Severance Pay Paid to an Employee Upon Termination

How to dismiss an employee if they have not violated the employment contract?

If an employee has not breached the terms of the employment contract, has not been absent without leave, and has not committed theft, the best solution is, of course, to reach an agreement and terminate the employment relationship by mutual consent.

If an agreement cannot be reached, termination without cause creates an obligation for the employer to pay severance compensation.

The amount of severance pay depends on the employee’s total period of service with the company, including the probation period.

These provisions apply to both Thai and foreign employees.

Severance Pay Table

Length of Service Before TerminationAmount of Severance Pay
Less than 120 daysNo severance pay
120 days or more, but less than 1 yearWages for 30 days
1 year or more, but less than 3 yearsWages for 90 days
3 years or more, but less than 6 yearsWages for 180 days
6 years or more, but less than 10 yearsWages for 240 days
10 years or moreWages for 300 days

Author: Alexandra Agapitova.
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