- Overview: Taiwan
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Contractor vs. employee: which is better?
- Expand without a company set up
Global HR Compliance in Taiwan
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Taiwan Guide below will help you understand the nuances of labor legislation in the country.
There are two main reasons for companies hiring foreign workforce:
- Expanding into foreign markets to sell company product or products there. In this case, companies hire sales representatives who would exclusively represent their product in the target market and sell it to their local client base.
- Hiring the right foreign talent with a unique expertise, often related to IT sphere that cannot be found in the home country or that costs less compared to local specialist with similar skills.
After you have found the right candidate, the question is how to hire and provide compensation to this person so you as a business remain 100% compliant when working with global workforce. Another thing to consider is whether you want to keep the talent long-term and how you can do that.
If you need to hire foreign workforce in Taiwan so you can expand there, then our Global Employer of Record solution may be of help. We help you legally hire and reward your foreign workforce by making them employees via a global employment outsourcing service. This is simple as employ your in-house workforce with the only difference that workers can live anywhere in the world and Acumen International would be their legal employer on your behalf. This means we would bear all employment risks, not you. Also, we manage bonuses, vacations, sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.
With our solution, you can test new foreign markets before deciding whether you are going to get established there. You gain flexibility and expand with reduced costs, and easily withdraw from the unattractive countries.
We are experts in global workforce employment in Taiwan, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Taiwan.
Hiring and Firing Workforce in Taiwan Guide
#1 – Contracts
Indigenous employees may be employed on a fixed term for specific job (not more than 12 months), seasonal job (not more than 9 months) or temporary job not more than 6 months) or on an indefinite term. Employers are obligated to sign a fixed term contract with their expatriate workers. Employers with no fewer than 30 employees must provide their employees with registered work rules. In case the total number of employees are less than 30, employers and employees are expected to address the terms of their working together at the establishment their employment relationship. This will be considered as part of the employee’s individual contract.
#2 – Minimum statutory employment rights
# Hour of work
The regular work time per work day is limited to 8 hours and per work week to 40 hours. Employers are obligated to allow their employees a 30-minute rest time after every 4 hours of work, and a complete 2-day rest per each calendar week. Barring prior agreement in the contract, female workers are not permitted to work between the hours of 9 pm and 6 am.
# Probation period
Employees may be fully employed without having to be placed on probation.
# Annual leave
Employees are entitled to 15 Pubic holidays each year (not including Saturdays and Sundays). Holidays that fall on any of the rest days – Saturday or Sunday must be shifted to the day preceding the rest day.
Employees are entitled to annual paid leave which varies in length, depending on seniority.
- 7 days’ paid leave for between one and 3 years seniority;
- 10 days’ paid leave for between 2 and 3 years seniority;
- 14 days’ paid leave for between 3 and 5 years seniority;
- 15 days’ paid leave for between 5 and 10 years seniority;
- 15 days plus extra one day for each year of service (up to 30 days) for over 10 years seniority.
# Parental leave
Female employees who have over 6 months’ period of service are eligible for 8 weeks of maternity leave and benefit that is equivalent to their full wage. Female employees who have less than 6 months’ period of service are eligible for 8 weeks maternity leave and benefit that is equivalent to their half wage. Employees who have miscarriage are entitled to 4 weeks of maternity leave paid at 50 percent of normal pay if they have worked for more than 6 months in the company, and 4 weeks leave paid at 50 percent of normal pay if they have worked for less than 6 months in the company. Fathers with new babies are entitled to 5 days paid paternity leave.
# Sick leave
All employees are entitled to a yearly 30 days of sick leave paid at full wage if they have stayed more than 6 months with the employer, and at half pay if their total period of service in the company is less than 6 months. If a sickness is critical to the point of hospitalization, an employer is under obligation to give the employee up to one year of unpaid leave after he has used his 30 days leave.
The total overtime an employee may work cannot exceed 4 hours per workday and 46 hours per month. Employees are entitled to overtime rate set at 133% of normal pay for the first 2 hours of overtime, 166% of normal pay for the remaining hours and 200% for work performed on a holiday. Overtime pay for female employees must be set with the consent of labor union.
# State minimum salary
Effective Jan. 1, 2017. the minimum salary in Taiwan is 21,009 yuan.
# Employment termination
A contract of employment may be terminated with a justifiable cause and that with a prior notice period, severance pay and up to 2 days paid leave a week for job search. Depending on the number of years of service, an employee may be given a notice period as follows:
- 10 days’ notice for between 3 months and 12 months of service;
- 20 days’ notice for between 1 year and 3 years of service;
- 30 days’ notice for more than 3 years of service.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Taiwan by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.