BLOG |
Compliance
Thailand’s leave entitlements are primarily regulated under the Labor Protection Act B.E. 2541. Below is an overview of the statutory leave types employers must comply with:
According to the Supreme Court of Thailand, employees have the right to carry over unused annual leave to the following year unless otherwise specified. Employers must pay unused leave upon termination. The right to claim wages for unused leave must be exercised within two years from the entitlement date.
Failure to fix annual leave in advance is a criminal offence under Section 146 of the Labor Protection Act, punishable by a fine of up to THB 20,000. Non-compliance with leave payments, particularly upon termination, exposes employers to penalties and labor disputes. Accurate tracking and timely payout are essential to mitigate risks.
Thailand has 13 to 16 official public holidays per year depending on government announcements. Holidays such as Songkran (Thai New Year), the King’s Birthday, and Buddhist Lent are widely observed. If a public holiday falls on a weekend, a substitute holiday must be provided on the following working day. These holidays are separate from annual leave and must be paid if the employee normally works on that day.
AYP helps employers operating in Thailand comply with labor law by managing leave accruals, entitlements, carryovers, and termination payouts accurately. Our Employer of Record platform ensures automated tracking of statutory leave, integration with payroll, and guidance on local nuances such as sterilization leave or training leave eligibility. We reduce the risk of penalties through robust compliance processes tailored to Thailand’s labor framework.
Looking to hire in Thailand? AYP offers full-service Employer of Record solutions to help you stay compliant with leave regulations, payroll, and employment laws. Get in touch with us today to simplify your expansion in Southeast Asia.