Employer of Record Taiwan
The Taiwan Employer Of Record (EOR) solution from INS enables you to hire personnel in Taiwan without establishing a subsidiary. Our HR solutions enable you to expedite employee onboarding and handle their payroll, health benefits, insurance, etc. Our international network will ensure that expanding your business in Taiwan is trouble-free.
Utilization In Taiwan
Exceptions notwithstanding, Taiwan’s employment regulations encompass the vast majority of employees and apply to all businesses and professions. The Labor Standards Act governs the majority of employment in Taiwan (LSA). This statute does not apply to employees of the government, especially civil officials. In Taiwan, the LSA applies differently to workers having fixed-term versus indefinite-term employment contracts.
Foreign nationals employed in Taiwan are also subject to the LSA. The selection of legislation in the employment contract is irrelevant. In addition, foreign nationals cannot work in Taiwan without a work permit.
A person whose employment contract in Taiwan is governed by the LSA will continue to be subject to its terms even if he leaves Taiwan. For them to be exempt from the LSA, individuals must cancel their employment contracts in Taiwan.
A corporation seeking to develop worldwide and employ personnel in Taiwan would be well to familiarize itself with Taiwan’s employment contract law and its scope. Partnering with a local EOR, such as INS Global’sTaiwan EOR solution, helps facilitate the management of these processes. Discover more.
Consider the following Taiwanese labor rules while recruiting in Taiwan:
The AGEE was enacted to encourage workplace gender equality. It forbids discrimination against employees on the basis of their gender or sexual orientation. In addition, the statute gives women with three days of annual “menstrual leave.” The three days do not count toward the thirty days of sick leave.
Taiwan’s Timing, Holidays, and Leave Policies
Entitlements
Explanation
Minimum Wages
The monthly minimum pay in Taiwan is TWD23,800 and the hourly minimum wage is TWD158.
Normative Working Hours
Taiwan limits working hours to eight hours per day and forty hours per week. With few exceptions, these work hours are applicable to the vast majority of sectors and professions.
Overtime
Even with overtime, the workday cannot exceed 12 hours and the workweek cannot exceed 46 hours. If an employee works overtime, he or she is entitled to 134% (day) overtime compensation for the first two hours above eight hours and 167% (daily) overtime pay after the 10th hour.
Holidays
In Taiwan, holidays are tied to the number of years of service.
Timeframe of Service
Paid Leave Allowed
Six months to one year
3 days
1 year – 2 years
7 days
between 2 and 3 years
10 days
Three to five years
14 days
5 to 10 years and 15 days
After ten years of service, an employee receives one additional day of paid annual leave for each year of service (maximum of 30 days).
Unutilized vacation days are carried over to the subsequent year. If unused vacation days remain after two years, they are converted to salary.
Statutory holidays
The following are Taiwan’s official public holidays:
December 31st
Chinese New Year – February 10-16
Children’s Day – April 5th
Qingming Festival – April 4th
Labor Day – April 30
Sick Time
If the employee is not hospitalized, he or she is entitled to 30 days of conventional sick leave every year.
If hospitalized, the employee may take up to one year of unpaid sick leave. However, the total amount of sick leave over two consecutive years cannot exceed one year.
Parental/Spousal Leave
Statutory maternity leave duration is as follows:
Timeframe of Employment
Parental Leave
Approximately six months
8 weeks of half-pay leave
Minimum six months
8 weeks of paid vacation
A father is also entitled to five days of paternity leave following the birth of his child.
Parental Leave
If the employee has worked for the business for at least six months and their child is younger than three years old, they are eligible for up to two years of unpaid parental leave.
Their partner is also employed.
Contractors versus Permanent Employees
The Labor Standards Act makes a distinction between workers with fixed-term contracts and those with indefinite-term contracts. A fixed-term employee will become an employee with an indefinite duration if:
The prior contract and the new contract span more than 90 days, and there is less than 30 days between the expiration of the previous contract and the commencement of the new contract.
The employer does not object to the employee continuing to work after the end date of their fixed-term contract has passed.
The LSA grants the same benefits and protections to both types of workers. However, there are some distinctions. Employers are not required to provide early warning or severance pay to fixed-term workers. An employee who is dissatisfied with his or her classification as a temporary or independent worker may launch a lawsuit against the employer.
Temporary workers
The Taiwanese Labor Standards Act (LSA) has a legal loophole that allowed companies to categorize employees as agency workers rather than their own employees. To facilitate the fraud, standard employees were compelled to sign contracts with agencies. This was done to circumvent the obligations and benefits that companies were required to provide under the LSA.
Taiwan has attempted to close this gap by permitting employees who have been victims of this to file a claim within 90 days of beginning employment.
Temporary employees
Temporary workers are those who are employed for a duration of less than six months. They are entitled to the same benefits and entitlements as employees with an infinite duration.
Terms of negotiation scope
Taiwan is one of the world’s most economically developed nations. Its GDP per capita, when adjusted for PPP, is thirteenth in the world. Taiwan has an abundance of career opportunities. When discussing employment conditions in Taiwan, employers should ensure that the terms of employment are very apparent from the outset. Disputes can result in enormous expenditures for businesses and are a public relations nightmare. The Taiwanese take their work seriously and prefer face-to-face communication to email or telephone contact.
Hiring In Taiwan
The hiring procedure in Taiwan varies by organization and job description. Many Taiwanese businesses have a referral program in which current employees can recommend prospects for employment. Companies also recruit college graduates just after graduation. Those who have attended prestigious colleges are more likely to find employment.
After examining resumes, the standard hiring procedure entails selecting a shortlist of prospects. After a candidate pool has been narrowed down, companies frequently administer aptitude and skill tests to ensure that they are qualified for the job. After the management interviews and shortlists candidates, the HR department determines whether the candidate’s values and ethics correspond with those of the organization.
Companies frequently hire with the use of employment portal services such as 104.com, Startupstadium, etc. and their employee network. Hiring is a laborious procedure that needs a great deal of time and effort. There is no assurance that the companies would hire the most qualified candidates. This is especially true for organizations with limited Taiwan experience. A lack of familiarity with the country’s social and cultural norms is an additional advantage, as business procedures frequently vary from country to country. Thus, the hiring process becomes cumbersome and inefficient.
There is a more straightforward method for Taiwanese employers to recruit the best candidates from the talent pool. INS Global’s EOR solution in Taiwan acts as an employee of record or professional employee organization, relieving you of the burden of the hiring process so you can focus on growing your business. Additionally, INS Global manages all regulatory obstacles and legal compliance associated with employing individuals in Taiwan. Using their expertise and knowledge in Taiwan.
