Taiwan Updates Regulations on Worker Leaves – Implications for Foreign Employers

Taiwan is updating its rules for employee leave, with new regulations taking effect on January 1, 2026. These changes aim to help workers balance family responsibilities, address the country’s aging population and declining birth rate, and provide clearer guidance on sick leave and attendance bonuses.

For foreign employers hiring locally or managing remote teams in Taiwan, understanding these updates is essential. Staying compliant ensures your team is supported, avoids potential penalties, and aligns HR practices with local labor laws.

What’s New in the Regulations

Personal Leave for Family Care (Article 7, Paragraph 2)

To respond to Taiwan’s aging population and falling birth rate, the amendments now allow workers to take personal leave to care for family members once all other statutory family care leave is used. Employees can take this leave hour by hour, offering flexibility for those balancing work and caregiving duties.

Attendance Bonus Adjustments (Amendment to Article 9)

Employers are expressly prohibited from reducing attendance bonuses when employees use personal leave for family care. Attendance bonuses may be adjusted proportionally for ordinary sick leave taken, ensuring that bonus structures remain fair and do not discourage legitimate leave.

Sick Leave Protections (Article 9-1)

Employees taking up to 10 days of ordinary sick leave per year cannot face negative treatment. If an employee believes they have been treated unfairly due to sick leave, the employer bears the responsibility to prove otherwise. Performance evaluations must reflect overall work quality, attitude, and competence, rather than the number of sick leave days used.

Practical Advice for Foreign Employers

Foreign companies should:

• Update leave policies to include hourly family care leave.
• Ensure attendance bonus schemes comply with the new rules.
• Base performance evaluations on output, skills, and conduct, not leave days.
• Revise work rules promptly and submit them for local authority approval where required.
• Monitor HR practices carefully to avoid fines ranging from NT$20,000 to NT$1,000,000.

How an Employer of Record Can Help

Managing these requirements in Taiwan can be complex. An Employer of Record (EOR) like Tarmack can:

• Act as the local employer for both on-site and remote staff.
• Administer leave policies, attendance bonuses, and performance evaluations according to the law.
• Submit updated work rules to authorities when regulations change.
• Reduce operational and compliance risks while allowing your business to focus on growth.

Advisory Perspective

These amendments reflect Taiwan’s efforts to support employees in balancing work and family responsibilities, while ensuring fair and practical HR policies. Foreign employers should review HR practices proactively and consider working with an EOR like Tarmack to simplify compliance and administration.