When you’re about to leave the country for a job abroad, your focus is usually on the opportunity ahead—the new salary, new lifestyle, and new routine. But before you pack your bags, there’s one document that can make or break your experience: your job contract.
If you’re an OFW eyeing Taiwan, spotting contract red flags early on can protect you from exploitation, underpayment, or worse—illegal employment.
Why Reading the Contract Matters
Taiwan’s Labor Standards Act outlines strict rules that protect workers’ rights. Whether you’re hired for a factory job, caregiving, or skilled work, both you and your employer must follow a formal agreement. This means your labor contract should clearly define your duties, compensation, and protections.
But not all contracts are created equal. Some might look official but include terms that violate your rights or hide key responsibilities. Let’s break down the warning signs.
Red Flag #1: Unclear or Missing Job Terms
Your contract should answer these basic questions:
- What exactly is your role?
- How much will you earn (in NT$)?
- What are your working hours and rest days?
- What benefits are included (housing, food, insurance)?
- How does termination work?
Watch out for: Vague roles like “general assistant” without defined tasks or a salary marked as “to be discussed.”
Red Flag #2: Excessive or Open-Ended Probation Periods
Probation periods in Taiwan are allowed, but typically last no more than 3 months. During this time, your employer can evaluate your performance.
Watch out for: Contracts that extend probation beyond this timeframe without clear reason. This might be a tactic to delay your benefits or termination protections.
Red Flag #3: Unreasonable Non-Compete Clauses
Some employers include non-compete clauses that stop you from working with similar companies after your contract ends.
Watch out for: Clauses that restrict you from working in Taiwan (or even outside Taiwan) for years. These may not be legally enforceable but could still create issues.
Red Flag #4: Unpaid Overtime or Excessive Work Hours
Taiwan labor law limits the standard workweek to 40 hours (usually 8 hours per day, 5 days per week). Overtime must be paid, and workers are entitled to rest and holidays.
Watch out for: Phrases like “flexible schedule” or “unpaid extra hours required.” These may hint at forced or unpaid overtime, which is illegal.
Red Flag #5: No Mention of Social Security or Insurance
Your employer is required to register you for:
- Labor insurance
- National health insurance
- Labor pension contributions
Watch out for: Contracts that skip these entirely or claim “you’re responsible for your own insurance.”
Red Flag #6: One-Sided Contract Changes
Legitimate contracts should require both parties to agree to any changes in salary, role, or conditions.
Watch out for: Clauses allowing the employer to “modify terms at any time” or “adjust roles based on company needs.”
Red Flag #7: Illegal Salary Deductions
Your employer can deduct from your salary for legal reasons (e.g., tax, insurance, or housing if provided). But all deductions must be reasonable and documented.
Watch out for: Vague deductions for “training,” “processing fees,” or “company losses” that aren’t clearly broken down.
Types of Labor Contracts in Taiwan: Fixed vs. Non-Fixed Term
Know what you’re signing:
- Fixed-term contracts apply to seasonal, short-term, or project-based work (e.g., less than 6 months).
- Non-fixed term contracts are used for regular, ongoing jobs.
If an employer incorrectly classifies your job as fixed-term just to limit your benefits, the law considers it non-fixed term and they may face penalties under Article 79 of Taiwan’s Labor Standards Act. See page 2 of the pdf below.
BIPO-TIMES-Mar-2023-enWhat About Labor Dispatch?
If you’re being hired through an agency, you may fall under a labor dispatch setup. In this case:
- The agency is your official employer.
- But you will work under the supervision of the requesting company.
Dispatch workers are still protected under Taiwan law. The contract should come from the agency and must include all rights to wages, insurance, and benefits.
Watch out for: Contracts that hide who your actual employer is or avoid stating where and with whom you’ll be working.
What You Should Do Before Signing
- Ask questions — Never be afraid to clarify any part of the contract, no matter how small.
- Keep copies — Have both physical and digital copies of your signed contract.
- Consult MECO or DMW — If anything feels off, you can approach the Manila Economic and Cultural Office (MECO) or the Department of Migrant Workers (DMW) for help.
- Double-check your agency — Make sure your agency is POEA-licensed. Illegal recruiters often use fake or vague contracts to trap workers.
Frequently Asked Questions
- How do I know if my Taiwan contract is legal?
Check if the contract clearly lists your job role, salary, working hours, and benefits. Confirm it’s signed by both you and your employer. When in doubt, consult MECO or DMW. - Are long probation periods allowed?
No. Most probation periods in Taiwan are capped at 3 months. Longer periods should be questioned. - What if the contract doesn’t mention insurance?
That’s a red flag. Your employer must provide labor and health insurance under Taiwanese law. - Can I refuse a contract with unfair terms?
Yes. You have every right to walk away from a contract that seems unfair or illegal. Always prioritize safety and legality.
Final Thoughts
Your job contract in Taiwan isn’t just paperwork—it’s your lifeline. A well-written, legally compliant contract gives you the security to work and live abroad with peace of mind. But a shady one? It could cost you your health, money, and future.
Don’t rush. Don’t assume. Read every line.
Because in Taiwan—and anywhere else—the fine print always matters.