Introduction & Overview
Thailand is the only country in Southeast Asia to have never been colonized by a European power and continues to maintain a constitutional monarchy (CIA, 2019). The country has a population of 69.1 million (The Heritage Foundation, 2019), comprised of 97.5% ethnic Thais, and a population growth rate of 0.29% (CIA, 2019). It has an unemployment rate of 1.1% and a GDP per capita of US $17,856 (The Heritage Foundation, 2019). While Thai is the official language, many Thais can hold a basic conversation in English.
Recruitment Practices
Thailand’s Labour Protection Act (LPA) defines the relationship between the employer and employee, whether the individual is local or foreign (Siam Legal, n.d.). As of 2015, the national minimum wage is THB 300 (US $10) per day, according to a maximum of eight hours per working day (Teoh et al., 2016). Part-time workers are entitled to a minimum wage of THB 40 (US $1.30) per hour.
However, skilled workers earn much more than this. For example, HR professionals can earn an average of THB 30,000 to THB 40,000 (US $914 to US $1219) per month and experienced programmers can earn an average of THB 55,000 to THB 75,000 (US $1676 to US $2188) per month (Board of Investment of Thailand, 2019). Salaries for workers in Bangkok, especially those who are skilled, also tend to be higher than elsewhere in Thailand (Zander, 2019).
Thai Nationals
The internet is a popular place for Thais to look for work. JobThai.com is one of the country’s most popular employment website and JobTopGun.com closely follows (Moore, 2017). JobsDB.com is particularly for finding employees with stronger English abilities (Zander, 2019). LinkedIn is also a popular platform to find candidates with specific skills.
Foreign Nationals
In June 2017, the Emergency Decree on Managing the Work of Aliens came into effect, which regulated foreign workers in the country (Baker McKenzie, 2018). The worker must hold a non-immigrant “B” visa in order to enter Thailand and additionally hold a work permit to legally work (Velocity Global, 2017). There is a requirement for employers to maintain a minimum 4:1 ratio of Thai to foreign workers (Moore, 2017).
Visas may be obtained at local Thai consulate offices. Applicants must present the following documents: original passport, confirmation letter of employment from a Thai company, and other corporate documents (such as an employer’s company affidavit) (Velocity Global, 2017). Those intending to bring an accompanying spouse or other family members must also bring in their original passports, as well as original marriage and birth certificates. Walk-in applications can be processed within two business days while mailed applications can take up to ten business days.
To acquire a Thailand work permit, foreign employees must provide: a passport with a “B” visa, an application form, evidence of qualifications, a letter of employment confirmation, and a medical certificate (Velocity Global, 2017). The employer must provide: an organizational chart of the company, a letter of employment confirmation, a letter explaining why the foreign worker is being hired, a certificate of corporate registration, a list of shareholders, the company’s maps, and tax certificates. If there are no issues, it will typically take two to four weeks to receive the work permit.
Foreigners who stay in Thailand without a visa or with an expired visa may be punished with up to two years of imprisonment and/or a fine up to THB 20,000 (US $660) (Teoh et al., 2016). Foreigners who work in Thailand without a work permit may be imprisoned for up to five years and/or receive a fine between THB 2000 and THB 100,000 (US $66 to US $3300). Employers found to engage in illegal employment may also be imprisoned for up to three years and/or receive a fine up to THB 60,000 (US $1988).
Disabled Persons
Under the Persons with Disabilities Empowerment Act, established in 2007, tax incentives are available for employers who hire workers with disabilities (Teoh et al., 2016). The employer can receive a tax exemption equal to 100% of the wages paid to their disabled employee. Additionally, the employer is entitled to a tax exemption equal to 100% of the expenses that the employer has paid to supply goods and services, training, and any other assistance provided to their disabled employee.
Selection Practices
Protection from Discrimination
Under the Labour Protection Act, employers must treat male and female workers equally unless it is not possible in the nature or conditions of the work (Teoh et al., 2016). In June 2017, Thailand ratified the International Labour Organization’s “Discrimination (Employment and Occupation) Convention, 1958 (No. 111)” in commitment to prevent discriminations based on race, sex, colour, religion, political opinion, and national or social origin (International Labour Organization, 2017).
Background Checks
There are no laws specifically prohibiting employers from conducting background checks (Teoh et al., 2016). However, this is limited only to publicly available information, as documents such as health reports and criminal records may only be obtained through written consent from the subject.
Miscellaneous Information
Thailand is a hierarchal society where younger and junior employees will defer to their seniors (Zander, 2019). This leads to the tendency for younger staff members to avoid conflict, as well as reluctance to share new ideas because they do not want senior members to lose face. Because of the focus on higher quality social interactions, time management and punctuality are not prioritized in Thai culture. It can be expected that employees will arrive late to casual activities and waste time in large business meetings.
Bibliography
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