What should a Temporary Staffing Services Agreement include under Thai law?

1. Definitions and Interpretation
2. Engagement
3. Employer Status and Legal Framework
4. Equal Treatment
5. Provider's Obligations
6. Client's Obligations
7. Working Time and Records
8. Charges and Payment
9. End of an Individual Assignment
10. Direct Employment by the Client
11. Confidentiality and Personal Data
12. Liability and Indemnities
13. Termination
14. Governing Law and Disputes
15. General

• A staffing services agreement is likely to be treated as a hire of work or services (Instrument 4 of the Stamp Duty Schedule). Duty is 1 THB for every 1,000 THB or part of 1,000 THB of the charges. On the Contract Value you entered, the duty on the original is the amount the system calculates from the figures entered, and each counterpart carries the amount the system calculates from the figures entered.
• The Provider pays the duty (Clause 8.5). If the actual Charges exceed the Contract Value, additional duty is due. If the Contract Value is 1,000,000 THB or more, or the Agreement is signed electronically, the duty must be paid in money through the Revenue Department (e-Stamp Duty for electronic contracts) instead of by affixing stamps.
• An unstamped agreement cannot be used as evidence in a Thai civil court until the duty and a surcharge are paid (Revenue Code section 118).

• Under section 11/1 of the Labour Protection Act B.E. 2541 (1998), a business that has another person supply workers for work that is part of its own production or business is treated as the employer of those workers, whether or not that person supervises them or pays their wages. The business must also ensure that they receive fair benefits and welfare without discrimination compared with its direct employees doing the same kind of work.
• In practice this means the Client can be pursued by the workers for unpaid wages and benefits. That is why this Agreement requires the Comparable Terms in Schedule 3 (Clause 4), monthly proof that wages and social security have been paid (Clause 5.3), and a right for the Client to pay workers directly if the Provider fails (Clause 8.6).
• Keep Schedule 3 accurate and update it whenever the pay or welfare of your own staff changes (Clause 4.1). Give the workers equal access to canteens, transport, training and safety equipment.

• Check the Provider's company affidavit, VAT registration and social security registration before signing. Ask for sample employment contracts and payslips.
• Workers must not pay any fee or deposit for their placement (Clause 3.3). A worker who has paid a recruitment fee is a warning sign.
• Foreign workers need valid work permits before they start (Clause 3.4). Check the permits yourself before the first day, and never allow anyone to hold a worker's passport against the worker's will. Using workers without permits exposes both Parties to penalties.

• Ending one worker's assignment (Clause 9.1) does not end that worker's employment with the Provider. If the Provider then dismisses the worker, it must give notice or pay in lieu and pay severance where due (sections 17, 17/1 and 118). A worker with 120 days or more of continuous service is entitled to severance.
• Rotating workers or signing short back-to-back contracts to avoid 120 days of service does not work: periods of work are added together when the purpose is to deny rights (section 20).
• If you hire a worker directly within … months, a fee of … is payable to the Provider (Clause 10.2). The worker must never be asked to pay it.- You may hire an Assigned Worker directly at any time without a fee (Clause 10.1).

• A Thai company paying staffing service charges to a Thai provider normally withholds 3% and issues a withholding tax certificate (Clause 8.3). A VAT-registered provider adds VAT.
• The Provider withholds personal income tax from the workers' wages as their employer.

• The Client controls the workplace, so the Client must give safety inductions and protective equipment (Clause 6.2) and report accidents immediately (Clause 6.3).
• Tell the workers about CCTV, access control and any other monitoring at the Site, as you would for your own staff (Clause 11.2).

• Keep the Provider's monthly payroll and social security evidence (Clause 5.3), confirmed timesheets and all orders with this Agreement. They are your defence if a worker or a labour inspector claims unpaid wages.
• A company should sign through its authorised director(s) as shown in its company affidavit.
• A Thai court works in Thai. A Party relying on this Agreement or on English emails must file a certified Thai translation.

Compiled from the notes that accompany the English contract templates on this site, published by Phuwara Krobtaku (ภูวรา ครอบตะคุ), Thai attorney-at-law, licence no. 477/2558. The short answer and summary at the top of this page are put together by the site from the template's clause headings and notes. Statutes are quoted only in the official Thai text: Thai is the only official language of Thai legislation, and an unofficial translation can mislead. Article registry OKC-C6DBC5. If you reuse this content, please credit the author and link to the original.