In Thailand, the Labour Protection Act (LPA) governs the legal requirements for notice periods during employment termination.

Minimum Notice Period

Thai employers are mandated to provide a minimum notice period of at least one pay cycle prior to terminating an employee's contract. This notice period is designed to give the employee sufficient time to seek alternative employment and financially prepare for the transition.

Maximum Notice Period

The LPA sets a maximum notice period of three months unless the employment contract indicates a longer duration. If the contract specifies a longer notice period, the employer is obligated to respect that timeframe.

Notice in Lieu of Payment

Employers have the option to bypass the notice period by offering the employee a payment in lieu of notice. This payment should be equivalent to the wages the employee would have received during the notice period.

Exceptions to Notice Period

There are a few exceptions to the notice period requirement. Employers can terminate an employee's contract without notice for severe misconduct as outlined in Section 119 of the LPA. However, proper documentation and evidence of the misconduct are required to avoid legal consequences.

It's important to note that Thailand does not recognize "at-will" employment, meaning employers cannot terminate an employee's contract without justification.

Employees in Thailand are entitled to severance pay under specific circumstances as per the Labour Protection Act (LPA).

Eligibility for Severance Pay

Employees qualify for severance pay if they meet any of the following criteria:

• Termination by Employer (without cause): Employees terminated without cause by their employer are entitled to severance pay.
• Retirement: Retirement from employment is considered a form of termination, entitling the employee to severance pay.
• Resignation due to Relocation: If an employer is relocating the business and it creates a significant burden on the employee, the employee can resign and claim severance pay.
• Death of the Employee: In the unfortunate event of an employee's death, severance pay is due to their inheritors.

Calculating Severance Pay

Severance pay in Thailand is calculated based on the employee's length of service and their final wage rate. The rates are as follows:

• Under 1 year: 30 days of the last wage rate
• 1-3 years: 90 days of the last wage rate
• 3-6 years: 180 days of the last wage rate
• 6-10 years: 240 days of the last wage rate
• 10-20 years: 300 days of the last wage rate
• Over 20 years: 400 days of the last wage rate

Special Severance Pay

In addition to the standard severance pay, employees are entitled to special severance pay under specific circumstances:

• No Advance Notice from Employer: If the employer fails to provide proper advance notice of termination, the employee is entitled to special severance pay equivalent to 30 days of their last wage rate.

It's important to note that even if an employee resigns for a justified reason, they generally are not entitled to severance pay unless resignation is due to the employer's relocation.

In Thailand, employers are required to adhere to a specific procedure when terminating an employee's contract. This procedure is governed by the Labour Protection Act (LPA) and includes steps for both termination with cause and without cause.

Termination with Cause

Termination with cause is permissible under certain circumstances as outlined in Section 119 of the LPA. These circumstances include dishonesty or acts of misconduct causing employer loss, willful negligence of duties, criminal offences at work, habitual absence from work without justification, and repeated violation of work rules despite warnings. It's important to note that employers must have clear evidence and conduct a fair investigation before terminating an employee for cause.

Termination without Cause

In cases where an employer wishes to terminate an employee's contract without cause, they must:

1. Provide the employee with a written notice of termination at least one pay period in advance. The termination will be effective on the next wage payment date.
2. Calculate the appropriate severance pay based on the employee's length of service and final wages. Pay the severance to the employee within 7 days of their final working day.
3. Issue a withholding tax certificate (Por Ngor Dor 50) and a job certification letter to the employee.

Additional Procedural Requirements

In addition to the above, the written termination notice must clearly state the reason for termination, whether with or without cause. While not explicitly required by law, it's recommended for employers to have a good-faith discussion with the employee before termination. This helps ensure transparency and fairness.

Wrongful Dismissal

If an employer fails to follow the correct termination procedures or terminates an employment contract without a valid reason, the employee may file a wrongful dismissal claim with the Labor Court. The Labor Court has discretion in determining the outcome and compensation for such claims.