Employer of Record in Thailand

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Thailand if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Thailand below, to avoid any compliance issues.

Employment Contract Requirements

When hiring in Thailand, it's important to know about the rules laid out in the Labour Protection Act of 1998. It stops discrimination based on things like age, religion, sexual orientation, gender expression, and race. The hiring formalities in Thailand include:

• Employment Contract
• Verification of Identity and Eligibility to Work
• Payroll and Tax Documentation
• Probationary Period Review

Onboarding Process

We can help you get a new employee started in Thailand quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Probation Period in Thailand

There are no legal regulations about how long a job probation period should be. However, since the law requires severance pay for employees let go after 120 days, most companies choose a probation period of not more than 4 months.

In Thailand, the standard working week is capped at 48 hours (8 hours daily), with stricter limits of 42 hours weekly (7 hours daily) for hazardous work environments. After 5 consecutive hours of work, employees are entitled to a 1-hour break, which can be taken as a continuous period or divided into shorter intervals throughout the working day.

Overtime is permitted but limited to 36 hours weekly and requires employee consent in most cases.

The overtime compensation system is particularly structured, with rates ranging from 1.5 to 3 times the regular wage depending on when the work is performed. Weekday overtime is paid at 1.5 times the hourly rate, while work on rest days or holidays beyond standard hours commands 3 times the normal rate.

Global expansion shouldn't mean losing time to paperwork or dealing with complicated, country-specific HR systems. An Employer of Record helps you keep your focus on talent by handling the operational side of employment in Thailand. That includes onboarding, contract management, payroll processing, and statutory compliance, all aligned with local laws and best practices. The EOR guarantees that employees are legally employed and properly supported from day one.

This streamlined setup allows you to prioritize recruiting the best people and integrating them into your company culture. Your team stays lean, and you avoid getting caught up in the details of local processes or shifting regulations. For founders, global hiring managers, or HR teams working across borders, an EOR multiplies your impact, reducing admin time, preventing errors, and helping ensure that new hires have a smooth experience from the get-go.

Managing payroll in Thailand requires careful attention to various tax obligations and compliance requirements. Employers must navigate the progressive personal income tax system with rates ranging from 0% to 35%, while also managing social security contributions fixed at 5% of employee salaries (capped at THB 750 monthly). Additional considerations include the Workmen's Compensation Fund (0.2–1% of payroll) and optional provident fund contributions.

Timely submission of tax forms and payments is critical, with specific deadlines for each obligation, including the 7th of the following month for income tax withholding (15th if filing electronically) and the 15th for social security contributions.

Using payroll management software can help employers consolidate payroll data, ensure accurate calculations, and maintain compliance with Thailand's evolving tax regulations, ultimately reducing the risk of penalties and administrative burdens.

Hiring in Thailand means taking on local payroll obligations, which often include unique tax rates, contribution rules, and strict documentation. If you're not familiar with the system, or don't have a local entity, it’s easy to make mistakes. That’s where an Employer of Record ccomes in. The EOR manages payroll for your team on your behalf, ensuring every process is accurate, timely, and legally compliant.

Key Ways an EOR Supports Payroll in Thailand:

• Full Legal Compliance: Ensures all payments, deductions, and filings meet country-specific requirements.
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Statutory Benefit Contributions: Pays into required social programs and manages country-mandated benefits.
• Employee Documentation: Generates compliant contracts and manages hiring and termination paperwork.
• Local Currency Payouts: Delivers salaries in local currency, avoiding delays or exchange rate issues for employees.

In Thailand, work permits and visas are necessary for employers hiring foreign workers. The process involves obtaining a Non-Immigrant B Visa, submitting a work permit application, and ensuring compliance with local laws. Key visa types include the Non-Immigrant B Visa, Non-Immigrant IB Visa, and Smart Visa. Employers must provide the correct documentation and plan for processing times to avoid delays.

Mandatory Leave Entitlement in Thailand

The annual leave entitlement in Thailand is 6 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Thailand

Workers in Thailand are entitled to a minimum of 13 mandatory public holidays each year. These holidays include:

Paid Time Off in Thailand

Employees in Thailand are entitled to six days of annual leave after completing one full year with their employer. If employees haven't worked for a full year, leave may be offered on a pro-rata basis. Employers and employees can also establish a leave carryover policy through mutual agreement beforehand.

Maternity Leave In Thailand

Female employees in Thailand are entitled to 120 days of maternity leave. The first 45 days are fully paid by the employer, and the remaining period is compensated through the government social security fund at 50% of the regular salary rate.

Paternity Leave In Thailand

Government employees in Thailand receive 15 days of paid paternity leave each year. Private sector employees are now also entitled to 15 days paid paternity benefits according to recent legislation.

Sick Leave In Thailand

Under Thai labor laws, employees are entitled to a maximum of 30 paid sick days each year, with their regular pay maintained by the employer. If the incapacity lasts longer than 30 days, the employee can use accrued paid vacation days or choose unpaid leave. When sickness-related absence exceeds three days, the employer may request a medical certificate from the employee.

Parental Leave In Thailand

Thailand does not have a shared parental leave policy that allows parents to divide or share a designated period of leave between them.

Personal Business Leave

Employees have the right to three days of paid personal business leave each year, allowing them to address personal matters.

Military Service Leave

Employees are eligible for up to 60 days of leave for military exercises, with compensation at the basic pay rate.

When hiring across multiple countries, maintaining consistency in how you deliver employee benefits quickly gets tricky. Each country, including Thailand, has its own legal rules, cultural norms, and contribution systems. An Employer of Record helps you strike the right balance between global structure and local compliance. They take over the complexity of delivering benefits that are aligned with Thailand’s legal requirements and competitive with local market expectations.

From ensuring statutory benefits are in place to managing local onboarding timelines and enrollment systems, the EOR provides a seamless experience for both employer and employee. This makes it easier to grow your team across borders without reinventing your benefits process in each new location. You stay in control of your overall benefits strategy, while the EOR takes care of executing it in a way that works legally and culturally in Thailand. It’s a smarter way to scale benefits globally without losing local relevance.

Termination Process in Thailand

Termination of employment in Thailand can occur with a valid reason. In cases without a valid reason, employees may file unfair dismissal claims, which Thai law often favors. Following termination, employers are required to notify the Social Security Office, and for foreign workers, the Immigration Bureau and the Department of Employment. Some valid reasons for termination include:

• Criminal offenses
• Negligence
• Violation of work rules
• Unexplained absence for three consecutive days

Notice Period in Thailand

In Thailand, terminating employment requires advance written notice, usually for a standard period of 30 days. Employers can specify longer notice periods in the employment contract if needed. Notice should be given before the scheduled wage payment date to apply for the following pay cycle, and the option for payment in lieu of notice is also possible.

Severance in Thailand

Employees who are terminated in Thailand and have completed more than 120 days of service are eligible for severance pay, except in cases of dismissal for serious misconduct. The severance pay amount is determined by the length of the employee's service, with an increase corresponding to the duration of employment as follows:

• Between 120 days and 1 year: 30 days' salary
• Between 1 year and 3 years: 90 days' salary
• Between 3 years and 6 years: 180 days' salary
• Between 6 years and 10 years: 240 days' salary
• Between 10 years and 20 years: 300 days' salary
• Over 20 years: 400 days' salary