The core answer
An HR team does not need a lawyer for every employee matter. It needs one at the few points where a decision is hard to undo, costs real money, or creates evidence a court will read later. Hiring paperwork, a first warning, a transfer or a dismissal each look routine, but the wording and the order of steps decide whether the employer pays severance, back pay or damages.
The rule (Labour Protection Act B.E. 2541). The Act fixes the hard edges: severance under section 118, the six grounds that remove severance in section 119, the one-year life of a warning letter, the seven-day cap on suspension in section 116, and Thai-language work rules for employers with 10 or more employees in section 108. Everything else (is this a fair reason, was the change agreed, is the evidence enough) is judged by the Labour Court on the facts.
Our practical view. Call a lawyer before the step, not after the letter is sent. A review of a dismissal letter takes minutes. Repairing one after the employee has hired a lawyer takes months. This guide is a decision table, not a replacement for the detailed guides listed at the end.
1. Which HR decisions are worth a legal review?
Use this as a triage sheet. "Review first" means the cost of a mistake is high enough to justify a short legal check before acting.
| Decision | Why it can go wrong | Review? |
|---|---|---|
| Hiring: contract, probation terms | Probation is treated as an indefinite-term contract (s.17). Fixed-term contracts are allowed only for the narrow project, occasional or seasonal work in s.118. | Review templates once; routine hires need no check |
| Hiring a foreigner | Work permit and visa rules are specialised | Review first |
| Changing pay, title, hours or place of work | A change that is worse for the employee generally needs consent | Review first |
| First written warning | Cheap to get right; valid for one year | Template review, then self-serve |
| Final warning or any step that points to dismissal | The warning becomes the evidence | Review first |
| Investigation and suspension | Suspension is tightly limited (s.116, s.117) | Review first |
| Dismissal for misconduct | Without a valid s.119 ground, severance is owed; reasons cannot be added later | Review first |
| Dismissal without misconduct (performance, role removal) | Severance, notice and fairness arguments | Review first |
| Resignation dispute or "forced" resignation | Disputes about whether the employee really chose to leave | Review first |
| Layoff or restructuring | Severance, notice and special rules for technology-driven cuts | Review first |
The sections below explain the main rows.
2. Hiring: what to check, and what to leave to the template?
For a standard employee, a well-drafted template is enough once it has been reviewed. Have the template checked when you first adopt it, again when the law or your business changes, and when a role is unusual (senior hire, commission pay, remote work, restrictive covenants).
Probation deserves a precise clause. Section 17 states that a probation contract is treated as a contract with no fixed term. Section 118(1) gives severance to an employee who has worked 120 consecutive days. The consequence is straightforward: dismissing someone on day 100 does not trigger statutory severance, but dismissing them on day 125 does, unless one of the section 119 grounds applies. A probation clause cannot remove that entitlement. Notice is separate: for a contract with no fixed term, section 17 requires written notice given on or before a pay date to take effect on the next pay date, and the employer may pay wages up to that date instead. If an employer ends the contract without notice, section 17/1 requires pay equal to the wages the employee would have received until the termination date would have taken effect.
For foreigners, the work-permit rules are specialised. Read Work permits: an employer's HR guide and get advice before the start date. We do not repeat that guide here.
Hiring through an agency raises different questions; see outsourced and subcontracted workers.
3. Can we change an employee's terms without asking?
Be careful. In practice, Thai courts treat a change that makes the employee worse off (lower pay, loss of a benefit, demotion) as needing the employee's consent. This is an established principle in case law, not a single section of the Labour Protection Act, so we do not give a section number; ask a lawyer to confirm the current position for your facts before relying on an order or a new policy to change terms.
Moves of the whole workplace have their own rules; see relocating the workplace.
The safe sequence is: explain the change in writing, get a signed acceptance, keep the old terms until consent is given, and review the wording if the employee pushes back.
4. Warning letters: what makes them count?
Section 119(4) allows dismissal without severance for breaking work rules, lawful orders or regulations, if the employer has already warned the employee in writing, except in serious cases where no warning is needed. The warning letter is effective for no more than one year from the date the employee committed the offence.
Practical checks before HR issues a warning:
- The rule or order breached is in the work rules or is a lawful, fair instruction.
- The letter states the facts, the rule, and that repetition may lead to dismissal.
- It is dated, signed by someone with authority, and delivered with proof (signed receipt, or a record that the employee refused).
- You diarise the one-year limit from the date of the offence, not the date of the letter.
A first warning is a template job. A warning that you intend to rely on in a dismissal is worth a review, because that is the document the Labour Court will read.
5. Investigations and suspension
Section 116 bars suspension during an investigation unless the work rules or a terms-of-employment agreement give the power. If they do, the order must be in writing, name the offence, last no more than seven days, and be given before the suspension starts. Pay during suspension must be at the rate set in the rules or agreed, and not less than 50 percent of the normal working-day wage. If the investigation clears the employee, section 117 requires back pay for the working days since suspension, with the section 116 payments counted, plus 15 percent annual interest.
Get a lawyer involved early if the allegation is serious (fraud, harassment, data theft), if an outside complaint is possible, or if HR staff are themselves witnesses. Our team can run the fact-finding as an independent step; see employee investigations.
6. Dismissal: severance, notice and the reason
Section 118 sets severance by length of continuous service, from 30 days' final wage for 120 days to under one year, up to 400 days for 20 years or more. Severance pay and termination explains the calculation and the fixed-term exception. We do not repeat it.
What HR should review before dismissing:
- The ground. Section 119 lists six: dishonesty or an intentional crime against the employer, intentional damage, gross negligence causing serious damage, breach of rules after a written warning (unless serious), absence for three consecutive working days without good reason, and a final prison sentence. If none fits, expect to pay severance.
- The letter. If the employer relies on section 119 but does not state the facts in the dismissal letter, or does not tell the employee the reason at the time, section 119 says the reason cannot be raised later.
- Notice. Sections 17 and 17/1, as above.
- Other protections. Some employees (for example pregnant employees or union representatives) may have special protection under other laws that we have not covered here. Ask before dismissing anyone in such a position.
If the employee is likely to sue, read defending a Labour Court claim before sending anything.
7. Resignation disputes
The risk here is evidence. A resignation letter written under pressure, or one that the employee says was forced, can be argued to be a dismissal in disguise. Have the letter reviewed when the employee resigns during or after a disciplinary process, when HR drafted it for them, or when a settlement is offered. Where repayment of training costs is claimed, see training bonds and resignation.
8. Layoffs and restructuring
Layoffs combine severance, notice, selection fairness and, where machinery or technology changes cause the cut, section 121: written notice to the labour inspector and 60 days' notice to the employees, or special pay in lieu. They are always a review-first matter. Read restructuring and redundancy planning first, then get the plan checked before any announcement.
9. What should HR have in place so reviews are quick?
Section 108 requires employers with 10 or more employees to have Thai-language work rules, announced within 15 days of reaching that number, covering working days and hours, holidays, overtime, pay dates, leave, discipline and penalties, grievances, and dismissal and severance. Work rules are what make a warning, a suspension or a disciplinary dismissal possible. A broader check of your obligations is in the labour compliance audit guide.
10. Checklist: before HR sends the letter
- Do the work rules cover this situation?
- Is the decision reversible? If not, get a review.
- Are the facts written down, with documents and witnesses?
- Has the employee been given a chance to respond?
- Does the letter state the specific facts relied on?
- Is severance, notice pay and accrued leave calculated?
- Is the one-year warning limit checked?
- Who has authority to sign?
Further reading
- Thai labour compliance audit for employers
- Severance pay and termination in Thailand
- Restructuring and redundancy planning
- Defending a Labour Court claim as an employer
Review the step before you take it: a short check of the warning, the investigation or the dismissal letter costs far less than defending the decision afterwards.
We help HR teams with employment documents, investigations and compliance. Initial consultation is free — call +66 92 254 2045 or send us the details. See also labour compliance, HR documents, employee investigations and legal retainer.
This guide is published by Suwanvara Law Firm — a Khon Kaen law firm established in 1986. General information only, not legal advice on a specific matter.
