Thread: Terminating employment in Thailand

Thanks for that, William. I believe his contract states nothing that he could use to his advantage - he had an interview this afternoon with another firm, and my ex-employer voiced an interest too, so I guss it will be OK in the end. It just pisses me off that he was treated this way.

I haven't been here for a while...and I always enjoy reading William...

According to my knowledge of labour law in Thailand, and I haven't read all messages in this thread neither seen your contract, this is what an employer normally has to do:

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Severance Pay
An employer shall pay severance pay to an employee whose employment is terminated, as follow:

1. An employee who has worked for at least 120 consecutive days, but for less than one year shall be paid basic pay for 30 days at the most recent rate of basic pay received by him.
2. An employee who has worked continuously for at least one year but less than three years shall be paid basic pay for 90 days at the most recent rate of basic pay received by him.
3. An employee who has worked consecutively for three years but less than six years shall be paid basic pay for 180 days at the most recent rate of his basic pay.
4. An employee who has worked consecutively for at least six years but less than 10 years shall be paid basic pay for not less than 240 days at the most recent rate of his basic pay.
5. An employee who has worked for more than 10 years consecutively shall be paid basic pay for not less than 300 days at the most recent rate of his basic pay.

Where an employer terminates an employee because of improvement to the working unit, production, distribution or service processes, arising from the utilization of machinery or a change of machinery or technology, and which is cause of the reduction in number of employees. The employer shall follow:

1. Notify a labour inspector, and the employee to be terminated, of the date of termination of employment, the reasons for terminating the employment and the name(s) of the employee(s) to be terminated at least 60 days in advance of the employment termination date.
2. Where an employer fails to give advance notice to an employee of his termination, or give advance notice but shorter than 60 days, the employer shall instead of the advance notice, pay special severance pay, equal to 60 day pay at the most recent rate of basic pay that the employee has received, or equal to his basic pay received for the last 60 days in the case of an employee who receives his basic pay based upon his output.

Where special pay is made instead of the provision of advance notice, it shall be deemed that the employer has paid remuneration instead of providing advance notice under the civil and commercial code.


An employer shall pay special severance pay in addition to the regular severance as follows:

1. Where an employer terminates an employee who has worked continuously for 6 years or more, the employer shall pay special severance pay in an amount of not less than the basic pay received for the most recent 15 days, for each complete year of work; or not less than the basis pay received for the most recent 15 days for each complete year of work in the case of an employee.
2. Who receives his basic pay based upon his output, but the total severance pay shall not, in aggregate, exceed 360-day basic pay at the most recent rate or not exceed the basic pay paid for the last 360 days in the case of an employee who receives his basic pay based upon his output.
3. In calculating special severance pay, where an employment period is less than one year, the exceed of more than 180 days shall be deemed as one year of employment.

Where an employer relocates its place of business and effects the ordinary course of living of the employee or his family, the employer shall follow:


- Notify the employee of the relocation not less than 30 days prior to the date of relocation. If an employee does not wish to work for the employer at the new location, he has the right to terminate his employment contract and be entitled to special severance pay at the rate of not less than 50% of the rate of severance pay.

- Where an employer fails to give advance notice of relocation of its place of business to an employee, the employer shall also pay special severance pay in lieu of the advance notice in an amount equal to 30 day pay at the most recent rate of his basic pay.

An employer is not required to pay severance pay to an employee whose employment has been terminated for any of the follwing reasons:

1.Resignation

2.Dishonest performance of his duties or the intentional commission of a criminal act against the employer; Intentionally causing loss to the employer

3 Performance of gross negligence which result in severe loss to the employer; Violation of the employer's work rules or regulations or order which are both lawful and equitable when the employer has already issued the employee with a prior written warning, except in a serious instance when the employer is not required to give a warning.

4. The written warning shall be effective for a period of one year as from the date of the commission of the violation by the employee;

5. Neglect of his duties for a period of three consecutive work days without reasonable cause, whether or not a holiday intervenes;

6.Imprisonment by reason of a final judgement.

7. An employment contract shall be terminated when the specified period in the employment contract expires, the works related are as follows:


8.1 Employment on a special project, which is not in the normal way of business or trade of the employer, where there is a fixed schedule for commencement and completion of work.

8.2 Work of a temporary nature with a fixed schedule for its commencement or completion.

8.3 Seasonal work in respect of which employees are only engaged during that season; provided that the work most be completed within a period of two years and the employer and employee have entered into a written agreement at or prior to the commencement of employment.
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This was taken from an organization in Thailand promoting rights of workers. I believe it's up to date because we had a similar case few months ago and I asked questions to the lawyers at our office and they all told me the information was accurate.

There is also a book about the laws and regulations of workers in Thailand, in English and Thai. It's available at Thamassat university bookstore.
If you need the reference, just send me a private message.

Good luck.