Taiwan Labor Law and Employment Policy Overview

Employment Law Overview

• Key Laws and Regulations:
  • Labor Standards Act
  • Occupational Safety and Health Act
  • Employment Service Act
• Legal Characteristics:
  • Aims to protect employee rights, promote employment stability, and ensure workplace safety.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contractual Provisions:
  • Must include terms on job duties, compensation, working hours, benefits, etc.
• Language and Currency:
  • Contracts must be in Chinese, and the currency unit is New Taiwan Dollar (TWD).

Working Hours Regulations

• Standard Working Hours:
  • 8 hours/day, 40 hours/week
• Rest Days and Breaks:
  • At least 1 rest day per week
  • At least 30 minutes break after 6 hours of daily work

Leave Policies

• Annual Leave:
  • 6 months to less than 1 year of service: 3 days
  • 1 year of service: 7 days
  • 2 years of service: 10 days
  • 3 years of service: 14 days
  • 5 years of service: 15 days
  • 10 years of service: 1 additional day per year, up to 30 days
• Public Holidays:
  • 13 statutory public holidays
• Special Leaves:
  • Sick leave: 30 days per year, paid at 50% of regular wages
  • Maternity leave: 8 weeks, paid at 100% of wages
  • Paternity leave: 7 days, paid at 100% of wages
  • Childcare leave: Up to 2 years before the child turns 3, paid at 60% of wages

Employee Severance and Contract Termination

• Notice Period:
  • 3 months to 1 year of employment: 10 days
  • 1-3 years of employment: 20 days
  • Over 3 years of employment: 30 days
• Severance Pay:
  • Typically 50% of average monthly salary for each year of service, up to 6 months' salary
• Unfair Dismissal Protection:
  • Employers must prove fair reasons for dismissal, or employees may be entitled to compensation.

Tax Laws

• Personal Income Tax:

  • Salary Range (TWD)	Tax Rate
    0 - 560,000	5%
    560,001 – 1,260,000	12%
    1,260,001 – 2,520,000	20%
    2,520,001 – 4,720,000	30%
    4,720,001 and above	40%

• Social Insurance Contributions:
  • Labor Insurance: 8.4%
  • Labor Insurance-Occupational Accident: 0.2%
  • Labor Insurance-Wage Fund: 0.7%
  • Health Insurance: 3.1%
  • Pension NHI: 6%
  • Second-tier National Health Insurance: 2.11%

Health Insurance

• Insurance Policy:
  • All employees must participate in the National Health Insurance (NHI).
• Insurance Coverage:
  • Medical, dental, maternity, and other healthcare services.

Compensation and Benefits

• Minimum Wage:
  • 26,400 TWD/month
• Compensation Structure:
  • Typically includes base salary, bonuses, allowances, etc.

Work Permits and Visas

• Permit Requirements:
  • Foreign nationals require a work permit or visa.
• Application Process:
  • Employers apply for work permits with the Ministry of Labor.
  • Foreign nationals apply for visas with Taiwan's overseas representative offices.

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Taiwan.
• Common Provisions:
  • Restrict employees from using or disclosing the employer's confidential information after leaving employment.
  • Restrict employees from working for competitors after leaving employment.

Training and Development

• Legal Requirements:
  • Employers must provide safety training and skills enhancement training.
• Government Support:
  • Government provides training subsidies and programs.

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibits discrimination based on factors such as gender, race, religion, etc.
• Enforcement Measures:
  • Employers must establish anti-discrimination policies and procedures.

Remote Work Policies

• Legal Framework:
  • Work-from-Home Act passed in 2023, supporting remote work.
• Tax and Insurance Implications:
  • Tax and social insurance implications of remote work depend on specific circumstances.

Authoritative Website Addresses

• Ministry of Labor: https://www.mol.gov.tw/