Employment contracts Thailand

What should an employment contract in Thailand include?

An employment contract in Thailand should include these key details:

• Names and contact details of both the employer and employee
• The employee’s job title and a description of their responsibilities
• Specified working hours and days
• Agreed-upon salary, along with any additional benefits and incentives
• Conditions for terminating the contract, including notice periods for both parties
• Mutual agreements on non-disclosure and confidentiality obligations

It’s crucial for both the employer and employee to carefully review the contract terms before signing.

What types of employment contracts exist in Thailand?

Employment contracts in Thailand can be categorised into several different types.

1. Indefinite contracts

Indefinite contracts have no set end date and can be either verbal or written. However, having a written contract is crucial to avoid misunderstandings. This is particularly important for tech companies with remote or distributed teams, where in-person communication is limited.

2. Fixed-term contracts

Fixed-term or definite contracts are designed for temporary, seasonal, or project-specific roles. For instance, if a company hires a team for a tech project anticipated to last a year, their employment would be under a fixed-term contract.

According to employment law, these contracts must be in writing and clearly specify the duration, which cannot exceed two years.

3. Temporary contracts

These contracts cater to very short-term or irregular employment needs. These contracts are suitable for jobs that are occasional or of short duration, such as part-time or freelance work. They offer flexibility for both employers and employees, fitting well for roles that do not require a full-time commitment.

How to hire employees in Thailand? 

When hiring employees in Thailand, it’s crucial to establish a formal business presence within the country. This process includes registering with Thailand authorities and obtaining an official business identification number. Complying with local laws and regulations is essential to ensure that your business meets all legal requirements.

However, by utilising Native Teams’ Employer of Record (EOR) solutions, you can focus on your company’s daily operations while we handle the complexities. Our services provide full support for legal hiring practices in Thailand and across many other countries, allowing you to streamline the recruitment process and stay compliant.