When can you terminate a contract in Thailand if the other party breaches, and do you have to give notice first?

Brokerage Agreement

• Either Party may end the Agreement on … days' notice without a reason (Clause 14.1). Sales to registered customers signed within … months afterwards still earn commission (Clause 15.2), unless the Principal ended the Agreement for a Serious Breach.
• To terminate for breach, first send a notice describing the breach. The …-day cure period starts on the day after the notice is received, and termination takes effect when the termination notice is received (Clause 14.4).
• If you keep accepting late reports or late payments without objecting, a Thai court may require a fresh deadline before you can terminate. Object in writing each time.

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Contractual Joint Venture Agreement

• When the Project ends, prepare final accounts and settle within 60 days (Clause 17.1). Agree in writing who completes or takes over open commitments to customers.
• To terminate for breach, first send a notice describing the breach. The cure period of … days starts on the day after the notice is received (Clause 16.1).

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Copyright Licence Agreement

• Within 30 days after the end, the Licensee removes the Work from websites, apps and paid ads and stops distributing printed material (Clause 12.1). Stock produced before the end may be sold for 90 days if the Agreement expired or the Licensee terminated for the Licensor's breach (Clause 12.2).
• Posts already published on the Licensee's own accounts may stay online if they are not promoted again (Clause 12.3).- The Licensee must also delete earlier posts from its own accounts (Clause 12.3).

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Domestic Transportation Agreement

• To terminate for breach, first send a notice describing the breach and asking for it to be remedied. The cure period of … days starts on the day after the notice is received (Clause 1.2(e)).
• On termination, the Carrier must still deliver every Shipment already in its charge and may not hold Goods back over unpaid Fees (Clause 7.6 and Clause 18.6).
• If you keep accepting late deliveries or late payments without objection, a Thai court may treat the deadline as no longer essential. Object in writing each time, even though Clause 21.4 says a delay in enforcing is not a waiver.

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Employment Agreement

• Probation is not a separate kind of contract. Under section 17 of the Labour Protection Act, a probationary contract counts as a contract for an indefinite period, so the Employer must give notice (Clause 13.1) or pay in lieu of notice (Clause 13.2) to end it.

• Severance pay starts once the Employee has worked continuously for 120 days (section 118(1)). What counts is the date the termination takes effect, not the date of the notice.

• Example: salary is paid on the 25th of each month and the Start Date is 1 March, so day 120 falls on 28 June. A notice given on 25 May takes effect on 25 June, before day 120, and no severance is due. A notice given on 26 May takes effect only on 25 July, after day 120, and severance of at least 30 days' wages is then due. With a probation period of … days, plan the assessment so that any notice can be given on a pay day that falls at least one full pay period before day 120.

• Do not rely on payment in lieu of notice to get round the 120-day line without taking advice.

• The Employee may start work only after the work permit is issued (Clause 8.1). Working, or allowing someone to work, without a valid permit is an offence under Thai law for both the Employer and the Employee.

• The Employee usually needs a non-immigrant visa that allows employment before the work permit can be issued. Companies promoted by the Board of Investment may use a different, faster channel. Check the current requirements with the Department of Employment and the Immigration Bureau before fixing the Start Date.

• The Employee must report to immigration every 90 days while staying in Thailand, and must keep the passport valid. The Employer must notify the authorities when the employment ends.

• If the permit cannot be renewed, ending the employment is still a termination by the Employer: give notice or pay in lieu, and pay severance (Clause 8.6).

• Give a termination or resignation notice as a signed letter, and send a copy by email as well, so there is no argument that the notice was not "in writing".

• Count the notice from pay day to pay day (Clause 13.1). Notice given after a pay day takes effect only on the pay day after the next one.

• On the last day, give the Employee the final payslip, the withholding tax certificate and, if asked, the certificate of employment (Clause 13.6).

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Merchandising Licence Agreement

• Send a stock statement within 15 days; the Licensor may buy stock at cost (Clause 17.1). Otherwise, if the Agreement expired or the Licensee terminated for the Licensor's breach, the stock may be sold for … days (Clause 17.2). Then stop all use and hand over or destroy moulds and files (Clause 17.3).

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Sale of Goods Agreement

• Under Clause 11.1(a), the other Party must first receive a notice that describes the breach and asks for it to be remedied. The cure period starts on the day after the notice is received (Clause 1.2(e)).
• Example: a notice sent by email on Monday at 10:00 is received on Monday. With a 15-day cure period, day 1 is Tuesday and day 15 is the Tuesday two weeks later. If that day is not a Business Day, the period ends on the next Business Day.
• An email sent after 17:00 Bangkok time, or on a weekend or public holiday, is treated as received on the next Business Day (Clause 13.2).
• Send the termination notice only after the cure period has ended without a remedy. Termination takes effect when the other Party receives that notice (Clause 11.2).
• If you keep accepting late payments or late deliveries without objection, a Thai court may treat time as no longer essential and require a fresh reasonable deadline before termination. Object in writing each time, even though Clause 15.4 says a delay in enforcing is not a waiver.

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Sales Commission Agreement

• Commission continues on orders accepted before the Termination Date that are paiddelivered and invoiced within … days afterwards (Clause 10.1), whatever the reason for leaving.
• Commission already earned must be paid with the final wages within the time the law requires. If the Employer terminates the employment, check whether average commission should be included in pay in lieu of notice and in severance pay.
• Moving a customer or delaying an invoice to avoid commission is a breach of Clause 10.3 and is strong evidence in a labour court.

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Service Agreement

• The Agreement renews automatically every … months unless a notice of non-renewal is received at least … days before the end of the current period (Clause 3.2). Put the deadline in your calendar.- The Agreement ends automatically at the end of the Initial Term. If you want to continue, sign a written renewal before that date (Clause 3.2).
• To terminate for breach, first send a notice describing the breach and asking for it to be remedied. The cure period of … days starts on the day after the notice is received (Clause 1.2(e)). Send the termination notice only after the cure period ends without a remedy (Clause 18.2).
• If you keep accepting late performance or late payment without objection, a Thai court may treat the deadline as no longer essential. Object in writing each time, even though Clause 21.4 says a delay in enforcing is not a waiver.
• Notices by email take effect when they reach the recipient's email address (Clause 19.2). Keep the sent email with its header.

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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-520F22. If you reuse this content, please credit the author and link to the original.