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Notice period in Thailand

Employee termination in Thailand

Post-termination restraints in Thailand

Waivers in Thailand

Transfer of undertakings in Thailand

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Constructive dismissal in Thailand

Constructive dismissal occurs when an employee resigns because they are unable or unwilling to endure the working conditions or the employer’s behaviour. Typically, rather than firing outright, the employer has fostered an environment or conditions that force the employee to resign.

Some common situations that might be considered constructive dismissal in Thailand, include:

Unilateral changes to employment terms: This occurs when an employer makes significant changes to the terms of employment, such as adjusting salary, working hours, or job responsibilities, without the employee’s consent, and these changes are considered unacceptable by the employee.
Harassment or discrimination: An employer’s persistent harassment, discrimination, or a hostile work environment can lead an employee to resign.
Non-payment of wages: Failure to pay wages or other contractual benefits can also constitute constructive dismissal.
Unsafe working conditions: This happens when an employer fails to provide a safe working environment, and this failure is severe enough to make the employee’s continued work unreasonable.

Under Thailand’s Labour Protection Act (LPA), if employees believe they have experienced constructive dismissal, they can opt to file a complaint with the Department of Labour Protection and Welfare or pursue legal action. The employee would typically need to demonstrate that the employer’s actions were indeed the primary reason for their resignation and that they did not voluntarily leave the job. If the employer is proven to have committed constructive dismissal, they may be liable for statutory severance based on the employee’s length of service.

Unfair dismissal in Thailand

Unlike constructive dismissal, where an employee resigns due to the employer’s actions, unfair dismissal occurs when an employer initiates the termination.

Terminating an employee from their job without just cause or due process constitutes unfair dismissal. Under Thailand’s LPA, an employer must provide a legitimate reason for dismissal and follow proper procedures, including notice periods or compensation, unless the dismissal is for cause (e.g., serious misconduct).

For unfair dismissal, the employee has the right to file a complaint with the Labour Court. Employees can seek reinstatement or compensation for wrongful termination.

What is the compensation for unfair dismissal in Thailand?

Compensation for unfair dismissal from employment can depend on various factors, such as the circumstances of the dismissal and the length of service of the employee. As per Thailand’s LPA, termination without statutory cause, may entitle employees to receive severance pay that varies based on their length of service.

If the Labour Court finds that the dismissal was indeed unfair, it may order compensation in addition to severance pay or reinstatement of the employee under certain conditions.

Severance pay may also be due if an employee resigns due to a workplace change that affects their living or unlawful employer orders.

Severance pay in Thailand

Here is the general severance pay rate in Thailand:

Less than 120 days of service: Not entitled to severance pay.
At least 120 days, but less than one year of service: 30 days of wages.
At least one year, but less than three years of service: 90 days of wages.
At least three years, but less than six years of service: 180 days of wages.
At least six years, but less than 10 years of service: 240 days of wages.
10 years of service and over: 300 days of wages.
20 years of service or more: 400 days of wages.

Employers are not required to provide severance pay when termination has a reasonable cause. According to the Labour Protection Act (LPA), an employer has the right to dismiss an employee immediately without severance pay for certain severe misconducts or breaches. These include:

Dishonesty in the execution of duties.
Intentionally committing a criminal offense against the employer.
Causing serious harm to the employer.
Negligence causing serious damage to the employer.
Violation of the employer’s lawful work rules, orders, or instructions after a previous warning has been given.
Absence from duty without just cause for three consecutive workdays regardless of whether there is a holiday in between.

Dismissal of an employee during probation period in Thailand

Employers have the right to dismiss an employee during their probationary period, but they must adhere to certain conditions and guidelines to ensure a fair process.

According to Thailand’s LPA, employers are not legally required to set a probationary period for an employee. However, if they choose to set one, the duration is subject to the employer’s discretion and should be agreed upon with the employee. Employers commonly use probation periods to evaluate the new hire’s suitability for the position.

A probationary period in Thailand cannot exceed 119 days. During this period, employers are allowed to terminate employment if the employee’s performance does not meet the expected standards or job requirements, or if the employee lacks the necessary skills or competence for the role.

Notice period in Thailand

The employee notice period for resignation in Thailand is at least 30 days. Some employers may provide longer notice periods as stated in the employment contract, which employees must agree with.

To ensure a smooth transition, the employee must submit the resignation notice before the upcoming payday. This will allow the resignation to formally take effect on the next payday. In addition, it is possible for employees to make a payment instead of serving the notice period.

Notice period during probation period in Thailand

For new employees undergoing probationary periods, the notice period typically follows the standard requirement, which is 30 days. However, this may vary depending on the employment contract or company policy, as some employers might require a longer notice period.

Can employees not be serving notice periods in Thailand?

In general, employees are obligated to serve their notice period when terminating their employment. However, there is an option for employees to not serve their notice period if the employer agrees to an immediate termination. Such cases include:

Employee health issues: If continuing to work would seriously affect the employee’s health, immediate resignation may be permissible, although providing medical evidence is usually necessary.
Unsafe working conditions: If the working environment is unsafe or violates legal standards, an employee may be able to resign without serving notice.
Employer’s serious misconduct: If the employer has committed serious misconduct or breaches the employment contract significantly, an employee might be justified in resigning immediately without notice.

The employer may be able to deduct the equivalent of the notice period’s wages from the employee’s final settlement if the employee fails to serve the required notice period without a valid reason.

Probationary period in Thailand

Thailand does not require a minimum period or the addition of a probationary period to the employment contract. However, according to Thailand’s labour law, the maximum allowable duration for a probation cannot exceed 119 days.
For assessment purposes, many employers in Thailand opt to maximise the full 119-day period.

Employee termination in Thailand

Under Thailand’s labour law, an employer has the right to terminate employment for “just cause.” This covers various grave circumstances, including:

Engaging in criminal activities
Intentional damage to the employer’s property
Negligence resulting in significant harm or risk
Breaching workplace rules and regulations
Violating orders despite receiving a formal warning
Unjustified absence for three consecutive days
Employee receives a prison sentence.

However, if the termination is without just cause, the employer is required to provide compensation to the employee, which might include statutory severance pay, notice pay, and other entitlements depending on the situation. The dismissed employee, on the other hand, may pursue a claim for unfair dismissal through the labour court.

Upon termination of employment, the employer must notify the Social Security Office. In cases involving foreign employees, additional notifications to the Immigration Bureau and the Department of Employment at the Ministry of Labour are required.

Moreover, the employee must receive termination-related payments, such as the current month’s salary, compensation for unused annual leave, and severance pay, within three days of the termination date.

Wrongful termination in Thailand

This refers to the firing of an employee without just cause or by violating the prescribed legal procedures outlined in Thailand’s labour laws.

Just causes for termination can include misconduct, incompetence, or breach of contract. Under Thailand’s law, terminating an employee without one of these validated reasons may be considered wrongful.

If an employer dismisses an employee without a valid reason or fails to follow the correct termination procedures, the terminated employee may claim unfair dismissal and could potentially win a favourable judgement from the labour court. The company could then be held liable for the dismissed employee’s statutory payments.

The law mandates compensation for wrongful termination to protect employees against unjust dismissal practices.

Post-termination restraints in Thailand

To protect the employer’s legitimate business interests, post-termination restrictions are enforceable, provided that the employee’s continuing activities could potentially harm the employer’s business.

However, the enforcement of post-termination restrictions still depends on the case, such as the employee’s job responsibilities and the scope of the restrictions. Courts have accepted restriction periods ranging between 1 and 2 years, given that the scope must be restricted, for example, within Thailand only.

Non-compete clauses in Thailand

This is enforceable, but with strict conditions. Typically, courts in Thailand are known to enforce non-compete clauses for up to 24 months and not more than two years within a geographic score, such as Thailand.

Customer and employee non-solicitation in Thailand

Non-solicitation clauses are enforceable, but they must be deemed reasonable in relation to the interests of the parties concerned and the public. Courts will take into consideration factors such as the nature of the trade or occupation, the geographic area over which the restraint is imposed, and the length of time for which it is applied.

In general, non-solicitation can be enforceable for a period of no more than 2 years within a restricted area, such as Thailand.

What are the consequences of breaking a post termination restraint in Thailand?

If an employee breaches a post-termination restraint, such as a non-compete or non-solicitation clause, the employer may take legal action against the employee. This could potentially result in the former employer seeking damages for any losses incurred due to the breach or obtaining an injunction to prevent the former employee from continuing the prohibited activities.

On the other hand, if the employee breaches the restraint clause while still employed (e.g., by starting a side business in competition with their current employer), this could result in immediate termination and further legal consequences.

The nature and enforcement of any legal recourse will heavily depend on the reasonableness and specific terms of the contract, as well as Thailand’s labour law and judicial discretion. To handle these matters properly, you can consult with Thai legal experts or contact our team of compliance experts here.

Waivers in Thailand

There are specific stipulations under Thailand’s Labour Protection Act that cannot be waived because they are considered to be public policy or are set to protect the welfare of the employees. Any such waivers that attempt to diminish statutory rights below the minimum standard are likely to be deemed invalid or unenforceable.

Under the principle of ‘Freedom of Contract’, parties in Thailand can generally agree to the terms of their contract, as long as the terms are not against public order or good morals. An employment contract in Thailand can be both written and verbal, but regardless of its form, it must not include conditions that provide the employee with less benefit than those stipulated by labour laws. Any such disadvantageous conditions would likely be unenforceable.

Nonetheless, it’s still possible to agree on waiving rights that are based on the contract itself or other legal grounds. This includes, for example, agreeing not to pursue a claim against an employer for unfair dismissal.

Transfer of undertakings in Thailand

In terms of continuity of employment, there is no automatic transfer to a new company. To ensure compliance, employers must understand the following two clear processes to handle such a transition properly:

Transfer with consent: With an explicit written agreement from the employee, the new company—known as the transferee—can take over the existing employment terms. This includes acknowledgement of the employee’s service duration and continuation of all previous rights and benefits. To formalise this, a three-way agreement can be created between the old employer (transferor), the new employer (transferee), and the employee, securing a seamless transition.
New employment contract: Alternatively, the old company may fully terminate the employee’s employment, ensuring they receive their due severance pay and any other rightful compensation as mandated by the LPA. The new company can then offer a brand-new employment contract, potentially with different terms, to start afresh. Employees should discuss changes in job roles or responsibilities to ensure they align with the terms of the original employment contract or reach an agreement through negotiation. During this process, the employee must understand that the new terms might not be as favourable, and they won’t acknowledge their previous service length unless they explicitly agree upon it.

If employees believe the merger and acquisition process is violating their rights, they have the right to seek legal recourse. They can file complaints with the Department of Labour Protection and Welfare or pursue claims in labour court.

On the other hand, employers are required to notify the Ministry of Labour about certain changes related to mergers and acquisitions, particularly if they affect a significant number of employees or involve large-scale redundancies.

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There are many different ways an employment contract can come to an end. But whatever the situation, you need to understand the rules that cover the end of employment in Thailand — or you could end up facing legal issues.

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FAQ's

What are the types of termination of employment in Thailand?

Employment in Thailand can end through resignation, dismissal, mutual agreement, retirement, or the expiry of a fixed-term contract. Each type of termination has different legal requirements, particularly around notice periods, severance pay and final salary payments.

The most common types of termination of employment in Thailand are:

Type of termination	What it means?
‘Resignation	The employee ends the employment relationship by giving notice in accordance with the employment contract or the law.
Termination without cause	The employer ends the employment relationship for business or operational reasons. Notice and severance may apply.
Dismissal for serious misconduct	The employer terminates employment immediately for reasons permitted under Section 119 of the Labour Protection Act. Severance is generally not payable.
Mutual agreement	Both parties agree to end the employment relationship on negotiated terms.
Expiry of a fixed-term contract	Employment ends on the agreed expiry date where the contract qualifies as a genuine fixed-term arrangement.
Retirement	Employment ends when the employee reaches the agreed retirement age under the employment contract or company policy.

The legal obligations vary depending on how employment ends. For example, an employee in Thailand dismissed for business reasons may be entitled to notice and statutory severance, while an employee in Thailand dismissed for serious misconduct may not receive severance if the employer can rely on one of the grounds under Section 119.

Paying notice and severance does not automatically protect an employer from an unfair termination claim. Employers should also consider the reason for dismissal, the employee’s record, consistency of treatment and the process followed. Before ending any employment relationship, employers in Thailand should determine the legal basis for termination rather than applying the same process to every employee.

Is there a notice period for ending employment in Thailand?

Yes. Unless employment ends immediately for a lawful reason or both parties agree otherwise, employers and employees are generally required to give notice before ending employment in Thailand. The notice period is governed by the Labour Protection Act and the employment contract.

Where the employment contract in Thailand does not specify a notice period, written notice must generally be given on or before a wage payment date to take effect on the following wage payment date. Advance notice of more than three months is not required under the statutory rule.

This is an important difference from many other countries. In Thailand, the employee’s pay cycle often determines when employment actually ends. For example, if employees are paid monthly and notice is given shortly after payroll has been processed, employment may continue until the following pay date unless the employer chooses to make a payment in lieu of notice. If notice is given on or before a monthly pay date, it can generally take effect on the next monthly pay date.

Employers in Thailand may also terminate employment immediately by paying wages in lieu of the required notice period. This approach is commonly used where the employer wants the employee to leave immediately while still complying with the legal notice requirement.

Immediate dismissal without notice is generally only permitted where the employee has committed qualifying serious misconduct or another breach allowing summary dismissal under Thai law. The grounds for avoiding notice and the Section 119 grounds for avoiding severance should be reviewed carefully rather than assumed to be identical in every case.

Before issuing notice, employers in Thailand should confirm:

Whether the employment contract specifies a notice period.

The employee’s wage payment cycle.

Whether payment in lieu of notice will be made.

Whether severance pay also applies.

These are separate obligations. Paying notice does not remove an employer’s obligation to pay statutory severance where it is required. Likewise, paying notice and severance does not necessarily prevent the employee from challenging the fairness of the dismissal.

What documents must an employer issue at the end of employment in Thailand?

Thai law does not prescribe one standard exit document, but employers in Thailand should provide all records needed to complete the employment relationship and final payroll accurately. The documents required will depend on how employment ends and the employer’s internal processes.

A typical offboarding process in Thailand includes:

Document	Purpose
Termination or acceptance of resignation letter	Confirms how and when employment ended. For a dismissal, the letter should record the termination reason, particularly where the employer intends to rely on Section 119.
Final pay statement	Shows salary, accrued entitlements, deductions and final payment.
Severance calculation	Documents how statutory severance was calculated, where applicable.
Annual leave calculation	Records payment for any accrued but unused leave.
Tax documentation	Supports the employee’s year-end tax reporting obligations. The employer must generally issue the employee’s withholding tax certificate, Form 50 Tawi, within one month where employment ends during the tax year.
Employment certificate	Confirms the length and nature of the employee’s services. Under the Civil and Commercial Code, an employee is entitled to this certificate when the employment relationship ends.

The final pay statement is good practice even where a specific form is not prescribed. It creates a clear record of wages, leave, notice, severance, expenses and permitted deductions.

Employers in Thailand should also retain their own records, including resignation letters, investigation reports, disciplinary records, payment calculations and acknowledgements that final payments have been received. These documents may become important if an employee later challenges the termination.

Where the employer terminates employment, outstanding wages, overtime, holiday pay and holiday overtime pay must generally be paid within three days of termination. Other termination amounts may be due immediately or within the timeframe applicable to the particular entitlement. Although an employment certificate is not automatically required in every case, many employers in Thailand provide one upon request as it can assist employees when applying for future roles.

For multinational employers, maintaining complete exit records is particularly important where payroll, HR and management responsibilities are split across different countries.

In summary, the end of employment in Thailand should be supported by accurate payroll, employment and tax documentation. Maintaining complete records also helps employers respond to future employment disputes.

What is the just cause dismissal procedure in Thailand?

A just cause dismissal in Thailand should follow a fair and well-documented process. Employers in Thailand should investigate the alleged misconduct, gather supporting evidence, give the employee an opportunity to respond, and confirm that the conduct falls within one of the statutory grounds under Section 119 of the Labour Protection Act before terminating employment without severance pay.

While Thai law does not prescribe a formal disciplinary procedure, following a consistent process helps employers demonstrate that the dismissal was justified if it is later challenged.

A typical just cause dismissal process in Thailand includes:

Investigate the alleged misconduct and gather relevant evidence.

Review documents, interview witnesses and keep written records of the findings.

Give the employee an opportunity to explain or respond to the allegations.

Determine whether the conduct falls within one of the Section 119 grounds for dismissal without severance.

Issue a written dismissal notice that clearly states the reason for termination and retain supporting documentation.

Section 119 allows dismissal without severance pay in limited circumstances, including:

Dishonest conduct or criminal acts against the employer.

Intentionally causing the employer to suffer damage.

Gross negligence resulting in serious loss.

Repeated breaches of lawful workplace rules after a written warning, where a warning is required.

Abandoning duties without a valid reason for three consecutive working days.

Receiving a final criminal sentence involving imprisonment in circumstances permitted by law.

A written warning used for Section 119 purposes generally remains effective for no more than one year from the date of the employee’s violation.

The employer should state the Section 119 reason when notifying the employee of dismissal. If the employer does not identify the reason at that time, it may be prevented from relying on that ground later to avoid severance.

Poor performance alone is generally not a valid reason for dismissal under Section 119. Employers in Thailand should manage performance issues through an appropriate performance management process rather than treating them as serious misconduct. A properly documented performance issue may support an ordinary termination, but notice, severance and potential unfair termination exposure must still be considered.

If the employer cannot establish one of the statutory grounds, the dismissal will generally be treated as a termination without cause, meaning statutory notice requirements and severance pay may apply.

In summary, a just cause dismissal in Thailand should follow a documented process supported by evidence. Employers should confirm that the misconduct falls within a Section 119 ground before dismissing an employee without severance pay.

How do fixed-term contracts end in Thailand?

A contract with a definite employment period contract in Thailand normally ends automatically on the agreed expiry date without requiring notice. However, automatic expiry without notices and exemption from statutory severance are separate legal questions.

A contract can specify a definite end date, but only limited categories of fixed-term work qualify for the statutory severance exemption. These generally include:

A specific project outside the employer’s normal business or trade with a definite start and end date.

Occasional work with a definite ending or completion.

Seasonal work performed during the relevant season.

To qualify for the exemption, the work must generally be completed within no more than two years, and the written contract must be entered into at the beginning of employment.

If a contract is repeatedly renewed for work that forms part of the employer’s ongoing business, a Labour Court may look beyond the contract title and determine whether the employee should instead be treated as a permanent employee.

If the employee continues working after the agreed expiry date and the employer knows this and does not object, the parties are presumed to have entered into a new contract on the same terms. That new arrangement may be terminated by giving the applicable notice.

Employers in Thailand should also remember that the expiry of a fixed-term contract does not automatically remove every financial obligation. Depending on the circumstances and the nature of the contract, employees may still be entitled to statutory severance and payment for accrued employment entitlements. Even where no notice is required, the employer should complete final payroll, pay qualifying unused annual leave, issue tax and employment certificates and complete Social Security and immigration offboarding.

For overseas employers, using fixed-term contracts simply to avoid termination obligations can create legal risk. The arrangement should reflect a genuine temporary business need rather than replace permanent employment. Renewal clauses, early termination rights and repeated extensions should also be reviewed because they may be inconsistent with the intended fixed-term structure.

In summary, an end of contract in Thailand arrangement only applies where the contract is genuinely fixed term. Employers should review the nature of the work, not just the wording of the contract, before relying on automatic expiry.

What must employers pay at the end of employment in Thailand?

When employment ends in Thailand, employers must pay all outstanding employment entitlements owed to the employee. The final payment depends on how employment ends, the employee’s length of service and the terms of the employment contract.

Final pay may include:

Payment	When it applies?
Outstanding salary	Salary earned up to the employee’s last working day.
Payment in lieu of notice	Where the employer ends employment immediately instead of requiring the employee to work through the notice period.
Statutory severance pay	Where required under the Labour Protection Act.
Accrued but unused annual leave	Where the employee has earned annual leave that has not been taken.
Other contractual payments	Bonuses, commissions, allowances or incentives if payable under the employment contract or company policy.
Expense reimbursements	Approved business expenses that remain unpaid.

Employers in Thailand should calculate each entitlement separately. One payment does not replace another. For example, paying salary in lieu of notice does not remove the obligation to pay statutory severance if the employee qualifies for it. Likewise, severance does not replace outstanding salary, unused leave or other accrued contractual payments.

Before processing final payroll, employers should confirm:

the employee’s last working day.

whether notice was worked or paid in lieu.

the employee’s continuous length of service.

unused annual leave balances.

any contractual bonus or commission entitlement.

lawful deductions that may apply.

Deductions from final pay must have a lawful basis. Employers should not automatically deduct the value of company property, training, excess leave or alleged losses without confirming that the deduction is permitted and properly supported.

Where the employer terminates employment, outstanding wages, overtime, holiday pay and holiday overtime pay must generally be paid within three days of termination. Certain other amounts, including severance and payment in lieu of notice, may be due on the termination date or within the period prescribed for the particular payment.

Errors in final pay are one of the most common reasons employees file complaints with the Ministry of Labour. A simple payroll mistake can quickly become an employment dispute if statutory entitlements have been overlooked. Late payment of qualifying amounts may also attract statutory interest at 15% per year and, in some cases, additional statutory payments.

For overseas employers, final pay calculations can be particularly challenging because Thailand’s termination rules differ from many other jurisdictions. Using a standard global offboarding process without checking local requirements may result in underpayments or unnecessary payments.

To summarise, final pay at the end of employment in Thailand should include all statutory and contractual entitlements. Employers should calculate notice, severance, annual leave and other payments separately before processing the employee’s final payroll.

When is severance pay required in Thailand?

Statutory severance pay is generally required when an employer terminates employment without relying on one of the serious misconduct grounds under Section 119 of the Labour Protection Act. The amount depends on the employee’s continuous length of service.

The Labour Protection Act sets minimum severance payments as follows:

Continuous service	Minimum statutory severance
120 days to less than 1 year	30 days’ wages
1 year to less than 3 years	90 days’ wages
3 years to less than 6 years	180 days’ wages
6 years to less than 10 years	240 days’ wages
10 years to less than 20 years	300 days’ wages
20 years or more	400 days’ wages

Severance is commonly payable where employment ends because of business restructuring, redundancy, organisational changes, poor performance that does not amount to serious misconduct, and other employer-initiated terminations without statutory cause. It is also generally payable on retirement and may be payable when a contract with a stated end date expires unless the arrangement satisfies the specific fixed-term exemption.

By contrast, severance is generally not payable where the employer lawfully dismisses an employee for one of the serious misconduct grounds under Section 119. Ordinary voluntary resignation also does not generally create a statutory severance entitlement.

A Section 119 dismissal must be supported by evidence, and the employer should state the applicable reason when the employee is dismissed. If the reason is not communicated at that time, the employer may be unable to rely on it later to avoid severance.

One of the common mistakes employers in Thailand make is focusing only on the reason for dismissal. Length of service is equally important. For example, dismissing an employee after almost ten years of service without correctly calculating severance can create a significant financial liability.

Continuous service should be assessed carefully where contracts have been renewed, employment has been transferred or the employee has worked through successive arrangements. Artificially dividing service into several contracts may not prevent the periods from being considered together. Employers should also remember that severance is separate from notice. In many cases, an employee may be entitled to both.

In summary, severance pay in Thailand is based on the employee’s continuous service and is generally payable when employment ends at the employer’s initiative, unless a Section 119 ground allows dismissal without severance.

What is the Section 120 special severance pay in Thailand?

Section 120 of the Labour Protection Act provides additional protection when an employer relocates its business, and the relocation significantly affects an employee’s ordinary way of living. In these circumstances, an employee may choose not to relocate and become entitled to special severance.

This provision commonly applies where a business moves its workplace to another location that would materially increase the employee’s travel time, commuting costs or disruption to family life. There is no single statutory distance that automatically triggers Section 120; the practical impact of the relocation must be assessed.

If a relocation falls within Section 120, the employer must notify employees at least 30 days before the relocation. The notice should identify the new workplace and the effective relocation date.. Employees who decide not to relocate must notify the employer within the period prescribed by law if they wish to claim the special severance entitlement. The employee generally has 30 days from receiving the relocation notice—or from the relocation date where proper notice was not provided—to terminate employment on this basis.

The amount of special severance is generally equal to the statutory severance the employee would receive under Section 118 based on their continuous service. The employer must generally pay the special severance within seven days after the employee terminates employment.

If the employer does not provide the required 30-day relocation notice, the employee may also be entitled to an additional special payment in lieu of notice equal to 30 days’ wages.

This is an area that overseas employers often overlook. A business may not consider an office relocation to be a termination issue, but if the move substantially affects employees, Section 120 obligations may arise even though the employer intends to continue employment.

Before relocating a workplace, employers should assess:

how far the workplace is moving.

whether employees can reasonably travel to the new location.

whether advance notice is required.

whether employees may qualify for special severance.

If the employer disputes an employee’s entitlement, the matter may be considered by the Labour Welfare Committee and ultimately the Labour Court under the statutory process. Planning ahead allows employers to estimate costs before the relocation takes place rather than dealing with unexpected claims afterwards.

In summary, section 120 provides special severance pay in Thailand where a business relocation significantly affects employees, and they choose not to move with the employer. Businesses planning a workplace relocation should assess these obligations early.

What post-employment restrictions can employers use in Thailand?

Employers in Thailand can use post-employment restrictions such as confidentiality, non-compete and non-solicitation clauses, provided they are reasonable and protect a legitimate business interest. Overly broad restrictions may be difficult to enforce.

Common post-employment restrictions in Thailand include:

Restriction	Purpose
Confidentiality	Protects trade secrets, business information and confidential data.
Non-compete	Restricts employees from joining competing businesses for a limited period.
Non-solicitation	Prevents former employees from approaching clients, customers or employees after leaving.
Intellectual property	Confirms ownership of work created during employment.

Thai courts generally consider whether a restriction is reasonable in light of the employee’s role and the employer’s legitimate business interests. Factors that may be considered include:

the length of the restriction.

the geographical area covered.

the activities being restricted.

whether the restriction goes further than necessary.

Thai courts have upheld appropriately limited non-compete clauses, including restrictions lasting one or two years in suitable circumstances. However, there is no universally valid duration, and the appropriate scope depends on the role and business interest being protected. For most employers, confidentiality obligations are easier to justify than broad non-compete clauses because they directly protect commercially sensitive information without unnecessarily restricting an individual’s ability to work. Trade secrets may also receive protection under Thailand’s Trade Secrets Act, but clear contractual provisions make the employee’s continuing obligations easier to understand and enforce.

Intellectual property provisions require particular attention. Ownership of employee-created copyright, inventions and other work product should be addressed expressly because the default ownership rules can differ according to the type of intellectual property and the circumstances in which it was created.

Rather than relying on one broad clause, employers in Thailand often achieve better protection by combining carefully drafted confidentiality, intellectual property and non-solicitation provisions that reflect the employee’s actual role.

In summary, post-employment restrictions are recognised in Thailand, but they should be reasonable, proportionate and tailored to the employer’s legitimate business interests to improve their enforceability.

How can CXC help companies avoid wrongful termination risks in Thailand?

CXC helps employers reduce wrongful termination risk by managing employee exits in line with Thai employment law, from the initial review through to final payroll and offboarding. This helps businesses avoid common procedural and payroll mistakes that can lead to Labour Court claims.

In Thailand, these disputes are commonly described as unfair termination claims. Even when notice and severance are paid, an employee may challenge a dismissal that lacks a reasonable and justifiable basis or was implemented through an inappropriate process. Many termination disputes arise because employers have a legitimate business reason for ending employment but do not follow the correct legal process. Common issues include miscalculating severance, relying on insufficient evidence for misconduct, overlooking notice requirements or issuing incomplete final payments.

As the local employer under an Employer of Record arrangement, CXC supports clients by managing:

termination reviews before employment ends.

notice and severance calculations.

final payroll and statutory payments.

employment and payroll documentation.

resignation and termination administration.

leave balance reconciliation.

employee record management.

coordination of the offboarding process.

Where misconduct is involved, CXC can also help ensure the employer has appropriate documentation before relying on a Section 119 dismissal. If the circumstances do not support immediate dismissal, alternative termination options can be considered to reduce legal risk.

For multinational employers, this local expertise is particularly valuable because Thailand’s termination rules differ from many other countries. Processes that are accepted elsewhere may not satisfy Thai employment requirements.

By combining local HR administration, payroll and employment compliance, CXC helps employers manage employee exits consistently while reducing the risk of disputes over notice, severance and final pay.

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