Just being registered as a company in Thailand does not automatically give a business the right to operate as a recruitment company. The recruitment profession is highly regulated.
There are hundreds of licensed recruitment companies operating in Thailand, including Thai-owned and international recruitment firms, according to information published by Thailand’s Department of Employment, under the Ministry of Labour, there
The Recruitment and Job Seekers Protection Act B.E. 1985 (BE2528), together with subsequent amendments, regulates recruitment activities and protects job seekers in Thailand.
A person or company may not operate a recruitment business placing applicants or candidates into jobs in Thailand without obtaining the appropriate recruitment license from the Department of Employment.
Why does a recruitment company need a license?
Many industries in Thailand require specific government permission before a company can conduct certain activities.
For example, travel businesses operate under licensing requirements administered by the Tourism Authority and relevant tourism authorities. Certain pharmaceutical and healthcare products require approval from the Thai Food and Drug Administration.
Recruitment has its own regulatory framework.
The Department of Employment (DoE) regulates companies that conduct recruitment activities and licenses and supervises recruitment businesses.
DoE does more than simply issue certificates. The law establishes rules intended to regulate recruitment companies and protect employers and job seekers.
A recruitment license is valid for two years
A domestic recruitment license is issued by the Department of Employment and is valid for two years at a time and must be held by a Thai citizen.
Licensed recruitment businesses must comply with several ongoing requirements.
These include maintaining the required financial security, displaying the recruitment license at their office, registering employees who perform recruitment activities, maintaining prescribed records and submitting recruitment reports to the authorities.
The Department of Employment also regulates recruitment advertising.
So, being licensed involves continuing compliance. It is more than an application made when the company first opens.
Domestic and overseas recruitment licenses are different
Thailand distinguishes between two types of recruitment activity.
- A domestic recruitment license that allows a licensed recruitment company to recruit job seekers for employment in Thailand and in Thailand only.
- This is the type of license relevant when a company in Thailand engages an executive search firm, headhunter or recruitment agency to identify and recruit employees for positions based in Thailand.
- A different license applies to recruitment for employment overseas.
That license covers agencies that recruit people in Thailand for employment outside Thailand, even in neighboring countries. Examples could include Thai workers recruited for construction projects in Laos, seasonal agricultural work in Finland, or maid services in UAE.
The Department of Employment treats domestic recruitment and overseas recruitment as separate regulated activities.
There are obligations after receiving the license
Obtaining the license is only the beginning. The Department of Employment requires licensed domestic recruitment companies to comply with specific operating requirements.
For example, the Department’s published guidance states that a domestic recruitment company must provide financial security of THB 100,000. The company must display its recruitment license and relevant employee registrations at its office.
The law furthermore requires licensed recruitment businesses to maintain specified records and submit monthly recruitment reports.
These requirements give the authorities a way to identify who is conducting recruitment activities and hold licensed businesses accountable for how they operate.
What happens if someone recruits without a license?
This is where the distinction between a recruitment company and another business offering recruitment services becomes important. The Department of Employment states that conducting domestic recruitment without the required license can result in criminal penalties.
Its published guidance specifies a fine and up to three years’ imprisonment, or both, for carrying out domestic recruitment without the required license.
That should make employers think carefully before appointing someone simply because they call themselves a recruiter, headhunter, search consultant or talent company.
You can call the company whatever you want. What matters is the actual activity. If you are connecting a candidate with a hiring company, you must be licensed.
How can an employer check a recruitment company?
Before appointing a recruitment firm in Thailand, you should ask a simple question:
“Are you licensed by the Department of Employment to conduct recruitment in Thailand?”
You can even ask for the recruitment license number and then verify the company through the Department of Employment. A professional recruitment company should have no difficulty confirming its license.
Employers regularly carry due diligence on accountants, lawyers, auditors, insurance brokers and other professional service providers. Do not treat recruitment companies differently.
When you give an external recruiter access to your company, confidential hiring plans, salary information and prospective employees, checking that the company is legally permitted to conduct recruitment in Thailand is a reasonable first step.
Recruitment license or company registration?
These are not the same things. A company may be legally incorporated and registered with Thailand’s Department of Business Development. That registration establishes the company as a legal entity.
It does not by itself establish that the company holds a license from the Department of Employment to operate a recruitment business. It also does not establish that the company holds a license from the Ministry of Tourism and Sports, the Ministry of Public Health, or other ministries that license businesses.
That distinction is worth checking when choosing an executive search firm or recruitment agency in Thailand.
If a company is offering recruitment services, ask to see its recruitment license.
It is a simple question, and a legitimate licensed recruiter should have a simple answer.
