Taiwan, China

Employing Workers in

Taiwan, China

Below is a detailed summary of some of the labor regulations that would apply to local entrepreneurs wishing to hire workers, organize working schedules, or make workers redundant for economic reasons in Taiwan, China. It measures the regulation of employment, specifically as they affect a local entrepreneur running a factory operating under continuous operations in the manufacturing sector and employing 60 employees.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2013.

More information on Employing Workers.

Topic Answer
Difficulty of hiring
Fixed-term contracts prohibited for permanent tasks? Yes
Maximum length of a single fixed-term contract (months) Generally 6 to 12 months, but no limit for a "specified work" contract if the prior approval of the competent authority has been obtained - Art. 6, Enforcement Rules of the Labor Standards Act.
Maximum length of fixed-term contracts, including renewals (months) 12
Minimum wage for a 19-year old worker or an apprentice (US$/month) 630.2
Ratio of minimum wage to value added per worker 0.26
Rigidity of hours
Standard workday in manufacturing (hours) Approximately 8 hours/day - Art. 30, Labour Standards Act
50-hour workweek allowed for 2 months a year in case of a seasonal increase in production? Yes
Maximum working days per week 6.0
Premium for night work (% of hourly pay) in case of continuous operations 0%
Premium for work on weekly rest day (% of hourly pay) in case of continuous operations 100%
Major restrictions on night work in case of continuous operations? No
Major restrictions on weekly holiday in case of continuous operations? No
Paid annual leave for a worker with 1 year of tenure (in working days) 7.0
Paid annual leave for a worker with 5 years of tenure (in working days) 14.0
Paid annual leave for a worker with 10 years of tenure (in working days) 15.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 12.0
Difficulty of redundancy
Dismissal due to redundancy allowed by law? Yes
Third-party notification if 1 worker is dismissed? Yes
Third-party approval if 1 worker is dismissed? No
Third-party notification if 9 workers are dismissed? Yes
Third-party approval if 9 workers are dismissed? No
Retraining or reassignment obligation before redundancy? Yes
Priority rules for redundancies? No
Priority rules for reemployment? Yes
Redundancy costs (weeks of salary)
Notice period for redundancy dismissal (for a worker with 1 year of tenure, in salary weeks) 2.9
Notice period for redundancy dismissal (for a worker with 5 years of tenure, in salary weeks) 4.3
Notice period for redundancy dismissal (for a worker with 10 years of tenure, in salary weeks) 4.3
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in salary weeks) 3.8
Severance pay for redundancy dismissal (for a worker with 1 year of tenure, in salary weeks) 2.2
Severance pay for redundancy dismissal (for a worker with 5 years of tenure, in salary weeks) 10.8
Severance pay for redundancy dismissal (for a worker with 10 years of tenure, in salary weeks) 43.3
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in salary weeks) 18.8

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