Many of us face employment problems with potential legal implications at some point in our careers. When faced with such difficulties, an employee may often make some mistakes, resulting in misunderstandings and bitterness toward the employer. This can both lead to a disadvantage for both parties.

For employers, tales of badly handled disciplinary action or terminations tend to spread on the grapevine and can discourage quality candidates from seeking positions at a firm.

There are ways to go about this. First it should be noted that an employment contract applies to both full-time and fixed-term employees because normally full-time employees tend to have contracts. Even if there is no written contract there will be an implied or deemed contract between an employee and employer and that defines the relationship.

Thai law does say that a contract can be oral or in writing. But ideally it needs to be in writing. Basically there are two levels of breach under the Thai labour protection law, one being grave misconduct and the other incompetence or failure to perform duties.

Exploring the effects and consequences of a breach of contract means looking at all of the relevant laws and regulations related to the labour law. The main piece of legislation is the Labour Protection Act B.E 2541 (1998) and the binding provision is in the civil and commercial code.

Termination procedures for this type of breach depend on the regulations of each company. However, if after the first warning letter is issued the employee continues to repeat the misconduct cited or does not improve, then the employer is generally entitled to terminate the contract within a reasonable period of time from serving the warning letter.

If you have 10 or more employees working for your business, you are required by the labour law to provide the company rules and regulations as the following terms

1. The rule & regulations should done in Thai
2. cover all 8 articles according to the labour laws
3. The rules & regulations must be annouce within 15 days after employees are up to 10 
4. The rules & regulations must keep in good order and ready to show as required
5. Employer must send a copy of the rules & regulation to the labor dept. within 7 days after an annoucement
6. The rules & regulations must has nothing illegally against by the law
7. An annoucement must in place where easily for employees to see
8. Any additional or corrective must annouce within 7 days

Payroll Management

- 10 employees or Less................300.00 per month        

- 11 - 20 employees....................500.00 per month

- 21 - 50 employees.................1,000.00 per month

- 51 - 100 employees...............2,000.00 per month

- More than 100 employees.......5,000.00 per month