You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

July 11, 2017

Thailand: New Obligations for Employers and Employees under Reformed Law on Foreign Workers

Subscribe to Updates

In order to resolve the issue of illegal foreign workers in Thailand, and regulate those who hire them or help to bring them into the country, the government has urgently promulgated a new law, entitled the Royal Decree on Managing the Work of Foreigners B.E. 2560 (2017) (the New Law), which came into effect on June 23, 2017. It replaces and unifies the Working of Foreigner Act B.E. 2551 (2008) and the Royal Decree on Recruitment of Foreigners B.E. 2559 (2016). The New Law is designed to systematically manage the employment of foreigners, regardless of the industry in which they work.

The fundamental concepts of the previous laws have been preserved. It remains illegal for foreigners to work without a work permit or for employers to employ foreigners without a work permit; recruiting foreigners into Thailand to work continues to be subject to licensing and strict regulation; and foreign workers who cease to work in Thailand must still be repatriated at the expense of the licensee or the employer.

Notable key changes and enhancements under the New Law are summarized below.

Foreign employees

  • The definition of “work” has been tightened to read “…exerting one’s physical energy or employing one’s knowledge to carry out a profession or perform works, whether or not for wages or other benefits” (emphasis added).
  • The New Law empowers the Minister of Labor to announce new categories of work which foreigners are prohibited from carrying out, upon the recommendation of the Committee Determining Policies on Managing the Work of Foreigners. The list of 39 forbidden employment categories, which has been in use since 1979, continues to be applicable for the time being.
  • The penalties to be imposed on foreign workers for certain offenses have been significantly increased.

Employers and licensees to recruit foreign workers

  • Employers have a new duty to notify labor officials of any foreign employee ceasing to work, for whatever reason, within seven days.
  • Confiscating the work permit or identification document of a foreigner, by any person, is now a criminal offense, punishable by imprisonment for up to six months, or by a fine of up to THB 100,000, or both.
  •  The penalties to be imposed on employers for certain offenses have been significantly increased.

The New Law has no impact on preexisting work permits until they are due for renewal, and existing work permit applications do not need to be resubmitted. The Department of Employment’s criteria for issuing work permits will remain applicable until announced otherwise.

On July 4, 2017, the National Council for Peace and Order issued an executive order under section 44 of the Constitution to postpone enforcement of four penalty clauses under the New Law (marked * in the tables above) until January 1, 2018. This order is intended to ease the concerns of Thai employers and foreign workers over the increased fines under the New Law.

 

Related Professionals

Practices

Corporate/M&A

Employment

Location

RELATED INSIGHTS​ 

October 2, 2026
On July 24, 2026, a new 12.5% Section 301 tariff took effect on most imports from Thailand into the United States. The tariff was imposed by the Office of the US Trade Representative (USTR) under Section 301 of the Trade Act of 1974, following a finding that Thailand had failed to impose and effectively enforce a prohibition on imports of goods produced with forced labor. The new tariff replaced the temporary 10% Section 122 surcharge that had applied since February 24, 2026, following the US Supreme Court’s invalidation of the prior tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The 12.5% tariff is not the only potential source of additional US duties on Thai-origin goods. Thailand is also subject to a separate Section 301 investigation concerning structural excess manufacturing capacity, which could result in additional duties. Unlike the Section 122 surcharge, which was capped at 15% and limited to 150 days, Section 301 provides a more flexible framework for imposing and maintaining trade measures. Section 301 actions are generally subject to a four-year termination rule but may continue following a review if continuation is requested. The new tariff therefore represents a potentially longer-term change in the tariff treatment of Thai-origin goods entering the US market. This article explains the legal and policy developments that led to the new tariff, how the Section 301 tariff differs from the tariff regimes that preceded it, Thailand’s response and ongoing negotiations with the United States, and the practical implications for businesses that manufacture, export, import, or distribute goods between Thailand and the United States. From IEEPA to Section 122 to Section 301 IEEPA Era (April 2025–February 2026) Beginning in April 2025, the US administration imposed sweeping tariffs under the International Emergency Economic Powers Act (IEEPA), invoking national emergencies relating to trade
Read More
September 28, 2026
Thailand has expanded the mandatory use of the Electronic Government Procurement (e-GP) system to cover submissions of procurement appeals to all government agencies subject to the Public Procurement and Supplies Administrative Act B.E. 2560 (2017) (Government Procurement Act). The expansion, which was set out in an official circular dated September 16, 2026, from the Public Procurement and Supplies Administrative Ruling Committee, takes effect on October 1, 2026. Notable Changes Under the expanded framework, bidders challenging an e-bidding or selective-method procurement result must file their appeal exclusively through e-GP within seven working days of the result being announced by the Comptroller General’s Department. While the system accepts filings around the clock during that window, submissions on the final day must be fully completed by 16:30 according to the e-GP system clock—merely starting a draft or uploading materials before the cutoff does not count as a confirmed submission. Government agencies that disagree with an appeal, in whole or in part, will also report their findings and supporting documents to the Appeals Committee through e-GP using the prescribed Appeal Opinion Report, also within seven working days of receipt. Withdrawals of appeals must likewise follow prescribed e-GP steps that vary depending on whether the matter is still under agency review, has been forwarded to the Appeals Committee, or has already been resolved. Excluded Categories Certain categories of procurement are not subject to the new guidelines on filing appeals electronically. These include: Procurement of supplies for confidential government use. Procurement conducted by government agencies operating overseas where the bidder is a foreign legal entity with no legal representative in Thailand, or where the bidder is a non-Thai national. Consulting service procurement under chapter 7 of the Government Procurement Act Design or construction supervision procurement under chapter 8 of the Government Procurement These exclusions apply
Read More
September 28, 2026
On July 22, 2026, the government of Vietnam issued Decree No. 292/2026/ND-CP detailing the implementation of the Law on Foreign Trade Management (Decree 292). Decree 292 came into effect on September 5, 2026, replacing Decree No. 69/2018/NND-CP, and introduces several important changes to Vietnam’s foreign trade regime. Of particular relevance is the addition to the list of goods prohibited from importation of “products and goods extracted, produced, or manufactured wholly or partly through forced labor by enterprises, countries, or territories in accordance with relevant international treaties to which the Socialist Republic of Vietnam is a party.” This new prohibition introduces forced-labor considerations into Vietnam’s import compliance framework and may have practical implications for how businesses manage related risks across their operations and supply chains. Implementation of the New Prohibition According to Decree 292, the minister or head of the relevant ministerial-level agency is responsible for publishing the detailed list and corresponding harmonized system (HS) codes for each category of goods prohibited from export or import under its purview. Goods involving forced labor fall under the purview of the Ministry of Home Affairs. However, as of the date of this article, no corresponding list has been published specifying the goods to which the forced-labor prohibition applies, leaving businesses without official guidance on how the prohibition will be applied or enforced in practice. Nevertheless, this absence does not suspend the prohibition’s application. As Decree 292 has already taken effect, goods involving forced labor remain subject to the general legal framework applicable to goods prohibited from importation. In particular, Decree 169/2026/ND-CP provides for administrative penalties for the importation or transportation of prohibited goods into Vietnam. Depending on the nature and circumstances of the violation, criminal liability may also arise under the Criminal Code. In practice, enforcement is likely to depend on the
Read More
September 23, 2026
Many multinational companies are familiar with the concept of “time off in lieu” (TOIL), under which employees receive compensatory time off instead of overtime pay for additional hours worked. While TOIL is common in many jurisdictions, employers in Thailand should be cautious, as Thai labor law does not expressly recognize TOIL as a substitute for statutory overtime-related compensation. Under the Labor Protection Act B.E. 2541 (1998) (LPA), employees who work overtime or perform work on holidays are generally entitled to statutory overtime, holiday, or holiday overtime compensation, including: Overtime Pay: 1.5 times the employee’s normal wage rate for work performed beyond normal working hours on a regular working day. Holiday Pay: 1 or 2 times the employee’s normal wage rate for work performed during normal working hours on a holiday, depending on category of employee. Holiday Overtime Pay: 3 times the employee’s normal wage rate for overtime work performed on a holiday. Importantly, the LPA does not contain any provision expressly permitting employers to substitute overtime-related compensation with compensatory leave, as such compensation is treated as a payment obligation rather than additional time off. Why TOIL Can Be Risky in Thailand Thai labor law is protective in nature, and statutory entitlements to overtime, holiday, and holiday overtime pay are generally regarded as minimum employee rights. As a result, these rights cannot be waived, even with the employee’s consent. Therefore, an employer who grants TOIL instead of paying statutory overtime-related compensation may still be exposed to claims for unpaid amounts, notwithstanding that compensatory leave has already been provided. Thai courts have affirmed this principle, holding that employers remain liable for statutory payments for work performed beyond normal working hours even where substitute time off has been granted. Are There Any Exceptions? Certain categories of employees are exempt from overtime-related compensation,
Read More