Examining the legal framework as foreign-owned mala businesses saturate the city: Are owners legally allowed to perform other roles in their shops, and how strictly does Thai law regulate foreign workers?
In recent years, Thailand has seen a continuous increase in foreign investors entering business, especially in restaurants, retail shops, and service sectors in key economic areas such as Bangkok, Phuket, Pattaya, and Chiang Mai.
Not only opening businesses, but online media also show foreigners acting as staff—taking orders, serving food, handling payments, or selling products themselves—raising questions about whether such foreign work is legal, and if foreign owners can perform all tasks in their businesses.
Mr. Narathip Rittinararat A labor and business law attorney from Netinra & Thomas Law Company Limited provided legal insights that determining whether foreigners can work in Thailand depends on two main factors:
1. Whether the foreigner has the legal right to work in Thailand.
The foreign individual must have lawful residence status in Thailand and hold a valid work permit or be exempted under relevant laws. These work rights are governed by the Foreign Workers Management Act B.E. 2560 (2017) and related legislation.
2. Whether the work performed is permitted for foreigners or reserved exclusively for Thai nationals.
Even if foreigners have the right to work in Thailand, they cannot perform all types of work because the law restricts which jobs foreigners can do and reserves certain jobs for Thais.
In practice, misunderstanding often arises because many believe that foreign business owners or investors can perform any job. In reality, the rights to invest and to work are different legal matters governed by separate laws.
The Foreign Business Act B.E. 2542 (1999) regulates foreign business ownership and investment, while the Foreign Workers Management Act B.E. 2560 (2017) governs foreign employment. Thus, even if a foreigner is a shareholder, director, or investor, it does not automatically grant the right to perform all types of work.
For example, if a foreign shop owner is seen taking orders, handling payments, grilling mala skewers, serving food, or performing routine duties inside the shop, such actions may constitute "working" under the law, and it must be determined whether such work is permitted for foreigners or reserved for Thai nationals.
So, which jobs are reserved exclusively for Thai nationals?
To protect employment opportunities for Thai workers, the law prohibits foreigners from certain occupations such as street vending, hair cutting, traditional Thai massage, tour guiding, secretarial work, labor work, certain skilled trades, and other jobs as specified by law.
Determining prohibited jobs requires examining the nature of the work and legal exceptions; it cannot be concluded solely by the job title.
If it is found that a foreigner violates work or business laws, several penalties apply as follows:
1. Liability of the foreigner.
If a foreigner is found working without a work permit or beyond authorized work scope, they may violate Section 8 of the Foreign Workers Management Act B.E. 2560 and its amendments, facing fines from 5,000 to 50,000 baht. After penalty enforcement, they may be deported and barred from applying for a new work permit for two years from the penalty date.
2. Liability of the employer.
Employers hiring foreigners without work permits or allowing unauthorized work may violate Section 9 of the same Act, facing fines from 10,000 to 100,000 baht per foreign worker. Repeat offenses can result in imprisonment up to one year, fines from 50,000 to 200,000 baht per worker, or both, plus a possible three-year ban on employing foreign workers.
In fiscal year 2025 (1 October 2024 – 18 April 2025), the Department of Employment inspected 38,734 establishments nationwide and 523,706 foreign workers, finding 2,575 violations, including 883 cases of foreigners illegally competing for jobs reserved for Thais. Among them, 21 Chinese nationals out of 9,189 inspected were found violating job restrictions. Common violations involved street vending, hair cutting, driving, massage, storefront sales, and labor work.
Although foreigners can perform food serving and front-of-house restaurant service, they must have a valid work permit in compliance with the law.
While lawful foreign investment and business operations contribute to investment, employment, and economic stimulation, unauthorized work, reserved occupations, or using nominee structures to evade laws can create unfair competition, reduce Thai employment opportunities, cause tax revenue loss, and undermine confidence in the country’s law enforcement system.
Thai citizens can help by being vigilant and reporting suspected foreign violations to the Department of Employment via hotline 1506, option 2, for unauthorized work or reserved occupations. For illegal entry or residence, reports can be made to the Immigration Bureau for appropriate action.