Employment Agreement In Thailand, What Is Common Practice?

[avthai]

Hi there,

I have been offered a position (Director of Operations) within a thai company and we agreed upon the package (>130K). Meanwhile the company prepared the docs required to obtain a Non Imm B Visum at the consulate in my home country (Netherlands) and is in the process to prepare the docs required to apply for the Work permit upon my return with the Non Imm B Visum.

However, they say they cannot sign the Employment Agreement at this stage. They claim that they only can sign such after approval for Visa and Work Permit. Furthermore they claim that a Lawyer is required to make the Employment Agreement.

I would rather not leave for Netherlands to obtain Visa, before we have signed the Employment Agreement (to my knowledge you need such employment agreement, before you can apply for work permit anyway).

Is this common business practice in Thailand? Or might it that they have second thouths and actually do not want to lose face, by directly informing that the deal is either off, or need to be postponed, or renegotiated etc?

Thanks for your advise!

[andy1308]

We had a similar topic earlier this week. I think you will find that a letter from the company, signed by a duly authorised signatory of the company and sealed with the company seal will legally stand in Thailand as an offer of emloyment. That should be what you aim to get from them to support your WP application.

From my own experiences what they're saying does sound half correct. We never sign employment contracts (with Thai people I have to say) until they physically start work with us. My own case was the same; I am from the UK and my actual contract of employment was not signed until after I started work and had my WP.

The 'only a lawyer can make the agreement' statement is not true in my case, although that's not to say that my company's original and standard employment contract wasn't approved at some point in the past by a lawyer.

[Furbie]

Humm, sounds more like an HR person who "thinks" this is the way it should be.

I have always signed my contracts within a few days of agreeing to the package. Senior Thais we have hired sign their package when we get it ready, not when they start - it keeps them committed, more junior folks when they start. I would also not resign from one job until I signed an agreement with the new one, so there is no way I would ever wait until day 1. The last time I went for a non-Im B, I took my employment contract in the stack of papers with me to the Embassy. So, I guess what I am saying is, they can do it this way, but they can also give you your contract now.

I do not know who drafted our template original company contract years ago, but all actual contracts at my current company are done by HR.

Let this be your first lesson on working with Thais - don't rely on them to be accurate, if it sounds wrong, check it out yourself. I think staff reaction is always, can not. Take can not to mean, we have not done it that way before, so its far easier to say can not, rather than check it out or change procedure. Good luck as an Operations Head - get some Zanax, you will need it.

[fletchsmile]

Many contracts often say "subject to regulatory approval" or "subject to obtaining a work permit"

Even if they do give you an employment contract beforehand, and you get the non-Imm B visa, there is always a risk that your WP would be turned down. Hence you wouldn't be able to fulfil your employment contract, even if you have it. So it becomes academic.

To get your visa, there is usually an offer of employment given to you. By definition a contract = offer + acceptance + "consideration" passing between the two parties. Consideration being broadly something given up in exchange for something else.

The real risk is therefore your WP not being approved, or after an intial period/at a later date it not being renewed.

[avthai]

Hi guys,

Thank you for your replies. As I read it know, it seems that the more experieced / professional organizations have no problem with signing up contracts on beforehand, and that the ones that have no / little experience with this tend to go for the "Can not..". Obviously I am dealing with a company in the latter category.

Anyway, they are now in the process to obtain first approval from the Ministry of Commerce to employ expatriates, before signing contract or giving the documents requried for obtaining the Visum. So I guess this may take some further 3 weeks or so.

Nevertheless thank you all for your contribution, gives at least some peace of mind.