Employment Contract

What is an employment contract and how important is it?  Why did my employer assign me these tasks without anycontract? How secured am I with my company? Yes, these are few of the questions that may boggle the minds of employees.  Nowadays, many entrepreneurs and businesses take for granted the need for formal contracts and agreements with the members of their staff.  Many of them think that it is better to do the dealings verbally than doing it in well-drafted contracts.

But why do we have to enforce it?  Why do we have to demand for well-drafted contracts?  Why do we have to ensure that these contracts are effective, enforceable and drafted in a way to protect us?  Many have lost their jobs for no reason.  Many have been kicked and fired out of their jobs without getting any compensation.  Many have retired from their jobs and gained nothing at all.  Many have been put at risk of unfair treatment by their employers.  One of the main reasons why these happen is the absence of an employment contract.

Sure, you get the job. You are happy.  You are contented.  But how long will it last? How sureare youthat it would be a long-term job?  Think about this.  Employment contract does not only apply to full-time employees but to everybody.  The first time one enters or hired by the company, they should have to sign an employment contract and understood everything that is stated therein.  Although Thai Law does say that a contract can be oral or in writing, it has and ideally needs to be in writing.  This is because work ethics say that contracts should be handled with much care and sensitivity.  Thus, it should be in written.

Employment contracts do not only protect the rights of an employee but the employer as well.  When an employee develops misbehavior towards the employer or co-employee or any dispute arises at work, they can refer to a written contract to help them determine the actual agreed-upon provisions.

Moreover, employment contracts in Thailand are categorized into two main types:

1)      Fixed Term – It has a specific period of termination.  The date of termination for an employee is determined.
2)      Open-Ended –It is a contract where there is no end date.  Unlike the fixed term contract, open-ended contract is open for two parties until it is changed through termination or by quitting.

Like any other contracts, employment contract is a binding between two parties whereas called as employer and employee.  It provides a smoother relationship as it sets out their employment rights, responsibilities and duties.  This therefore could reduce conflicts and likelihood of disputes with an employer at a later date.