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, 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 2014.

More information on Labor Market Regulation.

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 applicable to the worker assumed in the case study (US$/month) 649.31
Ratio of minimum wage to value added per worker 0.26
Rigidity of hours
50-hour workweek allowed for 2 months a year in case of a seasonal increase in workload? Yes
Maximum working days per week 6.0
Premium for night work (% of hourly pay) 0%
Premium for work on weekly rest day (% of hourly pay) 100%
Major restrictions on night work? No
Major restrictions on weekly holiday? 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
Maximum length of probationary period (months) n.a.
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 (in salary weeks)
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
Social protection and labor disputes
Availability of unemployment protection scheme? Yes
Health insurance existing for permanent employees? Yes
Availability of courts or court sections specializing in labor disputes? Yes

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