Employment Rules

A company's employment rules included in an employment contract or employee handbook must meet or exceed the requirements stipulated in the Labor Standards Law, which covers work hours, overtime pay, probation periods, benefits and employee compensation. The LSL curently covers approximately 6 million of Taiwan's 7.2 million salaried workers. Those not covered included nursery workers, gardeners, bodyguards, teachers, doctors, lawyers, civil servants, and domestic workers.

Highlights of the basic requirements stipulated in the Labor Standards Law include:

• Minimum Wage: As of Oct. 16, 1997, the monthly minimum wage is NTD15,840; the minimum daily wage is NTD528; and the minimum hourly wage is NTD66.
• Regular Working Hours: An employee's regular working hours should not exceed eight hours per day; and the total number of hours worked in a two-week period should not exceed 84 hours.
• Overtime Hours: Male employees may work no more than 3 hours overtime per day and no more than 46 hours per month. Female employees may work no more than 2 hours overtime per day and no more than 24 hours per month.
• Overtime Pay: One-third the regularly hourly pay must be paid for overtime work of less than 2 hours. Two-thirds the regularly hourly pay must be paid for overtime work of more than 2 hours.

These are just some of the minimal requirements regarding hours and wages stipulated by the labor regulations in Taiwan. The regulations also set minimum standards for employee leave time, such as for vacations and for maternity, death in the family, marriage, etc. It also stipulates retirement rights and requirements for employers and employees. However, these minimum standards are only that and most employers offer higher and more attractive employment packages to their employees.

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