Understanding the local labor laws is crucial for operating successfully in any foreign market. Here's a brief overview of some key aspects of Taiwan's labor law that you, as an employer, should know:
01 Work Hours and Overtime
According to Taiwan's Labor Standards Act, employees should not work more than eight hours a day or 40 hours a week. Work done beyond these hours is considered overtime and must be compensated at a higher rate.
02 Leave Benefits
Taiwanese labor law provides various types of leave, such as:
Annual Leave: Employees are entitled to paid annual leave, the duration of which depends on their length of service.
Maternity Leave: Pregnant employees are entitled to maternity leave before and after childbirth.
Paternity Leave: Fathers are entitled to paternity leave around the time of their child's birth.
Sick Leave: Employees are entitled to sick leave, but the rules can vary depending on the circumstances.
03 Rest Days
Employees in Taiwan are entitled to at least one regular day off and one rest day per week. If an employee works on these days, they must receive additional compensation.
04 Minimum Wage
Taiwan has a legislated minimum wage that employers must adhere to. This rate is subject to periodic reviews and adjustments.
05 Termination and Severance
Taiwan's labor law stipulates specific conditions under which an employment contract can be terminated. If an employee is dismissed without cause, they may be entitled to severance pay.
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