Day: September 16, 2026

The statutory entitlement to severance pay is a fundamental protection afforded to employees under Thailand’s Labour Protection Act B.E. 2541 (1998) (the “Labour Protection Act”). In principle, an employer terminating an employee’s employment is required to pay severance in accordance with the employee’s period of service. This obligation, however, is subject to specific statutory exceptions. Section 118, paragraphs three and four, establish circumstances in which an employer is exempt from the obligation to pay severance pay, thereby creating an important qualification to the general principle of statutory protection. These paragraphs provide as follows: “The provisions of paragraph one shall not apply to an Employee whose employment is for a definite period and the employment is terminated at the end of that period. Employment for a definite period under paragraph three is allowed for employment in a specific project which is […]