Taiwan’s labor laws provide comprehensive protection for employees, including mandated benefits and anti-discrimination policies. Here’s a guide to hiring in Taiwan.
1. Employment Contracts
In Taiwan, employment contracts should be in writing and clearly outline:
- Job title and responsibilities
- Working hours and overtime policies
- Salary, bonuses, and payment terms
- Leave entitlements (annual, sick, maternity, and other types of leave)
- Termination and severance terms
Contracts must comply with the Labor Standards Act (LSA), which sets minimum standards for wages, hours, and benefits.
2. Social Insurance Contributions
Employers in Taiwan must register employees in the following social insurance programs:
- Labor Insurance: Covers unemployment, maternity, and work injury benefits.
- National Health Insurance (NHI): Provides health insurance for employees and their dependents.
- Labor Pension Fund: A mandatory retirement plan where employers contribute 6% of employees' monthly wages.
These programs ensure that employees have access tohealthcare, pensions, and unemployment benefits.
3. Working Hours and Overtime
The standard workweek in Taiwan is 40 hours, with a daily maximum of 8 hours. Employers must compensate overtime at the following rates:
- 134% of the hourly wage for the first two hours of overtime.
- 167% of the hourly wage for any additional hours.
Employers should document overtime hours and ensurecompliance to avoid disputes.
4. Leave Entitlements
The Labor Standards Act specifies various leave entitlements:
- Annual Leave: 7 days after the first year of service, increasing with seniority.
- Sick Leave: Paid sick leave of up to 30 days per year for full-time employees.
- Maternity Leave: 8 weeks of paid leave for new mothers.
- Paternity Leave: 5 days of paid paternity leave for new fathers.
- National Holidays: Taiwan observes 12 statutory public holidays, which are paid days off.
5. Termination and Severance Pay
Termination of employment in Taiwan requires justifiable grounds, and the employer must adhere to notice periods. Severance pay is mandatory and calculated based on years of service, generally at the rate of half a month’s salary for each year worked.
6. Workplace Safety and Anti-Discrimination
Taiwan’s Gender Equality in Employment Act prohibits discrimination based on gender, marital status, and family responsibilities. Employers must also comply with occupational health and safety regulations to protect employees from workplace hazards.
7. Conclusion
Hiring employees in Taiwan involves adhering to labor standards and providing mandatory social benefits. By following these regulations, employers can establish a fair workplace that supports employee rights and well-being.