Can you deduct pay when an employee is late in Thailand?
Updated
Yes, but only for the time the employee did not work. Thai law does not let an employer fine staff for being late, so a flat ฿100 per late arrival or “three lates equals one day” is a deduction the law does not allow. Here is where the line sits, how to calculate the amount you can withhold, and what to do instead when lateness becomes a pattern.
No work, no pay — but nothing more
Under the Labour Protection Act, wages are what an employer pays for work done during normal working hours. Minutes the employee was not at work were not worked, so the employer is not obliged to pay for them. That is not technically a deduction; it is simply not paying for time that was not worked.
The limit is the time actually missed. Anything withheld beyond the late minutes is a penalty, and penalties are not among the deductions the Act permits.
What an employer may deduct from wages
Section 76 lists the only deductions an employer may make from wages, overtime, and holiday pay:
- Income tax and other payments the law requires, such as social security contributions.
- Labour union dues, with the employee’s consent.
- Debts to a savings cooperative or similar welfare scheme, with the employee’s written consent.
- A security deposit, or compensation for damage the employee caused wilfully or by gross negligence, with the employee’s consent.
- Provident fund contributions.
Apart from tax and required payments, each of these may not exceed 10% of the amount due on payday, and together they may not exceed one-fifth, unless the employee consents. A lateness fine is not on the list at all, so neither a contract clause nor a work rule makes it lawful.
Know exactly when everyone arrived
Proterate Team records each check-in with a timestamp, selfie, and GPS distance, and rolls them into worked minutes per day. Free for 1 worksite and 20 employees.
Start freeHow to calculate the amount for late time
- Get the hourly rate. Monthly-paid: monthly wage ÷ 30 ÷ normal hours per day. Daily-paid: daily wage ÷ normal hours per day.
- Divide by 60 for a per-minute rate.
- Multiply by the minutes actually missed, taken from the check-in time against the scheduled start.
| Employee | Hourly rate | Late time | Amount not paid |
|---|---|---|---|
| ฿18,000 / month, 8h day | ฿75 (฿1.25 / min) | 15 min × 4 days = 60 min | ฿75 |
| ฿400 / day, 8h day | ฿50 | 30 min | ฿25 |
Compare a flat ฿100 per late arrival for the monthly employee above: ฿400 for the same 60 minutes. The first ฿75 is time not worked; the other ฿325 is a fine.
Common rules that cross the line
- A fixed amount per late arrival, regardless of how late.
- Rounding up, such as docking 30 minutes for 5 minutes late.
- “Three lates equals one day’s pay.”
- Cancelling a diligence allowance (เบี้ยขยัน) that the contract treats as part of the wage. A diligence allowance written as conditional on punctuality is a different matter — check how yours is worded.
When lateness becomes a pattern
The lawful tool for repeated lateness is discipline, not money. Put punctuality in your work rules, then issue a written warning when it is broken. Under section 119(4), if the employee breaks the same rule again within one year of the offence in the warning, the employer may dismiss without severance pay.
That only holds if your records do. A warning letter that says “often late” is weak; one that lists dates and check-in times is not. Keep the record as you go rather than reconstructing it from memory when you need it.
Where Proterate Team fits
Proterate Team records every check-in with a timestamp, a selfie, and the distance from the worksite, and rolls check-ins into worked minutes per person per day. A forgotten punch is fixed by a time-correction request the manager approves, so the record stays honest. It does not run payroll or calculate deductions; it gives you the times to calculate them from and to cite in a warning letter.
Frequently asked
Can I deduct pay if an employee is 5 minutes late?
You may leave those 5 minutes unpaid, which for a ฿18,000 monthly employee on an 8-hour day is ฿6.25. You may not deduct more than the time actually missed.
Is a fine for lateness legal if the employee signed a contract agreeing to it?
No. Section 76 lists the only permitted wage deductions and a lateness fine is not one of them, so a contract or work-rule clause cannot authorise it.
Can I fire an employee for being late repeatedly?
Yes, if punctuality is in your work rules, you issued a written warning, and the employee broke the same rule again within one year of that offence. Without the written warning, dismissal for lateness alone would normally require severance pay.
Can the employee make up late time by staying later?
Only if you both agree to it. The law does not oblige the employer to accept it, and staying late does not automatically turn into overtime unless the employer asked for the work.