Why Your Thai Employment Contract Needs a Professional Review
Accepting a job offer in Thailand is an exciting step. However, before you sign the employment contract, it’s crucial to understand exactly what you’re agreeing to. Thai employment contracts are governed by the Labour Protection Act, which contains specific provisions that might be unfamiliar to foreign nationals. Language barriers and complex legal terminology can further complicate matters, potentially exposing you to unfavorable terms.
At PS Law & Business, our experienced lawyers specialize in reviewing employment contracts for expatriates. We ensure the terms are fair, comply with Thai law, and most importantly, protect your rights and interests as an employee.
Key Clauses We Scrutinize in Your Thai Employment Contract
A thorough review involves a detailed analysis of every section of your contract. We pay special attention to the following areas to ensure they are fair and legally compliant:
Job Description, Duties, and Working Hours
Your contract must clearly define your role, responsibilities, and reporting structure. Ambiguity in your job description can lead to "scope creep," where you are assigned duties far beyond your original role. We also verify that the stated working hours, breaks, and overtime provisions comply with the Thai Labour Protection Act. Standard working hours should not exceed 8 hours a day or 48 hours per week.
Salary, Bonuses, and Other Compensation
This section should be crystal clear. We check that your salary, payment schedule (e.g., monthly), and currency are explicitly stated. If your compensation includes bonuses or commissions, the contract must detail the exact conditions and performance metrics required to earn them. This prevents future disputes over payments you believe you are owed.
Probationary Period
While not mandatory, most Thai employment contracts include a probationary period. Under Thai law, this period cannot exceed 119 days. During probation, either party can terminate the contract with proper notice. We ensure this clause is correctly formulated and that you understand your rights both during and after the probation. For more details, see our guide on Understanding Your Thai Employment Contract.
Leave and Holidays
As an employee in Thailand, you are legally entitled to specific types of leave. We verify that your contract provides for:
- Annual Leave: At least 6 paid days of annual leave after one year of continuous work.
- Public Holidays: A minimum of 13 paid traditional holidays per year.
- Sick Leave: Up to 30 days of paid sick leave per year. A medical certificate may be required for absences of more than three days.
- Personal Business Leave: A recent addition to Thai law allows for 3 days of paid personal business leave.
Termination Clauses and Severance Pay
This is one of the most critical sections. The contract must specify the notice period required for termination by either you or your employer. We review the conditions for termination "with cause" (due to misconduct) and "without cause." If you are terminated without cause and have worked for more than 120 days, you are legally entitled to severance pay. The amount depends on your length of service. Understanding these terms protects you from unlawful dismissal and ensures you receive any compensation you are due. In case of a disagreement, it is important to know the process for handling labor disputes.
Non-Competition and Confidentiality Clauses
Many contracts include clauses that restrict you from working for a competitor or starting a similar business for a certain period after your employment ends. While these are legal, they must be reasonable in scope, duration, and geographical area. We assess these clauses to ensure they do not unfairly hinder your future career prospects.
The Risks of Signing an Unfair Contract
Signing a poorly drafted or one-sided employment contract can lead to significant problems, including financial loss, limited career mobility, and even complications with your visa and work permit. A professional review minimizes these risks and provides you with the peace of mind that comes from knowing your employment relationship is built on a fair and solid legal foundation.
Our Process for Employment Contract Review
Step 1: Consultation & Submission
You provide us with a copy of your draft employment contract and any related documents. We will schedule a consultation to discuss your specific concerns and job role.
Step 2: In-Depth Legal Analysis
Our employment lawyers conduct a meticulous review of every clause, comparing it against the standards set by the Thai Labour Protection Act and relevant court precedents.
Step 3: Detailed Report & Recommendations
We provide you with a comprehensive report in plain English, highlighting any problematic clauses, ambiguities, or illegal terms. We will explain the risks and suggest specific amendments to better protect your interests.
Step 4: Negotiation Support (Optional)
If needed, we can provide guidance on how to approach your new employer to negotiate fairer terms or even assist directly in the negotiation process to ensure a positive outcome.
Frequently Asked Questions (FAQ)
What is the maximum probation period in Thailand?
The probation period in Thailand should not exceed 119 days. Termination during this period still requires notice unless specified otherwise in the contract, and severance pay is not required.
Can my employer terminate me without notice?
An employer can terminate you without notice or severance pay only for specific reasons defined as gross misconduct under the Labour Protection Act, such as dishonesty, intentionally causing damage, or being absent for three consecutive working days without a reasonable explanation.
Am I entitled to severance pay if I resign?
No, employees who voluntarily resign from their position are not entitled to severance pay.
What are the standard working hours in Thailand?
Standard working hours are a maximum of 8 hours per day and 48 hours per week. For work deemed hazardous, the maximum is 7 hours per day and 42 hours per week.
Does my employment contract need to be in Thai?
While it's not legally required for the contract to be in Thai, having a bilingual contract (Thai and English) is highly recommended to prevent misunderstandings. In case of a dispute, the Thai version will often be given precedence in court.
