{"id":133426,"date":"2026-04-07T13:44:19","date_gmt":"2026-04-07T13:44:19","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=133426"},"modified":"2026-04-07T13:44:19","modified_gmt":"2026-04-07T13:44:19","slug":"thailand-employment-and-labour-law","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/thailand-employment-and-labour-law\/","title":{"rendered":"Thailand: Employment and Labour Law"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-133426","comparative_guide","type-comparative_guide","status-publish","hentry","guides-employment-and-labour-law","jurisdictions-thailand"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Chandler MHM<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2020\/06\/20240712_MoriHamada_Logo_Chandler_Official_rgb_isolation.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Chandler MHM<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2020\/06\/20240712_MoriHamada_Logo_Chandler_Official_rgb_isolation.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Employment and Labour Law laws and regulations applicable in Thailand<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does an employer need a reason to lawfully terminate an employment relationship? If so, state what reasons are lawful in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An employer may terminate an employment relationship for various reasons as outlined in the Civil and Commercial Code and the Labour Protection Act B.E. 2541 (1998) (as amended) (the \u201cLabour Protection Act\u201d). The employer is required to provide statutory severance pay at a rate based on the terminated employee\u2019s years of service, regardless of the reason for termination. However, if the termination occurs without reasonable and justifiable grounds, it may be considered unfair dismissal. In such cases, the employer would need to provide additional compensation (for unfair dismissal).<\/p>\n<p>&#8216;Reasonable and justifiable grounds&#8217; for termination include the employee&#8217;s incompetence, poor work quality, retirement, chronic illness, the employer\u2019s financial difficulties (deficit situation), or reduction of business units, provided there is no discrimination or intended persecution against any particular employee. If termination is based these grounds, Supreme Court precedents indicate that an employer is not liable to pay any additional compensation beyond the statutory severance pay.<\/p>\n<p>There are also certain \u2018causes\u2019 under the Labour Protection Act that allow an employer to terminate an employee without providing severance pay. These include:<\/p>\n<p>(i) The employee\u2019s dishonesty towards their duties or intentional criminal activity against the employer;<\/p>\n<p>(ii) The employee\u2019s intentional action causing the employer to suffer losses;<\/p>\n<p>(iii) The employee\u2019s negligence causing the employer to suffer severe losses;<\/p>\n<p>(iv) The employee\u2019s violation of work rules or regulations or orders that are lawful and fair (given a written warning has already been provided), except in serious situations, where the employer is not required to give a warning;<\/p>\n<p>(v) The employee\u2019s neglect of their duties for three consecutive workdays without a reasonable cause; and<\/p>\n<p>(vi) The employee\u2019s imprisonment due to a final judgment for an offence other than those arising out of negligent acts or petty offences, or for any offence arising out of negligent acts or any petty offence that has caused damage to the employer.<\/p>\n<p>Termination on these grounds is also unlikely to be considered unfair dismissal and thus would not require any additional compensation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, additional considerations apply if large numbers of dismissals (redundancies) are planned?  How many employees need to be affected for the additional considerations to apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>When large-scale dismissals or redundancies are planned due to improvements in organisational structure, production processes, distribution, or service, resulting from the adoption of new technology or machinery, the Labour Protection Act requires employers to give employees at least 60 days&#8217; notice prior to the intended termination date. Outside these specific circumstances, the general rule requires employers to give only one full pay period\u2019s notice before termination. It is important to note that while there is no specific provision dealing with large-scale redundancies, adherence to the general termination and severance pay laws is mandatory. Moreover, there are no additional statutory considerations specifically for redundancy cases. However, in market practice, employers often offer additional ex gratia payments to induce an amicable mutual separation or termination of employment, although this is not a legal requirement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, additional considerations apply if a worker\u2019s employment is terminated in the context of a business sale?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the context of a business sale involving the intended transfer of employees from the seller&#8217;s entity to the buyer&#8217;s, the Labour Protection Act requires that employees&#8217; consent must be obtained, and the terms and conditions of employment must remain unchanged post-transfer. Should the employees decline the transfer, the seller retains legal responsibility as the employer. General termination laws, including the obligation to provide statutory severance pay and ensure fair termination practices without discrimination or persecution, continue to apply. There are no additional statutory considerations specifically prescribed for terminations in the context of a business sale.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do employees need to have a minimum period of service in order to benefit from termination rights?  If so, what is the length of the service requirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, employees need to have a minimum period of service to benefit from certain termination rights under the Labour Protection Law. The key points are as follows:<\/p>\n<p>Severance Payments: Employers are obligated to make severance payments if the termination is made effective after the employee has completed 120 days of service. The rates of severance pay are detailed in Question 17.<\/p>\n<p>Unfair Termination Compensation: In addition to severance pay, employers may need to pay additional compensation if the termination is made without reasonable and justifiable grounds and is considered unfair dismissal (as discussed in Question 13). It should be noted that termination during a mutually agreed probationary period is generally not regarded as unjust or unfair dismissal (unless carried out in bad faith). Therefore, if termination is made effective during the probationary period before the employee completes 120 days of service, neither severance pay nor additional compensation is due. However, if termination occurs during the probationary period after the employee has completed 120 days of service, only the statutory severance must be paid.<\/p>\n<p>Regardless of the probationary period, employers are required to observe the required notice period or make payment in lieu thereof when terminating an employee (as discussed in Question 5).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, is the minimum notice period to terminate employment?  Are there any categories of employee who typically have a contractual notice entitlement in excess of the minimum period?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Labour Protection Act requires that a statutory notice period of at least one full pay period must be given for an intended employment termination, i.e., notice must be given before or on the wage payment date to take effect on the subsequent wage payment date. However, if an employer agrees to a notice period for dismissal that is longer than the statutory minimum (i.e., 2-, 3- or 6-months\u2019 notice in advance), usually specified in an employment agreement, the contractual notice period will prevail.<\/p>\n<p>For terminations due to improvements in the working unit, production process, distribution, or service resulting from the use of machinery or a change in machinery or technology, please refer to answer to Question 2, which stipulates that the employer must notify the employee at least 60 days prior to the intended termination date.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to make a payment to a worker to end the employment relationship instead of giving notice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to the Labour Protection Act, an employer can terminate the employment with immediate effect by paying wages in lieu of advance notice. This amount will be equal to the employee\u2019s wages for the statutory or contractual notice period, whichever is longer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer require a worker to be on garden leave, that is, continue to employ and pay a worker during their notice period but require them to stay at home and not participate in any work?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An employer can place a worker on \u2018garden leave\u2019 during the applicable notice period, as long as the employer continues to pay the worker\u2019s wages and other benefits until termination takes effect.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does an employer have to follow a prescribed procedure to achieve an effective termination of the employment relationship? If yes, describe the requirements of that procedure or procedures. Is an employee entitled to appeal against their termination?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A proper termination procedure is prescribed by the Labour Protection Act. The employer must (i) observe either statutory or contractual notice periods, whichever is longer, or make a payment in lieu thereof for immediate termination; (ii) pay final wages, compensation for any unused annual leave, and any other contractual benefits (e.g., a guaranteed bonus); (iii) make statutory severance payment; and (iv) provide the employee with a certificate of employment. Employers are advised to thoroughly document the termination details, with a key focus on the reasons for the termination. This will be evidentiarily and procedurally crucial, as sufficient documentation strengthens the employer&#8217;s position if the terminated employee files a claim. Although not required by law, it may also be helpful to record any monetary entitlements paid to the employee for complete record-keeping and tax purposes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If the employer does not follow any prescribed procedure as described in response to question 8, what are the consequences for the employer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Failing to adhere to either statutory or contractual notice periods, not making severance payments or delaying the payment of wages beyond three days from the employment termination date, is punishable with imprisonment for up to six months or a fine of up to THB 100,000, or both. The employer is also liable for default interest at the rate of 15% per annum on any overdue payments, with an additional surcharge of 15% of the overdue amounts for every seven-day period where it is proven that the employer intentionally withholds or avoids making the statutory payments without a reasonable cause.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How, if at all, are collective agreements relevant to the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Collective agreements may impose additional requirements for termination, such as conducting pre-termination investigations, appointing investigation committee members from a Labour Union, or offering additional compensation packages. Employers must comply with these stipulations if they exist.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the employer have to obtain the permission of or inform a third party (e.g local labour authorities or court) before being able to validly terminate the employment relationship? If yes, what are the sanctions for breach of this requirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If an employer intends to terminate an employee who is a member of an employees\u2019 committee, permission from a labour court is required. Non-compliance with this requirement may lead to imprisonment for up to a month or a fine of up to THB 1,000 or both. Furthermore, if terminations result from improvements in the working unit, production process, distribution, or service, or are due to the use of machinery or technological advancements that reduce the need for labour, employers must notify a labour official 60 days in advance of the intended termination date, the reason for termination, and a list of affected employees. Outside these circumstances, there is no statutory requirement to notify any third party. However, in practice, the Department of Labour Protection and Welfare has issued an administrative circular requesting employers\u2019 cooperation in providing advance notice to labour officials for large-scale terminations, although such notification is not legally mandatory.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What protection from discrimination or harassment are workers entitled to in respect of the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned in the response to Question 1, the Labour Protection Act prohibits discrimination and harassment in all employment contexts, including termination. This protection implies that termination must not be made on the basis of race, colour, sex, religion, political opinion, nationality, social origin, or any other status.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the possible consequences for the employer if a worker has suffered discrimination or harassment in the context of termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An employee who has suffered discrimination or harassment in the context of termination has the right to file a lawsuit against the employer with the labour court. The labour court may deem such termination unfair and consequently order the employer to reinstate the employee or award compensation for unfair termination if it is determined that both parties cannot continue to work together.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any categories of worker (for example, fixed-term workers or workers on family leave) entitled to specific protection, other than protection from discrimination or harassment, on the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Additional protections are provided for certain categories of workers. For instance, the law protects pregnant female workers from termination due to their condition. Additionally, employees involved in labour union activities or covered by a collective bargaining agreement are protected, except in certain circumstances, such as dishonest behaviour or intentional harm to the employer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are workers who have made disclosures in the public interest (whistleblowers) entitled to any special protection from termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Specific protection from termination for whistle-blowers is not mandated under labour law unless stated in the company\u2019s work rules. However, protections may exist under legislation separate from labour law, which may protect whistle-blowers from termination or other forms of retaliation from their employer if they assist or provide information to authorities investigating alleged violations by their employer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In the event of financial difficulties, can an employer lawfully terminate an employee\u2019s contract of employment and offer re-engagement on new less favourable terms?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While an employer can legally terminate an employee&#8217;s contract due to financial difficulties, and offer re-engagement on less favourable terms, this \u2018fire-and-rehire\u2019 approach may not be practical due to statutory severance pay obligations and the risk of unfair termination claims. Instead, employers are advised to negotiate changes in employment terms to secure their employees\u2019 consent during the course of employment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, risks are associated with the use of artificial intelligence in an employer\u2019s recruitment or termination decisions? Have any court or tribunal claims been brought regarding an employer\u2019s use of AI or automated decision-making in the termination process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The use of AI in recruitment or termination decisions may risk unintentional discrimination or bias, where if the AI model used is trained on biased data, it could perpetuate these biases, potentially favouring certain genders or ethnicities over others. This would violate the principles of Thai labour law.<\/p>\n<p>Furthermore, overreliance on an AI-based approach to termination could depersonalise the process, treating candidates as numbers rather than individuals, while potentially making it difficult for employers to justify their decisions in legal proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What financial compensation is required under law or custom to terminate the employment relationship? How is such compensation calculated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Financial compensation legally required includes:<\/p>\n<p>(i) \u00a0\u00a0\u00a0\u00a0 Statutory severance pay (as mentioned in item 1. above) is stipulated at the following rates:<\/p>\n<table>\n<thead>\n<tr>\n<td width=\"276\"><strong>Length of Service<\/strong><\/td>\n<td width=\"257\"><strong>Rate of Severance Pay<\/strong><\/p>\n<p><strong>(equivalent to the last wage rate per day)<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td width=\"276\">At least 120 days but less than 1 year<\/td>\n<td width=\"257\">30 days<\/td>\n<\/tr>\n<tr>\n<td width=\"276\">At least 1 year but less than 3 years<\/td>\n<td width=\"257\">90 days<\/td>\n<\/tr>\n<tr>\n<td width=\"276\">At least 3 years but less than 6 years<\/td>\n<td width=\"257\">180 days<\/td>\n<\/tr>\n<tr>\n<td width=\"276\">At least 6 years but less than 10 years<\/td>\n<td width=\"257\">240 days<\/td>\n<\/tr>\n<tr>\n<td width=\"276\">At least 10 years but less than 20 years<\/td>\n<td width=\"257\">300 days<\/td>\n<\/tr>\n<tr>\n<td width=\"276\">20 years or more<\/td>\n<td width=\"257\">400 days<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Note that this amount is calculated based on the latest wage rates together with the length of service. With regard to the calculation of wages, fixed allowances payable to an employee, which lack a clear written purpose of payment as welfare, are generally regarded as wages. Examples include living allowances, position allowances, fuel allowances, etc. Without being specifically stipulated as welfare, these allowances should be included in wages for the computation of severance pay.<\/p>\n<p>Severance pay is not required if employment is terminated for cause (as described in Question 1 above).<\/p>\n<p>(ii) \u00a0\u00a0\u00a0 Payment in lieu of unused annual leave entitlement and accumulated unused annual leave (if any).<\/p>\n<p>If the termination of employment is not for cause (as described in Question 1 above), an employer must pay the employee\u2019s wages for unused annual leave entitlement for the year in which the employment is terminated, in proportion to the number of days of the employee\u2019s annual leave entitlement (<em>pro rata<\/em>). If the employee is entitled to carry forward annual leave days to the following year, any accumulated unused annual leave must also be paid to the employee.<\/p>\n<p>However, if the employment is terminated for cause, based on any of the grounds described above, the employer is not required to make a payment in lieu of any unused annual leave entitlement for the year in which the employment is terminated. In such a case, the employee remains entitled to payment in lieu of accumulated unused annual leave days only (if any).<\/p>\n<p>(iii) \u00a0\u00a0 Payment in lieu of advance notice<\/p>\n<p>Instead of observing the statutory or contractual notice periods (as described in Question 5 above), an employer may choose to make payment in lieu thereof.<\/p>\n<p>In the case of any grounds for termination for cause (as described in Question 1 above), termination may be made with immediate effect without any advance notice or payment in lieu thereof.<\/p>\n<p>(iv) \u00a0\u00a0 Other contractual benefits (if there are any agreements made during the employment period).<\/p>\n<p>(v) \u00a0\u00a0\u00a0 Cost of the return journey.<\/p>\n<p>If an employee has been brought from elsewhere at the employer\u2019s expense, the employer is obliged to pay the cost of the return journey when the employment contract comes to an end, unless otherwise stipulated in the contract, provided that the employment has not been terminated due to the fault of the employee and the cost is for the employee\u2019s return to the original location only.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer reach agreement with a worker on the termination of employment in which the employee validly waives his rights in return for a payment? If yes, in what form, should the agreement be documented?  Describe any limitations that apply, including in respect of non-disclosure or confidentiality clauses.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An employer and an employee can enter into an agreement in which the employee validly waives their rights in exchange for payment. For example, a mutual separation agreement may be concluded for a mutual and amicable termination of employment, where an employer agrees to provide ex gratia payment. This type of agreement is enforceable, allowing the parties to include clauses on mutual release of claims and non-disclosure or confidentiality.<\/p>\n<p>According to Supreme Court rulings, a mutual separation agreement is not regarded as a unilateral termination of employment. The compensation package typically includes a monetary component for termination of employment and an ex gratia payment, which is negotiable. However, during negotiations, there must be no actions that could be interpreted as coercing the employee to sign or conclude the agreement. If coercion is perceived, such agreement would be deemed a unilateral termination of employment, potentially leading to an unfair dismissal claim.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to restrict a worker from working for competitors after the termination of employment? If yes, describe any relevant requirements or limitations.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An employer does not have supervisory authority over a worker after the termination of employment. Thus, there are typically no restrictions preventing the worker from working for the employer\u2019s competitor after termination, unless the employee has agreed to such restrictions with the employer.<\/p>\n<p>It is possible to restrict a worker from working for the employer\u2019s business competitors after termination through a contract duly signed by the employee to that effect while the employment relationship is valid.<\/p>\n<p>The Supreme Court has ruled that a non-competition clause aimed at protecting an employer\u2019s legitimate rights to operate its business is not regarded as contrary to public order and good morals, and is therefore enforceable, provided that the clause does not absolutely prohibit the employee from working in other fields and does not impose unreasonable obligations on the employee.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer require a worker to keep information relating to the employer confidential after the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An employer can rely on a contractual obligation to require an employee to keep confidential after termination any information related to the employer, acquired during employment, provided that the confidentiality clause protects the legitimate interests of the employer\u2019s business.<\/p>\n<p>In addition, irrespective to these post-contractual obligations, unauthorised disclosure of trade secrets may result in violations of the Trade Secret Act B.E. 2545 (2002) and give rise to criminal liability under the Penal Code.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are employers obliged to provide references to new employers if these are requested?  If so, what information must the reference include? What duties apply to employers giving references?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Civil and Commercial Code, an employer is obliged to provide a certificate of employment upon the end of employment, regardless of the cause of termination. The certificate of employment must stipulate the length of service and description of the work performed by the worker. A Supreme Court judgment has set a precedent in this regard, establishing that an employer cannot include any statement unfavourable to the employee, e.g., the termination of employment for cause, in the certificate of employment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, in your opinion, are the most common difficulties faced by employers in your jurisdiction when terminating employment and how do you consider employers can mitigate these?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Many employers might believe that they are free from legal risks if all statutory payments (as listed in Question 18 above) are made in full upon termination. However, any employer who fails to establish \u2018reasonable and justifiable grounds\u2019 (see Question 1 above) could find itself embroiled in a lawsuit initiated by the employee for an unfair dismissal claim, potentially against both the employer itself and its directors. This is because statutory payments are made under the Labour Protection Act, whereas unfair dismissal is governed by a separate legal regime under the Act on the Establishment of and Procedure for Labour Court B.E. 2522 (1979). Therefore, employers must assess whether the grounds for termination are fair and proportionate to the employee\u2019s misconduct or violation of any disciplinary rule. It is also advisable for employers to seek legal advice when preparing for termination and assessing the associated legal risks.<\/p>\n<p>In any case of termination, whether on reasonable and justifiable grounds or otherwise (where severance pay must be made), considering an mutual separation agreement could help mitigate the risk of an unfair dismissal claim. Notably, a mutual separation is not considered a unilateral termination by the employer that would trigger liability for compensation.<\/p>\n<p>In this regard, it is strongly advisable that a mutual separation agreement includes mutual releases or discharges of obligations between the parties. In practice, successfully concluding a mutual separation agreement requires careful preparation of relevant documentation and thoughtful handling of the separation meeting; otherwise, an employee may bring a claim for unfair or wrongful termination against the employer on the grounds that the mutual separation agreement was signed under duress or coercion.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any legal changes planned that are likely to impact the way employers in your jurisdiction approach termination of employment? If so, please describe what impact you foresee from such changes and how employers can prepare for them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Prior to the Prime Minister&#8217;s announcement dissolving the House of Representatives, which took effect on December 12, 2025, two bills were under consideration by the House. The key proposed amendments included a reduction in normal working hours from 48 hours per week to 40 hours per week and an increase in the minimum number of annual leave days from six to ten days for employees who have completed an uninterrupted period of 120 days of service. However, upon the dissolution of the House of Representatives, all bills pending consideration were automatically dropped. These bills will need to be resubmitted once the House reconvenes for the next session of the National Assembly.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3892<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/133426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=133426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}