Computation of Period and Wages of Advance Notice

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Computation of Period and Wages of Advance Notice

Employers terminate the employment contract with the labor by the prescribed laws or such labor resigns voluntarily shall notify the date of termination of employment in advance in accordance with the item 1 of article 16th in Labor Standards Act. The advance notice is as varied as the seniority of each labor:

 

  1. The notice shall be made by 10 days in advance for the seniority more than 3 months but less than one year.
  2. The notice shall be made by 20 days in advance for the seniority more than one year but less than 3 years.
  3. The notice shall be made by 30 days in advance for the seniority more than 3 years.

 

In the circumstance that an employee who has fulfilled the employment contract more than 3 years resigns voluntarily shall notify the employer by 30 days in advance; other employees who fulfilled the indefinite contract under 3 months or fulfilled the fixed term contract under 3 years resign voluntarily shall be dependent on if an agreement was made by mutual parties from the beginning of employment, due to no particular article stipulated about the period of advance notice.

 

In regards to the computation of period of advance notice, the period shall be computed from the next day of the date of notice to such labor (excluding the day of advance notice) in calendar year (including each holiday) to the final day of the provision of labor forces. The computation of date of advance notice of resignation for employees is identical to the abovementioned term.

According to “Labor Standards Act”, if the employer failed to make an advance notice to the employee about the termination of employment, the wages within the period of advance notice shall be paid to the employee accordingly. Regarding to the computation of the wages within the period of advance notice, the formula shall be “The days within the period of advance notice to multiply the daily wages of such employee”. The daily wages shall be based on the normal working hours by the prior day of termination of employment to compute. In the condition of employee who receives the salary monthly, The salary shall be based on the monthly normal working hours to divide by thirty by the recent month of termination of employment to compute. But employees whose amount of wages is less than the average shall be computed by the average wages.

 

For example, an employer have no choice but to terminate the employment agreement with employees owing to meet the conditions stated at the article 11th in Labor Standards Act and notify the employee to fulfill the contract till the present day of notice. However, since the employer shall make an advance notice to the employee by 20 days due to such employee who has fulfilled the term of employment for 2 years and 6 months by the prescribed laws but failed to do, the employer is required to recover the wages within the period of advance notice in these 20 days to the employee. The wages within the period of advance notice shall be 20×（TWD$30,000 ÷30）＝TWD$20,000, but the result of average daily wage after computation is TWD$1,100, which is higher than the daily wage than the aforementioned （TWD$30,000÷30）, so the wages within the period of advance notice shall be 20 × TWD$1,100＝TWD$22,000。

 

Source: Taiwan Ministry of Labor

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