Labor Lawyer — Termination, Severance, Labor Court in Thailand

Qualifying severance bands and exclusions

For qualifying section 118 dismissals: 120 days to less than1 year =30 wage days; 1 to less than3 years =90; 3 to less than6 =180; 6 to less than10 =240; 10 to less than20 =300; 20 years or more =400. Check the wage basis, limited statutory fixed-term exclusions and section119 grounds; an annual contract alone does not create an exemption.

Section49 is separate: the court may order reinstatement at the dismissal-date wage or, if continued employment is not feasible, assess damages using age, service, hardship, grounds and severance entitlement. Additional damages are neither automatic nor governed by a fixed statutory formula.

Ending employment without it becoming unfair dismissal

Termination raises two separate questions. One is whether severance is due, which turns on length of service and whether a statutory exception applies. The other is whether the dismissal was fair, where the court weighs the business reason and the proportionality of the sanction. Many employers pay full severance and still lose on the second point because the punishment outran the offence.

Section 119 lists distinct severance exclusions. For breach of lawful and fair rules or orders under paragraph (4), a written warning is normally required, except for a serious breach. A warning operates for no more than one year from the offence date. Not every ground requires a warning. Section 119 facts must appear in the termination letter or be communicated at dismissal; omitted grounds cannot be invoked later.

Wages, overtime, and the items most often miscalculated

A large share of disputes arises from what counts as wages, because the wage base drives overtime, severance and contributions. Attendance or position allowances paid every month without condition are in practice treated as wages, unlike bonuses paid occasionally on performance.

Monthly-paid staff who work beyond hours at the employer's instruction are entitled to overtime unless their role falls within a statutory exception, so the claim that office staff never qualify is not reliably true. We therefore recommend an auditable timekeeping system, which protects both sides when a claim is made.

Routes to resolution: the labour inspector and the labour court

An employee may petition the labour inspector for an order covering statutory monies, or sue in the labour court for both statutory entitlements and damages for unfair dismissal — but not pursue the same claim down both routes at once. Choosing the route therefore starts from what the claimant primarily wants.

Separate legally supported amounts from settlement proposals and prepare evidence for contested issues. Mediation requires consent and does not guarantee agreement or payment. Once an inspector's order exists, section 125 requires a court challenge within 30 days of learning of the order; an employer bringing that challenge must deposit the ordered money with the court.

When to act, and when waiting is fine

• You are about to dismiss someone with over three years of service

  Take advice before you notify; the sequence and the wording of the letter can change the whole outcome

• You have received a summons from the labour inspector

  Do not let the deadline pass; assemble payroll records and work rules before the appointment

• You were dismissed and severance has not been paid

  Preserve payslips, the termination letter and related messages now, then pick the route that matches what you want

• You have no work rules and headcount keeps growing

  Check work-rule duties against headcount and actual practices; do not assume drafting costs less than every possible dispute