Hiring in Thailand can be both an opportunity and a challenge. While the country offers a skilled workforce and strategic location in Southeast Asia, navigating local labour laws and compliance requirements can be overwhelming. That’s where an Employer of Record (EOR) comes in. This guide to EOR Thailand covers everything you need to know before making a hiring decision in 2025.
What is an EOR?
An Employer of Record (EOR) is a third-party organisation that legally employs your staff on your behalf. While your company maintains full operational control over day-to-day responsibilities, the EOR assumes the legal and administrative duties of employment. This includes payroll, tax filing, employment contracts, statutory benefits, and compliance with local labour laws.
EOR services are especially useful for companies that want to expand globally without setting up a legal entity. In Thailand, where regulations around work permits, visas, and employment contracts can be strict, using an EOR allows companies to bypass many of the legal hurdles involved in direct hiring.
What makes an EOR different from traditional outsourcing is that the EOR does not manage the work. Your company directs the employee’s tasks and goals, while the EOR handles the backend processes. This hybrid structure gives companies a fast, compliant, and low-risk way to enter the Thai market.
For global employers, especially those new to Southeast Asia, an EOR solution offers a streamlined way to test a new market or hire key individuals without the commitment of a full-scale legal setup. It’s flexibility without compromise.
Read our Thailand country guide
Why Use an EOR in Thailand?
Thailand is an increasingly attractive destination for global hiring. With a population exceeding 70 million and a high literacy rate, the country offers a deep talent pool across industries—from manufacturing and automotive to tech, finance, and life sciences. However, Thailand also has one of the more intricate legal systems in the region when it comes to employment.
Foreign companies face immediate roadblocks when hiring in Thailand. Work permits and visas for foreign employees require a local sponsor and are tightly regulated. Thai labour laws also mandate specific provisions for severance pay, probation periods, and social security contributions. Violating these rules can lead to fines, legal disputes, or even bans on doing business locally.
An EOR removes this complexity. By acting as the legal employer, the EOR assumes responsibility for ensuring all Thai labour laws are followed. This eliminates your risk while also speeding up your ability to hire. For startups or multinational companies testing new markets, the time saved can be invaluable.
Additionally, using an EOR enables businesses to scale up or down as needed without the burden of terminating entity operations or renegotiating legal commitments. Whether you’re piloting a sales team, hiring remote tech talent, or supporting a global client from Bangkok, an EOR gives you the flexibility to pivot without friction.
Read more: Thailand Energy Sector: A Nation on the Path to a Greener Future
Local Employment Laws Overview
Thailand’s labour framework is governed primarily by the Labour Protection Act (LPA), which outlines minimum standards for employment, wages, working conditions, and employee benefits. Understanding these laws is critical to avoid compliance issues, especially since Thai courts often side with employees in disputes.
Employment contracts in Thailand can be either fixed-term or open-ended, but both must adhere to mandatory terms such as minimum wage, standard working hours (usually 8 hours/day), and rest periods. Employers are also required to contribute to the Social Security Fund and provide statutory benefits like paid leave and severance.
One particularly important detail is that probation periods cannot exceed 119 days. If an employee works beyond this period, they are considered fully entitled to severance and other protections. Another key point is that termination without cause must still follow proper procedures, including written notice and compensation.
For foreign workers, the legal landscape is even more complex. Companies must sponsor work permits and non-immigrant B visas. There are also restrictions on job categories that foreigners can legally hold. These legal nuances are why many foreign employers opt for an EOR solution instead of managing the risk on their own.
EOR vs Legal Entity Setup
When expanding into Thailand, companies often debate between using an EOR and setting up a local legal entity. While both approaches allow you to hire local staff, they differ significantly in cost, speed, and legal responsibility.
Setting up a Thai legal entity, such as a limited company, can be time-consuming and bureaucratic. It involves registering with the Department of Business Development, opening local bank accounts, securing office space, and ensuring Thai shareholder ratios are met. Depending on the structure, you may need to demonstrate a certain level of capital investment and employ a minimum number of Thai nationals to sponsor foreign workers.
In contrast, an EOR bypasses all of these requirements. You can hire employees in Thailand within weeks, not months, and begin operations without navigating government red tape. The EOR handles all HR compliance, while your company retains control over the employee’s work and output.
While entity setup offers long-term independence and control, it’s rarely ideal for companies in the early stages of market exploration. The overhead costs—both financial and managerial—often outweigh the benefits for companies hiring fewer than 10 employees. An EOR allows you to move fast and stay compliant without locking in long-term commitments.
Read more: 5 Common Hiring Myths That Are Hurting Your Global Expansion Efforts
Cost and Speed Comparison
Hiring through an EOR in Thailand is typically faster and more cost-effective than setting up a subsidiary. Most companies can onboard talent within two to four weeks through an EOR, compared to several months for full entity registration. This speed can be a competitive advantage, especially in fast-moving industries.
The cost of using an EOR varies by provider, but usually includes a monthly fee per employee based on a percentage of their gross salary. This fee covers payroll, taxes, social security contributions, employment contracts, and ongoing compliance. While this may seem like a premium at first glance, it often results in cost savings when you consider legal fees, tax registration, HR overhead, and infrastructure setup required for a standalone entity.
Moreover, the flexibility to offboard or scale your workforce without incurring closure costs or legal liabilities adds to the EOR’s value proposition. In a dynamic market like Thailand, this ability to respond quickly can make or break your expansion plans.
EOR Process in Thailand
Engaging an EOR in Thailand follows a structured process designed to minimise friction. Once you’ve selected a provider, the EOR will draft compliant employment contracts in line with Thai labour laws and onboard your chosen candidate. The EOR will also ensure all visa, work permit, and payroll obligations are met.
Throughout the relationship, the EOR manages monthly payroll, income tax withholding, and social security filings. They also serve as the employee’s legal point of contact in Thailand, helping resolve any disputes or questions related to HR and compliance.
Your company, meanwhile, maintains full control over the employee’s workload, performance expectations, and integration into global operations. It’s a partnership that divides legal accountability and administrative burden while retaining your leadership and culture.
If your business goals change, transitioning out of the EOR model—either by ending employment or moving to a local entity—is straightforward. A good EOR provider will offer support for these transitions, ensuring compliance throughout.
How to Choose a Provider
Choosing the right EOR provider in Thailand is a decision that carries long-term implications. Not all providers are created equal—some are local specialists, while others are global platforms with limited knowledge of Thai labour law. Your provider should have both on-the-ground expertise and a track record of compliant operations in Thailand.
Consider their history in the market. Providers with deep roots in Thailand are better equipped to navigate the nuances of labour regulations and government processes. Evaluate their service model, too—do they offer transparent pricing? Will you have a dedicated account manager? Can they support transitions to a legal entity if needed?
Reputation matters. Look for reviews, case studies, or referrals from other businesses operating in Southeast Asia. Ask about how they’ve handled challenges such as labour disputes, government audits, or employee terminations. A reliable EOR partner will not just process payroll but proactively manage risk and guide you through compliance.
Finally, ensure their technology supports your needs. A good provider should offer a platform or dashboard for HR management, reporting, and documentation. Efficiency is not just about local knowledge—it’s also about delivering a seamless experience for both your company and your employees.
Ready to Hire in Thailand? Partner with Eos Global Expansion
Expanding into Thailand is a strategic move, but only if it’s done with the right partner. At Eos Global Expansion, we’ve helped companies navigate the complexities of Thai labour law. As the first full-service EOR provider to enter the Japan market and a trusted leader across Asia-Pacific, we bring unmatched local expertise, compliance assurance, and personalised service to every client relationship.
Whether you’re hiring one employee or building an entire team, we’ll help you move fast, stay compliant, and focus on growth—not red tape. From onboarding and payroll to visas and benefits, we take care of the operational burden so you can stay focused on your business goals.
Looking to hire in Thailand in 2025?
Let Eos Global Expansion simplify your journey. Check our full-range of EOR services here or book a free consultation now.
Photo by Florian Wehde on Unsplash
