In Taiwan, employees may resign voluntarily, but statutory notice rules and settlement obligations must be followed to ensure a compliant exit.

Written.

Employees are generally required to give the same length of advance notice that the employer would be required to give them, based on length of service.

An employee may resign immediately without notice if any of the following apply:

• The employer provided false or misleading information at the time of contract signing that could harm the employee

• The employer, a family member, or an agent commits a violent act or severely insults the employee (unless the agent has already been dismissed)

• The work poses a serious health risk and the employee has unsuccessfully requested improvements to working conditions

• The employer, an agent, or a coworker has a harmful contagious disease (unless they have already been hospitalized or dismissed)

• The employer fails to pay wages as agreed or does not provide sufficient work for a piece-rate employee

• The employer violates the employment contract or labor law in a way that is likely to negatively affect the employee’s rights

• Payment in lieu of notice or notice waiver: Alternatively, the employee may compensate the employer by paying wages equivalent to the applicable notice period

Employees covered by the Labor Pension Act are entitled to employer pension contributions accumulated in their personal pension account. These funds may be withdrawn upon retirement, job change, or reaching eligibility age.

• Unused annual leave must be compensated in cash if not taken before resignation

• All earned wages, overtime, and bonuses must be paid in full on the final day of employment or within the legally specified timeframe

• Employees enrolled in Labor Insurance or Employment Insurance may qualify for unemployment benefits, subject to eligibility requirements

An employer may dismiss an employee for just cause if the employee:

• Provided false or misleading information when signing the employment contract that could harm the employer

• Committed a violent act or seriously insulted the employer, the employer’s family, an agent, or a coworker

• Was imprisoned following a final court judgment

• Seriously violated the employment contract or workplace rules

• Intentionally damaged or misused the employer’s machinery or property

• Willfully disclosed technical or confidential information, causing harm to the employer

• Was absent from work for three consecutive days or six days within a month without valid justification

Written notice stating the reason and effective date.

Immediate dismissal without notice is permitted for just cause.

No severance is required for termination with just cause.

• All wages and payments for work performed up to the termination date must be settled in full

• Any unused and accrued annual leave must be compensated unless forfeited under applicable law and company policy

• Labor Insurance and National Health Insurance coverage must be reported for cancellation on the termination date

Except in cases of just cause, an employer may terminate an employment contract only if the employee is unable to adequately perform their job duties.

Written notice stating the reason, effective date, and applicable notice period.

• 3 months to 1 year of service: 10 days

• More than 1 year but less than 3 years: 20 days

• More than 3 years: 30 days

Employees terminated without cause are entitled to severance under one of the following systems:

• Labor Standards Act (old system): Half a month’s average wage for each year of service (pro-rated)

• Labor Pension Act (new system): Employer contributions equal to 6% of salary paid into the employee’s individual pension account

The applicable system depends on whether the employee remained under the old scheme or opted into the new pension system after July 1, 2005.

• All earned wages, unused annual leave, overtime, and bonuses must be paid in full on the final working day or within the legally specified period

• Employers must report the termination to Labor Insurance, National Health Insurance, and Labor Pension authorities

• Eligible employees may claim unemployment benefits under Employment Insurance

A mutual termination agreement allows both employer and employee to voluntarily end the employment relationship on agreed terms. While not treated as a dismissal or resignation under the Labor Standards Act, employee statutory rights must still be respected.

Written agreement signed by both parties, clearly stating the termination date and settlement terms.

Not required unless agreed.

• If initiated by the employer, severance generally applies under the Labor Standards Act or Labor Pension Act

• If initiated by the employee, severance is not required unless agreed in writing

• All unpaid wages, unused leave, overtime, and bonuses must be settled

• Employees retain the right to withdraw accumulated pension funds if eligible

• Employers must close all social insurance accounts

Employers must pay all outstanding wages, bonuses, unused annual leave compensation, and other owed amounts on the employee’s final working day or no later than the contract termination date, as required under the Labor Standards Act.

If immediate payment is not possible, settlement must be completed within a short agreed period that does not exceed the employer’s regular pay cycle.

Late or unpaid wages may result in fines, interest, or compensation orders issued by labor authorities.