You have established a company and now it is time to hire Thai and foreign employees. What should you keep in mind when employing staff.
An employment contract is not required to be in written form. Registration of the employee with the Social Security Fund is sufficient.
An employment contract is considered indefinite unless otherwise specified in the agreement.
Thai and foreign employees have equal rights in employment relationships.
The minimum wage for a Thai employee is 330 THB per day in locations such as Pattaya and Phuket. For a foreign employee, for example a Russian national, the minimum salary is 35,000 THB per month.
It is not easy to terminate an employee without their consent. After 4 months of employment from the date of registration with the Social Security Fund, the employee is entitled to compensation equal to 1 month of salary. After 1 year, the compensation increases to 3 months of salary. After 3 years, it is 6 months. After 6 years, it is 8 months. After 10 years, it is 10 months of salary.
Termination requires at least 1 month’s notice or payment of compensation equal to 1 month of salary in lieu of notice. If an employee is dismissed without notice, for example just before completing 1 year of employment, the employer must pay compensation for the full year of service, which is 3 months of salary, plus an additional 1 month of salary for failure to provide notice.
To protect the interests of both the employer and the employee and to avoid misunderstandings and disputes, it is recommended to conclude the employment contract in written form.
Author: Alexandra Agapitova.
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