Hiring in Thailand

The terms set out role, salary in THB, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English or bilingual English-Thai contracts are standard for commercial roles. Employers with 10 or more staff must also publish work rules in Thai.

Fixed-term contracts are permitted, but they escape statutory severance only in narrow project-based cases, so most EORs default to indefinite terms.

Set probation from day one. An extended probation does not delay severance. Once service reaches 120 days, a dismissal without cause triggers it either way.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is paid at 1.5 times the hourly rate on working days and 3 times on holidays, with overtime and holiday work capped at 36 hours a week.

Most professional hires are covered, because only staff with authority to hire, set pay or dismiss on the employer's behalf are excluded. Many office roles run a 40-hour week in practice. Put the position in writing either way.

Market practice for professional roles is 10 to 15 days, well above the statutory floor, so quote the market figure when you budget. A draft amendment would raise the floor to 10 days, but it is not yet law.

Paid sick leave runs to 30 working days a year. Maternity leave is 120 days, partly employer funded and partly paid through social security, and fathers now get 15 days on full pay, so confirm which side the EOR carries.

Either side may terminate on notice, and the employer may pay in lieu instead. Severance is statutory and separate from notice pay, and only the gross misconduct grounds listed in the Act remove it.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and severance, which falls due on the last day. Unfair dismissal claims exist even where severance is paid, so keep a documented reason.

Private medical cover, group life and a provident fund are standard for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top, and whether the EOR's provident fund exempts it from the new Employee Welfare Fund.

Employer social security tops out at THB 875 per employee a month, plus a small workmen's compensation premium and, since October 2026, 0.25% to the Employee Welfare Fund where it applies. That is before the EOR fee.

Severance is the trap. It switches on at 120 days of service, steps up with tenure and is paid as a lump sum on the last day, so provide for it monthly rather than meeting it at exit.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the capital and headcount tests apply to the sponsor, not to you, at every renewal.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers need adequate protection at the destination or approved safeguards.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation itself is routine, but ownership is the point: the Foreign Business Act limits foreign shareholding in most service sectors without a licence or BOI promotion, every company needs an annual audit whatever its size, and sponsoring foreign staff brings the capital and headcount tests with it.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.