How to hire in Taiwan through an EOR

Taiwan requires all labor contracts to be in writing. They need to cover names, wages, work type, hours, holidays, severance, and retirement benefits. Using a fixed-term contract to disguise a permanent role is a common mistake, and it creates real reclassification risk.

Contract types

For most ongoing roles, you'll use an indefinite-term contract. It's the default for full-time and part-time permanent hires. Fixed-term contracts are only appropriate for genuinely temporary work.

If the work is ongoing, go with indefinite. Fixed-term works for one-off projects, but courts pay close attention to how it's used.

What has to be in the contract

The law requires a written contract that covers the basics: both parties' names and addresses, the signing date, work type, wages, hours, breaks, holidays, severance, and retirement benefits. It's also worth including job duties, start date, leave entitlements, conduct expectations, and termination terms to avoid ambiguity later.

Written is mandatory, regardless of what you may have heard about oral agreements being acceptable. Probation periods aren't set by law, so you'll need to negotiate them. Three months is common, and either side can end the contract during probation without notice.

Missing required clauses can make parts of your contract unenforceable. Always make sure LSA minimums like severance are included.

Contractor vs. employee

Taiwan looks at control to determine worker status. If you're setting someone's hours, duties, and tools, they're likely an employee under the Labor Standards Act. A genuine contractor needs real autonomy, including control over their own schedule and equipment.

If you misclassify someone, courts can reclassify them as an employee. You'd owe back wages, benefits, taxes, overtime, leave, and severance. Fines can reach NT$300,000 per violation, and labor authorities tend to move quickly on complaints.

Non-compete clauses can hold up, but they need to be reasonable. Keep the time limit under 2 years, define the geography and scope clearly, and tie them to a legitimate business interest. Paying the worker during the restriction period strengthens enforceability. For IP, employees own their inventions by default unless the contract says otherwise, so be specific.

Getting classification wrong can unravel your entire setup from a single complaint. If you're using contractors in Taiwan, written contracts that clearly establish independence matter. An EOR can also help you spot these risks before they become problems.

Taiwan added four new national holidays in May 2025, bringing the total to 19 public holidays in 2026. That puts it among the more generous systems in Asia for time off.

Time off

Annual leave is tied to how long someone has worked for you. It starts at 3 days after 6 months and goes up to 30 days for long-tenured staff. Leave typically accrues monthly or is calculated at year-end.

Employees need to use their leave within the year, or it carries over. If someone leaves, you pay out any unused days. Here's how it breaks down:

Public holidays total 19 days in 2026 following the 2025 reforms. Any that fall on a workday are paid.

All leave types

Taiwan sets clear statutory rules on paid and unpaid leave. Most types come with job protection, and employers cover full wages unless the table says otherwise.

Mandatory benefits

There are three programs you're required to contribute to: Labor Insurance, National Health Insurance, and Labor Pension. Costs are shared between you and your employees.

Taiwan doesn't mandate things like meal vouchers or transport allowances. Those are optional, but they do come up in practice.

What people actually expect

If you're hiring in Taiwan, the legal minimums won't get you far with strong candidates. Many locals expect 25+ days of PTO from the start, even though the law allows far less for new hires.

Private health insurance is near the top of most wishlists. It fills the gaps the public system doesn't cover, like dental and outpatient care. Offering it makes a real difference.

Remote work stipends have become fairly standard, typically NT$1,000-2,000 per month for internet and home office costs. Meal allowances (NT$50-100 per day) and year-end bonuses of 1-3 months' salary are also common across industries.

Sticking to bare minimums tends to hurt retention and makes recruiting harder. Mid-sized tech firms often start annual leave at 20 days and include 13th-month pay to compete for engineers. It's worth knowing what the market looks like before you set your package.

Flexible hours and mental health days matter too, especially in Taipei. Good candidates will pass on offers that don't include them. Check local job boards like 104.com.tw to see what others are offering in your sector.

Taiwan's labor laws are firmly on the employee's side. If you terminate without valid grounds, you're looking at unfair dismissal claims, potential reinstatement orders, and fines up to TWD 300,000.

Firing someone

Termination with notice is only allowed for specific reasons under Article 11 of the Labor Standards Act (LSA). Those include business suspension, financial losses or contraction, force majeure shutdowns lasting over a month, business restructuring that reduces headcount, or poor performance after reassignment has already been tried.

Termination without notice is covered under Article 12, but only for serious issues. That includes misrepresentation when signing the contract, violence or gross insults, prison sentences without suspension, major contract or policy breaches, intentional damage or leaking trade secrets, or unexcused absences (three consecutive days or six in a month). For most of these, you need to act within 30 days of finding out.

Without these grounds, a dismissal is unfair. Employees can challenge it and seek reinstatement or damages. Notice failures carry fines of TWD 20,000 to 300,000. Protected categories under the Employment Service Act include race, class, language, thought, religion, party affiliation, origin, sex, sexual orientation, age, and disability. Terminating someone based on any of these triggers fines of TWD 300,000 to 1,500,000.

Notice periods

Employees need at least three months of service before notice rights apply. You can pay wages in lieu of notice if you prefer. Employees don't have a statutory minimum notice period unless their contract specifies one, though one month is common practice for resignations.

Severance

Severance is required for terminations under Article 11. It's not owed for Article 12 dismissals (serious misconduct), and it doesn't apply to most fixed-term contract expirations. That said, employees can still claim it if you misrepresent facts or act violently toward them.

The calculation is at least one month's average wage per year of service. Use whichever is higher: the last six months' average wage or the 60-day average before termination. Prorate for partial years. The total cap is six months' salary.

Work permits and visas

You can hire foreign nationals in Taiwan through an EOR. As the legal employer, the EOR applies to the Ministry of Labor (MOL) for the work permit. Foreign workers need both a work permit and a resident visa to work legally.

The main categories are professional/technical (for skilled roles), intra-company transfers, and seasonal work. Requirements typically include a job offer, matching qualifications, and evidence that no local candidate is available. The EOR handles sponsorship on your behalf.

On timelines: work permit processing takes 7 to 15 days after documents are submitted. Add 2 to 4 weeks for the visa at a Taiwan office abroad. Budget 1 to 2 months in total. There's no digital nomad visa yet. Extensions require MOL approval before the current permit expires.

Start the process early. Hiring without the right permits can result in fines of TWD 300,000 to 1,500,000 per violation, plus deportation orders.

A few other things worth knowing

Data protection is governed by the Personal Data Protection Act. You need employee consent to collect and use their personal data, you're required to notify affected parties of breaches, and you need proper security measures in place. Serious violations can result in fines up to TWD 15 million. Clear internal policies and staff training go a long way here.

Trade unions operate under the Trade Union Act and cover collective bargaining on wages, hours, and conditions. Union density in Taiwan is low, under 10%, so this may not affect your day-to-day. If your workforce does organize, you'll need to negotiate. There are no major mandates for non-union workplaces.

Late 2025 updates taking effect in 2026 strengthen sick leave protections. You can't take adverse action, including termination, against an employee for taking up to 10 days of ordinary sick leave per year. If you do discipline someone during that period, the burden is on you to prove it's unrelated. Special leave rules have also tightened: workers can choose their own leave dates for 3 to 7 days depending on tenure, and unused days must be paid out at termination.

The MOL conducts random inspections, particularly for companies with foreign hires. Keep thorough records of performance reviews, written warnings, and the business reasons behind any layoffs. Documentation is your top-rated defense if you're ever audited.