---
name: asgard-ai-platform/law-labor
source: https://app.decimal.ai/s/asgard-ai-platform-law-labor@1/SKILL.md
source_sha256: 090af7ba8b49
---

# Taiwan Labor Law (Labor Standards Act)

## Overview

The Labor Standards Act (勞基法, LSA) sets minimum labor standards in Taiwan. It covers working hours, overtime, leave, wages, and termination. These are MINIMUMS — employers can offer better but not worse terms. This skill focuses on Taiwan-specific requirements.

## 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

| Rule | Standard |
|------|---------|
| Regular hours | 8 hours/day, 40 hours/week |
| Overtime cap | 46 hours/month (can extend to 54 with labor-management agreement) |
| Rest day | 1 regular day off (例假) + 1 rest day (休息日) per week |

**Overtime Pay Calculation:**
| Period | Rate |
|--------|------|
| Weekday overtime, first 2 hours | 1.34x regular hourly rate |
| Weekday overtime, hours 3-4 | 1.67x regular hourly rate |
| Rest day (休息日) overtime, first 2 hours | 1.34x (minimum 4 hours counted) |
| Rest day overtime, hours 3-8 | 1.67x |
| Rest day overtime, hours 9-12 | 2.67x |
| Regular day off (例假) overtime | 2x + compensatory day off |
| National holiday overtime | 2x |

### Leave Entitlements

| Type | Entitlement |
|------|------------|
| Annual leave (特休) | 6 months: 3 days → 1 year: 7 days → 2 years: 10 days → 3-5 years: 14 days → 5-10 years: 15 days → 10+ years: +1 day per year (max 30) |
| Sick leave (病假) | 30 days/year at half pay (hospitalization: additional 1 year) |
| Personal leave (事假) | 14 days/year, unpaid |
| Maternity leave (產假) | 8 weeks at full pay (after 6 months employment) |
| Paternity leave (陪產假) | 7 days at full pay |
| Menstrual leave (生理假) | 1 day/month (first 3 counted as sick leave at half pay; additional at no pay) |

### Termination Rules

**Employer can terminate WITH notice (Art. 11):**
- 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

**Notice periods:**
| Tenure | Notice Required |
|--------|----------------|
| 3 months - 1 year | 10 days |
| 1 - 3 years | 20 days |
| 3+ years | 30 days |

**Employer can terminate WITHOUT notice (Art. 12):**
- 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

**Severance pay**: 0.5 months' average wage per year of service (new system under Labor Pension Act)

## Output Format

```markdown
# 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
**Scenario:** Employee works 10 hours on a Tuesday (regular workday). Base monthly salary: NT$50,000.

Calculation:
- 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`