Severance Pay in Thailand

A worker must be given notice of termination one month or one pay period in advance of termination. This notice period does not apply to employees being terminated for cause. Under the Thai Labor Law , “cause” means:

✓ Intentionally causing harm to the employer;
✓ Dishonest performance of duties or an intentional commission of criminal offense against the company;
✓ Gross negligence producing severe damage to the employer;
✓ Violating work rules and / or instructions of the company for which a written caution has been issued to the employee.
✓ Absence of three consecutive days without reasonable cause and notification to the employer.
✓ Imprisonment;

Serious damages do not require a warning letter.

Without Cause, the following severance pay regime shall apply:

Employees for a fixed duration are not concerned by severance pay. Fixed duration period means having a written labor agreement which length is less than two years.

The employer shall send a written notification to the employee containing the termination date and the reasons of the termination. This notification must be done 60 days in advance at least. In case the company fails to give advance notice less than 60 days in advance, the employer shall pay additional severance pay equivalent to 60 days.