Hiring Talent And Managing Payroll In Taiwan

Agreements

• Indefinite or open-ended contract - A contract without any fixed expiry period is called an indefinite contract. It is usually for continuous work. This type of contract is widely used for hiring full-time employees. The indefinite contract can be terminated by mutual agreement.
• Definite or fixed-term contract - A contract with a fixed end date is said to be a definite or fixed contract. If an employee keeps working even after the term ends, the contract will be treated as an indefinite contract. A definite contract in Taiwan should not exceed 90 days. If the contract term exceeds 90 days it is considered an indefinite contract.

Onboarding Process

• A job description is prepared by the HR team if there is a vacancy in the company.
• The description is uploaded on the official site of the company. It is uploaded on other platforms like LinkedIn.
• The employer may choose to publish the job description in local newspapers and magazines.
• Candidates apply for the job by proving their eligibility. They are further shortlisted based on rounds of screenings and interviews.
• Final shortlisted candidates then negotiate their terms and conditions with the employer. The candidate is hired as an employee after a mutual agreement between the employer and the candidate.

Minimum Wage

Payroll Cycle

Annual Bonus

Health Benefits

• The employee's health and safety are the employer's responsibility. Employers have to maintain healthy working conditions.
• An employee is obliged to declare health conditions.

Working Hours and Overtime

• Work hours: The working hours in Taiwan are restricted to 8 hours per day. An employee has to work over 40 hours a week. The regular working week is of 5 days from Monday to Friday.
• Break: Every employee is entitled to take an unpaid break of 30 minutes. This break is taken after 4 hours of continuous work. The break can be rescheduled according to the nature of the work.
• Overtime: The overtime hours in Taiwan must not exceed 4 hours per day. The employer has to pay 134% of the regular hourly rate for the first 2 hours of work. After 2 hours the employer has to pay 167% of the regular salary. For those who work on rest days are paid 234% for the first 2 hours of their hourly rate and 267% for the next 10 hours of employees' hourly wage. The employer has to pay 200% of the regular salary for overtime on public holidays or regular or annual leave.

Social Security

Taxes for Employees

Termination

• An employer must provide a written notice stating the reason for termination.
• The notice period depends on the tenure of work of the employee.

Severance Pay

• An employee who joined before 2005 is entitled to 1 month's salary as severance pay.
• An employee who joined after 2005 will get half a month's salary for every year of employment.

Employees or Contractors

• A person who works for a company and gets paid is an employee.
• An organization that hires workers or employees is a contractor or employer.
• A penalty is imposed on an employer found guilty of misclassification of an employee as a contractor.
• A civil lawsuit can be filed against an employer if found guilty of the misclassification of an employee.

Final Words