Two Key Aspects of Thai Labor Law Every Employee Should Know

I. Are Employees in a Probationary Period Considered Formal Employees?

The answer is unequivocal: yes.

In Thailand, many companies establish a probationary period, typically around 90 days or not exceeding 119 days. However, it should be noted that Thai labor law does not prescribe a mandatory duration for probation, and the length of the probationary period depends on the provisions of the employment contract.

The key point is that even during probation, an individual is legally regarded as an employee, not a temporary worker. Accordingly, employees on probation are legally entitled to full employment rights, including payment of wages not lower than the statutory minimum wage, weekly rest days, public holidays, statutory leave, social security contributions, and legal protection of working hours and overtime pay.

As for termination during probation, if employment has lasted fewer than 120 days, the employer may dismiss the employee without severance pay; however, all earned wages and accrued rights must be paid in full. In short, a probationary period does not mean employee rights can be withheld.

II. Can Wages Be Paid Late Due to “Cash Flow Difficulties”?

Many employers argue that wages may be delayed due to temporary financial constraints. From the perspective of Thai labor law, the answer is no. Under the Labor Protection Act, wages must be paid at least once per month and on the date stipulated in the employment contract or company regulations. Delaying wages without justifiable cause constitutes a legal violation.

Importantly, lack of funds or cash flow problems is not a lawful justification. Financial management is an operational risk borne by the employer and may not be transferred to employees. If wages are withheld, employees have the legal right to claim unpaid wages, lodge complaints with labor authorities, and, in serious cases, resign without prior notice due to fundamental breach. Employers may also face fines and other legal liabilities.

In conclusion, under Thai law, the probationary period is not a legal gray area, and wages are a fundamental employee right. Non-compliance exposes companies not only to fines but also to labor disputes, reputational harm, and potential disruption to future business operations.