Companies are increasingly looking beyond their immediate borders when hiring employees. Thanks to advances in technology and increasing openness to remote work, global hiring has become more common—and it looks like it's here to stay.
This benefits employees and employers alike. As a worker, your home no longer has to limit your job opportunities. Meanwhile, as an employer, you can tap into skilled talent all over the world.
If you're looking to hire internationally, Thailand is one option worth considering. The country has a workforce of 40 million people, with the majority of workers being under 35 years of age. Every year, an estimated 800,000 people are added to the workforce. In addition, Thailand has a high literacy rate and cheaper labor costs than many other countries, which can be a plus for international employers looking to cut expenses.
However, if you're going to hire employees in Thailand, it's important to adhere to Thai labor laws. You don't want to risk compliance issues, which can get you in hot water legally and result in fines.
An employer of record (EOR) in Thailand can help avoid issues. Discover what an EOR is and why it's a smart solution below.
EORs in Thailand
An EOR is an independent organization that serves as an employer for tax and legal purposes, allowing your business to operate overseas legally. Your business can use an EOR to legally hire workers on your behalf, thus simplifying global hiring.
While they are third-party organizations and independent of your business, EORs are able to handle essential human resource and legal issues, making it easier for you to hire remote employees. A Thailand employer of record can manage many tasks, including:
- Hiring workers in line with Thai regulations
- Creating employment contracts that comply with Thai labor laws
- Setting up taxes and payroll for Thai workers
- Arranging any necessary visas or work permits
- Communicating holiday arrangements to employees
- Monitoring local laws, informing you of updates, and helping you adapt your compliance accordingly
- Recording employees’ work hours and calculating pay and benefits accordingly
- Calculating pay, including pension deductions and insurance contributions as required
Using an EOR in Thailand allows you to harness the country's skilled workforce with less stress. For example, you can work with an EOR that hires workers in Thailand while keeping your company headquartered in the U.S. In this setup, the Thai employees work for your business while the EOR bears the legal responsibilities of hiring and employee management.
Benefits of using an employer of record in Thailand
An EOR in Thailand is especially useful if your company isn't based in Southeast Asia. The EOR will be familiar with local regulations and labor laws, and can leverage boots-on-the-ground resources to navigate legalities. Thailand has various labor laws to consider, including:
- Labor Protection Act (1998): This law establishes vital guidelines for employee working conditions, labor unions, and resolution of employer-employee disputes. Originating as Thailand's labor law cornerstone, it was recently amended through the Labor Protection Act (No. 8) B.E. 2566 (2023), showcasing its evolving relevance.
- Occupational Safety, Health and Environment Act B.E. 2554 (A.D. 2011): This act specifies the employer's obligation to provide mentally and physically safe working conditions for employees.
- Workmen's Compensation Act (1994): This law provides guidelines for what happens if an employee becomes ill or injured on the job and specifies the employer's liability in case of an incident.
Thailand's legal framework includes regulations that govern various aspects, including annual leave and maternity leave. For instance, female employees are entitled to 98 days of compensated leave. In the initial 45 days, they receive their complete salary, covered by the employer, and for the remaining leave duration, social security provides compensation equivalent to 50% of their salary.
Similarly, concerning annual leaves, employees who have worked consistently for a period of one year are qualified for annual holidays consisting of no fewer than six working days.
Navigating all these various pieces of legislation can be a big headache if you're new to the Thailand hiring scene. A Thailand employer of record simplifies matters, ensuring you aren't breaching any rules that could violate Thai law.
Cultural benefits of using an EOR in Thailand
Legalities aside, an EOR in Thailand can also help bridge cultural gaps when hiring internationally. An EOR familiar with local customs and formalities will be better equipped to source, vet, and hire candidates.
For example, interview formalities may vary in Thailand. Simple customs, like greetings, are distinct. In the U.S., for example, people may start a professional meeting with a handshake. In Thailand, they may bow.
An employer of record in Thailand can also handle these kinds of human resources topics, saving you the time and trouble of mastering new cultural norms. This can also minimize the risk of accidental cultural offenses.
In the professional context, a Thai employer of record can also navigate norms like holidays. For example, Thailand's public holidays include events like Thailand Constitution Day and a day to commemorate the passing of King Bhumibol. These are days that Thai workers will expect to get off, something a localized EOR will know.
Oyster is your partner in global hiring
EORs can be a great solution for global hiring. However, be aware that an EOR's work may differ depending on the country. For example, labor laws vary between countries like Spain versus the United Kingdom, so you want an EOR that can handle that kind of diversity if you're operating in both countries—or you may require different EORs for different locations.
Alternatively, a global employment platform like Oyster has the resources you need to hire internationally with confidence. With Oyster, you can hire and onboard full-time employees and contractors from around the world through a simple, easy-to-use platform that takes care of compliance, payroll, benefits, and more. Oyster is available in 130+ countries, including Thailand. We ensure that your Thai employees are taken care of with the right pay and benefits, from time off to health care, equity, and more.
We also have free self-serve tools anybody can access, like global employment checklists, a time zone crossover calculator, and a contractor versus full-time employee analyzer. Our goal is to make global hiring easier for everyone.
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About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
