Taiwan has established a comprehensive legal framework to protect the rights and welfare of its workforce. These regulations are primarily governed by the Labor Standards Act (LSA) and related legislation, aiming to ensure fair treatment, safe working environments, and equitable employment practices across various industries. Employers operating in Taiwan, whether local or international, must adhere strictly to these laws to maintain compliance and foster positive employee relations.
Understanding and implementing these protections is crucial for businesses to operate smoothly and ethically. The legal landscape covers a wide range of aspects, from the initial hiring process through the duration of employment and eventual termination, ensuring that employees are treated fairly and have recourse in case of disputes or violations.
Termination Rights and Procedures
Employment contracts in Taiwan can be terminated under specific conditions outlined in the Labor Standards Act. Termination can occur either with or without notice, depending on the reason. Employers must provide severance pay in most cases of involuntary termination.
Lawful grounds for termination with notice by the employer include:
- Business contraction or transfer.
- Suspension of business for more than one month.
- Change of business nature necessitating workforce reduction.
- Employee inability to perform duties.
- Employee absence without leave or exceeding leave limits.
Termination without notice by the employer is permitted only under specific, serious circumstances, such as:
- Violation of contract or rules causing significant damage.
- Serious misconduct.
- Imprisonment.
- Serious damage to the employer's property or reputation.
Employees also have the right to terminate their employment, with or without notice, depending on their length of service and the reason for termination.
Notice Period Requirements (Employer Terminating Employee)
| Length of Service | Notice Period |
|---|---|
| Less than 3 months | No notice |
| 3 months to less than 1 year | 10 days |
| 1 year to less than 3 years | 20 days |
| 3 years or more | 30 days |
During the notice period, employees are entitled to two paid working days per week to seek new employment. Severance pay is calculated based on the employee's length of service and the reason for termination.
Anti-Discrimination Laws and Enforcement
Taiwanese law prohibits discrimination in employment based on various protected characteristics. The Gender Equality in Employment Act is a key piece of legislation addressing discrimination, particularly related to gender, sexual orientation, and marital status. Other laws and principles also protect against discrimination based on factors such as age, race, religion, political affiliation, and disability.
Protected Characteristics (Non-Exhaustive)
- Gender or Sexual Orientation
- Marital Status
- Family Status
- Age
- Race
- Religion
- Political Affiliation
- Disability
- Union Membership
Employers are prohibited from discriminating in hiring, recruitment, training, promotion, compensation, benefits, and termination. They must also take measures to prevent sexual harassment in the workplace. Employees who believe they have been subjected to discrimination can file complaints with the local labor authorities or pursue legal action. Labor inspectors are responsible for investigating complaints and ensuring compliance.
Working Conditions Standards and Regulations
The Labor Standards Act sets minimum standards for working hours, rest periods, holidays, and leave. The standard working time is limited to 8 hours per day and 40 hours per week. Overtime work is permitted but is subject to strict limits and requires premium pay.
- Working Hours: Maximum 8 hours per day, 40 hours per week. Overtime limited to 46 hours per month (can be extended up to 54 hours under specific conditions, total not exceeding 138 hours in three months).
- Rest Periods: Employees are entitled to at least 30 minutes of rest after working continuously for 4 hours.
- Weekly Rest: Employees must have at least two rest days per week, one regular leave day and one rest day.
- Holidays: Employees are entitled to national holidays as stipulated by law, which are paid days off.
- Annual Leave: Entitlement increases with length of service, starting after six months of employment.
- Minimum Wage: A national minimum wage is set and reviewed annually, applicable to all employees.
Employers must maintain accurate records of working hours and ensure compliance with these standards. Violations can result in significant fines.
Workplace Health and Safety Requirements
Employers have a legal obligation to provide a safe and healthy working environment for their employees under the Occupational Safety and Health Act (OSHA). This includes identifying and mitigating hazards, providing necessary safety equipment, implementing safety procedures, and offering health checks.
Key employer responsibilities include:
- Establishing safety and health management systems.
- Conducting risk assessments.
- Providing safety training and education.
- Maintaining machinery and equipment in safe condition.
- Implementing measures to prevent occupational diseases.
- Reporting occupational accidents.
Employees have the right to refuse work if they believe it poses an imminent danger to their safety or health, without fear of reprisal. They are also required to comply with safety regulations and use provided safety equipment. Labor inspectors conduct inspections to ensure compliance with OSHA standards.
Dispute Resolution Mechanisms
When workplace disputes arise, employees in Taiwan have several avenues for resolution. The primary mechanisms involve the local labor authorities.
- Mediation: Employees can file a request for labor dispute mediation with the local labor bureau. A mediation committee, typically consisting of representatives from the labor bureau, employers' associations, and labor unions, will attempt to facilitate a resolution between the parties. Mediation is a common and often effective first step.
- Arbitration: If mediation fails, or for certain types of disputes, arbitration may be pursued. An arbitration committee will hear the case and issue a binding decision.
- Legal Action: If mediation and arbitration are unsuccessful or not applicable, employees can file a lawsuit in the labor court. The court system provides a formal legal process for resolving disputes based on the relevant labor laws.
Employees can also seek assistance from labor unions or legal aid organizations. Employers are generally encouraged to establish internal grievance procedures to resolve issues before they escalate to external mechanisms.
