How to Legally Terminate a Probationary Employee in Thailand

“Employees during the probation period are considered lawful employees from their very first day of work.”

Regarding severance pay (ค่าชดเชย), the legal standard is very clear.Under Thai labour law, if an employee has worked for less than 120 days in total, the employer is not legally required to pay severance compensation.

This determination is based solely on the employee’s actual number of working days, and is not related to the length of the probation period stated in the employment contract. In other words, the key legal criterion is whether the employee has actually worked for 120 days or more, rather than how many months of probation are stipulated.

Employers must provide at least one full pay period of advance notice before termination, or pay one month’s salary in lieu of notice.

The only exception applies when the employee has committed serious misconduct, such as:

• Fraud or corruption

• Gross negligence causing serious damage

• Abandoning duties without authorization

• Serious violation of company rules and regulations

In such cases, the employer may terminate the employee immediately without advance notice.

To reduce the risk of future complaints or legal disputes, companies are advised to follow these key practices when handling probationary termination:

1. Provide a clear and reasonable ground for termination, such as:

• Failure to meet performance standards

• Not suitable for the position

• Inability to meet job requirements

2. Maintain proper written documentation, for example:

• Probation evaluation forms

• Performance assessment records

• Work feedback or supervision records

3. If termination notice is given at least one full pay cycle in advance, the employer is not required to pay payment in lieu of notice.