Thailand's Labour Protection Act sets minimum standards for hiring: a standard 8-hour workday / 48-hour workweek (or 42 hours for hazardous work), mandatory severance pay scaled by tenure (from 30 days' pay after 120 days of employment up to 400 days' pay after 20+ years), and a minimum wage that varies by province (Bangkok and other high-cost provinces set higher rates than rural provinces, adjusted periodically by the National Wage Committee). Employing foreign staff requires securing a work permit, generally tied to a Thai company meeting the minimum registered capital and Thai-to-foreign staff ratio requirements (commonly cited as 4 Thai employees per foreign work permit holder, though this varies by business type and BOI status).
Severance pay obligations and Thai-to-foreign staff ratios are the two most commonly underestimated compliance costs for foreign-owned businesses hiring in Thailand.
Key Facts
Standard working hours: 8 hours/day, 48 hours/week (42 hours/week for hazardous work categories).
Statutory severance pay scales with tenure: from 30 days' pay after 120 days employed, up to 400 days' pay after 20+ years of service.
Minimum wage varies by province, set and periodically adjusted by the National Wage Committee — Bangkok and industrial provinces are generally higher than rural areas.
Foreign employees require a work permit, generally tied to the employer meeting minimum registered capital (commonly THB 2 million per foreign employee) and a Thai-to-foreign employee ratio (commonly cited as roughly 4:1, varying by business type/BOI status).
Employers must register employees for Social Security Fund contributions (see Social Security topic) alongside standard payroll withholding.
Steps
Confirm eligibility to sponsor a work permit — Verify the company meets minimum capital and Thai-to-foreign staff ratio requirements before hiring a foreign employee.
Draft a compliant employment contract — Ensure the contract meets Labour Protection Act minimums on hours, leave, and severance entitlements.
Register the employee for Social Security — Register new employees with the Social Security Office within the required timeframe of their start date.
Apply for the work permit (foreign hires) — Submit the work permit application to the Ministry of Labour alongside the employee's non-immigrant visa documentation.
Timelines
Work permit processing (standard): typically 7 business days once documents are complete
Required Documents
Company registration documents and financial statements (to prove capital/ratio compliance)
Employee's passport, non-immigrant visa, and educational/professional qualifications
Employment contract
Social Security registration
Common Mistakes
Underestimating statutory severance pay obligations, which scale significantly with employee tenure and are mandatory regardless of contract terms.
Not verifying the Thai-to-foreign employee ratio before committing to hire additional foreign staff, which can block a work permit application.
Missing the deadline to register new employees for Social Security, resulting in penalties.