Taiwan Labor Management QA

E-mail:  HQ4TPE@evershinecpa.com
Or
Contact: Kerry Chen / International Payroll Service Director/ USA Graduate with fluent English
Tel: +886-2-27170515 ext. 600
Mobile: +886-939-357-000

LRC – Taiwan Labor Regulations

LRC-TW-20.10

What must be included in the contents of a labor contract in Taiwan?

Evershine RD:

According to Labor Standards Act, 2002, article 10.
The contract of employment must specify:

• work duties

• hours

• rest periods

• holidays

• leave

• calculation and payment of wages

LRC-TW-20.11

Do Taiwan arrange labor contract in fixed term?
What should be the length of the labor contract in Taiwan?

Evershine RD:

Yes.
Fixed-term includes temporary, short-term, seasonal, and special work.
Temporary and short-term work shall not exceed 6 months; seasonal work shall not exceed 9 months; of specific work is to exceed 1 year.

LRC-TW-20.20

What is the minimum age for hiring new employee in Taiwan?

Evershine RD:

According to Labor Standards Act, 2002, article 45, 48; Employment Services Act, 2002, article 47.
The minimum age for employment is generally 15, and restrictions apply to employees 15 and 16 years old.
Employees 15 and 16 years old are barred from doing heavy and hazardous work and cannot work more than eight hours per day, on a regular day off or between 8 p.m. and 6 a.m.

LRC-TW-20.40

Is it a requirement for employer in Taiwan to conduct a pre-employment background check?

Evershine RD:

Employers must require pre-employment physical examinations of job applicants.
When employees work in particularly extreme conditions—for example, in high temperatures or with dangerous chemicals—specific examinations must be performed regularly.

Employers are prohibited from hiring workers whose examinations show they do not meet the physical criteria of the job and, if examinations show that current workers are not fit to perform their jobs, must take measures such as modifying the job site, changing worker duties or reducing work hours.

LRC-TW-20.50

Is the Non-Competition indemnity clause in labor contract in Taiwan has legal effect?

Evershine RD:

According to Labor Standards Act, 2002, article 9-1.
Restrictive covenants are permitted in Taiwan under the following conditions:

  • The agreement is used to protect intellectual property or trade secrets the employee came in contact with
  • The agreement does not extend beyond 2 years and its geographical scope is limited to the area of the employer’s business operations
  • The agreement specifies the types of jobs and possible future employers to be prohibited and
  • Employees are reasonably compensated for the duration of the noncompete period.

LRC-TW-40.05

What are the regulations on Gender Discrimination in employment specifically for female workers in Taiwan?

Evershine RD:

According to Gender Equality in Employment Act, 2002, arts. 10, 12-13.
Employers are prohibited from discriminating against any job applicant or employee on the basis of gender.
The Gender Equality in Employment Law more specifically addresses discrimination based on gender or sexual orientation, prohibiting an employer from such discrimination in recruitment, assignment, training, evaluation, promotion, severance, termination, and retirement.

However, the prohibitions against gender discrimination do not apply if the nature of the job involves “work that cannot be accomplished” by a person of one gender.

LRC-TW-50.10

Can the employer in Taiwan collect, or process data transmitted by employees over the internet?

Evershine RD:

According to Code of Criminal Procedure, 2007.

Employee monitoring is permitted only if they do not have a reasonable expectation of privacy and the surveillance is lawful.
Employers can satisfy this requirement by announcing the monitoring policy or obtaining employees’ consent.

LRC-TW-60.10

What are the regulations on working hours in Taiwan?

Evershine RD:

According to Labor Standards Act, 2002, arts. 30, 35-36, 39; Labor Standards Law, amendment, 2018.
Regular work hours may not exceed 8 per day or 40 per week.

LRC-TW-60.30

What are the regulations on overtime hours in Taiwan?
What is the overtime premium rate in Taiwan?

Evershine RD:

According to Labor Standards Act, 2002, arts. 24, 32; Labor Standards Law, amendment, 2018.
For overtime under 2 hours, workers must be paid at 1/3 more than normal pay.
From the 3rd hour of overtime onwards, workers are entitled to 2/3 more than normal pay.
The overtime rates are 2.33 and 2.66 times a worker’s normal rates if they are asked to work on their rest day.
The total of regular work hours plus overtime cannot exceed 12 hours per day.
Overtime also cannot exceed 54 hours per month and 138 hours over a three-month period.
Employees must be given the option to convert their overtime into compensatory leave, but if they are unable to use the compensatory leave in an agreed period of time or before their contract expires, the employer must convert it back into an overtime payment.

LRC-TW-60.50

Is it common to pay 13th month’s salary in Taiwan?

Evershine RD:

According to Labor Standards Act, 2002, art. 29.
Employees not guilty of “misconduct” are entitled to an annual bonus. The law does not specify the amount of the bonus. Though not statutorily required, bonuses are also often given employees for various festivals (Lunar New Year, Dragon Boat, Moon, etc.).

Employees not guilty of “misconduct” are entitled to an annual bonus. The law does not specify the amount of the bonus. Though not statutorily required, bonuses are also often given employees for various festivals (Lunar New Year, Dragon Boat, Moon, etc.).

LRC-TW-70.10

What are the regulations on general leave policy for employee in Taiwan?

Evershine RD:

According to Labor Standards Act, 2001, arts. 38-40.
Employees who have worked for the same employer for at least a year are entitled to paid annual leave based on their years of service:

Years of serviceNumber of annual leave
At least 6 months but less than 1 year3 days
More than 12 months7 days
More than 2 years10 days
More than 3 years14 days
More than 5 years15 days
More than 10 years15 days + 1 day for every year of service after 10 years to a maximum of 30 days.

Unused annual leave may be carried forward to the following year.

The carried-forward leave must be paid out to employees if it is not used by the end of that year.
In an emergency, an employer can suspend a worker’s planned leave but must pay double his or her regular wages for work during that time and grant leave after the emergency has ended.
Although employees have the right to determine when to take their annual leave, employers may negotiate the timing with employees if they have urgent operational demands.
The period within which annual leave must be used can be based on:

• service years

• calendar years

• school years

• fiscal years

• any other annual leave system agreed to by the employer and employee.

LRC-TW-70.20

What are the public holidays in Taiwan?
What is the overtime premium rate during public holiday in Taiwan?

Evershine RD:

According to Labor Standards Act, 2001, arts. 39; 2017 Government Agencies Workday Overview.
Employees are entitled to the following 12 national holidays in Taiwan:

•  Jan. 1: Founding Day of the Republic of China

•  Feb. 28: Peace Memory Day

•  May 1: Labor Day

•  Spring Festival (three days)

•  Children’s Day

•  Dragon Boat Festival

•  Mid-Autumn Festival

•  New Year’s Eve (lunar calendar)

•  Tomb Sweeping Day: Qingming Festival of the Lunar calendar

•  National Day

Employers can give employees paid holidays on other non-public holidays at their discretion.
If employees consent to work on a holiday, they must be paid twice their regular rate.
If an emergency requires employees to work on a holiday, they must be paid twice their regular rate and given compensatory time off.
If a public holiday falls on a weekend, a day in lieu is granted by the government.
If a holiday falls on a Saturday, the deferred day off is on the preceding workday; if a holiday falls on a Sunday, the deferred day off is on the following workday.
The deferred days off for Chinese New Year’s Eve and Chinese New Year, however, are always on the following workdays.

LRC-TW-70.30

What is the maternity leave policy for female employee in Taiwan?

Evershine RD:

According to Gender Equality Act, 2002, arts. 15, 18, 19; Labor Insurance Act, 2015, art. 19-2.
8 weeks’ maternity leave is mandatory for full and part-time employees.
In the event of a miscarriage, a woman is entitled to 4 weeks’ leave if the miscarriage occurs after 3 months of pregnancy, 1 week if it occurs 2 to 3 months into the pregnancy and 5 days if it occurs less than 2 months into the pregnancy.

A woman who has been employed for more than 6 months is paid her regular wage during maternity leave. If she has been employed less than six months, she is paid at half her regular wage.

LRC-TW-70.40

What is the paternity leave policy for male employee in Taiwan?

Evershine RD:

According to Gender Equality Act, 2002, arts. 15, 18, 19.
An employee whose spouse is in labor is entitled to 5 days off as paternity leave.

LRC-TW-70.50
What are the provisions on sick leave, bereavement leave and personal leave for employees in Taiwan?

Evershine RD:

Sick leave
According to Labor Standards Act, 2001, arts. 9, 20, 35.
Regular sick leave may not exceed 30 days in 1 year.
If the employee is hospitalized, he or she is entitled to unpaid sick leave of up to 1 year in any 2 years.
The employee is paid half his or her regular salary during the 30 days’ leave, either from the government’s labor insurance fund alone or in part from the fund and in part by the employer.

If the employer does not pay for sick leave, payment from the government’s labor insurance fund begins on the fourth day of sickness.

Funeral leave

Funeral leave with pay is given as follows:

•  8 days on the death of a parent, foster parent, stepparent, or spouse

•  6 days on the death of a grandparent, child, spouse’s parent, foster parent, or stepparent

•  3 days on the death of a sibling, great grandparent, or spouse’s grandparent.

Personal leave

Employees may take up to 14 days per year of unpaid personal leave.

LRC-TW-70.60

What are the regulations on pension benefits and social security insurance benefits for employee in Taiwan?

Evershine RD:

According to Labor Pension Act, 2007, arts. 24, 35.
A worker may retire with a full pension at age 60 with at least 15 years of employment, at age 55 with a reduced pension.
An employee who is over 65 years old or unable to satisfactorily perform his or her job due to mental or physical disability may be required to retire by the employer.
An employer may request government permission to force the retirement of an employee aged 55 or older if the worker’s job entails risk, requires substantial physical strength or is otherwise of a special nature.
On retirement, workers may be eligible for benefits under both the labor pension system and the labor insurance system.

LRC-TW-70.70

What are the regulations on Workers’ Compensation for employee in Taiwan?

Evershine RD:

According to Labor Insurance Act, 1958, arts. 13, 20-1, 36.
Workers’ compensation is funded through the labor insurance system, to which employers pay premiums.
An employee who cannot work because of an occupational injury or disease receives benefits from the 4th day of incapacitation to a maximum 24 months at the rate of 70% of his or her average wage for the 1st year of incapacity, 50% for the next.
Medical and hospital care is covered.

LRC-TW-80.05

Can the employee in Taiwan join labor union?

Evershine RD:

The Labor Union Act states that workers have the right to form labor unions and to join them, although unions must be certified by the government.

LRC-TW-80.06

How to handle labor dispute in Taiwan?

Evershine RD:

According to Labor-Management Dispute Settlement Act, 2009, chapters II, III, IV.
Disputes between workers and employers may be submitted first to mediation, in which an application is made to a local agency to appoint either a mediator or a mediation commission.
If an impasse is reached, the parties may ask the local government to appoint an arbitrator or an arbitration committee.
Committee members are chosen by the government, the union and management.
An arbitrator’s or committee’s decision is binding, but the losing party can file a lawsuit to challenge it.

LRC-TW-90.10

What are the regulations on workplace safety and health for employee in Taiwan?

Evershine RD:

According to Occupational Safety and Health Act, 2013, arts. 20, 22.
Employers must require pre-employment physical examinations of job applicants and periodic examinations of current employees.

LRC-TW-100.10

What are the circumstances that an employer can terminate an employee in Taiwan?

Evershine RD:

According to Labor Standards Act, 2002, art. 11-13.
An employer may terminate a worker’s employment contract without notice and without severance pay for just cause if a worker:

• misrepresented any fact at the time of signing an employment contract in a manner that might mislead or damage the employer

• commits a violent act or grossly insults the employer, the employer’s family or agent or a fellow worker

• is imprisoned as a result of a final judgment in a case

• is in serious breach of the employment contract or work rules

• deliberately damages or abuses any machinery or property of the employer

• deliberately discloses any technical or confidential information of the employer and thereby causes damage to the employer

• is absent from work for at least 3 consecutive days or 6 days in 1 month without good cause.

Aside from cases involving just cause, an employer may terminate an employment contract only if:

• the worker is not able to perform job duties satisfactorily

• the business suffers an operating loss or contraction

• the business suspends operations for more than a month because of force majeure (an unanticipated or uncontrollable event)

• the business ceases to operate

• a change in the business requires a reduction in the workforce and a particular worker cannot be reassigned.

LRC-TW-100.11

What is the notification period for terminating an employee in Taiwan?
How much is the severance pay?

Evershine RD:

According to Labor Standards Act, 2002, art. 17; Labor Pension Act, 2007, arts. 7, 12.
The length of required advance notice varies depending on the length of an employee’s continuous service with the employer:

• 3 months to 1 years’ service: 10 days’ notice

• more than 1 year’s but less than 3 years’ service: 20 days’ notice and

• more than 3 years’ service: 30 days’ notice.

Once proper notice is given, the worker may take up to 2 days per week of paid leave to find a new job.
In lieu of notice, the employer may pay the worker full wages for the period of notice.
Workers are entitled to severance pay if their employment contract is terminated by the employer—except for just cause—or if they terminate a contract for cause.
Severance pay is 1 month’s average wages for each year of service with pro rata payments for fractions of a year.

LRC-TW-100.12

What is the reporting requirement for employer in Taiwan to notify the termination of employees to the competent authority?

Evershine RD:

Written notice of the planned layoff must be given to government labor agencies, relevant labor unions, labor representatives in relevant labor-management conferences and affected employees.
The notice must include the reasons for the layoffs, affected departments, effective dates, the number of affected employees, the criteria for selecting affected employees, the method for calculating severance pay and programs to help laid-off workers find new jobs.
The employer must enter into negotiations with employees within 10 days of issuing the layoff plan.
A negotiation committee of 5 to 11 members must include one representative appointed by the government and an even number of representatives chosen by the employees and the employer.

Any agreement reached by the committee must be reviewed and approved by a court.
Employers that do not comply with the act’s requirements are subject to fines.

LRC-TW-100.20
What are the regulations on mass layoffs in Taiwan?

Evershine RD:

Employers are required to give at least 60 days’ written notice of mass layoffs, including layoffs due to a merger or restructuring.
The law applies to:
•  employers with fewer than 30 employees that intend to lay off more than 10 employees within a 60-day period,
•  employers with more than 30 but fewer than 200 employees that intend to lay off more than one-third of the workers within a 60-day period or more than 20 in a single day,
•  employers with more than 200 employees but fewer than 500 that intend to lay off more than one-fourth of the workers within a 60-day period or more than 50 in a single day and
•  employers with more than 500 employees who intend to lay off one-fifth of them within a 60-day period.

LRC-TW-100.30

What is the time limit for employer in Taiwan to pay employees upon termination?

Evershine RD:

Within 30 days of termination of the employment contract.

If you are interested in our services, please contact us:

E-mail: HQ4TPE@evershinecpa.com
or
contact by phone in working hours of China time zone:
Director Jerry Chu, well-English speaker, USA Graduate School Alumni
Mobile: +886-939-357-735 in Taipei

Additional Information

Evershine has 100% affiliates in the following cities:
Headquarter, Taipei, Xiamen, Beijing, Shanghai,
New York, San Francisco, Houston, Phoenix
Tokyo, Seoul, Hanoi, Ho Chi Minh, Bangkok,
Singapore, Kuala Lumpur, Manila, Dubai,
New Delhi, Mumbai, Dhaka, Jakarta,
Frankfurt, Paris, London, Amsterdam,
Milan, Barcelona, Bucharest,
Melbourne, Sydney, Toronto

Other cities with existent clients:
Miami, Atlanta, Oklahoma, Michigan, Seattle, Delaware;
Berlin, Stuttgart; Prague; Czech Republic; Bangalore; Surabaya;
Kaohsiung, Hong Kong, Shenzhen, Donguan, Guangzhou, Qingyuan, Yongkang, Hangzhou, Suzhou, Kunshan, Nanjing, Chongqing, Xuchang, Qingdao, Tianjin.

Evershine Potential Serviceable City (2 months preparatory period):
Evershine CPAs Firm is an IAPA member firm headquartered in London, with 300 member offices worldwide and approximately 10,000 employees.
Evershine CPAs Firm is a LEA member headquartered in Chicago, USA, it has 600 member offices worldwide and employs approximately 28,000 people.
Besides, Evershine is Taiwan local Partner of ADP Streamline ®.
(version: 2022/03)

Please contact us by email at HQ4TPE@evershinecpa.com

More Cities and More Services please click Sitemap