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ResourcesCorporate and Tax AdvisoryThailand Corporate LawFour Thai Employees for Every Foreign Work Permit?

Four Thai Employees for Every Foreign Work Permit?

Transcript of the above video:

As the title of this video suggests, we are discussing 4 Thai employees; the ratio of Thai employees to foreign employees in Thai Companies. We are talking about this specifically in the context of a standard Thai Company setup so what we are not talking about for example might be BOI. BOI, that is the Board of Investment here in Thailand, they have different rules regarding and they may be able to grant concessions regarding the 4 to 1 ratio. So folks understand, yeah if you have a foreign national working on a standard Thai Company, this also applies to companies which may be granted national treatment under the provisions of the US-Thai Amity Treaty, you folks too, you may have to worry about this insofar as you have got to maintain 4 employees to every 1 foreign employee in order to be in compliance with Thai Law. 

This is especially necessary to be aware of because on a yearly basis you are going to need to renew your Work Permit, renew your visa and if you are not staying in compliance with this 4 to 1 ratio and if they see that you haven't been at some point during the time period you have had a foreigner on your Company this can lead to real problems, they can rescind the Work Permit, rescind the Visa and say basically look you are not in compliance with this. So yeah there is a ratio requirement, 4 to 1. Depending on circumstances, it might be 2 to 1 as we have discussed in other videos. If someone is married to a Thai national even though they are foreigner, they may only need to deal with the 2 to 1 ratio of employees. 

The thing to keep in mind, the thing to take away from this video is four to one is the kind of a standard, it is the rule of thumb. Again there are special dispensations granted for Board of Investment and other types of concessions. Smart Visas might be a good example to cite, you may not necessarily have to have 4 to 1 ratio but the vast majority of circumstances, yeah 4 to1 ratio is going to need to be maintained in order to maintain a foreign national with a Work Permit and Business Visa on a Thai Company.