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Thursday, October 22, 2026

Legal Issues on FDI in Thailand Part 3: Employment of Foreign and Thai Employees - Lexology

Employment and Labour Protection

The Civil and Commercial Code (“CCC”) and the Labour Protection Act B.E. 2541 (1998) (“LPA”) are the major employment and labor protection laws. The CCC defines employment as a hire of work (hire of services) and provides the general requirements for duties and liabilities of employers and employees. The LPA sets out working requirements (working hours, working days, leaves, holidays, wages, wages payment, overtime and holiday pays, etc.), working restrictions for women and children, work rules and policies, termination notice, retirement age, severance pay, special severance pay, relocation, change of employers, etc. Foreign and Thai employees receive equal treatment under the CCC and the LPA.

Employer-Employee Relationship

The Labor Relations Act B.E. 2518 (1975) promotes good relationships between employers and employees and their representatives. They can negotiate working conditions and settle a labor dispute. This law also governs lockouts and strikes, employer associations, labor unions, and unfair practices.

Social Security Fund (“SSF”)

The Social Security Act B.E. 2533 (1990) requires an employer hiring at least one employee to participate in the SSF so that the SSF can provide compensations and allowances to the employee for injury, sickness, incapacity, death, childbirth, retirement and unemployment. The government, the employer, and the employee make monthly contributions to the SSF at the rates of 5% (reduced to 2.5% in...



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