Hire Employees in Taiwan: Company Requirements & Employee Contracts
This is the first installment of a three-part series on how to hire employees in Taiwan. Click the links below for parts two and three.
- Part One: Hiring Employees in Taiwan – Company Requirements & Employee Contracts
- Part Two: Hiring Employees in Taiwan – Visas for Expats & Individual Taxes
- Part Three: Hiring Employees in Taiwan – Benefits, Time-Off, & Termination
If your business plans to break into the Taiwanese market, hiring quality employees in Taiwan might be the best option for you.
By hiring employees in Taiwan prior to setting up an entity there, you can test the market before fully committing to building your business there.
Keep reading as we break down the different aspects that are involved before, during, and after the hiring process.
Company Requirements to hire in Taiwan
Foreign companies are required to have a legal entity in Taiwan in order to hire employees from that country.
Employment Solutions or a PEO (Professional Employment Organization) provider, such as NNRoad, allow companies outside of the country to hire quality employees without setting up a new entity.
These employment solutions outsource employment responsibilities and allow you to focus on your employees, their tasks, and business growth in Taiwan. This gives you more time to manage your workforce to ensure a smooth entry.
In addition to making the entry process easier, employment solutions are a relatively cost-efficient way to enter the Taiwanese market. Since company formation procedures are not needed and all liabilities are taken by the PEO, legal risks are minimized.
Solutions for hiring employees in Taiwan include:
- A local compliant labor contract
- Payroll and tax compliance
- Mandatory benefits
- Visa processing (if required)
- Expenses claim administration
NNRoad is an expert provider that strives to make the market entry into foreign companies as seamless as possible by offering services for each stage of the entry. They provide services such as employment solutions, payroll, and tax and mandatory benefits contributions.
Taiwanese law requires a written contract between a company and the employee it wants to hire.
In Taiwan, there are two types of contracts:
- Fixed-term (temporary): seasonal, temporary, or short-term jobs
- Indefinite-term (permanent) contracts
Employment relationships will continue to be governed by Taiwanese labor laws even if an employer requests that their employee works overseas in a country other than Taiwan unless the original agreement has been terminated.
While there is no standard employment contract structure, we recommend the following terms always be included:
- Code of conduct
- Discipline at work
- Working time
- Leave and vacation
- Location of work
- Job duties
Contracts can be written in Chinese, English, or any other language upon mutual agreement. A Chinese translation of the agreement and supporting documents will be required by the government in the instance of a future legal dispute.
This is the first installment of our three-part “How to Hire Employees in Taiwan” series. In part two, we will be covering visa administration for expatriate employees and calculating individual taxes. Part three will discuss benefits, time off work, and employee termination. Stay tuned for more insight about hiring quality employees in Taiwan!
Also, be sure to explore NNRoad’s service to hire employees in Taiwan here.
Thank you to our trusted partner, HROne, for the information in this article.