EMPLOYMENT OF FOREIGNERS

The principal law governing the employment of foreigners in Thailand is the Alien Employment Act B.E. 2521 (1978).

The Act does not apply to foreigners working in the following capacities:

1. as members of a diplomatic mission;
2. as members of a consular mission;
3. as representatives of member countries and officials of the United Nations and its specialized agencies;
4.
as personal servants coming from foreign countries to work regularly for persons in 1.,2. or 3.;
5. as persons who perform duty or mission under an agreement concluded between the Government of Thailand and a foreign Government or international organization;
6. as persons who perform a duty or mission for the benefit of education in culture, art, sport or other activities as may be prescribed by Royal Decree; and
7. as persons permitted by the Government of Thailand to enter and perform any duty or mission.


Restricted occupations

Under the Act certain occupations are reserved exclusively for Thai nationals, including engineering, architecture, accounting, law, brokerage and carpentry, amongst others.

List of occupations limited to Thai nationals.

1. Manual work;
2. Work in agriculture, animal husbandry, forestry or fishery excluding specialized work in each particular branch or farm of supervision;
3. bricklaying, carpentry of other construction work;
4. wood carving;
5. driving mechanically-propelled carried or driving non-mechanically-propelled vehicle, excluding international aircraft piloting;
6. shop attendance;
7. auction;
8. supervising, auditing or giving services in accountancy excluding internal auditing on occasions;
9. cutting of polishing jewellery;
10. haircutting, hairdressing or beauty treatment;
11. cloth weaving by hand;
12. weaving of mats or making products from reeds, rattan, hemp, straw or bamboo pellicle;
13. making of Sa paper by hand;
14. lacquerware making;
15. making of Thai musical instruments;
16. nielloware making;
17. making products from gold, silver or gold-copper alloy;
18. bronzeware making;
19. making Thai dolls;
20. making mattress of quilt blanket;
21. alms bowls casting;
22. making silk products by hand;
23. casting Buddha images;
24. knife making;
25. making paper or cloth umbrellas;
26. shoemaking;
27. hat-making;
28. brokerage or agency excluding brokerage or agency in international trade business;
29. engineering work in civil engineering branch concerning designing and calculation, organization, research, planning, testing, construction supervision or advising excluding specialized work;
30. architectural work concerning designing, drawing of plan, estimation, construction directing or advising;
31. garments making;
32. pottery or ceramic ware making;
33.
cigarette making by hand;
34. guide or conducting sightseeing tours;
35. street vending;
36. type-setting of Thai characters by hand;
37.
drawing and twisting silk-thread by hand
38. office of secretarial work;
39. legal or lawsuit services.


Work permits

The Act provides that a foreigner may engage in work which is not a restricted occupation only upon receipt of a work permit from the Director – General of the Department of Employment or his entrusted official. An exception is provided in case of necessary and urgent work.

Where a foreigner is permitted entry to work in Thailand under the Investment Promotion Act or other laws e.g. the Petroleum Act of 1971 or the Industrial Estates Authority Act of 1979, the Act still requires the foreigner to submit an application for a work permit. The application must be submitted within thirty days from the date of the foreigner’s entry into Thailand or thirty days from the day he is aware that he has been granted permission to work if he is already in Thailand. The foreigner is allowed however to work in Thailand pending the issue of his work permit.

A permit holder must keep the permit with him or at the place of work during work hours in order that it may be readily shown upon inspection. A permit holder shall not engage in work other than that specified in the permit or change the locality or place of work from that specified in the permit without first obtaining approval.
 

Work permit conditions

The Director - General of the Department of Employment may prescribe conditions for foreigners to comply with in order to obtain a work permit under the Act, except where a foreigner is permitted entry to work in Thailand under the Investment Promotion Act or other laws.

The most current conditions came into force on 8 October 2004. Applications received prior to 8 October 2004 will be considered under the conditions in effect prior to this date.

The current conditions under which a work permit will be granted include, but are not limited to:

1.

For foreigners working for an employer that has paid up registered capital of at least Baht 2 million, for every Baht 2 million in paid up registered capital one permit can be issued.
 
For foreigners working for a foreign juristic person carrying on business in Thailand that has invested money from abroad not less than Baht three million, for every Baht 3 million one permit can be issued. Where a foreign juristic person that entered Thailand to carry on business prior to October 30, 2002 has no evidence of bringing in money from abroad, consideration shall be based on the size of the investment indicated in bank statements for the last six months. Where the total amount is Baht three million or more, for every Baht three million one permit can be issued.

If the foreigner has a Thai spouse and the marriage is registered under the law and the couple cohabitate openly as husband and wife, the investment required per permit shall be reduced by one half.

A maximum of ten foreigners may be granted a work permit under the above conditions, except as may be appropriate in any of the following cases:

  • Working for an employer who has paid at least Baht 3 million in income tax to the government in the past year
  • Working with an employer in the export business that has brought not less than Baht 30 million in foreign currency into the country in the past year
  • Working with an employer in the tour business that has brought not less five thousand foreign tourists to Thailand in the past year
  • Working for an employer that employs at least 100 Thai nationals.
2.

For foreigners working for an employer that has paid up registered capital of at least Baht 2 million or a foreign juristic person carrying on business in Thailand that has invested money from abroad not less than Baht three million, in any of the following cases the limitations above regarding the number of foreigners shall not apply

  • Foreigners using technology in their work that Thai people are unable to do or where the domestic labor market cannot meet the demand, whereby the technology shall be transferred to at least two Thai people within the prescribed period;
  • Foreigners working by applying specialized knowledge and skills for work to be accomplished within a definite period of time
  • Foreigners working in the entertainment, theatrical or music business, where the work is occasional and for a definite period of time
3. Foreigners working for a foundation, association or any other organization whose objectives are non-profit making and in the interests of the society as a whole.
4.

Foreigners working for a representative office of a foreign company engaged in international trade may obtain work permits under the following conditions:

  • for giving advice in various aspects about the goods of the head office distributed to an agent or user, dissemination of various information about the goods or services of the head office and the reporting of business movements in Thailand to the head office: a maximum of two foreigners is permitted.
  • for sourcing goods or services in Thailand, quality control of goods that the head office buys or employs to produce in Thailand: a maximum of five foreigners may be permitted except in the case where the representative office can source goods or service for the head office to purchase and the head office has ordered goods or services from producers in Thailand with a value of not less than Baht 100 million in the past year
5.
The regional office of a foreign multinational can receive permission to employ not more than 5 foreigners unless the regional office has brought not less than 10 million into Thailand to meet expenses in the last year. The regional office must meet conditions similar to the rules for establishing a regional office contained in Regulations of the Office of the Prime Minister 1992.
6. Foreigners working for the government, a state enterprise or public organization.
7.
For foreigners entering Thailand to work in financial institutions under the supervision of the Bank of Thailand or the Ministry of Finance or government agencies that supervises financial institutions, permission shall be granted according to the number allowed in the certificate issued by the relevant authority.