Hiring Foreigners as Salespersons — Legal Update

Since June 20, 2020, foreigners in Thailand are allowed to work as salespersons in shops, provided they meet specific requirements set by the Ministry of Labour.

Employee requirements:

  1. The foreigner must have a valid work permit or an entry authorization allowing them to obtain a work permit upon arrival in Thailand.

In the first case, before starting work, the work permit must be updated with the relevant details: employer, workplace, and job position. In the second case, the foreigner must obtain a work permit from scratch. In all cases, work can only begin after a work permit is issued specifying the position of salesperson.

  1. The foreigner must be able to communicate in Thai. There is currently no clarification on the required level of proficiency.

Employer requirements:

  1. The employer must be registered with the Department of Business Development (DBD) and conduct business activities in Thailand.
  2. The maximum number of foreign employees in sales positions depends on the corporate income tax paid by the company in the previous financial year:
  • No profit (or tax exemption): 1 foreigner
  • Corporate income tax less than 50,000 baht: up to 3 foreigners
  • Corporate income tax 50,000–100,000 baht: 4 foreigners, plus 1 additional foreigner for every extra 50,000 baht of tax paid (but not more than 10 in total)
  • If the previous condition is met and the company employs 30 Thai staff and already has 10 foreigners, 1 additional foreigner may be hired
  • If the previous condition is met, further hiring is allowed at a ratio of 1 foreigner per 10 additional Thai employees (but not more than 20 foreigners in total)

This regulation opens up a new profession for foreigners, which was previously strictly prohibited. Further practical implementation details will be provided once there are real cases of work permit approvals for foreign salespersons.

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