Contracts in Taiwan

Overview by

The Active Population in Figures

Main Indicators 2004200520062007
Labor Force 55.10%55.39%55.66%55.97%
Labor Force (Annual Growth, %) 0.620.290.270.31
Rate of Activity (%)
Unemployment Rate (%)


Employed Persons, by Occupation (% of Total Labor Force) 2007
Administration & management 3.4%
Professional 10.5%
Technician 23.4%
Servant 13.3%
Server and sales 12.7%
Agriculture 0.8%
Workers 35.7%

Source: National statistics


Management of Human Resources



Method of Recruitment
Human Resource Agency, newspaper.
Recruitment Websites
104 Human Resource Agency

The Contract

Type of Contract
It depends on the company. In general contracts offer little protection. The open ended contract does not exist.
Breach of Contracts
  • Retirement
65 years or work for 30 years. Upon retirement, an employee may currently receive benefits from two sources. One is from the
company, if he or she works for a Labor Standards Law (LSL) covered company, which may provide up to 45 months of full salary for 30 years of service. The other source is the old age benefit of the Labor Insurance (LI), which provides up to 45 months of the LI insured salary.
  • Dismissals
Dismissal is possible at any time but some notice is necessary. Severance pay increases with seniority.

Dispute Settlement


Conciliation Process

Cases of Dispute
The labor dispute cases are decreasing since 2003. The majority of these disputes were in the following areas: wages, labor contracts, occupational hazards, retirement, labor insurance, welfare benefits, and management. More information available on Invest in Taiwan (investment guide).
  • Legal Framework
Information available on HG and on Invest in Taiwan (investment guide).
  • Procedure
Taiwan's civil litigation system is based primarily on the provisions of the Code of Civil Procedure, which was enacted in 1930 and has been amended 12 times since then.

Judicial Structures

  • Legal Framework
The Code of Civil Procedure.

Social Partners

Social Dialogue and Involvement of Social Partners
Unions have little power and strikes are rare.
Taïwan Confederation of Union Trade

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