In brief
In recent years, we have seen a rising trend in global mobility and the need to transfer employees across borders. Companies do this to unlock new business opportunities and set up local operations, conduct short-term assignments, provide specialized skills and fill talent shortages, and risk management as they diversify supply chains to mitigate disruptions posed by, for example, tariffs and border conflicts. This is also true for Thailand, which is one of the destinations acting as a "host country" for a large number of foreigners assigned from their "home country" to work, whether due to investment or operational needs, or safety concerns resulting from the ongoing international conflicts.
However, moving employees across borders to Thailand, or elsewhere, requires careful planning and consideration across a range of issues, including immigration and visa requirements, tax and social security implications, data privacy mandates, and local employment law compliance.
In more detail
We have outlined some of the issues employers need to bear in mind when considering international assignments of foreign individuals to Thailand.
First and foremost, employers need to plan ahead to ensure compliance with Thailand’s visa and work permit rules to ensure that foreign individuals can legally enter, stay and work for them in Thailand. These requirements also extend to any family members accompanying them to Thailand.
Beyond visas and work permits, another important issue involves structuring employment arrangements and ensuring compliance with the labour laws of both Thailand (as the host country) and the home country. Employee benefits, welfare and various employee-related funds will also need to be carefully considered and structured.
Thai tax issues must also be considered, whether those relating to salary and benefits provided to foreign individuals working in Thailand or possibilities of the home country having a tax presence in Thailand.
In scenarios where foreign individuals will be working remotely for the home country while in Thailand, there could be various legal issues in connection with the remote work arrangements, including the right to disconnect, confidentiality, and work safety. These require careful planning beforehand.
Ensuring compliance with data privacy regulations when transferring employee information from abroad to Thailand is also a key consideration, including ensuring full compliance with Thailand’s own personal data laws.
Having the ability to mobilize and manage employee movement is essential to the success of today's global businesses. It is necessary, however, to plan carefully and seek expert advice to ensure all the legal considerations are addressed effectively to avoid pitfalls of international transfers.
If you require assistance with global mobility issues, whether relating to visas and work permits, local employment law compliance, or employee benefits and compensation, please contact our Employment and Compensation team.