Haris & Associates Phuket Thailand Legal Blog

When an employer hires an employer, he must prepare an employment contract to protect the rights of both the business owner and the worker. The written agreement also defines the relationship between the employer and the employee. To ensure the legality of the agreement, it must be reviewed by or signed in the presence of a Thai business attorney. The Freedom of Contract stipulates that the Thai government recognize the validity of the document as long as both parties agree to everything that is written on the contract.

 The employer decides on the validity of the contract as well as the employment of his worker. This can be for a fix period or a non-definite period. The agreement also outlines the rights and obligations of both parties to ensure that they are fully aware of their responsibilities. The employer has a duty to pay for remuneration for services rendered by the worker. Thai law states that remuneration can only be paid in monetary form or valuable items, which need to be paid in a fixed period – daily, weekly, monthly or within the time of service.

  

In the event that an employee knowingly and willfully disobeys his duties and obligations as stated in the contract, the employer has the right to dismiss the worker without notice or compensation. Habitual negligence of an employee’s responsibilities, e.g., tardiness, absence from work, leaving post within work hours, gross misconduct, incompatible manner, insubordination, are all grounds for termination of the worker’s contract. However, should the employee be dismissed through no fault of his own, a severance payment may be paid to him by the employer. A Phuket business lawyer may be consulted for legal advice to ensure the process is carried out correctly.

 The factors that will determine the right to and amount of severance payment is the employee’s length of employment, cause of termination/dismissal and type of employment contract. The right to severance pay is waved for fixed employment contracts for less than two years if the employment is naturally terminated at the end of the contract term. Similarly, an employee who was dismissed by the company due to misconduct or terminates his contract himself waves his right to severance pay.