Employer of Record in Thailand (EOR in Thailand)

Q: How does an Employer of Record ensure compliance with Thai labor laws?

Employer of Records have local experts who stay updated on regulatory changes and manage all compliance aspects, ensuring your business adheres to Thai labor laws.

Hire Globally, Pay Locally, Expand Effortlessly

We are your Employer of Record in Thailand, its strategic location in South East Asia and a vibrant economy boosted by infrastructure investment, offers an enticing environment for international businesses ready to take chances. Despite the advantages, the complexities of Thailand’s regulatory framework, including its labor laws and tax regulations, can be a lot for those not prepared for the challenge. However, an Employer of Record (EOR) in Thailand can serve as your local expert, taking on legal responsibility for workers and ensuring a smooth entry into the market and ongoing adherence to all necessary regulations.

Want to have a Team in Thailand TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Want to Have a Team in Thailand TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

How an Employer of Record in Thailand Works in 3 Simple Steps

Step 1: Initial Consultation & Strategic Planning

Your journey with an Employer of Record in Thailand like INS Global begins with an expert consultation to understand your specific objectives and needs. This includes discussing the number of employees, their roles, and your timeline. This initial step ensures that the Employer of Record aligns their services with your goals.

Step 2: Efficient Setup, Recruitment & Onboarding

Whether you are establishing a new team or relocating existing staff, an Employer of Record in Thailand handles all legal aspects on your behalf from the beginning. This includes processing visas and work permits ensuring compliance with Thai regulations. By acting as your legal employer in Thailand, the Employer of Record eliminates the need for you to set up your own entity, saving you considerable time and resources.

Step 3: Ongoing Management & Compliance Assurance

Once your team is operational, an Employer of Record manages ongoing HR and payroll functions in Thailand. This includes salary processing, benefits management, and Social Security Fund (SSF) contributions. The Employer of Record in Thailand serves as the HR bridge between you and your local team, managing administrative tasks and employee concerns, allowing you to focus on business growth with peace of mind.

The Advantages of a Thai Employer of Record

Efficient Setup

Navigate complex tax system and labor laws seamlessly in Thailand. Employer of Record services simplify the setup process, ensuring compliance from day one.

Expert Compliance Management

Thailand’s regulations can be complex, but Employer of Records have the expertise to keep your business compliant with local tax laws, labor rules, and social security contributions.

Minimized Risk and Liability

Acting as your legal employer in Thailand, an Employer of Record reduces your risks associated with employment regulations and ensures compliance.

Focus on Core Business Objectives

Delegate HR tasks like recruitment, payroll processing, and tax management to your Employer of Record in Thailand, freeing up your time to focus on core business activities.

Cost Efficiency

EOR services can be more economical than establishing a local subsidiary, particularly for smaller teams or temporary needs, by avoiding initial incorporation costs and ongoing administrative burdens.

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

 5/5

Choosing Between an Employer of Record and Company Incorporation in Thailand

While establishing a subsidiary in Thailand is traditionally seen as the go-to for local expansion, opting for an Employer of Record offers several comparative advantages, such as:

Speed – The business setup process in Thailand is expedited with an Employer of Record, enabling you to start operations and hire staff much faster. Company incorporation can take several months of planning and documentation, whereas an Employer of Record can make your team operational within weeks.
Compliance – Both Employer of Records and subsidiaries must comply with Thailand’s tax laws and labor regulations. However, Employer of Records in Thailand have the specialized knowledge to handle these complexities and ensure continuous compliance without the need for in-house experts.
Cost – For small teams or temporary expansions, Employer of Record services are often more cost-effective than setting up a subsidiary, as you avoid upfront incorporation expenses and ongoing administrative costs.
Control – While incorporation offers extensive control over HR, finances, and operations, Employer of Records can provide significant control over your workforce while reducing your administrative responsibilities.

Thailand Labor Law Overview

Employment Contracts – Contracts must be in Thai and outline employment terms, including salary, benefits, working hours, termination clauses, and minimum wage requirements. An Employer of Record ensures your contracts comply with Thai law and protect your interests.
Probationary Periods – Probation periods typically last up to 4 months in Thailand. Employer of Record services can help set up probation periods that comply with local laws while allowing you to assess new employees.
Working Hours – Standard work hours in Thailand are usually 48 hours per week, with limits on overtime. Employer of Records assist in tracking work hours and ensuring compliance with overtime regulations to prevent penalties.
Paid Leave – Employees in Thailand are entitled to various types of paid leave, including public holidays, annual leave, sick leave, and maternity leave. An Employer of Record manages leave requests and ensures proper compensation according to Thai labor laws.
Social Security Fund (SSF) – Both employers and employees contribute to the SSF, a mandatory social security scheme. Your Employer of Record handles these contributions as part of the payroll process.
Severance Pay – Severance pay is legally required in certain situations, such as termination without cause. An Employer of Record guides you through severance pay practices and calculations to ensure compliance with local laws.

Working around these complexities in-house can be challenging and time-consuming. Partnering with an Employer of Record in Thailand ensures your business remains compliant with labor laws, protecting you from potential risks and allowing you to focus on growth.

5 Essential Factors for Selecting the Best Employer of Record in Thailand: What to Look Out for in an EOR Provider

Experience and Track Record – Seek an Employer of Record in Thailand with proven experience in Thailand and a strong industry reputation like INS Global. Look for client testimonials and industry accolades as indicators of reliability.
Comprehensive Service Offerings – Ensure the Employer of Record in Thailand provides all necessary services or can customize their offerings to suit your needs. This may include visa and work permit support, payroll processing, tax compliance, and navigating Thailand’s tax and labor regulations.
Scalability – Opt for an Employer of Record in Thailand that can scale their services as your business grows locally and worldwide. They should be capable of managing an increasing workforce and evolving business requirements.
Clear Communication and Transparency – Choose an Employer of Record in Thailand known for clear and consistent communication. They should prioritize keeping you informed about regulatory updates, impending deadlines, and potential issues.
Transparent Cost Structure – Compare the pricing models of different Employer of Record providers in Thailand. Ensure their fees are transparent and competitive, with no hidden costs. Third-party advice can help you get the best value for your Employer of Record investment.

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FAQs

How does an Employer of Record simplify market entry into Thailand?

An Employer of Record handles all legal, HR, and compliance tasks, allowing businesses to enter the Thai market quickly without the need to establish a local entity.

What are the cost benefits of using an Employer of Record in Thailand?

Using an Employer of Record can often be more cost-effective than setting up a subsidiary, as it eliminates initial incorporation costs and reduces ongoing administrative expenses.

Can an Employer of Record help with visa and work permit processes in Thailand?

Yes, an Employer of Record manages the entire visa and work permit application process, ensuring compliance with local immigration laws and regulations.

What types of businesses in Thailand can benefit from Employer of Record services?

Employer of Record services are beneficial for businesses of all sizes, particularly those looking for rapid market entry, cost savings, and reduced administrative burdens.

How does an Employer of Record ensure compliance with Thai labor laws?

Employer of Records have local experts who stay updated on regulatory changes and manage all compliance aspects, ensuring your business adheres to Thai labor laws.

What level of control do I have over my employees when using an Employer of Record in Thailand?

While the Employer of Record is the legal employer, you retain significant control over day-to-day management and operational decisions regarding your employees.