare, an organisational unit to the Ministry of Labour and Social Welfare are carrying out the execution of the Labour legislation as well as organization of the inspections on the territory of Thailand in cooperation with the Ministry of Public Health and Industry

The Labour Relations Act gives the right to create employee associations and labour unions.

Labor Protection Act, 1998 determines the maximum length of the working day, which should not exceed 8 hours, and the maximum length of the working week - not more than 48 hours. In the case of the similar character and duration of work, both women and men should receive the same amount of wages and overtime. Overtime rate is different and varies from 1,5 to 3 times the salary for the same period of time. Certain employees engaged in executive and supervisory work and other types of work prescribed by law are not entitled to overtime.

Each employee working on a permanent basis is entitled to 6 days of paid leave per year in addition to the 13 official holidays. Women have a right of 90 days maternity leave, which includes 45 days of paid leave.

All employees are entitled to sick leave not exceeding 30 working days per year. In the case if the duration of the sick leave is more than three days, the employer may require the employee to provide a certificate from a qualified doctor.

Labour supply and wages

Cheap labor force in Thailand is one of the main points that attract foreign investment into the country. The minimum size of a daily payment for unskilled labor at the moment is 300 baht per day

Social security

The Social Security Act requires all employers, together with their employees and the government to jointly contribute to the Social Security Fund.

An employer must withhold 5% of its employees' monthly wages and remit it, together with an employer contribution of an equal amount, to the Social Security Fund. The maximum wage base for computing the contribution is 15,000 Baht per employee per month, which equates to a maximum combined employer and employee contribution of 1,500 Baht per employee per month. The Social Security Fund is designed to provide compensation payments to fund members for pregnancy, and for accidents, illness and physical disability occurring outside working hours, death, old age, and unemployment.

In addition, an employer is required to contribute a percentage of its employee's annual remuneration to the Workmen's Compensation Fund of the Department of Labour. The percentage of contribution ranges from 0.2% to 1.0%, depending on the nature of the employer's business. The fund is paid to employees on occasion of injury or illness as a result of services to his employer.

Business hours

Business offices are usually open from 9.00 am to 1.00 pm and 2.00 pm to 6.00 pm, Monday to Saturday. Government offices are open from 8.30 am to 12 noon and 1.00 pm to 4.30 pm, Monday to Friday. Banking hours can vary but are typically 9.30 am to 3.30 pm, Monday to Friday.

Public holidays

In general, there are 18 public holidays in Thailand, 13 of which are statutory holidays.

Investment