TAIWAN Law and Practice Contributed by: Chengkai Wang, Yachi Huang, Herman Lin and Tzutien Huang, Dentons Taiwan (Dacheng Taiwan)
(a) work on regular leave is compensated for at least eight hours; and (b) overtime beyond eight hours on regular leave is paid at double the rate. • Public holidays overtime: (a) for up to eight hours, pay is equivalent to eight hours at the normal hourly wage; (b) for eight to ten hours, pay increases by one- third of the normal hourly wage; and (c) for ten to twelve hours, pay increases by two- thirds of the normal hourly wage. Confidentiality and Liability Regarding confidentiality and non-disparagement, Taiwanese labour law does not specifically mandate these requirements; instead, they are typically gov - erned through employment contract terms. However, if an employer’s confidential information qualifies as a trade secret protected by appropriate confidentiality measures, employees are prohibited from disclosing such information under the Trade Secrets Act. In Taiwan, the Labor Standards Act outlines specific conditions under which post-termination non-com - pete covenants are considered valid and enforceable. These covenants must protect legitimate business interests, particularly concerning employees privy to trade secrets, and must be reasonable in terms of duration, geographical scope and the nature of the restricted activities. Additionally, there is a require - ment for employers to provide reasonable compen - sation for employees who adhere to these restrictions after employment. The enforceable duration for non- compete clauses is capped at two years. Pursuant to Article 7-3 of the Enforcement Rules of the Labor Standards Act, the enforceability of non- compete clauses also hinges on providing “reason - able compensation” during the non-compete period. Requirements for meeting the definition of reasonable compensation include: 2. Restrictive Covenants 2.1 Non-Competes
• the monthly compensation must not be less than 50% of the employee’s average monthly wage at the time of resignation; • the compensation should be adequate to support the employee during the non-compete period; • the compensation should equate to the losses incurred by the employee due to the restrictions regarding the period, area and scope of occupa - tional activities, as well as prospective employment limitations; and • other relevant factors that may affect the reasona - bleness of the compensation should be consid - ered. 2.2 Non-Solicits Taiwan’s labour law does not explicitly regulate non- solicitation covenants; thus, the enforceability and validity of restrictions against soliciting customers, employees or suppliers post-employment are not specifically addressed. However, as a best practice, it is generally advisable to include non-solicitation clauses in employment contracts to safeguard business interests without statutory regulation. 3. Data Privacy 3.1 Data Privacy Law and Employment Taiwan’s Personal Data Protection Act grants employ - ees specific rights concerning their personal data that are irrevocable and cannot be contractually limited. These rights ensure the employees’ control over their personal information and include: • the right to inquire about and review personal data held by the employer; • the right to request copies of their personal data; • the right to supplement or correct any inaccuracies found in their personal data; • the right to demand a halt in the collection, pro - cessing or use of their personal data by the employer; and • the right to request the deletion of their personal data from the employer’s records.
658 CHAMBERS.COM
Powered by FlippingBook