Could anyone please advise if I will be eligible for severance pay when I retire in my mid-late 60s (I'm 64 now)? I'm a Brit working at an international school (fully qualified teacher, yearly expat contract, this is my 7th consecutive year) in Bangkok. If I am legally eligible, what recourse do I have if the school refuses to pay (I've heard of cases where the employee has had to contact the Labour Dept/take the case to the labour court)? Thanks!

2 minutes ago, lomtalay said:

Could anyone please advise if I will be eligible for severance pay when I retire in my mid-late 60s (I'm 64 now)? I'm a Brit working at an international school (fully qualified teacher, yearly expat contract, this is my 7th consecutive year) in Bangkok. If I am legally eligible, what recourse do I have if the school refuses to pay (I've heard of cases where the employee has had to contact the Labour Dept/take the case to the labour court)? Thanks!

 

Copy and paste that into a A1 machine and see what it throws out.....unless by a pure fluke someone on here knows what they are talking about.

What does your contract state ???

 

Might want to ask your employer, although if the type that don't honor their severance package, asking if they do, might get you fired, then they won't have to honor it 

 

Good Luck

1 hour ago, lomtalay said:

Could anyone please advise if I will be eligible for severance pay when I retire in my mid-late 60s (I'm 64 now)?

Some posts with links in this attached old thread. 

 

https://aseannow.com/topic/787249-confused-regarding-severance-pay-for-private-school-contract-teachers/#elControls_8858221_menu

 

You may find more help in teaching forum. 

I always thought that severance pay is a financial payment by an employer when an employees position is terminated due to no fault of their own such as downsizing staff or layoffs. Is the school looking to cut back on staff? Then you can volunteer for severance pay.

Don't think severance works when you have just decided to retire, or even if the school maximum teaching age is 65. I'll be amazed if you're entitled to some sort of loyalty bonus, because I'm not sure severance is the right word here.

16 minutes ago, BenCrew said:

Don't think severance works when you have just decided to retire, or even if the school maximum teaching age is 65. I'll be amazed if you're entitled to some sort of loyalty bonus, because I'm not sure severance is the right word here.

Yeh Ben, I think you are right 

Our firm's auditor has informed us that under Thailand's Labour Protection Act, any of our employees of retirement age or older can choose to retire on their own and is due statutory severance pay based on their length of service.  We have a several employees in that category and have set aside funds should they choose to retire.  I don't know if the same applies in your situation or in education but it might be worth getting legal advice.

https://www.nishimura.com/en/knowledge/publications/20200101-33216#:~:text=Now%2C it does not matter,severance pay are as follows:

 

It should be noted that before the LPA (No.6) came into force, employees working in private sector in Thailand has no mandatory retirement age. Now, it does not matter if the employer and employees have agreed or not agreed on the retirement age or agreed to have the retirement age more than 60 years old. In any cases, the employee who reaches 60 years old or more is entitled to express their intention to retire to the employer and the retirement shall take affects upon completion of 30 days as from the date the employees express their intention thereof. For this scenario, the employer will also be obliged to make, among other termination payments, severance pay to the retired employees.

2. New Rate of Severance Pay

An employee who has been terminated without cause will be entitled to, among others, severance pay; the rate of which depends on an employee’s length of service and last wage rate. Thailand has applied the same rate of severance pay since promulgation of the LPA in 1998 until this was adjusted on 5 May 2019. The previous and the current rates of severance pay are as follows:

Old Rate of Severance Pay
Period of Severance Pay   120 Days to Less Than 1 Year 1 Year to Less Than 3 Years 3 Years to Less Than 6 Years   6 Years to Less Than 10 Years 10 Years and Over	Rate of Severance Pay  30 days (1 month)  90 days (3 months)  180 days (6 months)  240 days (8 months)  300 days (10 months)

 

New rate of severance pay
Period of Severance Pay   120 Days to Less Than 1 Year 1 Year to Less Than 3 Years  3 Years to  Less Than 6 Years 6 Years to Less Than 10 Years  *10 Years to Less Than 20 Years *20 Years and Over	Rate of Severance Pay  30 days (1 month)  90 days (3 months)  180 days (6 months)  240 days (8 months)  300 days (10 months)  400 days (13.33 months)

For a private company, you are entitled to retire at 55 unless the company has an official policy set at 56-60 years. Beyond 60, you have the right to retire at any point. The company is required to give a retirement payment based on years of service. It's the same formula as severance pay but, unlike severance pay, is taxable. 

 

I retired from a private educational institution at 55 (not international school) and received well over a year's salary in accordance with the formula. I didn't have to go and ask or fight for it and HR confirmed it all before my last day.

Edit: To add, I was on 2-year contracts for over 20 years. If your contracts are renewed, you're considered a permanent employee.

 

Note that this is separate from Social Security payments. Due to period of payments (over 180 months) I was only entitled to receive monthly pension payments and couldn't get a lump sum. Your HR office should have a form to send in to initiate payments. You have to check in with the SSO once a year to show you're still alive. But they are extremely helpful and I had no problems. 

 

I don't have any specific knowledge of how international schools work. But this is how it went in a private Thai institution.

I worked 19 years in Thailand and when I retired after my 60th birthday, I wrote a resignation letter that clearly stated "I am resigning with the intension to retire." I did that because there was something in the Thai law writing that said severance pay is entitled if the person has the intension to retire. I checked that box. I sent it along with a few articles that talk about the severence pay law. I was paid out with no discussion.

 

Unfortunately for you, I understand that schools get around severence pay by issuing new employment contracts to teachers every year. That means you will never accumulate years of employment (legally). My GF is an international school teacher and the things they do to cheat teachers is sad. Take a visit to the Thai labor department and see what they say. 

12 hours ago, scoutman360 said:

I worked 19 years in Thailand and when I retired after my 60th birthday, I wrote a resignation letter that clearly stated "I am resigning with the intension to retire." I did that because there was something in the Thai law writing that said severance pay is entitled if the person has the intension to retire. I checked that box. I sent it along with a few articles that talk about the severence pay law. I was paid out with no discussion.

 

Unfortunately for you, I understand that schools get around severence pay by issuing new employment contracts to teachers every year. That means you will never accumulate years of employment (legally). My GF is an international school teacher and the things they do to cheat teachers is sad. Take a visit to the Thai labor department and see what they say. 

This is very helpful - especially the suggestion to visit the labour dept. Thank you!

I think that someone already said this, what does your contract say?

 

If you were a permanent employee of a company, including school or uni you would be eligible for a payment, as per Liquorice's information.  However you said you are on a yearly contract, that could make things different.

 

When I retired here from my company I was given the retirement payment as others have mentioned.  However I also then signed on with another company on a yearly contract, no entitlements within my contract.

 

Best to seek some simple employment law help, in my opinion.

 

On 10/7/2025 at 4:17 PM, Bill97 said:

Yeh Ben, I think you are right 

Schools might have a different deal but for businesses the law was changed a couple of years ago.

At first only severance pay when laid off, now also when you retire. 

3 hours ago, craighj said:

I think that someone already said this, what does your contract say?

 

If you were a permanent employee of a company, including school or uni you would be eligible for a payment, as per Liquorice's information.  However you said you are on a yearly contract, that could make things different.

 

When I retired here from my company I was given the retirement payment as others have mentioned.  However I also then signed on with another company on a yearly contract, no entitlements within my contract.

 

Best to seek some simple employment law help, in my opinion.

 

It doesn't matter what your contract says, the Labour law supersedes the contract with the company.

23 hours ago, FritsSikkink said:

It doesn't matter what your contract says, the Labour law supersedes the contract with the company.

Incorrect, not in Thailand and not in a Thai labor court.  The weight of any decision will be based on how fair the contract was and what was agreed to.  Yes clearly the law will also be a consideration.  However this is a yearly contract not a permanent contract!

1 minute ago, craighj said:

Incorrect, not in Thailand and not in a Thai labor court.  The weight of any decision will be based on how fair the contract was and what was agreed to.  Yes clearly the law will also be a consideration.  However this is a yearly contract not a permanent contract!

No, the law is above an employer / employee contract. Multiple continues yearly contracts are seen by the Labour office as a multiple year engagement, so it will not interfere with the length work history of which the severance pay is calculated.  

Many thanks to all the posters who have added their own thoughts and experiences. I will contact the labour department to clarify my specific situation.