How to hire in Thailand through an EOR

Fixed-term contracts in Thailand can't exceed two years without triggering severance pay, so most companies default to indefinite contracts for ongoing roles. It keeps things straightforward and avoids the automatic conversion to permanent status that kicks in if someone keeps working past their end date.

Indefinite contracts are the norm because Thai law treats long fixed terms like permanent ones anyway. If a fixed-term contract runs past two years, you're on the hook for severance. It's rarely worth the risk.

What has to be in the contract

Thai law doesn't require written contracts for everyone. Oral agreements hold up, particularly in small businesses or rural settings. That said, if you have 10 or more employees, you're required to post written work rules covering hours, pay dates, leave, overtime, holidays, discipline, and termination.

For 20 or more employees, you'll need a formal written work conditions agreement. Even if you're below those thresholds, put the key terms in writing: job title, duties, location, salary (including overtime and bonuses), hours, breaks, leave, any probation period, and termination rules. It saves a lot of back-and-forth later over what was actually agreed.

There's no legal requirement to use Thai, but it's the safest choice for enforcement. English contracts are valid if both parties sign, but courts tend to favor the Thai version if there's a conflict.

Probation can last up to 119 days. Spell out the evaluation criteria and the notice required to end it early. Fixed-term contracts don't include probation at all. During probation, termination is more straightforward, but you still need to follow basic notice requirements or pay in lieu.

Contractor vs employee

The biggest compliance risk here is misclassifying a contractor as an employee. Thai courts look at control. If you set someone's hours, supervise their work, provide their tools, or they're integrated into your team day-to-day, they're likely an employee under the Labour Protection Act. True contractors fall under the Civil Code's "hire of work" rules, with no supervision and project-based pay.

If you get it wrong, you could owe back wages, benefits, social security contributions, severance, and holiday pay. Fines from the Ministry of Labour can reach 100,000 baht per violation. Tax authorities may also pursue back payments and penalties on top of that. Labour courts tend to side with workers, so the costs add up quickly.

Non-compete clauses are difficult to enforce in Thailand. To have any chance of holding up, they need to be reasonable in scope: limited in time (under two years), geography, and the type of work restricted. Courts will strike down anything that looks overly broad. On IP, employees own their inventions by default unless the contract explicitly assigns those rights to the company and the work is tied to their role.

In practice, indefinite written contracts with clearly stated terms are your safest starting point. If you're hiring in Thailand for the first time, working with an EOR can help you get classification and compliance right from the start.

Thailand's legal minimum is just six days of paid annual leave. In practice, local talent expects 12-15 days, so the gap between what's required and what's competitive is significant.

Time off

Employees are entitled to at least six paid working days of annual leave after one full year of continuous service. For partial years, it accrues pro-rata based on months worked. You set the final schedule, though employees can request specific dates, and unused leave can carry over if you allow it. On termination, any outstanding leave is paid out at regular wages.

Thailand has 16-17 public holidays each year. Most are paid when they fall on workdays. Here's the full list for 2026:

All leave types

Here's what the law requires. Pay is at 100% unless noted, and job protection applies during leave.

Mandatory benefits

If you have one or more employees, you're required to enroll them in the Social Security Fund (SSF) from day one. It covers health, maternity, disability, death, child allowance, and old-age pension. Both you and the employee contribute 5% of salary, capped at THB 750/month per side, with a minimum salary base of THB 1,650/month.

There's no legal requirement for private health insurance or a pension beyond SSF. Meal vouchers and transport allowances aren't mandated either. Minimum wage varies by province: THB 337-400/day, with Bangkok at THB 400 since July 2025.

What people actually expect

The legal minimums are low, particularly on annual leave. Offering only six days will make it hard to attract experienced candidates. Most local professionals treat 12-15 days as the baseline, with leave often increasing by tenure, for example, 10 days in year one, 15 after three years. Senior roles at many firms start at 18 days or more.

Private health insurance matters too. SSF covers the basics, but wait times are long and hospital options are limited. Most competitive employers add coverage for international clinics or family riders. In tech and multinational roles, you're typically looking at THB 10,000-20,000/year in premiums.

Remote work stipends aren't required by law, but most professionals now expect THB 1,000-3,000/month for internet and phone if the role is hybrid. In Bangkok, meal allowances of THB 50-100/day and transport support around THB 1,500/month are common ways to help offset living costs. Performance bonuses of 1-3 months' salary and 13th-month pay are also standard at companies that hire and retain well.

Offer below market and you'll likely only attract junior candidates. Get closer to these benchmarks and you'll find it much easier to build a stable, experienced team.

Firing someone in Thailand without solid proof of misconduct can result in court orders for reinstatement or significant compensation. Thai law heavily favors employees, so document everything carefully or consider using an EOR to manage the risk.

Firing someone

You can terminate immediately for just cause: gross misconduct, theft, dishonesty, gross negligence, or missing three consecutive workdays without reason. Other valid grounds include negligent acts, contract violations, or criminal acts against the business. For these, no notice or severance is required.

Termination without cause requires 30 days' written notice and severance pay. Probationary employees (up to 119 days) can be let go without penalty, but you need to notify them before day 120, when full protections kick in. Fixed-term contracts end naturally without notice, but early termination needs just cause.

Unfair dismissal applies if you lack proof of cause, skip procedure, or terminate for protected reasons like pregnancy, union activity, filing complaints, legal proceedings against you, or gender discrimination. Courts require evidence. Get it wrong and you're looking at compensation, severance, or reinstatement.

Notice periods

Notice is 30 days unless your contract specifies 1 to 3 months. You can pay in lieu. Employees give the same. During probation, no notice is required from either side.

Severance

Severance is mandatory after 120 days of service, unless the termination is for just cause under section 119. It's not required for probationary dismissals under 120 days or fixed-term contracts that end naturally before 120 days. There are no caps. Calculate based on last daily wage times days owed, and pay within one month.

For economic reasons like restructuring or automation, severance is still due unless you can prove true redundancy. Mutual agreement can end a contract without it.

Work permits and visas

You can hire foreign nationals through an EOR. They sponsor the work permit and non-immigrant B visa, which is required for work authorization, and handle registration with the Ministry of Labour.

The non-immigrant B visa is the standard route for employment. It's issued for 90 days initially and extendable yearly. The work permit follows visa approval and typically takes around 7 days. You'll need a job offer, proof of qualifications, and company documents. Total timeline is usually 4 to 8 weeks. There's no digital nomad visa in Thailand yet.

Both the visa and work permit need renewing annually. Working without a valid permit carries fines of up to THB 100,000 per foreign worker, plus potential deportation. An EOR can guide your hire through the whole process.

Other things worth knowing

Thailand's Personal Data Protection Act (PDPA), effective 2022, requires consent for employee data handling, breach notifications within 72 hours, and data protection officers for larger firms. Non-compliance fines can reach THB 5 million. It's worth training your team and auditing your processes now.

Trade unions exist in Thailand but membership is low, and collective bargaining agreements are rare outside large factories. Unless your workforce is unionized, there aren't major mandates to worry about here.

One thing to plan for: the Employee Welfare Fund (EWF) starts October 1, 2026. It covers termination, death, or disability support, with employers contributing matching employee savings (exact rates are still being set by regulation). If you have a private scheme that covers the same ground, you may be exempt. Either way, it's worth budgeting for this now.

Always issue a work certificate on termination that states the length of service. If you need to suspend someone during an investigation, check that your internal rules allow it, cap it at 7 days with 75% pay, and notify the Labour Department. Courts pay close attention to procedure, and small missteps can be costly.