Taiwan Labor Law (Labor Standards Act)

Overview

Framework

IRON LAW: LSA Is a Floor, Not a Ceiling

Everything in the LSA represents the MINIMUM employer obligation.
Employment contracts can exceed these standards but NEVER go below them.
A contract clause that provides less than LSA minimums is void even if
the employee signed it. "The employee agreed to it" is not a defense.

Working Hours & Overtime

Leave Entitlements

Termination Rules

• Business closure or transfer
• Operating losses or business contraction
• Force majeure suspension > 1 month
• Business nature change requiring workforce reduction
• Employee clearly unable to perform duties

• Misrepresentation at hiring
• Violence or serious insult toward employer/coworkers
• Criminal sentence (not probation)
• Serious breach of contract or work rules
• Deliberate damage to equipment/products
• Absence without leave for 3+ consecutive days or 6+ days in a month

Output Format

# Labor Law Analysis: {Situation}

## Applicable Rules
| Rule | LSA Article | Requirement |
|------|-----------|-------------|
| {topic} | Art. {N} | {requirement} |

## Compliance Assessment
| Area | Status | Gap |
|------|--------|-----|
| Working hours | ✓/✗ | {detail} |
| Overtime pay | ✓/✗ | {detail} |
| Leave | ✓/✗ | {detail} |
| Termination | ✓/✗ | {detail} |

## Recommendation
{Specific actions to achieve compliance}

Examples

Correct Application

• Hourly rate: NT$50,000 / 30 / 8 = NT$208.3
• First 2 overtime hours: NT$208.3 × 1.34 × 2 = NT$558.2
• Total overtime pay: NT$558 ✓

Incorrect Application

• "The employee signed a contract agreeing to no overtime pay" → Void. LSA overtime rates are minimum standards that cannot be waived by contract. Violates Iron Law: LSA is a floor.

Gotchas

• Exempt vs non-exempt: Taiwan's LSA covers most workers. Certain categories (managers, supervisors, specific industries designated by the Ministry of Labor) may have modified rules, but the exemptions are NARROW. Don't assume management = exempt.
• Attendance records are mandatory: Employers must maintain daily attendance records for at least 5 years. Failure to do so creates a presumption in favor of the employee's claims.
• Unused annual leave = cash out: Unused special leave at year-end or termination must be paid out in cash. "Use it or lose it" policies are illegal.
• Labor inspection: The Ministry of Labor conducts inspections. Penalties for LSA violations range from NT$20,000 to NT$1,000,000 and repeat offenders are publicly named.
• This is educational guidance, not legal advice: Taiwan labor law is complex and frequently amended. Consult a labor attorney or the Ministry of Labor for specific situations.

References

• For LSA full text (Chinese), see

  references/lsa-full-text.md

• For labor pension system (新制/舊制), see

  references/labor-pension.md