Taiwan’s unemployment rate is low, which means employers may find it difficult to find the right talent to fit their open positions. The Taiwanese people also prefer face-to-face meetings, so you will need to travel back and forth to Taiwan to effectively recruit and hire employees in the country.
Globalization Partners can simplify the process. We can hire top talent using our established PEO and assign those employees to work for you. As the Employer of Record, all compliance falls on our shoulders instead of yours, so you can run your company without worrying about Taiwan employment compliance.
Recruiting in Taiwan
When recruiting in this country, you can either look for Taiwan nationals or seek foreign nationals living in the country. The Employment Services Act stipulates that you must give preferable or affirmative consideration to Taiwanese nationals. Employing a foreign worker cannot jeopardize a national’s opportunities.
While staffing your business in Taiwan, you cannot:
- Present false advertisements or disclosures
- Request applicants to surrender personal documents unrelated to the employment
- Withhold an applicant’s belongings
- Collect bond from an applicant
- Assign an applicant or employee to engage in any work that violates public orders
- Submit false information or fake health examination samples when applying for permits for foreign workers
- Fail to publicly display or inform regular pay less than NT $40,000
Legal & Background Checks
Unlike many other countries, Taiwan does not prohibit background and reference checks. However, you should abide by the applicable laws and regulations related to privacy and personal information security. You can also request screenings for candidates, such as drug or personality tests, as long as you take human rights protections into consideration. All tests should be conducted under the employee’s free will.
Laws Against Discrimination in Taiwan
The Employment Services Act also prohibits you from discriminating against any applicant or employee based on:
- Sexual orientation
- Marital status
- Political party
- Place of birth or origin
Regulations do provide subsidies for employers who hire persons with disabilities. If you do not hire individuals with disabilities, you may need to contribute to the subsidy fund.
How to Hire Employees in Taiwan
Hiring employees in Taiwan should start with an employment contract. Although individual contracts are not the norm or required in Taiwan, we strongly recommend that you draft a written agreement in the native language that includes terms such as compensation, benefits, and termination requirements. Make sure to write all compensation amounts in new Taiwan dollars (NTD).
Taiwan’s Labour Standards Act (LSA) recognizes two types of employment contracts — fixed-term and non-fixed-term. Fixed-term contracts work for temporary or short-term work up to six months, seasonal work of no more than nine months, and special work with a specified duration.
Taiwan Employment Laws
Most Taiwan employment compliance laws are covered in the LSA, although some occupations and industries follow the Civil Code. If you have more than 30 employees, you are required to write out work rules and register those rules with the local labor authority. These laws are required to cover a range of aspects, including working hours, paid leave, disciplinary measures, and health and safety regulations. The law also stipulates employers must give preference to Taiwanese workers as opposed to hiring foreign workers.
Taiwan employment compliance also applies to work hours. The typical workweek is 40 hours, with eight-hour days, and regular weekly working hours cannot exceed 48 hours. Overtime can be permitted; however, there are various steps required for compliance, including the approval of the labor union or labor-management conference.
Onboarding in Taiwan
The onboarding process is different for every country and can vary depending on the type of business you operate. You ultimately decide how to onboard your workers, but you can follow several best practices after you hire Taiwan employees:
- Go over the employment contract during the employee’s first day or week
- Provide any necessary training that the employee will need to succeed
- Draft a code of conduct for your company and have all employees sign it
- Onboard multiple employees together to save time
Benefits of Hiring Outsourcing in Taiwan
Taiwan hiring outsourcing services can make a tremendous difference in the life of your company. With Globalization Partners, you won’t have to worry about finding employees who fit your open positions. We’ll recruit top talent for you and hire them to work on your behalf. Our goal is to take Taiwan employment compliance off your plate and onto ours.
Work With Globalization Partners To Expand Globally
Globalization Partners will simplify your expansion with our Employer of Record solution. Contact us today to learn more about our services.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.