Employment relationships in Thailand are primarily governed by the Labour Protection Act B.E. 2541 (1998) and its amendments, supported by the Civil and Commercial Code, the Social Security Act, and the Workmen's Compensation Act. These laws apply to both Thai and foreign employees working in the private sector, whether under fixed-term or open-ended contracts.

The Labour Protection Act sets the minimum standards that every employer must meet, covering areas such as:

• Working hours, rest periods, and overtime
• Minimum wage and payment of wages
• Public holidays and leave entitlements
• Termination, notice, and severance pay

Employers are free to offer terms more generous than the statutory minimum, but any contract clause that falls below these standards is unenforceable. Non-compliance can lead to fines, back-pay orders, and, for serious breaches, imprisonment.

Thai law does not require an employment contract to be in writing, and verbal agreements are legally valid. In practice, however, a written contract is strongly recommended to document job scope, salary, working hours, benefits, and termination terms.

There is no statutory probation period under the Labour Protection Act. Employers commonly set a probation of up to 119 days, because an employee who is dismissed without cause after completing 120 days of continuous service becomes entitled to statutory severance pay. Probationary employees enjoy the same protections and, once they cross the 120-day threshold, the same severance rights as permanent staff.

The Labour Protection Act sets clear limits on working time:

• Standard working hours may not exceed 8 hours per day and 48 hours per week for general work.
• For work that is hazardous to health or safety, hours are capped at 7 hours per day and 42 hours per week.
• Employees must receive a rest break of at least 1 hour after working no more than 5 consecutive hours.
• Employees are entitled to at least one weekly holiday (rest day), with intervals of no more than 6 days between rest days (commonly Sunday).

Overtime and holiday work are voluntary and, in most cases, require the employee's consent. When they occur, the following premium rates apply:

Thailand sets a province-based daily minimum wage rather than a single national rate. The figure is reviewed by a tripartite wage committee and adjusted periodically. During 2025 the daily minimum wage ranged from roughly THB 337 to THB 400 per day depending on the province, with the highest rate (THB 400 per day) applying in Bangkok and high-cost provinces such as Phuket, Chonburi, and Rayong.

The rate is a floor that applies to all employees, including probationary and part-time staff, on a per-day basis. Employers should always check the latest rate for the specific province of employment, as bands are updated frequently.

The Labour Protection Act guarantees several categories of paid leave. Employers may offer more, but not less, than these statutory minimums.

Employers must provide at least 13 paid public holidays per year, which must include National Labour Day (1 May). The specific days are announced annually and typically include New Year's Day, Makha Bucha, Chakri Memorial Day, Songkran (Thai New Year), Visakha Bucha, His Majesty the King's Birthday, and others.

If a public holiday falls on an employee's weekly rest day, a substitute holiday is granted on the next working day. Employees required to work on a public holiday must be paid the applicable holiday premium (see the overtime rates above) or given a substitute day off.

Employment can end by resignation, mutual agreement, expiry of a fixed term, or dismissal. For open-ended contracts, either party must generally give advance notice of at least one wage-payment period (commonly one month), with the notice taking effect no later than the next pay date. Notice is not required where the employee is dismissed for serious cause listed in the Act (such as dishonesty, wilful damage, or gross negligence).

An employee dismissed without serious cause who has completed at least 120 days of continuous service is entitled to statutory severance pay, based on length of service:

Hiring in Thailand requires careful adherence to the Labour Protection Act and its recent amendments. Meeting the statutory minimums on working hours, wages, leave, and severance—while keeping up with frequent changes such as the 2025 maternity-leave expansion—builds a strong, compliant foundation for your workforce. Consider working with an HR partner experienced in Thai labour law to ensure a smooth and compliant hiring process.

Book a call with us today to learn how we can support your hiring needs in Thailand.