Employment Contract

What is an employment contract and how important is it?  The employment contract Thailand is explained. Why did my employer assign me these tasks without any contract? How secured am I with my company? Yes, these are a 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.

Employment Contract

But why do we have to enforce it?  Why do we have to demand well-drafted contracts?  Why do we have to ensure that these contracts are effective, enforceable, and drafted in a way to protect us?  Also many have lost their jobs for no reason. 

Many have been kicked out and fired out of their jobs without getting any compensation.  Many have retired from their jobs and gained nothing at all.  Also 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 sure are you that it would be a long-term job?  Think about this.  An 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 labour 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 writing.

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. See also Labor Court representation and labor disputes.


Thai Employment Contracts


Fixed Term – It has a specific period of termination.  The date of termination for an employee is determined.

Open-Ended –It is a contract where there is no end date.  Unlike the fixed-term contract, the open-ended contract is open for two parties until it is changed through termination or by quitting.

Like any other contract, the employment contract is binding between two parties whereas called an employer and employee.  It provides a smoother relationship as it sets out their employment rights, responsibilities, and duties.  This therefore could reduce conflicts and the likelihood of disputes with an employer at a later date. This is the employment contract Thailand which you will need when you complete the Thailand work permit application. There is also the Thailand work permit cost and who pays for this. The Thailand income tax for foreigners also become very important. See our Thai work permit lawyer for more answers.