1. What are the legal requirements for an employment contract in Taiwan?
In Taiwan, an employment contract is legally required for all employees and should be in writing. The following are the key legal requirements for an employment contract in Taiwan:
1. Form and Contents:
The contract must be in Chinese or a language commonly used in the workplace and both the employer and employee must sign it. The contract should include the following information:
– Name and address of both parties (employer and employee)
– Job duties, place of work, and working hours
– Duration of employment (fixed-term or indefinite)
– Probation period, if any
– Salary/wage payment terms
– Benefits such as insurance, holiday entitlements, sick leave, etc.
– Notice period for termination of employment
– Non-compete clauses or confidentiality agreements, if applicable
2. Minimum Wage:
The employer is required to pay their employees at least the minimum wage established by the local government where the business is located. The minimum wage may vary depending on factors such as industry and job type.
3. Working Hours:
The standard working hours in Taiwan are 40 hours per week (8 hours per day) with one rest day per week. Overtime work should be approved in advance by both parties and compensated according to regulations.
4. Probation Period:
A probationary period may be included in an employment contract but cannot exceed three months for regular employees or six months for managers/executives.
5. Termination:
Termination clauses should be included in the contract which outlines notice periods that both parties must abide by when terminating the contract. In Taiwan, this typically ranges from 10 days to 30 days depending on the length of service.
6. Non-compete Agreements:
Non-compete agreements may be included in an employment contract but must meet certain requirements to be considered legal under Taiwanese law. They must have a fixed duration not exceeding two years after termination of employment and provide reasonable compensation to the employee during the non-compete period.
7. Confidentiality Agreements:
Confidentiality agreements are commonly included in employment contracts to protect sensitive company information. It must have a clear definition of what constitutes confidential information and how it should be protected.
8. Legal Protection:
Employment contracts must comply with Taiwanese labor laws and regulations, offering employees necessary legal protection and benefits such as mandatory insurance, paid time off, etc.
It is recommended to seek legal advice when drafting an employment contract in Taiwan to ensure compliance with local laws and regulations. Employers found to be violating these requirements may face legal consequences and penalties.
2. Is it mandatory for an employment contract to be in writing in Taiwan?
Yes, the Labor Standards Act in Taiwan requires that an employment contract be in writing. This applies to both fixed-term and indefinite-term contracts. It is also mandatory for employers to provide a copy of the signed contract to the employee within 30 days of its commencement date. Failure to comply with these requirements may result in penalties for the employer.
3. Can an employer modify the terms of an employment contract without the employee’s consent in Taiwan?
No, an employer cannot modify the terms of an employment contract without the employee’s consent in Taiwan. Any changes to the terms of an employment contract must be agreed upon by both parties and should be made in writing. If the employee does not agree to the modifications, they can refuse and potentially take legal action if necessary.
4. Are there any specific laws or regulations governing part-time contracts in Taiwan?
Yes, there are specific laws and regulations governing part-time contracts in Taiwan. These include:
1. Part-Time Workers Protection Act: This law regulates the rights and benefits of part-time workers in terms of working hours, compensation, rest days, and overtime pay.
2. Labor Standards Act: This law sets out the minimum wage standards for part-time workers and regulates other labor-related issues such as safety and health, rest periods, annual leave, and severance pay.
3. Gender Equality in Employment Act: This act prohibits discrimination against part-time workers based on their gender or marital status.
4. Regulations for Part-Time Worker Contracts: These regulations outline the required contents of a part-time worker’s contract, including information about wages, working hours, job duties, probationary period, and termination procedures.
5. Occupational Safety and Health Act: This act requires employers to ensure the safety and health of their part-time workers by providing a safe working environment and necessary training.
6. National Provident Fund Act: Under this act, employers are required to contribute to a provident fund for their employees who work at least 16 hours per week.
7. Minimum Wage Act: This act sets the minimum hourly wage for part-time workers based on their age and experience.
Employers must comply with these laws and regulations when hiring part-time workers in Taiwan. Failure to do so could result in legal consequences such as fines or penalties.
5. What are the maximum working hours allowed under a standard employment contract in Taiwan?
The maximum working hours allowed under a standard employment contract in Taiwan are 8 hours per day and 40 hours per week. However, some industries may have different regulations for working hours, such as the manufacturing industry which allows for a maximum of 12 hours per day and 60 hours per week. Employers must also provide at least one day off per week. Overtime work is limited to 2 hours per day and is subject to specific regulations and compensation.
6. In case of termination, what severance pay is owed to an employee under a fixed-term contract in Taiwan?
In Taiwan, there are no specific laws or regulations that govern severance pay for fixed-term contracts. However, according to the Labor Standards Act, an employer is required to provide severance pay to an employee who has completed at least one year of continuous service with the company or whose contract is terminated due to a business closure or layoff.
The amount of severance pay is typically calculated based on the employee’s average monthly salary and length of service. The formula for calculating severance pay in Taiwan is as follows:
Severance Pay = Average monthly salary x Number of years of service x 1/2
However, it should be noted that this formula may not apply in all cases and severance pay may vary depending on individual employment contracts and agreements. Therefore, it is recommended to consult with a legal professional for more specific information regarding severance pay in relation to a fixed-term contract termination.
7. Are employees entitled to annual leave and sick leave under their employment contracts in Taiwan?
Yes, employees in Taiwan are generally entitled to both annual leave and sick leave under their employment contracts.
Under the Labor Standards Act, employees are entitled to at least 7 days of paid annual leave after working for the same employer for a continuous period of one year. The number of days may increase with years of service up to a maximum of 30 days per year.
Employees are also entitled to paid sick leave if they have a legitimate illness or injury that prevents them from working. The length of sick leave varies depending on the employee’s length of service and the severity of their condition, but typically ranges from 2-30 days per year.
Employers may offer more generous annual and sick leave benefits than what is required by law in their employment contracts. It is important to consult the specific terms outlined in an employee’s contract for detailed information on their entitlements.
8. Can employers include non-compete clauses in employment contracts and are they enforceable in Taiwan?
Yes, employers can include non-compete clauses in employment contracts in Taiwan. However, the enforceability of these clauses depends on various factors such as the scope and length of the non-compete restriction, the type of work being restricted, and whether adequate consideration is provided to the employee in exchange for their agreement to the restriction.
Under Taiwanese law, a non-compete clause must be limited in scope and duration to protect legitimate business interests of the employer. It should not unduly restrict an employee’s ability to find alternative employment after leaving their current job. Non-compete provisions can be enforced through contractual remedies or injunctions.
It is generally advisable for employers to consult with legal counsel when drafting non-compete clauses to ensure they comply with relevant laws and are reasonable in scope and duration. Otherwise, they may risk having them declared unenforceable by a court.
9. Is it legal for employers to ask employees to work on public holidays without extra pay under their contracts in Taiwan?
In Taiwan, it is generally not legal for employers to ask employees to work on public holidays without extra pay. According to the Labor Standards Act, employees who are required to work on a public holiday are entitled to receive at least 150% of their regular hourly wage for the hours worked. Additionally, some employers may choose to offer their employees additional compensation or benefits for working on a public holiday.
However, there are certain exceptions where employers are not required to provide extra pay for working on a public holiday. These exceptions include:
1. Employees who voluntarily agree to work on a public holiday and have signed an agreement with their employer stating that they will not receive extra pay.
2. Employees in managerial or supervisory positions who are exempt from the provisions of the Labor Standards Act.
3. Certain industries or businesses that are allowed by law to operate on public holidays, such as hospitals and transportation companies.
4. Situations where the nature of the work requires continuous operations and cannot be interrupted, such as in emergency services and security.
In these exceptions, employers must still provide employees with compensatory time off or an alternative day off within 60 days after the public holiday.
It is important for both employers and employees to familiarize themselves with the labor laws and regulations regarding working hours and compensation in Taiwan. Employers should also ensure that employment contracts adhere to these laws and provide fair treatment for employees working on public holidays.
10. What is the minimum wage requirement stated by law for an employment contract in Taiwan?
As of 2021, the minimum wage requirement stated by law for an employment contract in Taiwan is NT$24,000 per month.
11. Does a probation period need to be specified in an employment contract in Taiwan, and if so, what is its duration limit?
Yes, it is common for an employment contract in Taiwan to specify a probation period. The duration of the probation period can be negotiated and agreed upon by both employer and employee, but cannot exceed six months.
12. Can employers terminate employees without cause under the terms of an indefinite contract in Taiwan?
No, under the terms of an indefinite contract in Taiwan, employers are not allowed to terminate employees without a valid cause. Employers must have a valid reason, such as poor performance or misconduct, to terminate an employee’s contract. Otherwise, it may be considered unlawful and the employer may face legal consequences.
13. Is there a mandatory notice period that employers must give before terminating an employee’s contract in Taiwan?
Yes, there is a mandatory notice period that employers must give before terminating an employee’s contract in Taiwan. The length of the notice period depends on the length of service of the employee:
1. For employees who have worked for less than 3 years, the notice period is 10 days.
2. For employees who have worked between 3 to 5 years, the notice period is 20 days.
3. For employees who have worked between 5 to 10 years, the notice period is one month.
4. For employees who have worked over 10 years, the notice period is two months.
Please note that these are minimum requirements and a longer notice period may be agreed upon between the employer and employee in their employment contract. In case of termination due to business closure or economic reasons, a statutory notice period of fifteen days per year of service (maximum three months) must also be provided.
14. Are there any limitations on trial periods that can be included in employment contracts under the law of Taiwan?
Yes, there are limitations on trial periods that can be included in employment contracts under the law of Taiwan.
1. Maximum length: The maximum length of a trial period is 6 months for regular employees and 3 months for probationary employees. Any longer trial period will be deemed invalid.
2. Limited renewals: Trial periods can only be renewed once, for a maximum of 6 months for regular employees and 3 months for probationary employees.
3. Written agreement: The trial period must be agreed upon in writing by both the employer and employee before the start of employment.
4. Notice requirement: Employers must give at least 7 days’ written notice before terminating an employee during the trial period.
5. Non-discrimination: Employers cannot discriminate against an employee during the trial period based on their gender, age, race, religion, disability, or other protected characteristics.
6. Wage and benefits: During the trial period, employees must receive at least 80% of the normal wage and all applicable employee benefits as stipulated in their employment contract.
7. Job duties: The job duties during the trial period should be consistent with those specified in the employment contract and cannot be changed without the employee’s consent.
It is important to note that any provisions in an employment contract that violate these limitations will be deemed invalid by Taiwanese labor authorities.
15. How do collective bargaining agreements impact individual employment contracts within a company operating in Taiwan?
Collective bargaining agreements (CBA) are negotiated between employers and labor unions to establish terms and conditions of employment for all workers in a specific company or industry. As such, CBAs have a significant impact on individual employment contracts within a company operating in Taiwan.
Firstly, CBAs set the minimum standards for wages, benefits, working hours, and other conditions of employment for all workers covered under the agreement. This means that individual employment contracts cannot include terms or conditions that fall below the established CBA standards.
Secondly, CBAs often include provisions for job security, promotion opportunities, and grievance procedures that protect workers against arbitrary or unfair actions by their employer. These provisions may be additional to what is stated in individual employment contracts and provide additional protection for employees.
Moreover, collective bargaining allows employees to have a voice in determining their working conditions. Through the negotiation process, labor unions can advocate for changes or improvements to employment policies that affect all employees within a company.
In cases where an individual employee has concerns about their employment contract or feels that their rights have been violated, they may rely on the collective bargaining power of their union to address these issues with the employer. This also means that individual employees may not be able to negotiate terms or conditions of their contract separately from the collective bargaining process.
Overall, collective bargaining agreements play a crucial role in setting consistent standards and providing protections for workers within a company operating in Taiwan. Individual contracts must adhere to these agreements and any changes must be negotiated through the collective bargaining process.
16. Can employers transfer employees from one location to another within the country without amending their existing contracts?
It is possible for employers to transfer employees from one location to another within the same country without amending their existing contracts. However, it is important for employers to ensure that the new location does not impose any significant changes or breaches of contract on the employee. It might be necessary for employers to communicate with the employee and obtain their consent before transferring them to a different location. Employers should also consider any implications on salary, benefits, and working conditions before making any transfers. Additionally, it may be advisable for employers to have a clause in the employment contract that allows for potential transfers within the company.
17.Are there any restrictions on employing foreign nationals under regular or temporary contracts inTaiwan?
Yes, there are specific regulations and restrictions on employing foreign nationals in Taiwan. These include obtaining proper work permits and complying with labor laws and other regulations.
Under regular contracts, foreign nationals must obtain a work permit before they can be employed. The employment contract must also comply with the provisions of the Employment Services Act and the Labor Standards Act. In addition, there are limitations on the types of jobs that foreign nationals can hold, with priority given to Taiwanese citizens for certain positions.
For temporary contracts or short-term assignments, foreigners may need to apply for a different type of work permit, such as a non-regular work permit or a professional work permit. They must also comply with relevant regulations and laws related to temporary workers.
Employers who wish to hire foreign nationals in Taiwan should consult with local government authorities or seek legal advice to ensure compliance with all applicable rules and regulations.
18.What discrimination policies should be included and enforced within all employment contracts according toTaiwan’s laws?
Some discrimination policies that should be included and enforced within all employment contracts in Taiwan include:1. Equal Opportunity: Every employee should have equal opportunity for recruitment, promotion, training, and any other aspects of employment regardless of their race, gender, age, religion, or disability.
2. Prohibition of Discrimination in Hiring Process: Employment decisions such as hiring, promotion, or compensation must not be based on discriminatory factors.
3. Harassment-Free Workplace: Employers must provide a workplace environment that is free from harassment based on an individual’s protected characteristics.
4. Accommodation for Disabilities: Employers must make reasonable accommodations to allow employees with disabilities to perform their job duties.
5. Fair Wages and Benefits: Employees should receive equal pay for equal work, regardless of their gender or other personal characteristics.
6. Pregnancy Protection: Employers are prohibited from discriminating against female employees due to pregnancy or childbirth.
7. Age Discrimination Protection: It is illegal to discriminate against an employee because of their age unless there is a valid reason related to the job requirements.
8. Religious Accommodation: Employers must reasonably accommodate an employee’s religious beliefs unless it would cause undue hardship on the company’s operations.
9. Gender Equality in the Workplace: Employers are required by law to provide a workplace that promotes gender equality and prohibits sexual harassment or discrimination based on gender identity or sexual orientation.
10. Non-Retaliation Clause: Employers are prohibited from retaliating against an employee who has filed a complaint or participated in an investigation regarding discrimination or harassment in the workplace.
It is important for employers to clearly state these policies in employment contracts and actively enforce them in the workplace to ensure a fair and inclusive working environment for all employees.
19.Can an employee be subject to disciplinary action or termination for breaches of their employment contract in Taiwan?
Yes, an employee can be subject to disciplinary action or even termination for breaches of their employment contract in Taiwan. Employers have the right to terminate an employee’s contract if they violate any terms or conditions stated in their employment contract, such as failing to fulfill job responsibilities, engaging in misconduct or illegal activities, or breaching confidentiality agreements.However, before taking any disciplinary action or terminating an employee’s contract, employers must follow proper procedures and give the employee a chance to explain and defend themselves. This includes providing written warnings, conducting an investigation, and holding meetings with the employee. If the breach is severe enough to warrant immediate termination, employers must still provide a written notice stating the reason for termination. Failing to follow these procedures may result in legal consequences for the employer.
Additionally, there are some special protections for certain employees under Taiwanese law that restrict employers from taking harsh disciplinary actions without just cause. For example, pregnant employees cannot be terminated during pregnancy or within eight weeks after giving birth unless the reasons are unrelated to pregnancy. Employees who have worked for more than one year are also entitled to severance pay if their contract is terminated for reasons not related to their own misconduct.
Overall, while employers do have the right to take disciplinary actions and terminate contracts due to breaches of employment contracts in Taiwan, they must comply with proper procedures and be mindful of any special protections that may apply.
20. What legal protections are available to employees who report violations of their contracts or labor laws by their employer in Taiwan?
Employees in Taiwan are protected by several laws and regulations when reporting violations of their contracts or labor laws by their employer. Some key protections include:
1. Whistleblower Protection Act: This act protects employees who report illegal or unethical activities by their employers from retaliation, such as termination or demotion.
2. Labor Standards Act: This law sets minimum standards for wages, working hours, and other conditions of employment. Employees who report violations of these standards are protected from retaliation.
3. Employment Contracts Act: Under this law, employees have the right to terminate their contract with their employer if they can prove a serious violation by the employer. Additionally, if an employee terminates their contract due to violation by the employer, they may be entitled to severance pay.
4. Gender Equality in Employment Law: This law prohibits discrimination based on gender in hiring, promotion, and termination decisions. Employees who experience discrimination can file a complaint with the Department of Gender Equality under the Ministry of Labor.
5. Occupational Safety and Health Act: This law requires employers to provide a safe and healthy work environment for their employees. If an employee reports safety or health hazards in the workplace, they are protected from retaliation.
6. Labor Standards Inspection Office (LSIO): The LSIO is responsible for enforcing labor laws in Taiwan and has the authority to investigate complaints made by employees regarding violations of labor laws or employment contracts.
In addition to these legal protections, there are also private sector organizations that monitor compliance with labor laws in Taiwan and may provide support and resources for employees facing issues with their employers.