Employment law in Taiwan
Employment law in Taiwan is governed by several key pieces of legislation, with the Labor Standards Act (LSA) being the most significant law for regulating employment conditions, workers’ rights, and employer obligations. The labor law framework in Taiwan seeks to balance the protection of workers' rights with flexibility for employers.
Here's an overview of the key aspects of employment law in Taiwan:
1. Employment Contracts
Types of Employment Contracts:
Fixed-term contracts: These contracts are for a specified period and automatically expire at the end of the term unless renewed or extended.
Indefinite-term contracts: These contracts have no specified end date and continue until terminated by either the employer or employee, with proper notice.
Written Contracts: While the Labor Standards Act does not mandate written contracts for all workers, it is highly recommended to have a written employment contract to clarify the terms of employment, especially for employees in permanent positions or those with higher-level responsibilities.
Probationary Periods: Employers may set probationary periods (typically up to 3 months) to evaluate an employee's performance. During this time, the termination notice period may be shorter.
2. Wages and Salaries
Minimum Wage: Taiwan has a statutory minimum wage set by the government, which is updated periodically. The minimum wage applies to all employees in Taiwan, including foreign workers.
Payment of Wages: Employees must be paid at least monthly, and wages should be paid in legal tender (New Taiwan Dollar). Wages must be paid by the end of the following month after the work has been performed.
Overtime: Employees who work beyond the regular working hours are entitled to overtime pay. The overtime rates under the Labor Standards Act are generally as follows:
1.33 times the regular hourly rate for work on regular working days.
1.66 times the regular hourly rate for work on rest days (usually Saturdays).
2 times the regular hourly rate for work on public holidays or national holidays.
3. Working Hours
Standard Working Hours: The standard working hours in Taiwan are 8 hours per day and 40 hours per week (typically 5 days per week).
Rest Periods: Employees must be given at least a 30-minute rest break after 4 hours of continuous work.
Overtime: As mentioned above, any work performed beyond the standard working hours is considered overtime, and employees are entitled to overtime pay.
Rest Days: Workers are entitled to 1 day off per week (usually Sunday). If the employer requires the employee to work on their rest day, the employee should receive additional compensation.
4. Leave Entitlements
Annual Leave: Employees are entitled to 7 days of paid annual leave after the first year of employment. After the second year, the number of leave days increases based on the length of service (up to 30 days per year after 15 years of employment). Annual leave should be used within the calendar year; otherwise, it may expire unless agreed otherwise by the employer and employee.
Sick Leave: Employees are entitled to sick leave, which is generally up to 30 days per year. Sick leave is paid at 50% of regular wages if the employee has accumulated leave. After 30 days, the employee may be entitled to unpaid leave or additional compensation under specific conditions.
Maternity Leave: Female employees are entitled to 8 weeks of maternity leave, with 4 weeks before and 4 weeks after the birth. During this leave, they are entitled to half of their regular wages paid by the employer. In addition, employees can apply for up to 2 years of unpaid parental leave.
Paternity Leave: Male employees are entitled to 5 days of paternity leave (paid) following the birth of their child.
Public Holidays: Taiwan observes public holidays, and employees are entitled to time off on these days. If employees are required to work on a public holiday, they should be compensated with double their normal wages or given compensatory leave.
5. Social Security and Benefits
Labor Insurance: Employees are covered by Taiwan's Labor Insurance Program, which provides benefits for work-related injuries, illnesses, maternity, disability, old age, and death. Employers and employees contribute to the insurance fund, and the coverage is mandatory for all workers.
Health Insurance: In addition to Labor Insurance, employees in Taiwan are also enrolled in the National Health Insurance (NHI) program, which provides basic healthcare coverage. Employers and employees both contribute to the NHI fund.
Pension: The Labor Pension Scheme allows employees to contribute to a pension fund, which is managed by the Bureau of Labor Insurance. Employers are required to contribute a certain percentage of employees’ wages to this fund.
6. Health and Safety
Workplace Safety: The employer has an obligation to provide a safe working environment. This includes compliance with health and safety regulations and ensuring that employees are trained to avoid workplace accidents.
Workplace Accidents: Employees who are injured in the course of employment are entitled to compensation under the Labor Insurance program, and the employer is required to report accidents to the authorities.
7. Termination of Employment
Termination by Employer: Employers may terminate an employee's contract for reasons such as poor performance, misconduct, redundancy, or breach of contract. The employer must provide the employee with notice or pay in lieu of notice. Notice periods are generally:
3 days if employed for less than 3 months.
10 days if employed for 3 months to 1 year.
30 days if employed for over 1 year.
Termination by Employee: Employees who wish to resign must provide a notice period as specified in their contract. Employees who do not provide proper notice may be liable for compensation.
Severance Pay: Employees who are terminated or who resign after at least 5 years of service are generally entitled to severance pay, which is calculated based on the length of service and the wages received.
Unfair Dismissal: If an employee believes they have been unfairly dismissed, they can appeal to the Labor Standards Inspection Office or take the case to court.
8. Anti-Discrimination and Equal Treatment
Non-Discrimination: Taiwan’s labor laws prohibit discrimination based on race, gender, religion, national origin, disability, and other personal characteristics.
Equal Pay: Taiwan upholds the principle of equal pay for equal work, and employers must not pay men and women differently for performing the same job.
9. Trade Unions and Collective Bargaining
Trade Unions: Employees in Taiwan have the right to form or join trade unions. The unions can represent workers in negotiating with employers over wages, working conditions, and other employment matters.
Collective Bargaining: Unions in Taiwan have the legal right to engage in collective bargaining on behalf of their members. Employers are required to negotiate in good faith with unions over labor-related issues.
10. Labor Dispute Resolution
Dispute Resolution: Employees and employers can resolve disputes through mediation or arbitration, which is overseen by the Labor Standards Inspection Office or the Labor Court. If a dispute cannot be resolved through these methods, the matter can be taken to the courts.
Labor Court: The Labor Court hears cases related to employment disputes, including wrongful dismissal, wage issues, and violations of labor laws.
11. Foreign Workers
Work Permits: Foreign workers must obtain a work permit before they can legally work in Taiwan. Foreign workers are subject to the same labor laws as Taiwanese workers, but specific sectors (such as domestic work, construction, and agriculture) may have different regulations.
Employment Rights: Foreign workers are entitled to the same basic rights and protections under Taiwan's employment law, including wage protections, working hours, and leave entitlements.
Conclusion
Taiwan’s employment laws provide a comprehensive framework for protecting workers’ rights and ensuring fair treatment in the workplace. The Labor Standards Act and other related legislation govern aspects such as working hours, wages, termination, social security, and dispute resolution. The country also has robust systems for worker benefits, including health insurance, labor insurance, and pensions.
RELATED Blog
0 comments