Lawful Termination Under Thai Labour Law

Termination is sensitive and carries real legal risk if handled incorrectly. This is a plain-language summary of the key rules under Thailand's Labour Protection Act — so employers act fairly and correctly, and employees understand their rights.

1. Severance pay by length of service (Section 118)

An employee who has worked continuously for 120 days or more and is terminated through no fault of their own is entitled to severance at these rates:

• 120 days – under 1 year → 30 days' wages at the last rate
• 1 – under 3 years → 90 days
• 3 – under 6 years → 180 days
• 6 – under 10 years → 240 days
• 10 – under 20 years → 300 days
• 20 years or more → 400 days (added by the 2019 amendment)

2. Advance notice (Section 17)

For open-ended contracts, the employer must give written notice at least one pay period in advance, or pay "wages in lieu of advance notice." Severance (above) and payment in lieu of notice are separate — where both apply, both are payable.

3. When you can dismiss without severance (Section 119)

An employer may dismiss without severance only where the employee has committed a specified act — and should hold clear evidence:

• Dishonest performance of duties, or an intentional criminal offence against the employer
• Wilfully causing damage to the employer
• Gross negligence causing serious damage to the employer
• Violating lawful and fair work rules or orders after a written warning (a warning is valid for one year) — except in serious cases, where no warning is required
• Absence without justifiable reason for three consecutive working days
• Imprisonment by a final court judgment

4. Watch out for "unfair dismissal"

Even with severance paid in full, an employee can still sue for "unfair dismissal" in the Labour Court if the termination lacked sufficient reasonable cause. The court may order additional damages or reinstatement — so always have a clear, fair reason and complete documentation.

Recommended steps for employers

• Review the employment contract and work rules before acting
• Gather evidence (warning letters, performance records)
• Correctly calculate severance + payment in lieu of notice + outstanding entitlements (unused annual leave, etc.)
• Issue a termination letter that states the reason clearly, and keep a copy
• Consult a labour-law specialist for complex cases

This article is general information, not legal advice for a specific case. Please verify current details with the Department of Labour Protection and Welfare, or consult a lawyer, before acting.