HR Consultancy Services in Thailand with IRIS
IRIS HR Consulting has experience helping businesses grow in Thailand. Without expert guidance, it can otherwise be risky and costly to leave local laws and legislation open to interpretation. For a scalable, compliant operation, IRIS can manage your HR in India to help businesses hire, recruit, and pay staff overseas in new, unfamiliar countries. As a popular destination for businesses, IRIS can navigate local barriers in Thailand – from culture to compliance – to arrive at a rewarding opportunity for your business to thrive in this exciting marketplace.
Take your business to Thailand with IRIS HR Consulting
Global expansion in Thailand
Economically, Thailand is quickly scaling up based on its steady exports and growing internal consumer markets. Unlike other competitive nations, Thailand thrives on the availability of rich natural resources and its skilled yet cost-effective workforce. As industries develop in Thailand, the country is more keenly able to attract key investors based on this availability of talent and other resources. Along with governmental support, in the form of tax incentives and import duty exemptions, external investors can expect to enjoy an attractive pro-business climate.
Establishing your business in Thailand
Embarking on a global expansion is a strategic move to gain extra value from exciting foreign markets, which are constantly evolving and full of opportunity. But the international stage isn’t always easy to navigate.
Before entering Thailand’s market, you will need honor labor regulations, which have tightened over the years. Establishing a business in Thailand will require local knowledge – everything from selecting a favourable location, to understanding tax schemes. Complying with these procedures can be easier when you partner with IRIS HR consultants – we can help you reach Thailand’s markets.
Employment laws in Thailand
When first expanding your business into Thailand, navigating local laws, legislation and rules of employment laws is no easy feat. Throughout Asia, these laws are almost never universal. Rather, employment is dynamic and reflects the country social, economic, cultural opportunities.
For example, hierarchy is a key topic in Thailand, which helps informs the publics role and perception. Although seemingly personal, this is common practice in Thailand and forms part of the broader (and expected) etiquette.
Did you know?
It’s best practice for contracts to use the local language (Thai) when setting out employment terms and conditions.
Hiring & recruitment in Thailand
When getting your first hire overseas, you will need to negotiate terms of employment. But that requires local knowledge, strict compliance, and an understanding of what to include in an offer and thereafter – including before, during and after the commencement of an employment contract.
Work Visas in Thailand
Annually, approximately 20 million tourists visit Bangkok, which has become a prime destination for short term stays. But happens if you’re looking at longer, work-based stays in Thailand?
When planning an international expansion into Thailand, and in order to remain compliant, your business will need to acquire visas for any employee working permanently in this country. Whilst most employee types will require a Category B visa, including those migrating to teach or from a multinational organisation, there are other types of visas to be aware of:
- Non-immigrant visa IB
- Non immigrant visa B-A
- Non-immigrant visa O
- Non-immigrant visa M
Employment rights & contracts in Thailand
Whilst contracts can be agreed upon in either writing or orally, it’s best practice to firm up employment records with a strong written contract and present this to the employee.
Contracts should aspire to include key details, such as: forms/ amounts of compensation, any supplementary benefits, and termination conditions.
It is essential, however, that contracts capture salary (or renumeration). Any amounts in terms of compensation and wages should avoid using foreign currency, where the standard is in Thailand THB.
Equal Opportunities in Thailand
The Constitution of Thailand grants all employees equality within, and outside of, the workplace.
What are the working hours in Thailand?
It is common in Thailand for employees and employers to negotiate and, then, mutually agreed upon working hours. This must not, however, exceed a weekly threshold of 48-hours. Yet, as per the Hours & Pay Regulations local to Thai laws, the standard working week commonly allows for a pattern for eight-hours daily, or 48 hours weekly.
Employees are permitted to a holiday per week (as a minimum).
Overtime in Thailand
Per regular working week, overtime in Thailand must not exceed 36 hours weekly. On weekdays, the overtime rate is set at 1.5 times an employee’s salary. This rate rises to 3 times on weekends. Yet, in the scenario where an employee is not eligible for overtime, they should receive 2 times their wages as renumeration.
Sick Leave in Thailand
In Thailand, sick leave and annual holiday are separate benefits. According to Thai labour laws, employees can receive up to 30 days of sick leave yearly. If injury or illness occurred at work, this is not considered sick leave.
It’s common for after 3 days of absence that an employee support sick leave with a medical note.
Maternity Leave in Thailand
In total, female employees can receive up to 98 days of maternity leave. The funding is split equally between employer and the State’s social security: 45 days will be covered by the employer, the remaining 45 by the State.
Public Holidays in Thailand
There are 13 public holidays per year in Thailand, including:
- New Year’s Day
- Makha Bucha Day
- Chakri Day
- Songkran Day (3 days)
- Labor Day
- Coronation Day
- Visakha Bucha Day
- Asarnha Bucha Day
- M. Queen’s Birthday
- Chulalongkorn Day (Rama V Day)
- M. King’s Birthday
- Constitution Day
- New Year’s Eve
*If a holiday date occurs on the weekend, the corresponding working day will be taken off in lieu of public holiday.
Vacation or Annual Leave
After a year of service, employees are entitled to six-days of paid leave. It’s common practice for many organisations to offer between 10 and 15 days of paid leave. Yet, paid leave can be extend under one of the following:
- National Service (for military professionals)
- Training or Exam Leave
- Sterilization leave
Further paid absences, if agreed with the employer, may include:
- Monkhood Leave
- Marriage Leave
- Compassionate Leave
- Huji Leave
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Deliver your business to new, exciting markets with confidence and compliance.
End of Service
HR in Thailand requires compliance not only during an employee’s service, but also at the end of it. End of service might include severance, termination, redundancy, and leaving packages. Or, for globally mobile companies with teams in foreign markets, this could be repatriation services for those returning from an assignment overseas.
For these more complicated matters, you will need expert HR guidance to navigate Thai labor laws and remain compliant.
Termination (including Severance) in Thailand
Probationary period, typically, will run no longer than 120 days. Although, there is no statuary guidance, instead this is a business convention and must be stipulated in a written contract.
Where termination is pursued by the employer, it is expected that notice is issued (no less than a month) and a respective severance payment is completed.
This will depend on the length of service:
- 120 days (and less than 1 year, or within probation) equates to 30 days of remuneration.
- 1-3 years equates to 90 days of remuneration.
- 3-6 years –equates to 180 days of remuneration.
- 6-10 years equates to 240 days of remuneration.
- 10 years equates to 300 days of remuneration.
- 20 years equates to 400 days of remuneration.
Retirement & pensions in Thailand
There are three tiers in the Thailand pension scheme:
- Old Age
- The Government Pension Fund (for government officials)
Enrolment in the two schemes is mandatory, and further retirement and pension funds can be structured if voluntary. In recent movements, owed to Thailand climbing population, the State has been trying to enforce mandatory pension saving schemes.
Reformed in 1990, the social security scheme is focused at formal employees (those in private sectors) and is funded through tripartite contributions between State, employer and employee. This typically covers areas of maternity, sickness and invalidity (such as funeral grants).
Health Insurance Benefits
Through its universal healthcare scheme, health insurance is delivered through three systems:
- Civil welfare system
- Social security for private employees (including expats)
- Universal healthcare credit for locals
Social security will permit employees access to a local hospital with services at no charge. Yet, for many expats and those on international assignments, it is common to be assigned with a healthy and life insurance perk.
As a mean to simulate retirement funds, this optional benefit can work similar to pension, with split contributions between employer and employee. An employee’s contributions will be acknowledged as ‘pre-tax’ under a savings deposit. This will be delivered at the end of a contract, the conclusion of membership, or upon retirement in the shape of a lump sum.
Why Partner With IRIS?
When entering new, exciting countries like Thailand you will need an employment specialist to navigate the different parts of Thailand employment laws. Delivering a compliant solution, IRIS can help your business arrive into new marketplaces whilst protecting your workforce – our partners can discover power and protection through us.
Overseas expansions can seem risky to those who dare it alone. Understanding the complexity of a fully compliant solution, IRIS can help businesses reach Asia, especially when they build bridges in Thailand.
Our cost-effective, knowledgeable approach to HR in Thailand makes us an ideal partner to commence your overseas plans.