Probation in Thailand is not what most European employers think

Probation and Termination in Thailand

What Employers Should Know – and Where Costly Mistakes Happen

Entering the Thai market often raises one key HR question: How flexible is termination during probation?

Many assumptions are based on European concepts. Thai labor law follows a different logic. Understanding the mechanics of notice periods and salary cycles is essential to avoid unintended severance exposure. Sanet Legal, the Thai-German law firm in Thailand, provides advice for management and HR in Thailand.

Two key principles govern the rules for termination

No Statutory Probation Period in Thailand!

Thai law does not create a separate legal regime for probation. A probation period (commonly 90 days) may be agreed contractually, but the Labour Protection Act applies from day one. This is what you should know:

• The important threshold is not 90 days—it is 120 days.

• Despite any agreed probation time, once an employee completes 120 days of employment, statutory severance pay of at least one month’s salary becomes due.

• The calculation is based on actual days worked.

A 30-day Notice Period is not mandatory!

Thai law does not automatically require 30 days’ notice. Section 17 of the Labour Protection Act links notice to the agreed salary payment period. The rules are simple:

• A notice of at least one full pay period must be observed.

• Termination normally takes effect on the next salary payment date.

The common “30-day rule” only results from monthly salary structures.

Why choose a 14-day payment cycle during probation time?

Thai law does not require monthly salary payments. A biweekly (14-day) salary cycle is legally permissible and is commonly accepted in practice, including by the Labour Department, provided it is consistently applied. Therefore, the Thai-German Lawyers in Bangkok advise choosing a 14-day circle for a probation period.

A practical example for a 30-day payment cycle versus a biweekly cycle: Save 2 monthly salaries

OPTION A: Monthly Salary Payment

• Employment starts: 1 January

• Salary paid: End of each month

• Notice given: 3 March

• Termination effective: 30 April

Because March is already an ongoing salary period, the next full pay period after notice is April.

Result: Severance pay becomes due because the employee worked 120 days, and you pay until 30 April.

OPTION B: 14-Day Salary Example

• Employment starts: 1 January

• Salary paid: 15th and 30th

• Notice given: 3 March

• Termination effective: 30 March

Result: No severance pay becomes due. Payment ends at the end of March. You save two monthly salaries.

ANOTHER EXAMPLE:

• Employment starts: 1 January

• Salary paid: 15th and the last day of each month

• Notice given: 29 March

• End of the next full salary period: 15 April

• Termination effective: 15 April

• Total duration of employment: 105 Days

Result: No severance pay.

If salary were paid at the end of the month, the termination given on 29 March would become effective on 30 April. Employment would be 120 days.

Result: Severance payment would be due.

This approach is lawful because the law refers to the actual salary cycle. However, the structure must be genuine and contractually documented.

Some Common Employer Misconceptions

Misconception 1: “During the first 90 days, termination is simple.”

• Incorrect. The notice mechanism applies from day one. Poor timing can unintentionally extend employment beyond 120 days.

Misconception 2: “The law always requires 30 days.”

• Incorrect. The law requires one full pay period, not 30 days.

Misconception 3: “Only the employer must observe notice rules.”

• Incorrect. The statutory mechanism applies to both parties unless contractually modified.

This is what it means in praxis

The labor law experts of Sanet Legal, the German-speaking law firm in Thailand, advice:

Employers should:

• Clearly define probation (e.g., “90 days").

• Define salary cycles transparently.

• Include notice and payment-in-lieu clauses.

• Monitor the 120-day threshold carefully.

• Align termination timing with salary structure.

A common and stable structure is

• 90-day probation

• 14-day salary cycle during probation

• Monthly salary thereafter

One more thing:

• An agreed-upon notice period of 45 days gives you a better chance of finding a replacement for an employee, as most employees must give their current employer one month's notice to leave their job and join you. Such structuring respects Thai law while maintaining operational flexibility.

Conclusion

In Thailand, termination risk is rarely about probation itself. It is about structure, timing, and documentation. Well-drafted contracts and correct salary-cycle planning can prevent unnecessary severance exposure and reduce litigation risk.

If you would like to review your employment contracts or implement a legally robust termination framework aligned with Thai law, professional guidance is advisable before issues arise.

Or if you would even like a Virtual Legal Department (VLD) to advise you on all legal issues relating to business practice for a flat fee, Sanet Legal & Accountancy, the law firm with German-speaking lawyers in Thailand, is at your service.