The major legislation governing labor protection law in Thailand is the Labor Protection Act (the “LPA”). The LPA prescribes labor protection standards applicable to both employers and employees working in Thailand. However, it does not apply to government and state enterprise employees.
Where employment is for a defined period with a fixed termination date, the employment contract expires automatically upon completion of that period, with no advance notice required. However, where employment is not for a defined period, the employer must give the employee written advance notice of termination before the employee’s next regular wage payment date.
Where notice is required and the termination is “without cause,” the employer must pay the employee additional severance pay as follows:
| Duration of Employment | Severance Pay (based on most recent wages) |
|---|---|
| 120 days but less than 1 year | 30 days’ wages |
| 1 year but less than 3 years | 90 days’ wages |
| 3 years but less than 6 years | 180 days’ wages |
| 6 years but less than 10 years | 240 days’ wages |
| 10 years or more | 300 days’ wages |
Under the LPA, “cause” exists — allowing the employer to terminate without severance — only if the employee:
- Performs their duties dishonestly or intentionally commits a criminal offense against the employer;
- Intentionally causes damage to the employer;
- Causes serious damage to the employer through negligence;
- Violates the employer’s lawful and reasonable work rules, regulations, or orders after receiving a written warning (valid for one year only) — except in the case of a serious violation, where no prior warning is required;
- Is absent from duty without justifiable reason for three consecutive working days, regardless of whether a holiday falls in between; or
- Is sentenced to imprisonment by a final judgment — except where the offense arose from negligence or was a petty offense, unless that negligence or petty offense caused serious damage to the employer.
If an employee is terminated for “cause,” the employer must notify the employee of the specific cause at the time of termination — not later. Failure to do so means the termination will be deemed “without cause.”
Furthermore, regardless of who initiates the termination or for what reason — including any of the six “for cause” grounds above — the employer must pay the employee for all accumulated annual leave days to which the employee was entitled at the time of termination.
It should also be clear that an employer cannot include a three-month “probation period” in a new employee’s contract and then terminate that employee at the end of the three months without liability. Doing so still triggers liability for both an additional fourth month of wages (covering the mandatory notice period) and severance pay equal to thirty days’ wages.
Note: an employer who violates or fails to comply with the LPA may be punished, depending on the severity of the offense, with a fine of THB 5,000 to THB 200,000, imprisonment of up to one year, or both.