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    Educational Information Only

    The content on this page is for general educational purposes and does not constitute legal advice. Every legal situation is unique. For matters involving investigation, arrest, litigation, or formal proceedings, consult a qualified legal professional.

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    Employment

    Employment Mutual Termination Agreement

    Agreement for ending employment by mutual consent — avoiding wrongful termination claims while protecting both employer and employee.

    Updated:
    Legal Basis: Labour Protection Act B.E. 2541 (1998) Sections 118-122; Civil and Commercial CodeEst. Cost: THB 10,000–30,000 for lawyer-drafted agreement

    When to Use

    When employer and employee agree to end the employment relationship. Avoids the need for formal termination procedures and potential Labour Court disputes.

    Key Clauses

    Mutual Agreement to Terminate

    essential

    Both parties freely agree to end employment. No coercion or pressure.

    Last Working Day

    essential

    Specific date. May include garden leave provisions.

    Severance Payment

    essential

    Amount agreed (may exceed statutory minimum). Payment date and method.

    Outstanding Entitlements

    essential

    Unused annual leave payment, prorated bonus, commission. Specify calculations.

    Non-Disparagement

    recommended

    Both parties agree not to make negative public statements about each other.

    Release of Claims

    essential

    Employee releases all claims against employer (and vice versa) upon full payment.

    Reference Letter

    recommended

    Employer agrees to provide a neutral or positive reference letter.

    Warnings

    Employees cannot waive statutory severance rights — but mutual agreements that EXCEED statutory minimum are enforceable.

    A 'resignation' signed under duress can be challenged in Labour Court.

    Social security and tax implications of the severance package should be addressed.

    Professional Legal Assistance

    When a matter involves investigation, arrest, detention, litigation, or regulatory action, professional legal representation becomes essential.

    Anglo Siam Legal provides experienced legal services across Thailand for both Thai nationals and foreigners.

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