Taiwan employment law
Taiwan employment law summary
The Labor Standards Act (“LSA”), promulgated on July 30, 1984, became applicable to all employment relationships on January 1, 1999, except for certain designated categories of professionals (such as medical doctors) and last amended on July 31, 2024. Employment terms and conditions agreed to by an employer and an employee should be no less favorable than the minimum/mandatory requirements set forth under the labor law, otherwise they are null and void and will be superseded by the corresponding provisions prescribed under the LSA.
Key Points
- A permanent contract shall be entered into with an employee whose work is of a continuing nature relating to the employer’s regular business operation. Any fixed-term contract for continuous work should be considered as a permanent contract by operation of law.
- Taiwan is not an at-will employment jurisdiction. An employer should not terminate an employment contract unilaterally unless any of the statutory grounds specified in the LSA occurs.
- Effective January 1, 2024, the monthly minimum wage is NT$27,470 (US$882), and the hourly minimum wage is NT$183 (US$5.88).
- Employers should enroll all employees in the statutory social insurance including Labor Insurance, Employment Insurance, National Health Insurance and Occupational Accident Insurance.
- Pension scheme is mandatory for all employees. Employers should appropriate labor retirement reserve fund or contribute to at least 6% of each eligible employee’s monthly pensionable salary depends on the applicable pension scheme.
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Your employment law firm:
Lee and Li
11072 Taipei
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