Employment 2025

TAIWAN Law and Practice Contributed by: Chengkai Wang, Yachi Huang, Herman Lin and Tzutien Huang, Dentons Taiwan (Dacheng Taiwan)

authorities and complying with the minimum advance notice period. Statutory Grounds for Termination The Labor Standards Act outlines specific conditions under which employment can be terminated, as fol - lows. Article 11 Termination with advance notice is required for rea - sons such as operational adjustments or financial diffi - culties. Specific grounds include business suspension or transfer, operational losses, force majeure events lasting over one month, changes in the nature of busi - ness requiring fewer employees and the clear inability of an employee to meet performance expectations. Article 12 This allows immediate termination without notice due to employee misconduct or other specific severe con - ditions. Procedural Requirements Termination procedures are specified under Articles 11, 13 and 20 of the Labor Standards Act, along with Article 33 of the Employment Service Act, which man - dates the following: • notification to authorities – employers must notify local competent authorities and public employment service institutions ten days before the employee’s last working day, detailing necessary personal and job-related information; • exception for force majeure – in cases of force majeure, the notification period is within three days from the termination date; and • involuntary separation certificate – employers must issue an involuntary separation certificate to dis - missed employees. Collective Redundancies The Act for Worker Protection of Mass Redundancy regulates mass terminations, applying when certain criteria are met: • small entities – a site with fewer than 30 employees intending to lay off more than ten employees within 60 days;

• medium entities – a site with 30 to 200 employees planning to lay off more than one-third of its work - force within 60 days, or more than 20 employees in one day; • large entities – a site with 200 to 500 employees aiming to lay off more than one-fourth of its work - force within 60 days, or more than 50 employees in one day; • very large entities – a site with over 500 employees planning to lay off more than one-fifth of its work - force within 60 days, or more than 80 employees in one day; and • extensive layoffs – any business entity intending to lay off over 200 employees within 60 days or more than 100 employees in one day. For collective redundancies, the employer must create a mass redundancy plan and provide written notice at least 60 days prior to the proposed termination date to the local labour authority, the labour representa - tives from the Labor Management Committee and the employees to be laid off. Employees affected by collective redundancies are entitled to advance notice or pay in lieu of notice, severance pay and any outstanding bonuses or pay - ments, similar to the conditions in unilateral termina - tions. 7.2 Notice Periods Required Notice Periods and Formalities Under the Labor Standards Act in Taiwan, employers are required to provide advance notice prior to ter - minating an employment contract. The length of the notice period depends on the employee’s duration of continuous service: • less than one year but more than three months – a minimum of ten days’ notice; • more than one year but less than three years – a 20-day notice period; and • more than three years of service – a 30-day notice period. During the notice period, employees are entitled to take up to two days off per week to seek new employ - ment, with full pay for these days. Employers may alternatively choose to offer pay in lieu of notice.

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