Taiwan, China

Labor Market Regulation 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, improve job quality for workers, 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 supermarket or grocery store operating in the economy's largest business city (for 11 economies the data are also collected for the second largest business city) 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 2015.

More information on Labor Market Regulation.

Topic Answer
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) 12.0
Minimum wage applicable to the worker assumed in the case study (US$/month) 635.3
Ratio of minimum wage to value added per worker 0.2
Incentives for employing workers under age 25? No
Working hours
Maximum number of working days per week 6.0
Premium for night work (% of hourly pay) 0.0
Premium for work on weekly rest day (% of hourly pay) 100.0
Premium for overtime work (% of hourly pay) 33.0
Restrictions on night work? 0.0
Whether nonpregnant and nonnursing women can work the same night hours as men Yes
Restrictions on weekly holiday? 0.0
Restrictions on overtime work? No
Paid annual leave for a worker with 1 year of tenure (working days) 7.0
Paid annual leave for a worker with 5 years of tenure (working days) 14.0
Paid annual leave for a worker with 10 years of tenure (working days) 15.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 12.0
Redundancy rules
Maximum length of probationary period (months) n.a.
Dismissal due to redundancy allowed by law? Yes
Third-party notification if one worker is dismissed? Yes
Third-party approval if one worker is dismissed? No
Third-party notification if nine workers are dismissed? Yes
Third-party approval if nine workers are dismissed? No
Retraining or reassignment obligation before redundancy? Yes
Priority rules for redundancies? No
Priority rules for reemployment? Yes
Job quality
Equal remuneration for work of equal value? Yes
Gender nondiscrimination in hiring? Yes
Paid or unpaid maternity leave mandated by law? Yes
Minimum length of maternity leave (calendar days)? 56.0
Receive 100% of wages on maternity leave? Yes
Five fully paid days of sick leave a year? No
On-the-job training? No
Unemployment protection after one year of employment? Yes
Minimum contribution period for unemployment protection (months)? 12.0
Can employee create or join union? Yes
Administrative or judicial relief for infringement of employees' rights? Yes
Labor inspection system? Yes
Redundancy cost
Notice period for redundancy dismissal for a worker with 1 year of tenure 2.9
Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3
Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 3.8
Severance pay for redundancy dismissal for a worker with 1 year of tenure 2.2
Severance pay for redundancy dismissal for a worker with 5 years of tenure 10.8
Severance pay for redundancy dismissal for a worker with 10 years of tenure 43.3
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 18.8

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