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How To Terminate Employment in Thailand

The termination of the employment is a common thing that could happen to Thai entrepreneurs by various reasons.  Thus, it is necessary for the Thai entrepreneurs as the employers to learn the procedures of the lawful termination of the employment according to Thai labor laws.  Please see the details of each type of the employment termination below.

For the termination of the employment contract with indefinite period, an employer may terminate the employment contract by giving advance notice in writing to an employee on or before any due date of wage payment in order to take effect on the following due date of the wage payment.  Alternatively, the employer may pay wages in an amount to be paid up to the due time of termination of the employment as specified in the notice (payment in lieu of the notice) and may dismiss the employee immediately. Additionally, the employer will also have a duty to pay severance pay to the employee which the amount of such severance pay will vary in proportion to the uninterrupted period the employee has worked with the employer.

For the termination of the employment contract with definite period, the employment normally expires upon the completion of the period specified in the employment contract with no requirement for advance notice.  The early termination of the employment can be in accordance with either the provision of the termination in the contract or mutual agreement by both the employer and the employee.  Kindly note that the employer still has a duty to pay the severance pay to the employee according to the uninterrupted period the employee has worked with the employer unless such employment with definite period has all following characteristics:

·        It must be the employment agreement with the definite period of not exceeding 2 years;

·        It must be the employment for a specific work which is not the normal business or trade of the employer that require a definite date to commence and end the work; and

·        The employment agreement must be made in writing.


For the termination of the employment contract for as a result of the reorganization of an undertaking, production line, sale or service due to the adoption of machinery or the change of machinery or technology which causes a reduction of the number of the employees, the employer will have a duty to notify the Labor Inspector and the employees in advance of not less than 60 days before the date of the termination, giving the date of the termination, the reasons for termination and a name list of the employees.  If the employer fails to notify the employees of the termination in advance or has notified the employee less than 60 days before the termination, the employer must pay the special severance pay in lieu of advance notice equivalent to the employee’s last rate of wages for 60 days. 

In this case, kindly note that the employer still has a duty to pay the severance pay to the employee according to the uninterrupted period the employee has worked with the employer.  If the employee has worked for uninterrupted period of more than 6 years, the employer must pay the special severance pay in addition to the severance pay of not less than the employee’s last rate of wages for 15 days for each year of employment.


Rukphon Sungsianawatara
(Attorney at laws)
Email: rukphons@gmail.com
Tel: +66-95-390-8245

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