Probation period
in South Taiwan (China).

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Probation period in Taiwan – Overview

The probation period in Taiwan, also referred to as the “trial period,” is a crucial stage in the initial phase of employment. It allows employers to assess the suitability and performance of new hires, while also providing employees with an opportunity to evaluate the company culture and work environment. Let’s explore how probation period works in Taiwan in this guide.

What is a Probation Period in Taiwan?

In Taiwan, probationary periods typically last for the first three months of employment and are used by employers to assess the suitability and performance of new employees. During the probationary period, employees are entitled to the same rights and benefits as non-probationary employees under the Labor Standards Act (LSA) and other relevant labor laws.

However, both the employer and the employee have the right to terminate the employment contract during the probationary period with a shorter notice period.

Video: Hiring in Taiwan

Probation Periods and Employment Contracts in Taiwan

While Taiwan’s Labor Standards Act (LSA) doesn’t explicitly mandate probation periods, it creates a connection between them and employment contracts by introducing the concept of a “trial period.” This provision allows employers and employees to negotiate the duration of this trial period and include it within the employment contract.

This approach offers increased flexibility compared to countries with rigid probation period structures. The type of employment contract plays a role in this process, as defined by the LSA:

Types of Employment Contracts

Fixed-Term Contracts

These are appropriate for temporary, short-term, seasonal, or specific work projects. The LSA outlines specific durations for probation periods within fixed-term contracts:

Up to 1 month: For contracts under 3 months.
Up to 2 months: For contracts between 3 months and 1 year.
Up to 6 months: For contracts exceeding 1 year.

Non-Fixed Term Contracts

These are intended for continuous work and typically do not have probation periods. However, if both parties agree, a probation period can be included in the contract.

Legal Rights of Taiwanese Employees under Trial Periods

A common misconception is that probationary employees have fewer rights or benefits compared to their non-probationary counterparts. This is not the case in Taiwan. During the probation period, employees are entitled to the same rights and benefits as full-time employees under the LSA and other relevant labor laws.

This includes:

The key difference during the probation period lies in the notice period for contract termination. Both employers and employees have the right to terminate the employment contract during this stage with a shorter notice period compared to regular employment.

Typically, no notice is required for termination during the probation period. However, some employers may have internal policies requiring a brief notice period (e.g., 1-3 days) for professional courtesy.

It’s crucial to remember that unfair termination, even during the probation period, is illegal. If an employer terminates an employee’s contract without legitimate justification, the employee has the right to file a complaint with the Ministry of Labor.

Legal Obligations of Taiwanese Employers

The Labor Standards Act (LSA) outlines a range of legal obligations for employers in Taiwan, encompassing various aspects of the employment relationship. Here’s a summary of some key obligations:

1. Recordkeeping (Article 7):

Employers must maintain a worker record card for each employee, containing details like name, demographics, employment history, wages, and information concerning merits, demerits, and injuries. These records must be kept for at least five years after the employee’s departure.

2. Working Conditions and Safety (Article 8):

Employers have a legal obligation to prioritize employee safety and well-being. This involves creating a proper and safe working environment with appropriate facilities. Specific safety and hygiene standards are governed by relevant regulations beyond the LSA.

3. Wages and Payment (Article 21, 25, 26):

Employers are required to pay their employees a wage agreed upon through negotiation, with a minimum being the established basic wage. Discrimination based on gender regarding wage payment is strictly prohibited.
Employers cannot make any unauthorized deductions from employee wages as punishment for contract breaches or as a form of indemnity.

4. Working Hours and Leave (Article 30, 37, 38):

The LSA establishes standard working hours and overtime regulations. Employers have a responsibility to ensure employees adhere to these regulations and receive proper compensation for overtime work. The law also mandates various types of paid leave, including annual leave, sick leave, and maternity leave, which employers must grant to qualifying employees.

5. Termination and Severance Pay (Article 38-1, 84):

Specific procedures govern the termination of an employment contract, with requirements for advance notice periods based on employee service duration. Under certain circumstances, the LSA mandates severance pay for terminated employees.

6. Training and Development (Article 87):

Employers are obligated to provide vocational training to their employees under certain circumstances, aiming to enhance their skills and knowledge.

7. Non-Discrimination and Equal Treatment (Article 4, 5):

The LSA prohibits discrimination against employees based on factors like gender, age, ethnicity, or religion. Employers must ensure equal treatment for all employees.

8. Unionization Rights (Article 95, 96):

The law protects the right of employees to form and join labor unions. Employers cannot engage in activities that hinder or interfere with the exercise of this right.

9. Dispute Resolution (Article 80):

The LSA outlines mechanisms for resolving disputes between employers and employees, including mediation and arbitration procedures.

Are Probationary Periods Optional in Taiwan?

In Taiwan, the implementation of probationary periods is at the discretion of the employer and can be negotiated between the employer and the employee. This means that while the law provides for the possibility of a probationary period, it does not mandate its use in every employment contract.

Employers may choose to include a probationary or trial period as part of the employment agreement to assess a new hire’s suitability for the role, but this is not a legal requirement. The decision to use a probationary period often depends on the nature of the job, the policies of the company, and the agreement reached during the hiring process.

Benefits of Probation Periods in Taiwan

While not mandatory, probationary periods in Taiwan offer several advantages for both employers and employees, fostering a smoother transition and potentially increasing long-term success.

Here are some key benefits:

Probation periods allow employers to assess a new employee’s skills, work ethic, and overall suitability for the company before making a long-term commitment.
Employees also benefit from having a probation period to evaluate whether the role, company culture, and work environment align with their expectations and career goals.
This mutual evaluation period increases the chances of establishing a successful and long-lasting employment relationship between the two parties.
Even with the flexible structure, employees retain their full rights and benefits during the probation period, ensuring fairness within the system.

Best Practices for Managing Employees During the Trial Period in Taiwan

Managing employees during the trial period in Taiwan requires a balanced approach that ensures both the employer’s and the employee’s needs and expectations are met.

Best practices include setting clear objectives and expectations from the start, providing regular feedback, and fostering an environment that supports learning and development. Employers should clearly communicate the goals, responsibilities, and performance metrics that will be used to evaluate the employee’s suitability for the role.

Regular feedback sessions are crucial for addressing any areas of concern and for acknowledging achievements, helping the employee to adjust and improve their performance. Additionally, supporting the employee’s integration into the company culture is essential for a successful trial period.

There is no upper limit in place, but it is uncommon to extend beyond three months. Any extension to the probationary period initially agreed would require consent from both parties.

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FAQs

How much notice do employers need to give before terminating employment during the probation period in Taiwan?

There is no requirement for giving notice of termination if the employee has been employed for fewer than three months. However, if they have been employed for more than three months, then the appropriate notice period should be given.

How much notice do employees need to give before resigning during the probation period in Taiwan?

If the employee has been employed for more than three months, then they should give 30 days’ notice of their resignation. If they have been employed for fewer than three months, then no notice is required.

Can an employer extend the probationary period in Taiwan?

There is no upper limit in place, but it is uncommon to extend beyond three months. Any extension to the probationary period initially agreed would require consent from both parties.

Can I dismiss an employee during their probation period in Taiwan?

Yes, an employer can legally dismiss an employee during the probationary period. However, employers should bear in mind that they are still required to follow all applicable labor laws and regulations. This includes providing valid reasons for termination and giving proper notification of dismissal. It is also customary to pay severance pay even when dismissing during the probation period.

Do employees in Taiwan have to give notice during the probation period?

There is no notice required if the employee has been employed for less than three months. However, if they have been employed for more than three months, then they should give 30 days’ notice of their resignation.

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Probation period
in South Taiwan (China).

Probation period in Taiwan – Overview

What is a Probation Period in Taiwan?

Video: Hiring in Taiwan