Thailand has an ingrained culture with specific etiquette expectations that can impact how you hire and do business. Not only will you need to find talented employees who can grow your business, but you must also follow Thailand employment compliance laws. Globalization Partners changes how you expand through hiring outsourcing. We will employ workers in a few days and assign them to work for you, so you can conduct business without needing to set up a subsidiary.
Recruiting in Thailand
If you’re in charge of recruiting in Thailand, it’s best to have a grasp of Thai. While most Thai people speak a decent level of English, you will need to know Thai to navigate the bureaucracy and show sensitivity to the culture. The country’s unemployment rate is low, so this could make it difficult to hire talented candidates. Find ways to set your company apart so that you can appeal to prospective candidates.
In Thailand, you’ll find many different options for recruiting. One place to advertise positions is JobsDB.com, one of the largest online job databases as well as a good website to find bilingual candidates. Jobthai.com and jobtopgun.com are two other notable websites for recruiting and staffing for a Thailand business. Many Thai professionals are also on LinkedIn, which will allow you to directly reach out to certain types of workers, including freelancers.
According to the country’s laws, you must have four Thai workers for every foreign worker. This regulation puts foreigners at a disadvantage, and it can impact who you choose to recruit. In 2016, the Government of Thailand published the Royal Decree, which protects the interests of foreign laborers in the country. The law includes certain restrictions against recruiting foreign workers, including the following:
- You must be permitted by the Director General (DG) of the Department of Employment to recruit foreigners.
- Any foreign recruiter must be licensed by the DG.
- You must place a guarantee with the DG against the costs and damages that could come from hiring the foreigner.
- You could face civil and criminal penalties for failing to comply with the Royal Decree, with a maximum prison term of three years.
How to Hire Employees in Thailand
Before you hire Thailand employees, you’ll need to fully understand the country’s culture. Western countries often view Thai society as more traditional or conservative, but the people in Thailand are notably easygoing. They do not always expect foreigners to know the culture. However, knowing and understanding this culture is helpful when hiring and negotiating.
Most Thai employees place considerable emphasis on politeness and respect. They often try to avoid conflict and speak softly, and they may try to bring up negative topics indirectly. Hierarchy is also important in Thai society, so when hiring or doing business, the person will probably ask you several questions to establish your status.
Thailand Employment Laws
One of the best ways to stay compliant when hiring is through an employment contract. In Thailand, this contract can be oral or written. You should spell out an employee’s compensation, benefits, and termination terms in the agreement before they officially start. Always put currency amounts in Thai baht (THB) instead of foreign currency.
Working hours in Thailand cannot exceed 48 hours a week, and employees cannot work more than 36 weekly hours of overtime. Thailand employment compliance also stipulates that employees get a minimum of one holiday per week, and the interval between those holidays cannot exceed six days.
Onboarding in Thailand
Every company onboards employees differently. You’ll need to determine the best way to introduce new employees to your company’s processes while keeping the following best practices in mind:
- Go over the employment contract with all new employees to ensure they agree with the terms
- Schedule any necessary training for the employee’s first day or week
- Have the employee sign a code of conduct
- Fly to Thailand for your employees’ first day
Benefits of Hiring Outsourcing in Thailand
With Globalization Partners’ hiring outsourcing services, you can start operations sooner than if you hire Thailand employees on your own. Globalization Partners acts as an alternative to establishing a subsidiary. We’ll help you hire employees in a few days using our established PEO. With us, you won’t have to worry about Thailand employment compliance because we will take on all risk instead of you.
Work With Globalization Partners To Expand Globally
Globalization Partners is the team you need on your side when you are ready to expand to Thailand. Contact us today to learn more about our Thailand hiring outsourcing services.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.