Employment contract in Thailand: Template, Key Clauses and Local Law (2026)

The short answer An employment contract in Thailand is governed by the Labour Protection Act and the Civil and Commercial Code. A contract can be written or oral, but a written one is strongly advisable. The standard working time is no more than 8 hours a day and 48 hours a week (7 hours a day and 42 a week for hazardous work). Statutory severance, based on length of service, is owed to employees with at least 120 days of service who are dismissed without cause. There is no statutory probation, but the 120-day severance threshold shapes how probation is used in practice. ## Is a written employment contract required in Thailand? No, an employment contract can be written or oral and still be valid. In practice a written contract is strongly advisable because it records wages, duties, working time and termination terms and reduces disputes. Employment sits within the Civil and Commercial Code as a hire-of-services relationship (broadly sections 575 onward), while the Labour Protection Act layers on the mandatory worker protections that a contract cannot reduce. ## The local law that governs employment in Thailand The Labour Protection Act B.E. 2541 (1998), as amended, is the core statute on hours, holidays, leave, severance and termination. The Civil and Commercial Code governs the contractual relationship itself. Other relevant laws include the Social Security Act (social security contributions), the Workmen's Compensation Act, and rules administered by the Department of Labour Protection and Welfare. Minimum wage is set by region, so confirm the current rate for the workplace location. ## Key clauses, with local-law notes Parties and job details. Identify the employer and employee, job title, duties and workplace. Wages. State the wage, pay period and payment method. Wages must meet the applicable regional minimum wage. Working hours and overtime. Normal hours must not exceed 8 a day and 48 a week (7 and 42 for hazardous work). Overtime and holiday work attract statutory premium pay, and employees are entitled to a daily rest break and at least one weekly holiday. Leave. Provide statutory leave: annual holiday of at least 6 working days a year after one year of service, sick leave, and other statutory leave such as maternity leave. Probation. Thai law does not set a probation period. Because statutory severance begins at 120 days of service, employers commonly set probation at no more than 119 days; longer probation is possible if agreed, but severance obligations still start at 120 days. Termination and notice. For an indefinite contract, the employer must generally give advance notice of at least one pay period (and not more than three months) to end the contract, or pay in lieu. Summary dismissal without severance is only available for serious statutory grounds, such as dishonesty or an intentional act causing the employer serious loss. Severance. Under the Labour Protection Act, an employee with at least 120 days of service who is dismissed without cause is entitled to severance on a sliding scale: 30 days' wages for 120 days up to 1 year; 90 days for 1 up to 3 years; 180 days for 3 up to 6 years; 240 days for 6 up to 10 years; 300 days for 10 up to 20 years; and 400 days for 20 years or more. Confidentiality, IP and restraint. Add confidentiality and IP assignment clauses. Post-employment restraints are enforceable only if reasonable in scope, time and area; Thai courts can reduce an unreasonable restraint under the Unfair Contract Terms Act. ## A simple template outline 1. Parties and start date

2. Job title, duties and workplace
3. Contract type and probation (commonly up to 119 days)
4. Wages, pay period and method
5. Working hours, rest and overtime
6. Annual holiday and statutory leave
7. Social security registration
8. Confidentiality, intellectual property and any restraint of trade
9. Termination, notice and grounds
10. Severance entitlement
11. Governing law and dispute resolution Provide the contract in Thai, or bilingually, so the employee understands the terms. ## Common mistakes and red flags - Assuming a probation dismissal avoids severance; once an employee reaches 120 days of service, severance applies.

• Giving too little termination notice; at least one pay period is generally required for an indefinite contract, or pay in lieu.
• Treating a without-cause dismissal as summary dismissal to avoid severance, when the strict statutory grounds are not met.
• Miscalculating severance across the sliding scale, especially the 300-day and 400-day tiers for long service.
• A broad restraint of trade with no reasonable limits, which a court can reduce.
• Not registering the employee for social security. ## Social security, records and dispute resolution Thai employers must register employees with the Social Security Office and make monthly contributions, shared with the employee, which fund benefits such as sickness, maternity, unemployment and old age. Keep records of wages, working hours and leave, which are important if a claim arises. Employment disputes are typically heard by the Labour Court, which handles unfair dismissal, severance and other claims and tends to protect employees where the paperwork is unclear. Because the Labour Protection Act sets minimum standards that a contract cannot reduce, a contract term that gives the employee less than the statute is simply unenforceable to that extent. ## Language and execution Provide the contract in Thai, or as a bilingual document, so the employee understands the terms; a contract the employee cannot read is weak evidence of genuine agreement. Work rules are also required once a workplace reaches a certain size, and they should be consistent with the individual contract. Keep a signed copy of the contract accessible to both sides, and make sure the severance and notice terms match the Labour Protection Act, since the statute prevails over any lesser contractual term. ## Keeping it all in one workspace Step back and drafting a contract like this is really several jobs at once: getting the local-law clauses right, keeping your own standard positions consistent, tracking versions as the document is negotiated, and remembering the dates and obligations it creates. When those jobs are spread across a template file, an inbox and someone's memory, things slip, not through carelessness but because the work is scattered. That is the single-workspace idea behind Adira: draft, understand, edit, track and govern a contract in one place, with each clause flagged favourable, neutral or unfavourable to your company and a built-in record of versions and key dates. Adira is India-first today. Support for other jurisdictions, including those in Asia, is on its roadmap rather than at Indian depth now, so for a Thai contract you would still rely on local counsel for the governing-law detail. The point is the direction: a contract you can see end to end, in one place, is easier to get right and to keep right. ## A note on legal advice This article is general information, not legal advice, and English translations of Thai statutes are unofficial, with the local-language text controlling. Employment, data and trade-secret rules change, so confirm the current position and have a qualified Thai lawyer review any contract you intend to sign.