How to Convert Contractors to Employees in Thailand: A Complete Guide

Without an Entity: Using an Employer of Record (EoR)

For businesses without a local entity in Thailand, converting contractors to employees can be even more challenging due to the additional legal requirements and administrative burdens. In these cases, an Employer of Record (EoR) can provide a simplified solution.

What is an Employer of Record (EoR)?

An Employer of Record is a third-party organization that acts as the legal employer for your employees in Thailand. The EoR handles all aspects of payroll, taxes, social security contributions, and compliance with labor laws, while your company retains full control over the employee’s daily tasks and responsibilities.

Benefits of Using an EoR in Thailand

1. Quick and Compliant Onboarding: An EoR can quickly onboard your contractors as full-time employees without the need to set up a legal entity in Thailand.
2. Compliance with Local Laws: The EoR ensures that all payroll, tax, and social security obligations are met, reducing the risk of non-compliance.
3. Risk Mitigation: By outsourcing the administrative and legal aspects of employment, you reduce the risk of misclassification, legal disputes, and fines from Thai authorities.
4. Administrative Relief: An EoR takes on the burden of managing payroll, tax filings, and benefits, allowing your company to focus on its core operations.

Using an EoR is an ideal solution for businesses looking to expand into Thailand without the long-term commitment of establishing a local entity.

How AYP Can Help

AYP provides comprehensive Employer of Record (EoR) services in Thailand, helping businesses navigate the complexities of contractor-to-employee conversions. Our services ensure full compliance with Thai labor laws and reduce the administrative burden of managing payroll, taxes, and social security contributions.

Here’s how AYP can assist your business:

• End-to-End Compliance: We ensure your employees are registered with the SSF, and we handle all payroll, tax, and social security obligations.
• Simplified Onboarding: Our EoR services provide a seamless way to onboard employees in Thailand, whether you have a local entity or not.
• Expert Guidance: Our team of experts is well-versed in Thai labor laws and can guide you through every step of the contractor-to-employee conversion process.
• Risk Management: AYP minimizes your exposure to risks associated with employee misclassification, ensuring that your workforce is fully compliant with local regulations.