horizons logo
Start hiring

Employment contracts
in Taiwan (China).

SALARY PAYMENT IN New Taiwan dollar (TWD, NT$, $)

CONTRACT LANGUAGES Chinese / English

PAYROLL TAX 17.152% 

PAYROLL CYCLE Bi-weekly or monthly

TIME TO HIRE 12 hours

Hire and pay talents
with Horizons in
180+ countries

Taiwan

Standard employment contract in Taiwan: Open-ended contract

An open-ended employment contract is also known as a permanent contract. This type of employment contract does not specify an end date for the job, and continues until either the employee or employer chooses to terminate the contract, subject to certain conditions and notice requirements.

The Labor Standards Act (LSA) is the primary legislation that governs employment contracts, including open-ended contracts, in Taiwan. The LSA sets out the general rules and guidelines for the formation, content, and termination of employment contracts. It covers various aspects of the employment relationship, such as working hours, rest periods, wages, leave, termination, and severance, ensuring clear expectations and protections for both employees and employers.

Alternative employment contract in Taiwan: Temporary contract

It is worth noting that fixed-term contracts are also used in Taiwan, particularly for temporary or project-based work. However, open-ended contracts are more prevalent and offer greater stability and security for employees.

While fixed-term contracts in Taiwan need not be of a specified length, if continuous employment exceeds two years, the contract will be deemed an indefinite-term (open-ended) contract, with a few exceptions.

Note, if the contract is terminated by the employer before the end of the specified contract term, severance pay may be owed. 

Are there other types of employment contracts in South Taiwan?

Fixed-term contracts are uncommon and are only allowed in specific situations. If you need a fixed-term contract you should seek professional advice. Employers of Record are unable to offer fixed-term contracts in Taiwan.

 

Hiring in Taiwan, Made Easy

Your business can easily hire employees in Taiwan without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

Open-ended employment contracts are the most common type of contract in Taiwan. They provide ongoing employment with the security of no fixed end date. If the employer wants to end the contract, they will need to terminate the employment for one of the reasons allowed under the labor laws.

For the vast majority of employers, an open-ended contract is the right choice. Employers of Record are only able to provide open-ended contracts in Taiwan. Once you have settled on an open-ended contract, you will need to consider whether it should be fulltime, part-time, and whether it should have a probationary period added. 

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

Get started with Horizons