How to create offer letters for employees in Thailand
When you hire an employee in Thailand, one of the first things you'll do is send a job offer letter.
It’s crucial to get the employment agreement right: not only will it make the offer of employment and conditions of employment clear to the potential employee, it will help keep you compliant with labor laws in Thailand—so you can avoid costly legal disputes and penalties.
Here’s everything you need to send a legally compliant offer letter to hire a full-time employee in Thailand.
Thailand job offer letter checklist
- Position (job title), job description, start date, and probationary period. You should explain that their suitability for their job duties will be evaluated during their probationary period. In Thailand, probationary periods typically last three months and max out at 119 days.
- Working hours. Outline the expected working hours and any overtime policies that the employee will be subject to. The standard Thai working week is 40 hours, Monday to Friday, though and employers and employees can mutually agree to add a full day Saturday, for 48 hours. Overtime pay is mandatory and employees are entitled to time-and-a-half for extra hours on a normal working day (and 200% of their regular salary if they work holidays).
- Compensation and benefits
- Salary. Specify the employee's salary or hourly compensation in THB, as well as any other compensation they may receive (equity compensation, bonuses, etc.). Specify how often the employee will receive payment. Most payroll cycles in Thailand are monthly, though employers can also choose to pay weekly or bi-weekly. You can also mention the payment method you’ll use to compensate your employee.
- Equity. If applicable, specify any equity compensation—such as restricted stock units (RSUs), stock purchase plans, or stock options—the employee will receive.
- Benefits. Benefits could be outlined in the offer letter, but be sure to address them in general terms so that if they change in the future, an amendment to the offer letter isn't required. In Thailand, the following benefits are mandatory for full-time employees (though not always listed out in an offer letter):
- Social security contributions
- Vacation entitlements
- Statutory holidays
- Maternity leave
- Sick leave
Additionally, popular fringe benefits worth mentioning (if you offer them) include: - Meal allowances
- Transportation stipends
- Professional development services
- Vacation. The employment contract should include details about your company's vacation leave policy, especially if you offer more leave than the required minimum of six days paid time off per year for all employees in Thailand.
- Termination policy. Clearly explain the terms of termination, including the notice that will be provided, and any conditions that may lead to termination. Note that there are limited just causes an employee can be terminated involuntarily for in Thailand, and at-will employment does not exist. Requirements vary, but you should aim to give at least 30 days advance written notice of termination. Severance pay is mandatory and increases based on length of service.
- Confidentiality and non-disclosure. Include in the offer of employment a clause outlining the employee's responsibilities regarding confidentiality and non-disclosure of the company's information. Non-disclosure agreements (NDAs) can be legally binding in Thailand, but you should be clear about the information you’re trying to protect to avoid any loopholes.
- Contact information and phone number
- Other key details. If there are any other key details relevant to your company's policies and procedures, include them in the offer letter.
- If the offer is contingent on any conditions—like satisfactory results from a routine background check, signing company policies documents, proof of their eligibility to legally work in Thailand—then list these out.
- Request that the employee signs and returns the offer letter to confirm their acceptance of the job before their start date, or include an expiration date for the offer letter that serves as a deadline for signature.
- Personal data collection. Include information about how you will collect, use, store, and process personal employee information.
- Intellectual property. Convey the expectations for the intellectual property ownership of any improvements, inventions, discoveries, and other modifications to work products by the employee on company time.
- Workplace health and safety. Include information about how you will ensure a safe, hazard-free work environment for your employee.
- Location. Establish expectations for in-office vs. remote work, if applicable.
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Disclaimer: Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any related activities or transactions.
