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SALARY PAYMENT IN Thai baht (THB, ฿)
CONTRACT LANGUAGES Thai / English
PAYROLL TAX 5.2% – 6%
PAYROLL CYCLE Monthly
TIME TO HIRE 12 hours
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There are two standard types of employment contracts in Thailand. These contracts include and open ended and fixed term contract.
An open-ended or indefinite contract are the most common contract type in Thailand. These contracts include specific details specific to the employee being hired including the start date, personal details, role and responsibility details, salary breakdown, working hours, holidays and if there is a probationary period at the start of employment. These contracts are valid until an employer or employee terminates the contract formally. Employers must give sufficient notice to employees who have been employed for longer than 120 days.
Fixed term or definite contracts will state the start and end date that an employee is required for. These contracts cannot include a probationary period. These contracts usually last up to two years as contracts that surpass this will require an employer to pay out severance payments. If an employer keeps an employee on past the contract end date, the employee automatically transitions to an open-ended employment contract. One key difference between fixed term contracts and open-ended contracts is that employers cannot terminate an employee on this type of contract before the stated end date unless an employer has a valid reason that is supported by Thai labour law.
An alternative contract type is for individuals with their own businesses can be hired as an independent contractor on a service contract.
In Thailand, there are also temporary employment contacts for special projects and part-time employment contract for employees that work less than full time hours consistently.
Your business can easily hire employees in Thailand without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
One of the key differences between the standard employment contracts and a service contract is that employers that hire an individual or company on a service contract has no right to supervise the work undertaken. Service contract holders are entitled to payment from an employer at the end of a job or project and Thai law protects this.
Horizons offer contract drafting for open-ended and fixed term employment contracts for companies looking to hire employees in Thailand. Which contract is right for you depends on your employment needs in Thailand.
