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SUWANVARA LAWFIRM
Suwanvara Law Firm Co., Ltd.
SUWANVARA LAWFIRM
SUWANVARA LAWFIRM
Suwanvara Law Firm Co., Ltd.
Labour Law Guide

How Much Severance Pay Am I Owed in Thailand? Employee Rights Guide 2026

Suddenly terminated? Learn what severance pay, payment in lieu of notice, and unfair-dismissal compensation you may be entitled to under Thai labour law — and how to claim through the Labour Court. By a Khon Kaen law firm with 40 years of experience.

Suwanvara Law FirmEmployment Law Team11 min read

Terminated out of the blue — pause before you sign

One of the calls we receive most often is: "I was let go this morning, they made me sign some papers and told me to go home — what should I do?" Shock, money worries, and not knowing your rights lead many employees to sign documents unread, or accept a lump sum far below what they are owed.

This guide summarises the core rights an employee has on termination, so you know what you should receive before you decide — and when it is worth consulting a labour lawyer.

This page is general information, not advice on your specific case. Your exact entitlements depend on your individual facts.

What an employee may be entitled to on termination

The money to consider is not just one "severance" figure — it usually has several parts.

1. Severance pay

This is what the employer must pay when dismissing an employee who has completed the qualifying period. It is calculated on a length-of-service scale — the longer you worked, the more you receive. The general structure (statutory minimums, based on your last wage rate):

Length of serviceMinimum severance
120 days but under 1 year30 days
1 but under 3 years90 days
3 but under 6 years180 days
6 but under 10 years240 days
10 but under 20 years300 days
20 years or more400 days

These are the commonly applied standard rates, but the law can change, and your "last wage rate" may include amounts employees often overlook. Let a lawyer calculate it correctly.

2. Payment in lieu of notice

If the employer terminates without giving the required advance notice tied to the pay cycle, you are entitled to payment in lieu of notice — separate from and in addition to severance.

3. Unpaid wages and other accrued entitlements

For example, wages for days already worked but unpaid, accrued unused annual leave, and bonuses or commissions owed under agreement. These must be paid regardless of why you were terminated.

4. Compensation for unfair dismissal

If the dismissal lacks sufficient reasonable cause, the Labour Court may order reinstatement or additional damages — separate again from severance.

"Fair" vs "unfair" dismissal

An employer may dismiss employees, but needs reasonable cause. A dismissal that is malicious, discriminatory, or unsupported by good reason may be unfair — even if severance was paid in full. The employee can then claim additional unfair-dismissal damages.

Conversely, if the employee was dishonest, wilfully caused serious damage, abandoned their post, or seriously breached the rules, the employer may dismiss without severance — an exception that must be clearly proven. Assessing whether your case falls within that exception is exactly where a labour lawyer adds the most value.

What to do, and in what order

  1. Don't sign documents you don't understand — especially a "resignation letter" or anything waiving your claims. Resigning forfeits severance.
  2. Keep every piece of evidence — employment contract, payslips, chats, emails, termination letter, employee ID, work logs.
  3. Record a timeline — start date, termination date, who said what.
  4. Consult a lawyer or the Labour Inspector quickly — claims have time limits.

Where to claim

Employees have two main routes: (1) file with the local Labour Inspector, who can order payment, and (2) sue in the Labour Court. The advantages of labour cases are no court filing fee, a process built for speed and informality, and the court usually attempting mediation first.

Our firm handles labour matters across Khon Kaen and Isan, as well as Bangkok and the industrial estates. Read more about labour services in Khon Kaen or labour cases in Bangkok.

Summary

Being terminated does not mean you have no rights — in many cases an employee is owed severance, payment in lieu of notice, and other damages well beyond what the employer offers. The key is not to sign away your rights, and to consult a lawyer before any deadline passes.

If you were just terminated and aren't sure what you're owed, talk to our employment law team or start a quick case assessment. We'll help you calculate your rights and claim the full amount.

Frequently asked questions

I was terminated after 5 years — how much severance is that?+

Employees with 3 to under 6 years of service are entitled to a statutory minimum severance equal to 180 days of their last wage (about 6 months). That is the minimum on the length-of-service scale; an employer may pay more. Have a lawyer check your wage base and any additional entitlements you may be missing.

Do I get severance if I resign?+

Voluntary resignation generally carries no severance, because severance is a right that arises when the employer terminates you. But if the employer pressured you into signing a resignation letter when it was really a dismissal, it may still count as termination. Consult a lawyer before signing anything.

My employer refuses to pay severance — what can I do?+

You can file a complaint with the local Labour Inspector or sue in the Labour Court. Labour cases require no court filing fee and the process is designed to be accessible to employees. There are time limits, so seek advice early to protect your claim.

The company is losing money — does it still owe severance?+

Yes. Financial difficulty is not an exemption from paying severance. Terminated employees are still entitled to severance based on length of service, except in specific cases such as dishonesty or wilfully causing serious damage to the employer.

I was dismissed verbally with no letter — can I still claim?+

Yes. Termination need not be in writing. If you have evidence the employer ended your employment — chat messages, witnesses, or a deactivated system login — that can prove it. A lawyer will help you assemble solid evidence.