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Work Permits in Thailand: How Many Thai Employees Are Needed?

Transcript of the above video:

As the title of this video suggests, we are discussing the Thai Work Permit and we are specifically discussing employees. That is Thai employees in the context of a Thai Work Permit.

So the thing to take away from this video and to understand is that there is essentially a ratio of employees, that is Thais employees to foreign employees, that needs to be maintained depending on the given circumstances of the case. This ratio must be maintained in order for the foreigner to maintain their lawful status. 

We need to sort of preface this by saying that there may be a different regime in place with respect to BOI Companies, so companies that are accorded concessions under the Board of Investment here in Thailand may be accorded certain concessions wherein these ratios do not apply.  So certain BOI Companies, this video is really not for you. This video is more for SMEs here in Thailand, that is sort of a single person, small businesses, entrepreneurial undertakings here in Thailand that are undertaken generally by foreigners although sometimes it may just be a small business that is employing a foreigner here in Thailand. 

In those circumstances, the ratio of Thai employees to foreign employees will depend on the type of Visa that foreigner is maintaining is a platform for their Work Permit. So if it is a Business Visa, you are looking at a ratio of 4 -1; so 4 Thai employees for everyone for 1 foreign employee in that business. Meanwhile Thai O Visas for various family purposes, that may have a different regime that governs the ratio with respect to that Work Permit. 

Those watching this video, it is a good idea to contact a legal professional if you have questions on this employee issue. Some people view this as a much more rigid thing that I think it sometimes it really needs to be viewed as because certain types of companies will have certain setups wherein there may be only X number of full-time employees and X number of part-time employees. That may be possible to use that company as a platform for a Work Permit but you need to go ahead and have somebody analyze the facts of that given case.

The other thing to keep in mind with respect to this is maintenance of corporate tax records as well as maintenance of documentation pertaining to Social Security contributions especially with respect to the Thai employees is extremely important for maintaining status hear in Thailand. For this reason again it is a good idea to have competent professionals assisting not only with the legal matters involved with the Work Permit itself but perhaps with the ongoing corporate services and accounting as well as tax filings associated with the Company in order to assure that the documentation is in good order for maintaining a Work Permit and having it extended into the foreseeable future.