Taiwan's employment landscape is governed by the Labor Standards Act (LSA), which sets the minimum standards for employment conditions, including wages, working hours, and termination. Employment agreements are crucial for defining the terms and conditions of the working relationship between employers and employees. These agreements must comply with the LSA and other relevant regulations to ensure legal validity and protect the rights of both parties. Understanding the nuances of Taiwanese employment law is essential for businesses operating in Taiwan, whether directly or through an Employer of Record (EOR).
A well-drafted employment agreement not only ensures compliance with local laws but also helps to avoid potential disputes and misunderstandings between employers and employees. It provides clarity on the roles, responsibilities, and expectations of each party, fostering a positive and productive work environment. This guide provides an overview of the key aspects of employment agreements in Taiwan, including types of contracts, essential clauses, probationary periods, confidentiality, non-compete provisions, and termination requirements.
Types of Employment Agreements in Taiwan
Taiwan recognizes two primary types of employment agreements: fixed-term and indefinite-term contracts. The type of contract significantly impacts the rights and obligations of both the employer and the employee, particularly regarding termination.
| Contract Type | Description
