Moving employees from an employer of record to your own Thai company in 2026: transfer steps, service continuity and severance liability

Staff generally move from an employer of record (EOR) to your own Thai company by one of two routes. The first is a consent-based transfer, where the employee consents and, under Section 13 of the Labour Protection Act, your company takes over all of that employee's existing rights and duties, including past service[1]. The second is termination by the EOR followed by a fresh hire. The route decides who carries severance liability under the Thai Labour Protection Act, so it should be chosen before anyone signs a new contract.

Key takeaways

About the Author

This guide was prepared by the Settlr Global People & HR team under Managing Director Gagan Ajmani, who has 15+ years of regional experience across Southeast Asia. Settlr Global operates EOR plans for local and expat hires and supports clients when they move employees into their own entity.

What moving from an EOR to your own Thai company involves

Moving off an EOR is a change of legal employer. That is why the transfer route carries more weight than the paperwork itself.

Under an employer of record arrangement in Thailand, the EOR's Thai company holds the employment contract, runs payroll and sponsors work permits, while the client directs the work. Some providers market a similar model as PEO Thailand. The legal employer must change hands during the transfer.

Before any transfer, the new company should generally have the following in place:

EOR can continue while incorporation is underway. The transfer date should therefore follow entity readiness and should not be fixed in advance.

Transfer routes and service continuity

Once the entity is ready, the central decision is how each employment moves, because the route determines both continuity and severance.

A resignation signed at the employer's request can later be challenged as a termination in disguise, and employees tend to resist giving up years of service with nothing in return.

We generally advise clients to use route 1 for long-serving staff and to consider route 2 where tenure is short and a clean reset costs little.

Severance pay liability after the move

A simple way to price each employee is: severance exposure = last daily wage x statutory days for the employee's service tier. Here is how that exposure falls under each route:

A move that also changes office location raises a separate question under Section 120 of the Labour Protection Act, which requires a posted notice for at least 30 days before the workplace moves[1].

Before choosing a route, ask the EOR for a schedule of each employee's start date and last wage. Then put any recognised-service terms in writing. Our People & HR team can review these terms.

Work permits and visas for foreign staff

Foreign employees add timing risk, because the change of employer must be notified to the Department of Employment and the stay permission must move to the new company. The new company coordinates the Non-Immigrant B visa with the Immigration Bureau[5].

On the EOR side, under the Royal Ordinance on the Management of Employment of Foreign Workers B.E. 2560, as amended by No. 2 B.E. 2561, the EOR must notify the Department of Employment within 15 days of the foreign employee leaving work and state the reason[6].

Request a detailed EOR employment letter before the exit date.

Processing times are set by the authorities and cannot be guaranteed, so plan an overlap instead of a hard cutover. Staff holding a Destination Thailand Visa should note that the DTV is designed for remote work for overseas employers, not employment with a Thai company. See our DTV guide and visa and work permit services page.

Transfer steps in order

The sequence below keeps pay and immigration status continuous.

Teams without in-house payroll often look at payroll outsourcing in Thailand at this stage. See our payroll services page for how the monthly cycle runs.

Frequently asked questions

Does the employee have to agree to the transfer?

Yes. Under Section 13 of the Thai Labour Protection Act, moving an employee to a new employer requires that employee's consent[1].

Is severance due when staff move from EOR to our company?

It depends on the route. Termination without cause at the EOR triggers statutory severance under Section 118 of the Thai Labour Protection Act [2]. A consent transfer with recognised service moves the liability to your company instead.

Can a work permit change employer without a new application?

Not always. Since the 2018 amendment a change of employer runs on notification: the foreign employee notifies the registrar under Section 64/2 and the EOR reports the exit within 15 days under Section 13. Confirm the filing for the specific permit with the Department of Employment[3].

Does social security coverage break during the move?

Insured status ends when employment with the EOR ends and starts again with your company, and the Social Security Act keeps certain benefits running for six months after employment ends if the contribution conditions are met[8]. Your company should register the employee within 30 days of their start date [8].

How should tax be withheld in the transfer year?

Section 50(1) of the Thai Revenue Code calculates withholding from what your company pays and its number of payments, and it does not itself add EOR income. Take tax advice on how to treat the employee's EOR income for the year[9].

How long does the move take?

Timing depends on entity readiness, EOR notice terms and work permit processing, which no provider can guarantee.

About Settlr Global

Settlr Global is the operating arm of WOWS Global, a Singapore-incorporated corporate advisory and investment banking group, and an all-in-one platform for company setup, accounting and tax, payroll, visas and Employer of Record in Thailand. It brings those services under a single team, so founders do not have to coordinate separate local agencies. The platform has processed payroll and compliance work for 200+ clients across 15+ countries, from early-stage startups to established multinational enterprises. Its Employer of Record service lets companies hire in Thailand in about two days, with or without a local entity.

To plan your move from EOR to your own Thai company, get in touch with the Settlr Global team at settlrglobal.com.

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