Employee termination
in Taiwan (China).

Taiwan’s Labor Laws set out a specific set of circumstances where employers can terminate an employment with notice and severance pay:

• Stoppage of business or a transfer of ownership.
• Alteration of the business nature, forcing a reduction in the number of employees where those employees cannot be reassigned to other suitable positions.
• Business losses or curtailment of business operations.
• Suspension of operations for more than one month due to a force majeure event.
• The employee is incapable of performing the tasks assigned.

The following are circumstances where the employer can terminate an employment without notice or severance pay:

• The employee is absent from work for three consecutive days, or for six days in a month, without justifiable reason.
• Misrepresentation of the facts by the employee at the time the labour contract was signed which leads, or may lead, to the employer suffering damage.
• Serious breaches by the employee of the employment contract or work rules.
• Intentional disclosure by the employee of the employer’s technological or business secrets.
• Acts of violence by the employee against the employer, the employer’s family or representative, or other employees.
• The employee has been sentenced to temporary imprisonment in a final judgment, which cannot be suspended or commuted to a fine.
• Purposeful damage or abuse to the employer’s property by the employee.