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The ELA is proud to welcome our newest member firms: Potter, Anderson & Corroon in Delaware and Morais Leitão in Portugal! 

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Top 10 Questions Employers Should Ask When Hiring and Firing in Taiwan

By: Chung-Teh Lee

Submitted by Firm:
Lee, Tsai & Partners
Firm Contacts:
Chung-Teh Lee, Teresa Yu-Ting Huang
Article Type:
Legal Article
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HIRING IN TAIWAN:

  1. Are the employees considered "workers/labors" as defined under the Labor Standards Act ("LSA")?
  2. Is the employer responsible for applying for work permits for the employees?
  3. Are there restrictions on the terms of employment for the employees under Taiwanese law?
  4. Are the employment agreements required to be in writing under Taiwanese law?
  5. Is the employee subject to a non-competition agreement with his/her former employer?
  6. Are the employees required to have any special qualifications and/or licenses for the occupations?
  7. Are there restrictions on gender regarding certain occupations under Taiwanese law?
  8. Is the employee subject to the pension scheme under the LSA or the pension scheme under the Labor Pension Act?
  9. Do the wages of the employee meet the standard for the minimum wages as announced by the competent authority?
  10. Would the employer like to be the author of the works that the employee created within the scope and during the course of his/her employment?

FIRING IN TAIWAN:

  1. Does the termination meet the statutory conditions where the employer may unilaterally terminate an employee as listed in the LSA?
  2. Is the employee on statutory occupational sick leave or on injury leave due to an occupational illness or injury?
  3. Is the employee on her statutory maternity leave?
  4. Is the employer required to give prior notice to the employee before termination?
  5. Is there a timeframe in which the employer is allowed to terminate the employee according to the LSA and/or the employment agreement?
  6. Is the employer required to provide severance payment or termination payment to the employee?
  7. Is the employer required to provide compensation to the employee for unused personal leave?
  8. Has the employee reached the age of voluntary retirement?
  9. Is it necessary for the employer to enter into a non-competition agreement with the employee? If yes, what is the reasonable scope of the non-competition agreement and what is the reasonable amount of the compensation to the employee?
  10. Would the termination be classified as "mass redundancy" as defined under the Protective Act for Mass Redundancy of Employees? 
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