Employer of Record (EOR) and PEO in Thailand
A foreign company not yet ready to set up a Thai company or branch can have a Thai entity act as the legal employer, handling the contract, payroll, withholding tax and social security, while the client directs day-to-day work. We design the contract structure, review labour-law risk and coordinate payroll.
Ask about an EOR structure on LINEWhat the EOR handles
- Thai–English employment contracts under the Labour Protection Act and work rules
- Salary calculation, withholding and remitting income tax, and social security contributions
- Payslips, withholding tax certificates and end-of-employment documents
- For foreign staff, checking whether the legal employer qualifies to sponsor visas and work permits, since capital and Thai-staff ratio conditions may apply
Legal risks to know
- Section 11/1 of the Labour Protection Act provides that where a business has another person supply workers for work that is part of its business, the business is also deemed the employer and must give fair benefits without discrimination.
- Courts look at actual control and who really pays wages, not just the names in the contract, so a foreign client may share liability in some cases.
- If staff conclude sales contracts in the foreign company's name, a permanent establishment tax issue may arise. Review this before hiring.
EOR suits market entry or testing. As headcount grows, your own company or branch usually controls risk better.
Frequently asked questions
How does EOR differ from hiring an independent contractor?
A contractor is not an employee and has no social security or labour-law rights. But if the company in fact directs the work and controls hours like an employer, a court may treat it as employment. EOR gives a clearly identified legal employer.
Can an EOR hire foreigners?
Possibly, but the employing entity must first meet Immigration and Department of Employment conditions. Not every EOR structure can obtain work permits.
Can staff move from the EOR to our new company later?
Yes, but plan the transfer, length of service and severance so employees keep their rights and disputes are avoided.
Related services
Sources
- Labour Protection Act B.E. 2541, section 11/1 (Thai text)
- Forvis Mazars: Employer of Record under Thai Labour Law (citing Supreme Court judgment 4970/2552)
Sources checked 30 Oct 2026. Our service fees are quoted per scope of work.