Legal Differences between an Employee and a Contractor in Thailand
Many employers in Thailand engage both normal staff (ongoing and fixed term employees) as well as external contractors but when they contract with these two groups they need to be careful of several factors to ensure that their intentions are not undermined due to Thai law. This article shall explain the key differences between employees and contractors with respect to Thai law and what employers should be careful of to ensure that a contractor is not interpreted by the Thai courts to be an employee given that this can result in extra liability such as severance pay etc. Hire of Services (i.e. normal employees) Normal employees (both ongoing and fixed term) fall under what is called a “hire of services” legal relationship. This type of legal relationship is defined under section 575 of the Thai Civil and Commercial Code […]