Get It Right! Understanding Employment Contracts for Migrant Workers in Thailand

Guidelines for Employers and Migrant Workers in Thailand

Migrant workers are another vital cog in Thailand’s economic system, contributing to the achievement of business goals and operational plans, as well as supporting international cooperation and the promotion of employment under various MOUs. This is particularly true in the industrial, agricultural, and service sectors. Therefore, executing an “employment contract for migrant workers” in compliance with Thai law is crucial for both employers and employees. It ensures legal compliance, fosters mutual understanding in the workplace, and protects the rights and benefits of both employers and employees. 

This article will provide a clear understanding of “employment contracts for migrant workers in Thailand” in compliance with the law, along with other important guidelines related to the employment of migrant workers that Thai employers need to know before hiring. 

What is an Employment Contract for Migrant Workers?

An employment contract for migrant workers is an agreement between an employer in Thailand and a foreign employee, specifying the type of work, duration, and wages. This contract is considered an essential document under the Royal Decree on the Management of Foreign Workers Employment B.E. 2560 (2017) and its subsequent amendments.

The employment contract must be made in writing and clearly specify details such as:

• Name and identification number of the worker
• Job position and workplace location
• Wage rate and working hours/days
• Duration of employment for the migrant worker
• Benefits and welfare to be provided during the course of employment 

Why Is an Employment Contract for Migrant Workers Necessary?

In many cases, employers avoid making contracts because they see it as a complicated process. However, in reality, the absence of an employment contract may lead to various problems in the future, such as:

• Workers claiming back pay or compensation, along with other subsequent issues 
• Employer’s Violations under the Law on the Employment of Migrant Workers
• Risk of having the Work Permit revoked  

What Must Be Included in an Employment Contract for Migrant Workers?

According to the requirements of the Department of Employment, Ministry of Labour, an employment contract for migrant workers should include the following main sections:

1. Personal information of the employee and the employer
2. Job description, duties, and responsibilities
3. Wages, overtime pay, bonuses, and deductions (if any)
4. Working days and hours, rest days, and leave entitlements
5. Duration of employment (not exceeding 2 years for MOU workers)
6. Contract termination conditions, such as resignation, dismissal, or expiration of the contract
7. Signatures of both parties and witnesses (if any).
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Important to Know! In Which Language Must the Employment Contract Be Written?

According to international practice, the contract should be prepared in Thai and translated into the worker’s language, such as Burmese, Lao, or Khmer, to ensure the worker fully understands the content. If the worker does not understand the contract language, it may, in some cases, render the contract void under the principle of fairness.

What Are the Employer’s Responsibilities Regarding the Employment Contract?

1. Prepare an employment contract for every migrant worker
2. Keep copies of employment contracts properly as official records 
3. Submit copies to government agencies, such as the Provincial Employment Office or the Department of Employment, to be used along with other required documents for employing migrant workers. 
4. Renew or terminate the contract upon expiration, ensuring completeness and accuracy. 
5. Carry out employment in accordance with the legal framework, including good governance in management and operations.  

Recommendations from Work Permit Experts

Experts advise that an employment contract for migrant workers is not just a legal document, but also a reflection of an organization’s responsibility and transparency in labor management. It forms part of running a business more sustainably under ESG principles: Environmental, Social, and Governance. In today’s business environment, neglecting or failing to give importance to this matter may lead to risks and various problems. To minimize such risks, employers can consult with labor specialists who provide services in reviewing or drafting contracts tailored to the type of business and in full compliance with current laws, ensuring accuracy and accountability. 

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