If employees are not dismissed for the reasons mentioned in the section above, they are paid severance according to the following scheme:
Period of Employment
Amount of Severance Pay
More than 120 days but less than 1 year - 30 days salary
At least 1 year but less than 3 years - 90 days salary
At least 3 years but less than 6 years - 180 days salary
At least 6 years but less than 10 years - 240 days salary
10 years but less than 20 years - 300 days salary
20 years or more - 400 days salary
Employees working for less than 120 days for the same employer are not eligible to receive the severance payment. Other employees who do not qualify for severance payment are those who are hired for a fixed duration. As specified in the Labour Protection Act, these employees must have a written contract of no more than 2 years duration. To receive such a contract, employees usually do a special project, not in the normal course of the employer’s business. Or it must be temporary or seasonal employment.
When the employer announces termination and requires employees to work until the end of the following month, employees can find other employment and resign before the specified date. If this is the case, employers do not pay severance pay to the resigned employee.
Not required, however, Thai law does specify severance pay for employees who have worked for 120 days or more and are terminated without cause. As a result, to avoid paying severance, many employers in Thailand set probation periods of up to 119 days.