How much severance should you get when you are laid off? This article sums up Thailand's Labour Protection Act B.E. 2541 (1998), from the consolidated edition of the Department of Labour Protection and Welfare, with a worked example.
Severance rates under section 118
An employer who terminates an employee must pay at least:
| Continuous service | Minimum severance |
|---|---|
| 120 days, but under 1 year | 30 days of the last wage rate |
| 1 year, but under 3 years | 90 days |
| 3 years, but under 6 years | 180 days |
| 6 years, but under 10 years | 240 days |
| 10 years, but under 20 years | 300 days |
| 20 years or more | 400 days |
The 400-day band for 20 years' service was added by the Labour Protection Act (No. 7) B.E. 2562 (2019). For piece-rate workers, the same number of final working days' pay applies.
For under 120 days' service, this section sets no severance.
Example
A daily worker whose last wage rate is 400 baht a day has worked 4 years, which is in the 3-to-6-year band: at least 180 × 400 = 72,000 baht.
For monthly staff, section 118 speaks of "30 days, 90 days … of the last wage rate" but does not spell out how to turn a monthly salary into a daily figure. If you are unsure about your own number, ask the Department of Labour Protection and Welfare on its hotline 1506 (press 3) or 1546.
Counting your service
What matters is how long you worked continuously up to the day of termination. Use days between dates with your start date and termination date and compare with the table, especially near a boundary: 2 years 11 months is still the 90-day band, while exactly 3 years gives 180 days.
What counts as termination
Section 118 defines termination as any act by which the employer stops the employee working and stops paying wages, whether because the contract ended or for any other reason, including when the employer cannot carry on the business.
- Retirement: section 118/1 treats retirement, as agreed or as set by the employer, as termination. If no retirement age was set, or one above 60 was set, an employee aged 60 or over may give notice of retirement, which takes effect 30 days later, with severance under section 118.
- Fixed-term contracts: no severance is due when employment ends on the fixed date, but only for a specific project outside the employer's normal business, occasional work, or seasonal work, that must finish within 2 years, with a written contract made at the start.
When no severance is due
Section 119 lists six cases:
- Dishonesty in duty, or an intentional criminal offence against the employer.
- Wilfully causing the employer loss.
- Negligence causing the employer serious loss.
- Breaking lawful and fair work rules, regulations or orders after a written warning (none needed for a serious case); a warning lasts at most one year from the offence.
- Leaving work for 3 consecutive working days, with or without a holiday in between, without good reason.
- A final court sentence of imprisonment (for negligence or a petty offence, only if it caused the employer loss).
Importantly, if the employer did not state the reason in the termination letter, or tell the employee at the time, it cannot rely on that reason later.
Pay in lieu of notice
This is a separate payment from severance.
- Section 17: an open-ended contract (probation included) is ended by written notice given on or before a pay day, taking effect on the following pay day, with no more than 3 months' notice needed.
- Section 17/1: an employer that terminates without that notice must pay the wages the employee would have earned up to the date the termination should have taken effect, on the day the employee is told to leave.
- It does not apply to terminations under section 119.
Payment deadline
- Section 70: on termination, the employer must pay wages, overtime, holiday pay and other money due under the Act within 3 days of termination.
- Section 9: unpaid severance carries 15% interest a year, and if it is withheld deliberately without good reason, a further 15% surcharge every 7 days on the amount owed, after 7 days.
Special cases
- Relocation (section 120): the employer must post notice at least 30 days ahead. An employee whose normal life is affected and who will not move may give written notice within 30 days and receive special severance of at least the section 118 rate.
- Cuts from new machinery or technology (sections 121–122): 60 days' notice is required, or an extra 60 days' wages. Employees with over 6 years' service receive additional special severance of at least 15 days per year worked, up to 360 days in total.
Note
This article is based on the Labour Protection Act B.E. 2541 and its amendments, in the Department of Labour Protection and Welfare's consolidated edition, read on 29 September 2026. It is general information, not legal advice. For a dispute, contact the Department on 1506 (press 3) or 1546.
