Taiwan HR Information

Updated on: 2025/03/11 04:35 (UTC)

Overview

The Labor Standards Act is the fundamental labor law in Taiwan. First enacted in 1984, the act has been gradually expanded to cover almost all employees in the private sector.

Other laws affect employment relationships, including the Employment Insurance Act (unemployment benefits), the Collective Bargaining Agreement Act, the Employment Services Act (nondiscrimination, employment promotion, foreign workers), the Gender Equality in Employment Act, the Labor Insurance Act (maternity, occupational or nonoccupational injury and illness, medical care, permanent disability, retirement and survivor benefits), the Labor Pension Act, the Labor Safety and Health Act, the Labor Union Law, the Occupational Accident Labor Protection Act, the Protective Act for Mass Redundancy of Employees and the Settlement of Labor Disputes Law.

Hiring

Employment Contracts

The contract of employment must specify:

• work duties,
• hours,
• rest periods,
• holidays,
• leave and
• calculation and payment of wages.

There are two kinds of employment contracts: indefinite and fixed-term, the latter including temporary, short-term, seasonal and special work. A fixed-term contract automatically converts to indefinite if:

• at the end of the contract, the employee continues working and the employer does not object or
• in the case of temporary or short-term work, a new contract is executed and the contracts together cover more than 90 days and the period between them is less than 30 days.

Employment contracts generally do not need to be in writing, although employers seeking to employ foreign nationals must have a written employment contract.

Restrictions on Hiring

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. Employers of workers 16 or under must keep on file letters of consent from legal guardians and certificates of age.

Children under age 15 may be employed if they have graduated from junior high school or the local government has determined that the nature and circumstances of the work will not harm their physical or mental health.

Pregnant women or mothers who are breast-feeding are barred from night work.

Employers can only hire foreign workers if they have been unable to find sufficient numbers of local nationals to meet their recruiting needs.

Foreign Workers. The Ministry of Labor has amended the experience requirement for  foreign workers through Lao-Dong-Fa-Guan-Tzu No. 1120501255A. Effective March 8, 2023, if a company meets any of the conditions enumerated in the order, it may hire foreign nationals with a bachelor’s degree who do not meet the requirement that the foreign worker must have two or more years of relevant work experience.

The order also reinstates a provision allowing companies to hire foreign students, overseas Chinese students, or other ethnically Chinese students who have graduated from local public or private colleges and universities in 2022. These employees will be exempt from the requirement of two or more years of work experience.

Recordkeeping

Employers are required to have a worker record card for each employee containing the employee’s:

• name,
• sex,
• birth date,
• place of ancestral origin,
• educational background,
• address,
• uniform identification card number,
• employment start date,
• wage,
• labor insurance start date,
• merits and demerits and
• injuries and diseases.

The employer must keep the worker record card for five years after a worker leaves the company.

Employers with more than 30 employees are required to establish, have approved by the government and publicly display work rules covering the following subjects:

• working hours, holidays and leave;
• wage standards, paydays and method of calculation;
• overtime;
• allowances and bonuses;
• disciplinary measures;
• attendance, commendations or penalties, promotions and transfers;
• recruitment, discharge, severance, termination and retirement;
• compensation for accident, injury or disease;
• safety and health regulations and
• methods for communication and cooperation between employer and employees.

Employers can use any of the following methods to compile employees’ attendance records:

• attendance books,
• attendance cards,
• swipe card machines,
• entry access cards,
• biometric identification systems, and
• computer attendance record systems.

These rules serve in lieu of a contract for those employees who are not provided one.

Background Checks

Employers must require preemployment 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.

Noncompetition Agreements

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 two 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.

Reference Citations

Employment Contracts: Labor Standards Act, art.10

Restrictions on Hiring: Labor Standards Act, arts. 45, 48; Employment Services Act, 2002, art. 47

Recordkeeping: Labor Standards Act, art. 7

Noncompetition Agreements: Labor Standards Act, art. 9-1

Immigration and Work Permits

In General

When an expatriate employee is posted to Taiwan, the employer must obtain a work permit (valid for up to five years) on the employee’s behalf, and the employee must obtain a visa from a representative office in the home country or (if already in Taiwan) from the Bureau of Consular Affairs.

Employers can only hire foreign workers if they have been unable to find sufficient numbers of local nationals to meet their recruiting needs.

Visas and Work Permits

U.S. employers operating in Taiwan and their employees working there are subject to the same rules and regulations Taiwanese employers and native-born employees are. In addition, U.S. expatriates and their employers must follow Taiwanese immigration procedures for obtaining visas and work permits and meeting various other immigration requirements. This is a multistep process requiring that employers and employees deal with various Taiwanese government agencies, including the Bureau of Employment and Vocational Training, the Bureau of Consular Affairs, and the National Immigration Agency, all of which have standards that must be met and forms that must be submitted. Employers must obtain work permits (valid for up to five years) on the employee’s behalf, and the employee must obtain a visa from a representative office in the home country or (if already in Taiwan) from the Bureau of Consular Affairs.

Employers can only hire foreign workers if they have been unable to find sufficient numbers of local nationals to meet their recruiting needs.

Work and residence permits for white-collar workers are valid for five years. Professionals who earn more than NT$3 million receive a 50 percent tax cut for three years.

In February 2018, Taiwan introduced the Employment Gold Card. This is a is a combined open work permit, residence permit, and visa for skilled professionals. With the Gold Card, eligible applicants can stay in Taiwan for up to three years. Applicants must meet a minimum monthly income requirement.

Post-Entry Requirements

Upon arrival in Taiwan:

• The employee must undergo a medical examination within three days.
• The employee must apply for an alien resident certificate (ARC) from a National Immigration Agency service center within 15 days.
• If the employee will need to leave and reenter Taiwan, a reentry permit should be applied for with the ARC.
• The employer and the employee must sign a written contract with copies in both Chinese and the employee’s native language.
• The employer must enroll the employee in the national health insurance system within three days of the employee’s becoming eligible for coverage.
• If necessary, the employee must request an extension of the work permit at least four months before its expiration or when two-thirds of the period authorized by the permit has elapsed, whichever is sooner.
• If necessary, the employee should apply for an extension of the ARC at least 15 days before its expiration.

Reference Citations

Visas and Work Permits: Employment Services Act, 2002, arts. 44, 46-47

Post-Entry Requirements: Employment Services Act, 2002, art. 48

Nondiscrimination

In General

Employers are prohibited from discriminating against any job applicant or employee on the basis of race, class, language, thought, religion, political party, place of origin, place of birth, gender, sexual orientation, age, marital status, appearance, facial features, disability or past membership in any labor union.

Disability Discrimination

The People with Disabilities Rights Protection Act requires that employers with 67 or more employees employ at least one disabled employee or sufficient disabled employees to account for 1 percent of total staff. Employers that do not employ sufficient numbers of the disabled are required to contribute to local employment funds for the disabled in amounts equal to the monthly minimum wage times the number of vacancies.

A 2015 amendment to the disabilities rights act prohibits discrimination against those who are accompanied by service dogs.

Gender Discrimination

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.

Sexual harassment is defined as sexual requests or verbal or physical conduct of a sexual nature done with the intent to discriminate and that causes a hostile working environment, affects a worker’s job performance or, if perpetrated by a manager, is done with a promise of employment or better terms of employment.

An employer with more than 30 employees must develop and post measures for sexual harassment prevention, complaint procedures and punishment. Such measures must include procedures for filing complaints confidentially, the designation of specific personnel or organizational structures to handle and investigate complaints and punishment guidelines.

When a complaint is made, a special committee must be set up to decide on its merits and to recommend punishment or corrective measures, if appropriate. A decision must be reached within two months after the complaint is filed, although a one-month extension is allowed. Both parties must be informed in writing of the decision. Once the case is closed, neither party may file a complaint for the same incident.

The employer is expected to punish the perpetrator of sexual harassment or, if the charge is proved to be false, the complainant.

A 2014 amendment to the Gender Equality in Employment Law provides assurance that, in cases of sexual harassment, there is to be a case-by-case examination of the concrete facts pertaining to the background of occurrence, working environment, interpersonal relationship of the parties, the offender’s speech and conduct and the understanding of the concerned person.

Pay Discrimination

Employers are legally obligated to provide equal pay for equal work or work of equal value.

Reference Citations

Disability Discrimination: People with Disabilities Rights Protection Act, 2007, arts. 38, 60

Gender Discrimination: Gender Equality in Employment Act, 2002, arts. 10, 12-13

Pay Discrimination: Labor Standards Act, art. 25

Employee Privacy

Employee Data

Employers may collect or process personal data only when:

• collection/processing is explicitly stipulated by law;
• consent has been given by the employee; and
• there is no infringement on the rights or interests of the employee.

Employers do not need to obtain consent if the data collection is required to carry out an employment contract or administer an employment relationship. Employers that process employee data must limit the use of such data to only those activities which are necessary to fulfill the identified purposes for which the data was collected, and delete it once the stated purposes have been fulfilled.

Prior to collecting personal data, the employer must notify employees about:

• the purpose of the collection,
• the categories of personal data,
• how the data will be used,
• their right to review, copy and delete the data, and
• the consequences of any failure to provide the required personal data.

Employers must adopt proper security measures to prevent personal data from being stolen, altered, damaged, destroyed, or disclosed.

Employee Monitoring and Surveillance

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. Under Taiwan’s penal code, using audio or video devices to covertly observe an employee’s activities without good reason can be deemed a criminal offense.

Reference Citations

Employee Data: Personal Information Protection Act, 2010 (as amended) arts. 6-8

Employee Monitoring and Surveillance: Code of Criminal Procedure, 2007

Compensation

Hours of Work

Regular work hours may not exceed eight per day or 40 per week. With the approval of a labor union or labor-management committee, hours may be redistributed among workdays, provided that the total regular working time does not exceed 48 hours in any one week. Without changing the number of hours they work, employees may flexibly adjust daily start and end times within a one-hour time frame.

A worker is entitled to at least two days off every seven days. One day is regular leave and the other is a rest day. In certain industries, employers may determine the regular day off. Employees generally must have a rest period of at least 11 hours between shifts. However, employees can be asked to work 12 days in a row and work shifts with only eight hours of rest in between. Employers must get approval from the appropriate federal agencies and their employees in order to do so.

A worker is entitled to a break of at least 30 minutes after working four continuous hours. The break can be rescheduled if work cannot be interrupted.

If an unexpected event or emergency leads an employer to suspend a worker’s regular weekly day off or annual or holiday leave, the worker must be paid twice his or her usual wage for the canceled leave and provided with compensatory time off. The employer must file a report with local authorities within 24 hours of the leave suspension explaining the reasons for it.

Minimum Wage

Effective for 2024, Taiwan’s minimum wage is NT$183 per hour and NT$27,470 per month. Effective for 2025, Taiwan’s minimum wage is NT$190 per hour and NT$28,590 per month.

Overtime

For overtime under two hours, workers must be paid 1.33 times their regular hourly wage. From the third hour of overtime onwards, workers are entitled to 1.66 times their regular hourly wage.

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.

Overtime must be paid based on the actual number of hours worked. On Jan. 1, 2022, the government retracted a policy that allowed employers to avoid paying overtime to employees who performed certain types of office duties during their off-hours as needed.

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.

Wage Payment

Wages must generally be paid at least twice per month, although an employee can agree to a different schedule. Employers must provide a detailed itemization of employees’ pay slips, including the employee’s total base salary, the amount of each item which makes up the employee’s total base salary, any deductions which are required by law or by mutual agreement between the employer and employee, and the actual payment amount. Employers must keep payroll records for at least five years documenting total wages paid and their computation, including overtime calculations.

Mandatory Bonuses

Under the Labor Standards Act, 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.).

Reference Citations

Hours of Work: Labor Standards Act, arts. 30, 35-36, 39; Labor Standards Law, amendment, 2018

Minimum Wage: Ministry of Labor announcement

Overtime: Labor Standards Act, arts. 24, 32; Labor Standards Law, amendment, 2018

Wage Payment: Labor Standards Act, art. 23

Mandatory Bonuses: Labor Standards Act, art. 29

Benefits

Vacation

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:

• at least six months but less than one year: three days’ leave
• more than 12 months: seven days’ leave
• more than two years: 10 days’ leave
• more than three years: 14 days’ leave
• more than five years; 15 days’ leave
• one additional day of leave for each year of service over 10 years up to a maximum 30 days’ leave.

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

Holidays

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.

Maternity Leave

Eight weeks’ maternity leave is mandatory for full and part-time employees.

In the event of a miscarriage, a woman is entitled to four weeks’ leave if the miscarriage occurs after three months of pregnancy, one week if it occurs two to three months into the pregnancy and five days if it occurs less than two months into the pregnancy.

A woman who has been employed for more than six 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. In addition, a maternity grant equal to one month’s earnings is paid following the birth of the child.

Pregnant employees must be granted five days of leave for pregnancy check-ups, during which regular wages must be paid.

An employee with a child under the age of 1 is entitled to two 30-minute rest periods with pay to breast-feed her baby.

Employees with children under the age of 3 and with more than one year of service may take unpaid parental leave for up to two years.

An employee with children under 3 years old whose employer has more than 30 workers may request to reduce working time by one hour per day—without pay—or to adjust working hours. Pregnant or breastfeeding employees must not work between 10 p.m. and 6 a.m.

An employer with more than 100 employees must provide child care either directly or by contracting with an existing, legally registered independent provider.

Employers are prohibited from terminating an employment contract during maternity leave.

Paternity Leave

An employee whose spouse is in labor is entitled to five days off as paternity leave.

Sick Leave

Regular sick leave may not exceed 30 days in one year. If the employee is hospitalized, he or she is entitled to unpaid sick leave of up to one year in any two 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.

Other Leave

Family leave. Employers with at least six employees must provide paid leave to allow an employee to deal with important family matters such as taking care of a seriously ill family member. Family leave may not exceed seven days per year and is counted against regular leave.

Funeral leave. Funeral leave with pay is given as follows:

• eight days on the death of a parent, foster parent, stepparent or spouse;
• six days on the death of a grandparent, child, spouse’s parent, foster parent or stepparent and
• three days on the death of a sibling, great grandparent or spouse’s grandparent.

Menstruation leave. Female employees having difficulties performing their work during menstruation may request one day menstruation leave each month. If the cumulative menstrual leaves do not exceed three days in a year, they must not be counted toward days off for sick leave. All additional menstrual leaves must be counted toward days off for sick leave. Employees on menstruation leave are entitled to half their regular wage.

Parental leave. Employees with children under the age of 3 and with more than one year of service may take unpaid parental leave, which may not exceed two years. Employees who have paid into the labor insurance program for at least a year are entitled to 60 percent of their regular wages for up to six months (per child) while taking parental leave. If there are two or more children requiring care at the same time, the allowance is paid for only one child. If both parents are covered by employment insurance and both take parental leave, they can apply for the allowance only for one child and must submit separate applications.

After the leave expires, an employer may not refuse to reinstate the employee unless the business has been disbanded or suspended, it has been losing money or it has reduced its workforce. In such cases, the employer must give the employee 30 days’ notice and provide severance or retirement pay as appropriate.

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

Public leave. Employees are entitled to paid leave to fulfill legal obligations.

Wedding leave. A worker is entitled to eight days of paid wedding leave.

Pensions and Social Security

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 age 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.

Labor pension system: This defined-contribution program is governed by the Labor Pension Act, which requires employers to contribute an amount equal to at least 6 percent of an employee’s monthly wages to the employee’s account in the Labor Pension Fund. Employees may also make tax-deductible contributions to their accounts of up to 6 percent of their monthly wages.

All employers subject to the Labor Standards Act are subject to the LPA.

Employees 61 years of age or older who have worked for at least 15 years are entitled to monthly pension payments. The qualifying age will gradually rise to 65 by 2026. Retirees with less than 15 years’ contributions receive a lump sum.

Monthly benefits are based on the total contributions to the person’s account plus accrued returns, average life expectancy and annuity life charts. Lump-sum payments are based on accumulated contributions to the person’s account plus accrued returns. If a retiree dies before receiving full retirement benefits, his or her survivors or designated beneficiaries may claim the remaining benefits in a lump sum.

Labor insurance system: An employee can claim either monthly payments or a lump-sum benefit, depending on age and years of participation in the system.

Workers’ Compensation

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 fourth day of incapacitation to a maximum 24 months at the rate of 70 percent of his or her average wage for the first year of incapacity, 50 percent for the next. Medical and hospital care is covered.

Workers determined to have a permanent partial disability are entitled to a lump-sum payment (based on degree of disability, average salary and years of participation in the labor insurance program) and an allowance based on the degree of disability. Those determined to have a permanent total disability receive an enhanced lump sum, and those who have lost the ability to live independently may also claim a nursing subsidy.

If the worker dies from an occupation-related injury or disease, the employer must pay survivors a funeral subsidy and a lump sum.

Reference Citations

Vacation: Labor Standards Act, arts. 38-40

Holidays: Labor Standards Act, art. 39; 2017 Government Agencies Workday Overview

Maternity Leave: Gender Equality Act, 2002, arts. 15, 18, 19; Labor Insurance Act, 2015, art. 19-2

Paternity Leave: Gender Equality Act, 2002, arts. 15, 18, 19

Sick Leave: Labor Standards Act, arts. 9, 20, 35

Other Leave: Gender Equality Act, 2016, art. 20 Employment Insurance Act, 2015, art. 19-2

Pensions and Social Security: Labor Pension Act, 2007, arts. 24, 35

Workers’ Compensation: Labor Insurance Act, 1958, arts. 13, 20-1, 36

Labor Relations

In General

Workers have the right to form and join labor unions, although unions must be certified by the government. Foreign workers have the right to participate in labor unions and run for union offices. When the number of union members is at least half the total number of employees, an employer is obligated to negotiate a collective bargaining agreement with the union. The terms of a collective bargaining agreement are binding only in matters concerning union members.

Strikes are allowed only over disagreements regarding the terms of employment and may be called only if approved by a majority of members in a secret ballot.

Taiwanese law does not address lockouts.

Right to Organize

The Labor Union Act states that workers have the right to form labor unions and to join them. Amendments to the law that took effect in 2011 ease restrictions on forming unions, allow union representatives to take leave to engage in union affairs and allow foreign workers to participate in labor unions and run for union offices. The law sets out detailed requirements for union governance, including the number of directors, the duties of the directors, meetings and funding.

To establish a union, organizers must get the signatures of at least 30 workers over the age of 20. The workers may be at a single worksite, in the same industry, in the same geographical area or at different firms. An application is submitted to the government for registration. A preparatory committee must immediately be organized to convene an inaugural general meeting to approve a constitution. The committee then submits a report to the government, which may then certify the union.

Only one union may represent workers in one factory or worksite or in the same industry in the same area. When the number of union members is at least half the total number of employees, an employer is obligated to negotiate a collective bargaining agreement with the union. The employer and the union cannot refuse, without just cause, the request of the other party to negotiate. The terms of a collective bargaining agreement are binding only in matters concerning union members.

In November 2022, the president of Taiwan signed an law amending Article 45 of the Labor Union Act that increases financial penalties on employers who refuse to permit workers to join a union or participate in union-related activities.

Works Councils

The labor code does not address works councils.

Dispute Resolution

Disputes between workers and employers may be submitted first to mediation, in which 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.

Strikes and Lockouts

Workers are not allowed to strike over “rights disputes,” defined as labor-management disagreements involving rights and obligations under laws, regulations, collective bargaining agreements and employment contracts. Strikes are allowed over “adjustment disputes,” which involve questions of whether to maintain or change the terms of employment. Strikes are also not permitted over a dispute that is in the conciliation or arbitration stage. A majority of union members must approve the action by secret ballot before a strike can be called.

Taiwanese law does not address lockouts.

Reference Citations

Right to Organize: Labor Union Act, 1929, arts. 4, 11

Dispute Resolution: Labor-Management Dispute Settlement Act, 2009, chapters II, III, IV

Strikes and Lockouts: Labor-Management Dispute Settlement Act, 2009, art. 8

Safety, Health and Security

In General

Employers are required to:

• take necessary preventive measures to avoid occupational accidents,
• conduct risk assessments of hazardous or potentially hazardous work activities,
• develop a workplace safety and health management plan and associated work rules and
• provide employees with all necessary safety and health education and training to perform duties and prevent accidents.

Workers have the right to refuse assignments they believe pose a risk of physical danger.

Workplace Safety and Health

Employers must require preemployment physical examinations of job applicants and periodic examinations of current employees. 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.

The Occupational Safety and Health Act gives workers the right to refuse assignments they believe pose a risk of physical danger and requires companies with more than 50 employees to retain a doctor or nurse on the payroll to offer guidance on medical issues that may arise with employees—for example, to ensure that pregnant and breast-feeding women are not exposed to workplace dangers.

An employer must grant an employee’s request to transfer to less strenuous work during pregnancy, if such work is available, without reducing her wages.

Sexual Harassment. Taiwan’s Government amended the Act of Gender Equality in Employment (AGEE) on July 31, 2023, the amendments will take effect on March 8, 2024. Employers establish and publicize a system for employees to file complaints of sexual harassment. Employers must notify local authorities of the receipt of complaints and the outcome of internal sexual harassment investigations. The law specifies corrective and remedial measures employers must take following a complaint.

Reference Citations

Workplace Safety and Health: Occupational Safety and Health Act, 2013, arts. 20, 22

Termination

Termination by Employer

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 or
• is absent from work for at least three consecutive days or six days in one 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 or
• a change in the business requires a reduction in the workforce and a particular worker cannot be reassigned.

In these situations, the length of required advance notice varies depending on the length of an employee’s continuous service with the employer:

• three months’ to one year’s service: 10 days’ notice,
• more than one year’s but less than three years’ service: 20 days’ notice and
• more than three years’ service: 30 days’ notice.

Once proper notice is given, the worker may take up to two 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.

Termination by Employee

An employee must in general give an employer the same length of advance notice the employer is required to give the employee and may in lieu of notice pay the employer compensation in the amount of his or her full wages for the period of notice.

An employee may terminate an employment contract without notice if:

• an employer misrepresented any fact at the time of signing an employment contract in a manner that might mislead or damage the employee;
• an employer or a family member or agent of the employer commits a violent act or grossly insults the employee (unless the employer has already discharged the agent);
• the work is likely to be injurious to the employee’s health and the employee has without success asked the employer to improve working conditions;
• an employer, an agent of the employer or a fellow worker contracts a harmful, contagious disease (unless the person has already been hospitalized or discharged);
• an employer fails to pay for work in accordance with the employment contract or fails to give sufficient work to an employee who is paid on a piecework basis or
• an employer breaches an employment contract or violates a labor law in a manner likely to adversely affect the rights of the employee.

Plant Closings and Mass Layoffs

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.

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 five 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.

Payment on Termination

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 one month’s average wages for each year of service with pro rata payments for fractions of a year.

Unemployment Insurance

Various benefits—including unemployment payments, an early reemployment incentive and a vocational training living allowance—are provided for unemployed workers under the Employment Insurance Law.

To be eligible for unemployment benefits, an employee must have involuntarily stopped working because the business has closed down, relocated, suspended operations, restructured or gone bankrupt or he or she must have terminated an employment contract for just cause.

The unemployment benefit is 60 percent of an applicant’s average wage in the six months before he or she lost the job and is generally payable for up to six months.

The government may extend the benefit period up to 12 months during an economic downturn.

Reference Citations

Termination by Employer: Labor Standards Act, 2002, arts. 11-13

Termination by Employee: Labor Standards Act, 2002, art. 14

Payment on Termination: Labor Standards Act, 2002, art. 17; Labor Pension Act, 2007, arts. 7, 12

Personal Taxes

Residency Requirements

Individuals are considered to be residents of Taiwan for tax purposes if they have a domicile in Taiwan and reside there habitually or if they have no domicile but reside in Taiwan for 183 days in a tax year.

Taxable Income

Both residents and nonresidents are taxed on their Taiwan-sourced income.

Employers must withhold income taxes on all income from salary, stipends, wages, allowances, annuities, cash awards, bonuses and all kind of subsidies, retirement pay, severance pay, separation pay, resignation pay, life-time pension and old-age pension not covered by insurance benefits.

Tax Rates

Tax rates on income are progressive and range from 5% to 40%.

Personal returns must be filed between May 1 and May 31.

Employers with at least five employees between the ages of 15 and 65 are responsible for paying labor insurance premiums and withholding labor insurance premiums from employees. Employers must make employment insurance premium payments and withhold premiums for all Taiwanese employees between the ages of 15 and 65, except those receiving civil servant, teacher, and military personnel insurance, in addition to those who have already began receiving old age benefits.

All employers are responsible for making contributions to the Overdue Wages Payment Fund under the Labor Standards Act. The fund is used to cover retirement pension, severance pay, and employees affected by companies’ liquidation or bankruptcy. Employers also must pay labor pension premiums for all Taiwanese workers, foreign spouses, and mainland (Chinese, Hong Kong, and Macau) spouses of Taiwanese workers.

Reference Citations

Residency Requirements: Income Tax Act, 2009, art. 7

Taxable Income: Income Tax Act, 2009, art. 14

Web References

Laws and Regulation

Gender Equality Act

Labor Pension Act

Income Tax Act

Labor Standards Act