A bonus is a “special form of compensation” that an employer pays to an employee in addition to the regular salary (Base Salary). It is usually subject to certain conditions, such as the company’s profitability, individual performance (KPIs), or even payments stipulated in the employment contract agreed upon at the time of hiring.

Is a bonus a ‘legal right’ or an ‘employee benefit’ under Thai labor law? There is a clear answer that can be used as a guideline when making a claim, as follows:

      1. A bonus is not a mandatory ‘legal right’ under labor law.
In principle, a bonus is not considered wages, and labor law does not require employers to pay it. Therefore, employers have discretion to grant or not grant a bonus, typically based on the company’s performance or the employee’s performance.

      2. When does a bonus become a ‘right’ that can be legally claimed?

A bonus can change its status from a voluntary benefit to an employee’s enforceable right—which may be claimed through legal action—if any of the following conditions apply:

     2.1 Stipulated in the employment contract or company policy:
If the employment contract or work rules clearly specify bonus payment conditions (e.g., one month’s bonus after completing one year of service), the employer must comply. Failure to pay would constitute a breach of the terms and conditions of employment.

     2.2 Customary bonus:
If a company has consistently paid a bonus at a fixed rate every year for a long period without conditions, the court may interpret it as wages or an implied term of employment. In such cases, employees may have the right to claim the bonus if the employer suddenly stops paying it.

     2.3 Achievement of predefined performance indicators (KPIs):
If the employer sets bonus conditions in advance—such as achieving specific targets—and the employee meets those conditions, the employee is entitled to receive the bonus in accordance with the agreement.

     3. What to check before making a bonus claim

     3.1 Review the employment contract and employee handbook:
Pay close attention to wording such as “may be paid” or “at the company’s discretion.” Such language grants the employer full discretionary authority and generally means the bonus is not a guaranteed right.

     3.2 Employment status conditions:
Check whether there is a condition requiring the employee to “remain employed on the bonus payment date.” If you resign before the payment date, you may lose eligibility—even if you have completed a full year of service.

Summary:
A bonus typically begins as a voluntary benefit offered by the employer as an incentive. However, it becomes your legal right once there is a clear agreement or contractual obligation supporting it.