1. Minimum statutory terms

1.1 Key statutes
A multitude of Acts and Regulations relate to employment in Taiwan. A selection of some of the key statutes is set out below:

• the Labour Standards Act ("LSA");
• the Labour Safety and Health Act;
• the Labour Inspection Act;
• the Labour Insurance Act;
• the National Health Insurance Act;
• the Labour Pension Act;
• the Employment Services Act;
• the Employee Welfare Fund Act;
• the Labour Union Act;
• the Settlement of Labour Disputes Act;
• the Massive Layoff Protection Act; and
• the Gender Equality in Employment Act.

The LSA is the most significant law concerning employment terms and conditions in Taiwan. Certain industries and occupations are excluded from the operation of the LSA. The Civil Code governs individual contracts that are not covered by the LSA.

Although it is not a common law jurisdiction, judicial and administrative interpretations are nevertheless important sources of regulation in Taiwan.

1.2 Probationary period
Probationary periods are not provided for under the LSA. Pursuant to the rulings issued by the Council of Labour Affairs and some courts' opinions, even if the parties agree to a probationary period, when the employer discharges the employee during the probationary period or at the end of the probationary period, the requirements regarding statutory cause, advance notice and severance pay for a lay-off shall still apply to the termination.

1.3 Minimum wage
The ‘basic wage’, which applies as a minimum wage across all industries in Taiwan, is determined by the Basic Wage Commission of the Council of Labour Affairs and submitted to the Executive Yuan for approval.

1.4 Remuneration structure
The LSA simply defines wages as the ‘payment one receives for one’s labour’. A portion of wages may, by mutual agreement between employer and employee, be paid in goods and services. (eg food, residence, utilities).

1.5 Working hours
Hours of work
A work day is considered to be up to 8 hours per day, though it is possible to extend this in certain circumstances by agreement with the labour union or the Labour-Management Conference if there is no labour union. Regular work hours must not exceed 84 hours in every 2 weeks.

Rest periods
Employees must be given at least one day off with pay every week under the LSA. The LSAcontemplates that salary will be paid for all 7 days in a week, even though the employee will be resting on one or more of those days.

An employee is entitled to 30 minutes rest for every 4 consecutive hours of work, except where a shift system is adopted or the work is of a continuing or urgent nature.

Overtime
An employer covered by the LSA may request its employees to work overtime upon obtaining the consent of the labour union, or the Labour-Management Conference, if there is no labour union. The total hours of employment (normal hours plus overtime) must not exceed 12 hours per day. In addition, no more than 46 overtime hours may be worked per month.

An employer is required to pay overtime wages. For the first 2 hours of overtime on a normal working day, the overtime rate is 133% of the ordinary pay rate. For the second 2 hours of overtime on a normal working day, the overtime rate is 166% of the ordinary pay rate.

1.6 Public holidays
An employee is entitled to time off with pay on all official public holidays listed under the LSA (around 19 days).

1.7 Paid annual leave

Employees are entitled to paid annual vacation days, based on their years of service, in accordance with the following table:

1.8 Other types of leave
Sick leave
An employee is entitled to ordinary sick leave of 30 days per annum (for non-work related illnesses and injuries). In addition, if an employee is hospitalised, they are entitled to sick leave of up to 1 year in any two years. Total sick leave (ordinary and hospitalised) cannot exceed one year in every 2 consecutive years.

Employees are entitled to half pay for up to 30 days of sick leave in one year. If an employee has not recovered after taking all his/her sick leave, annual leave and personal leave, he/she may apply for a leave of up to one year without pay.

Menstruation leave
Female employees are entitled to one day of menstruation leave per month, which is part of their sick leave entitlement.

Maternity leave
Female employees are entitled to maternity leave before and after childbirth for a combined period of 8 weeks. If the employee has more than 6 months’ service, she is entitled to full pay during her maternity leave. If she has been working for less than 6 months, she is entitled to half pay.

An employee who suffers a miscarriage after being pregnant for at least 2 but less than 3 months is entitled to 1 week's leave. For a miscarriage after being pregnant for less than 2 months, 5 days' leave must be granted. The amount of salary for leave due to a miscarriage may be decided by the employer.

Paternity leave
Male employees are entitled to 3 days’ paid paternity leave when their wife gives birth.

Parental leave
Male and female employees with more than one year’s service, who have a child under the age of 3, are entitled to parental leave. This is unpaid leave for a maximum of 2 years. The Taiwan government is currently phasing in a scheme under which Social Security benefits will be paid to employees on unpaid parental leave.

Military leave
An employer must provide paid leave to employees called in for reserve military duty.

Wedding leave
An employee is entitled to 8 days of paid leave for the purposes of celebrating their own marriage.

Funeral leave
An employee is entitled to paid funeral leave upon the death of a relative, of either 3, 6 or 8 days, depending on the closeness of the relative.

Personal leave
An employee is entitled to up to 14 days’ unpaid personal leave per annum.