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TAIWAN: Annual Update – Expected Labour Law Changes in 2017

By - - Employment Law

Public Holidays

Reduction of public holidays:  The number of public holidays have been reduced from 19 to 12 days each year.

Effective from January 1, 2017.

Action required: Review employment contracts and work rules, and make any necessary amendments to ensure compliance.

Annual Leave

Increased statutory annual leave entitlement:  Statutory annual leave entitlement, which is based on length of service, has been increased.

Effective date : January 1, 2017.

The new entitlements are:

Between 6 months and 1 year’s service : 3 days leave
Between 1 and 2 years’ service : 7 days leave
Between 2 and 3 years’ service : 10 days leave
Between 3 and 5 years’ service : 14 days leave
Between 5 and 10 years’ service : 15 days leave

When an employee attains 10 years’ service, they get one additional day’s holiday for each year they work, starting from the 10th year, but up to a maximum of 30 days annual leave.

Action required:

Review employment contracts and work rules, and make any necessary amendments to ensure compliance.

Ensure you: 

  • notify workers when they become eligible for additional leave as their length of service increases;
  • pay workers’ wages for untaken annual leave at the end of each service year (not calendar year) and upon termination;
  • document each employee’s holiday entitlement and any untaken leave on the payroll roster; and 
  • notify staff in writing how much leave they have each year.

Working hours

Shift work and rest periods:   A new law is to be introduced, which will increase the amount of rest that shift workers are entitled to. Staff who work according to a shift rotation system, must be given at least 11 consecutive hours of rest between shifts.

Implementation of this new law is expected to take place over the next 12 months.

Action required:  None at the moment, but keep track of how the legal situation develops, and consider making advance preparations for the introduction of the new rest requirement.
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