Employment Law in Taiwan

Employment Contracts

In Taiwan, employment contracts must be clear and in writing to avoid potential disputes. These contracts should include essential details such as:

• Job Description: Clearly outlining duties and responsibilities.
• Salary: The agreed wage or salary, including payment frequency.
• Working Hours: The number of standard working hours and any overtime regulations.
• Leave Entitlements: Annual leave, sick leave, and other statutory leaves.
• Termination Conditions: The notice period and valid reasons for termination.

Ensuring the contract is legally binding and detailed helps both parties understand their rights and obligations, reducing the chances of future disputes.

Minimum Wage and Pay

As of 2024, Taiwan’s minimum wage is set at NT$27,470 per month for full-time employees, and NT$183 per hour for part-time workers. The minimum wage is reviewed annually, and any updates are implemented at the beginning of each year. Employers are obligated to pay employees at least the minimum wage, regardless of their job title or industry. Compliance with minimum wage laws is closely monitored by Taiwan’s Ministry of Labour.

From 2025, Taiwan’s minimum monthly wage will be increased to NT$28,590, and hourly wage will be increased to NT$190.

Workplace Health and Safety

Taiwan’s Occupational Safety and Health Act mandates that employers provide a safe and healthy working environment for all employees. Key requirements include:

• Risk Assessments: Conduct regular risk assessments to identify workplace hazards.
• Safety Training: Ensure employees receive training on safety protocols and emergency procedures.
• Protective Equipment: Provide necessary safety gear and ensure employees understand how to use it.

Workplace health and safety is a top priority in Taiwan, and employers who fail to comply with these regulations may face fines or legal action.

Leave Entitlements

Taiwanese labour laws grant employees several types of leave to ensure a work-life balance. These include:

• Annual Leave: Employees are entitled to 7 days of paid annual leave after one year of service, with the entitlement increasing based on tenure.
• Sick Leave: Employees can take up to 30 days half paid of sick leave annually, though some companies offer additional paid sick leave as part of their policies.
• Maternity and Paternity Leave: Mothers are entitled to 8 weeks of maternity leave, while fathers are entitled to 7 days of paid paternity leave.

Understanding these entitlements is critical for both employers and employees to ensure compliance with the law.

Termination Procedures

Terminating employment in Taiwan requires adherence to legal guidelines. Key points include:

• Notice Period: A minimum of 10 days’ notice is required for employees with more than three months of service. Employees with over one year but less than three years of service must receive 20 days’ notice. Employees with over three years of service must receive 30 days’ notice.
• Severance Pay: Employee shall have their severance pay paid by the employer based on their seniority: an amount equal to half a month of average wages for every full year of employment, and in proportion for a period of employment lasting less than one full year; the foresaid severance shall not exceed more than six months of average wages.
• Unfair Dismissal Protections: Employees are protected from unfair dismissal. Employers must provide a valid reason for termination, such as poor performance, redundancy, or misconduct, and follow due process.

Failure to follow these procedures may result in legal disputes or financial penalties.

Compliance and Best Practices

To avoid legal complications, employers should adopt best practices for compliance:

• Clear Documentation: Maintain accurate records of employment contracts, termination procedures, and communications with employees.
• Employee Training: Ensure that all HR personnel and managers are well-versed in Taiwan’s labour laws and follow fair processes.
• Regular Audits: Conduct audits of employment practices to ensure compliance with labour regulations.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Taiwan employment laws and regulations, please visit the official governmental websites.

Updated on: 8^th August 2024