TalentHubTH Brief: Use this guidance together with the actual role, industry, location and business context.
Quick answer: which HR systems does a new company need?
A new company should prepare at least ten core HR areas. Expensive software is not essential at the beginning, but documents, procedures, owners and approvers should be clear from the start.
- Organisation structure and approval authority
- Job descriptions and employment terms
- Employment contracts and employee records
- Attendance, leave and overtime
- Payroll, tax and social security
- Work rules and employment policies
- Probation and performance evaluation
- Confidentiality and personal data
- Grievance and disciplinary procedures
- Resignation, termination and handover procedures
1. Define the organisation structure and approval authority
Before hiring, the company should know whom each role reports to and who may approve hiring, salary, leave, overtime, expenses, probation results, warning letters and termination.
A small company can begin with a simple organisation chart and a table identifying the requester, reviewer and approver for each process. This prevents employees receiving conflicting instructions and payroll using information that has not been approved.
2. Align the job description and employment terms
A job description should not be used only for advertising. It should also guide work assignment and performance evaluation. The job advertisement, offer, employment contract and actual duties should be consistent.
If the scope changes before the employee starts, inform the candidate and obtain clear confirmation.
- Job title, department and supervisor
- Main responsibilities and expected outcomes
- Work location, days and hours
- Essential skills or qualifications
- Travel or off-site work requirements
- Initial performance indicators
3. Prepare employment contracts and employee records
Use a consistent document list for every role. Store records where only authorised people can access them, and define who may view, edit, download or share each type of document.
- Employment contract or offer letter
- Identity documents and bank details
- Tax and social-security information
- Emergency contact information
- Acknowledgement of company rules and policies
- Equipment handover records
- Privacy notice and related documents
4. Set up attendance, leave and overtime processes
Even with only a few employees, define working hours, breaks, attendance recording, late or absence reporting, leave types, data cut-off dates and overtime approvers.
Do not keep approvals only in scattered chat messages. The company may later be unable to verify what was approved and included in payroll.
5. Prepare payroll, tax and social security
Before the first payroll, set a calendar covering data cut-off, review, approval and payment. Check salary, overtime, commission, bonus, leave, deductions, tax, social security and net pay.
Thailand's Social Security Office states that an employer should register an employee as an insured person within 30 days of the start date and report departure by the 15th of the following month. Include these deadlines in onboarding and offboarding checklists.
Where the company structure allows, separate the preparer, reviewer and approver for every payroll cycle.
6. Establish work rules and employment policies
Work rules should explain working days and hours, holidays, leave, overtime, wage payment, discipline, grievance procedures and termination so that employees follow the same standard.
Thailand's Ministry of Labour states that an employer with ten or more employees must issue work rules within 15 days and display them openly at the workplace. Even below ten employees, written basic policies help prevent inconsistent understanding.
7. Define probation and performance evaluation
Do not wait until probation is almost over to begin assessment. Explain responsibilities, expected outcomes and evaluation criteria on the first day, and schedule progress reviews.
Before the deadline, evaluate against the stated criteria, obtain approval, communicate the result formally and retain the record. Assessment should focus on role responsibilities and outcomes, not only a subjective feeling about team fit.
8. Protect confidentiality and employee data
HR records include identity details, salary, bank accounts, leave history, performance results and disciplinary records. Restrict access by responsibility, separate payroll files, use passwords, revoke access when duties change or employment ends, and define retention periods.
When using an external provider, document its access scope, file-transfer method and the responsible contact on both sides.
9. Create grievance and disciplinary procedures
State whom employees should contact, which channel to use, who investigates the facts, who decides the outcome and how confidentiality will be protected.
Warning letters and disciplinary action should be based on facts, policies and evidence, with an opportunity for the people involved to explain. Do not rely on one person's opinion alone.
10. Prepare an offboarding checklist before anyone resigns
Plan the departure process in advance because several tasks must be completed together, especially closing access to customer, financial and employee information.
- Confirm the final working day and outstanding payments
- Collect computers, phones, cards and keys
- Handover work, documents and customer contacts
- Close email and system access
- Report departure from social security
- Prepare tax documents or employment certificates
- Retain records after employment ends
In-house HR or HR outsourcing?
In-house HR may suit a company with a clear owner, enough time to maintain documents and the capacity to track deadlines. HR outsourcing may suit a new company, an international business unfamiliar with Thai processes or a team growing faster than its support capacity.
A company can outsource only payroll, employee documents, registration or HR administration. Define who supplies data, who checks it, who approves it and which tasks are document preparation rather than decisions made on behalf of the employer.
Summary: HR checklist for a new company
A sound HR system does not need to begin with large software. It must show where information is stored, who is responsible, who may approve and when each action is due.
Clear job descriptions, complete employment records, auditable attendance and payroll, and onboarding and offboarding checklists make it easier to scale the team while reducing inconsistent practices.
The regulatory information in this article was checked against official sources on 3 September 2026. Requirements may differ by business type, employment arrangement and facts. Check current announcements or obtain professional advice for a specific case.
Frequently asked questions
Does a company with only one or two employees need HR?
A full-time HR employee may not yet be necessary, but someone must clearly own employment contracts, payroll, social security, leave and employee data.
At what headcount should a company start using HR software?
There is no fixed number. Consider work schedules, overtime, leave, variable pay and approval complexity. A central system becomes useful when historical information is difficult to verify.
Does a company with fewer than ten employees need formal work rules?
The statutory work-rules requirement applies from ten employees, but a smaller company should still document basic policies so that everyone follows the same standard.
When must a new employee be registered for social security?
The Social Security Office states that the employer should register the employee within 30 days of the start date. Prepare the documents and responsible owner before the employee starts.
Can an HR outsourcing provider decide to terminate employment?
A provider may prepare information, procedures and documents within scope, but the employer's authorised decision-maker should review and approve the decision. Seek labour-law advice where risk is involved.
Does the company still need a coordinator when HR is outsourced?
Yes. The provider needs source information and approvals for salary changes, leave, overtime, performance results and employment end dates.
Should HR records be stored together with accounting records?
Access should be separated by data type. Some records involve both HR and accounting, but performance, salary and disciplinary information should not be accessible to unrelated people.