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Employment Termination in Taiwan

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Termination process

Employee contracts can be terminated if a just cause is established, with a notice period provided before the termination comes into effect.

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Notice period

The Taiwanese Labor Standards Act defines mandatory notice periods employers must provide, depending on how long an employee has worked.

  • From three months to less than a year: 10 days’ notice
  • From one year to less than three years: 20 days’ notice
  • Three or more years of employment: 30 days’ notice
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Severance pay

Employees who commenced working before the 2005 Labor Standards Act was enacted, are entitled to a severance package equivalent to a month’s pay for every of continuous service.

Employees who begun working after the enactment of the 2005 Labor Standards Act are entitled to half month’s wages for every year of continuous employment.

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Probation periods

The length of the probation period can be agreed upon by the employer and the individual employee. It is widely practiced that a 3-6 months trial period is used.