This information is for reference only and is not legal advice. Consult a licensed lawyer before any transaction.
Labour Protection Act B.E. 2541 (1998)
Labour Protection Act B.E. 2541 (1998)
The information is reviewed and updated monthly against official sources.
In short
Core employment standard: working hours, overtime, minimum wage, leave, severance. Binds anyone working legally or hiring Thai staff in Thailand.
Working hours: Maximum working hours
Normal working hours must not exceed 8 hours per day and 48 hours per week. For work that may be hazardous to health or safety (as specified in ministerial regulations), the limit is 7 hours per day and 42 hours per week. Employees are entitled to a rest break of at least 1 hour after working 5 consecutive hours, although shorter breaks adding up to at least 1 hour per day may be agreed.
Overtime and holiday pay: Overtime and work on holidays
An employer may not require overtime or work on a holiday without the employee's prior consent on each occasion (with limited exceptions for continuous or urgent work). Overtime on a normal working day is paid at not less than 1.5 times the hourly wage. Work performed on a holiday is paid at an additional rate (commonly 1 to 2 times the normal rate), and overtime done on a holiday is paid at not less than 3 times the hourly rate. Total overtime and holiday work combined is generally capped at 36 hours per week.
Wages and minimum wage: Wages and minimum wage
Wages, overtime pay and holiday pay must be paid in Thai currency at least once a month (or as otherwise agreed), at the workplace, unless the employee consents to another method such as bank transfer. Employers must pay at least the legally fixed minimum wage, which is set by provincial wage committees and varies by province, so the figure differs across Thailand and is updated periodically. Male and female employees doing work of equal value must receive equal pay.
Holidays and leave: Weekly holidays, public holidays and leave
Employees are entitled to at least 1 weekly holiday (with intervals of not more than 6 days between them) and to at least 13 traditional/public holidays per year, including National Labour Day. After 1 full year of continuous service an employee is entitled to at least 6 working days of paid annual vacation. The Act also provides paid sick leave (up to 30 working days per year, with a medical certificate required for absences of 3 or more days), business-leave entitlements, and maternity leave of up to 98 days, a portion of which is paid by the employer.
Section 118: Severance pay on termination
An employee who is terminated without a serious legal cause is entitled to severance pay based on length of continuous service: 120 days to less than 1 year - 30 days' wages; 1 to less than 3 years - 90 days' wages; 3 to less than 6 years - 180 days' wages; 6 to less than 10 years - 240 days' wages; 10 to less than 20 years - 300 days' wages; and 20 years or more - 400 days' wages. Severance is calculated on the last wage rate. It is not owed where the employee is dismissed for serious misconduct defined in the Act (such as dishonesty, intentional damage, or a serious breach of work rules after warning).
Special severance: Advance notice and special severance
Apart from ordinary severance, an employer who ends an indefinite contract without cause must usually give advance notice (at or before a wage-payment date, to take effect by the next one) or pay wages in lieu of notice. The Act also provides extra special severance pay where employees are laid off due to the introduction of machinery or technology that reduces the workforce, and where the business relocates and the employee chooses not to move. These special payments are in addition to, and calculated separately from, ordinary severance.
Work rules: Work rules and employee records
An employer with 10 or more employees must prepare written work rules in Thai covering matters such as working days and hours, holidays, leave, wages, discipline and the grievance procedure. The rules must be announced or displayed openly so employees can read them, and kept at the workplace. Employers must also maintain employee registers and wage-payment records, which the labour authorities may inspect.
Protection of employees: Enforcement, time limits and protection of rights
Rights under the Act cannot be waived: any agreement paying less than the statutory minimum is void to that extent. An employee whose pay or severance is unpaid may file a complaint with a labour inspector of the Department of Labour Protection and Welfare or sue in the Labour Court, generally without court fees. Unpaid wages and severance carry interest (statutory interest of 15 percent per year) and, in cases of intentional default, a possible surcharge. Claims must be pursued within the limitation periods set by Thai law, so employees should act promptly after a dispute arises.