What are the Legal issues associated with firing or laying off staff?

As a foreigner doing business in Thailand or investment in Thailand, after you register company in Thailand, have you ever asked yourself, "What are the legal issue related to starting  business  in Thailand? "What are the steps I need to take to fire and/or lay off staff in Thailand after starting a business inThailand? Termination Situations There are only three common employee termination situation in Thailand after Thailand business registration completed:

• Layoffs;
• Firing staff for underperformance; and
• Firing staff for gross misconduct.

In each of these situation, keep in mind that the reason given for the termination is very important. This is because it affects the employer's potential liability. Thailand Severance Calculation Summary Employee worked consecutively in Thailand for

• At least 120 days, but less than 1 year > 30 day's wages
• At least 1 year, but less than 3 years > 90 day's wages
• At least 3 years, but less than 6 years > 180 day's wages
• At least 6 years, but less than 10 years > 240 day's wages
• More than 10 years > 300 day's wages

The best way to protect when you start a business in Thailand before employ any Thai employees, you  should have a Employment agreement.