Thai Employment Law – Termination of an Employee

Keywords: Labour Law, Termination, Thailand, Employee

According to Section 17 of the Labour Protection Act B.E. 2541 (“the Act”), should the employment agreement be for a fixed period, the employment agreement will be terminated automatically at the end of the fixed period. On the other hand, if the period is not fixed, the party who would like to terminate the employment agreement (either the employer or employee), has to notify the other party either in advance of or on the date that the salary is paid. The following salary payment date would then be the effective date of termination.

Example

Company A pays salaries on the 30th day of every month and plans to dismiss its employees on 30 October 2009. When should Company A send the termination notice to its employees for dismissal? Company A can notify the termination of employment to the employees on 30 September 2009 and ask the employees to leave their jobs on 30 October 2009.

Daily wages

For employees that receive their wages on a daily basis, the termination notice must be sent in advance of or on the day of the wage payment such that the effective date is the following wage payment day.

Effective immediately

If the employer requires the employee to leave his/her job immediately, the employer will be required to pay money in lieu of an advance notice equivalent to the employee’s wage to be paid until the effective date of the notice. Exceptions Please note that the above will not apply if an employee:

• wilfully disobeys or habitually neglects the lawful commands of the employer;
• is absent from service;
• is guilty of gross misconduct; or
• otherwise acts in a manner incompatible with the due and faithful discharge of their duties.