All questions
Year in review
The main changes and development in Taiwan employment law over the past 12 to 18 months are as follows.
i Employers' obligation to reassign employees before lay-off
Over the past few years, the pandemic has prompted an increase in reorganisation and transformation of companies, and more international companies to reduce or reallocate their workforce in Taiwan. In such cases, employers may choose to unilaterally terminate their employees based on the statutory cause prescribed under Subparagraph 4, Article 11 of the LSA (i.e., the change of business nature necessitates a reduction of workforce and the terminated employees cannot be reassigned to other suitable positions). The prevailing judicial view is that lay-off must be the last resort whereby employers must have fulfilled their obligation to reassign the employees concerned, including intra-company transfers. For example, according to a judicial precedent, if employment is terminated within the cause prescribed under Subparagraph 4, Article 11 of the LSA, if there are job vacancies in the employer's other departments that are still operating normally, the employees who have the required skills or would have such skills after a reasonable period of retraining should be reassigned to fill such vacancies.25 If the employer fails to do so and terminates the employment contract, the employer would be deemed to have failed to fulfil its reassignment obligation. Furthermore, some courts have...
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