Termination of Employment

Employers operating their businesses in Thailand can, under Thai Labour Law, terminate the employment of their employees by dismissing them. Conversely, termination initiated by employees is referred to as resignation.

Regardless of who initiates termination, it is important to know when to notify the employee/employer. There are two common scenarios that can take place.

FIXED-PERIOD EMPLOYMENT

An employee whose employment agreement is valid for a fixed period is terminated automatically at the end of that period.

ONGOING EMPLOYMENT

Termination of an ongoing employee requires an additional step, namely notifying the other party before or on the date the salary is paid. Termination period will start on this date and last until the following pay date.

For example: If a company pays salaries at the end of each month and plans to dismiss an employee on AUG 31, it needs to notify the employee no later than on JUL 30 (before or including). A properly notified employee will then officially leave the company on AUG 31. The same will apply if the employee decides to resign.

From time to time, there are cases when companies need to dismiss an employee immediately. Should this happen, companies do not wait until the usual termination date, but dismiss their employee immediately and pay them the additional one month of labor in advance. Please note that the above will not apply if an employee:

• Wilfully disobeys or habitually neglects the lawful commands of the employer

• Hearing or interpretational disability

• Is absent from service

• Is guilty of gross misconduct

• Otherwise acts in a manner incompatible with the due and faithful discharge of their duties

OTHER ARTICLES THAT MIGHT INTEREST YOU

• Wrongful Dismissal in Thailand

• Social Security in Thailand

• Severance Pay in Thailand

• Thai Labour Law : Rights and Duties of Employer and Employee

• Other HR Related issues