Managing International Secondments In Thailand: Can Host Organisations Avoid Employer Status?

International secondment arrangements are common in multinational operations, but can create unintended employment risks in Thailand if the Thai host organisation is found to have employer status. Below, we explain when this may happen and the practical steps organisations can take to reduce the risk.

An international (or expatriate) secondment arrangement involves an employee who remains employed by an overseas entity while being temporarily assigned to work for a host organisation in another country.

In Thailand, these arrangements can give rise to unexpected, and potentially costly, employment risks. Although the employment contract may remain with an overseas entity, Thai courts may look beyond the contractual arrangements and consider the realities of the working relationship. If a Thai host organisation is found to have acted as an employer, it may be liable for severance pay, payment in lieu of notice, and compensation for unfair dismissal, even if it is not the contractual