Types of Termination
In Taiwan, it’s vital to differentiate between termination by the employer and resignation by the employee.
| Type | Description |
| Termination by Employer | Involves the employer ending the employment contract for valid reasons. |
| Resignation by Employee | Employee voluntarily decides to leave their position. |
Legal Requirements for Termination in Taiwan
Employers must have valid reasons for termination, such as business closure or employee incompetence, supported by Taiwan labor laws. Proper documentation outlining the grounds for termination is essential. Employers must follow legal procedures, including providing severance pay and observing the specified notice period.
| Length of Service | Minimum Notice Period |
| 0 to 3 months | No statutory minimum but typically 7 days |
| 3 months to 1 year | Minimum of 10 days |
| 1 to 3 years | Minimum of 20 days |
| Over 3 years | Minimum of 30 days |
Severance Pay in Taiwan
The amount an employee receives depends on whether they fall under the Labor Standards Act (LSA) or the Labor Pension Act (LPA).
| Under the LSA | Under the LPA (post-July 1, 2005) |
| One month of average wages for each year of service | 50% of the average monthly pay per year of service, capped at six months’ pay |
Dispute Resolution in Taiwan
Termination employment disputes are handled through procedures outlined in Taiwan labor laws. Employees who believe their termination was unjust can seek resolution through legal channels, involving conciliation, mediation, or legal action.
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Understanding the nuances of Taiwan termination employment, including severance pay calculations and legal requirements, is crucial for both employers and employees. Adhering to these guidelines ensures fair and lawful termination procedures, promoting a harmonious work environment.
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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: 8th August 2024
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