What to Do If Your Employer Cancels Your Contract Early

When I first heard stories of OFWs whose contracts were cut short in Taiwan, I hoped it would never happen to me. But life overseas can be unpredictable. Whether it’s due to company downsizing, financial issues, or unclear reasons, early termination is something every OFW should be prepared for.

If your employer cancels your contract early, don’t panic—there are clear steps you can take to protect yourself and plan your next move.

early contract termination_taiwan ofws

Review Your Employment Contract

The first thing you should do is re-read your contract. Pay close attention to the termination clause. Many contracts outline:

  • Valid grounds for early dismissal (redundancy, misconduct, etc.)
  • Required notice period
  • Severance or compensation details

In Taiwan, contracts for migrant workers typically last three years. If you’re terminated early, especially without valid cause, you may be entitled to financial compensation or other remedies.

Understand the Valid Reasons for Early Termination

Under Taiwan’s Labor Standards Act, employers can terminate employees for:

  • Just cause – like gross misconduct or breach of company rules
  • Authorized cause – such as company closure, automation, or financial loss

You’re entitled to advance notice or compensation depending on the reason. If you’re let go for an unfair reason, it’s your right to question and challenge it.

Request a Written Notice of Termination

Ask your employer for a formal termination letter stating the reason. This document will be:

  • Useful for filing complaints
  • Important if you plan to transfer to another employer
  • Necessary for contract verification back home

Without written proof, your case becomes harder to resolve.

Check Your Eligibility for Severance Pay

If your contract was terminated due to authorized causes (like redundancy), Taiwan labor law requires the employer to:

  • Pay severance based on the number of years you’ve worked
  • Follow the required notice period (3 to 30 days depending on tenure)

If these are not given, you may be eligible to file a legal claim.

Inform Your Recruitment Agency and the DMW

Your Philippine agency must be informed of the early termination so they can:

  • Report the case to the Department of Migrant Workers (DMW)
  • Help you process a possible transfer or safe repatriation
  • Ensure your situation is documented for protection

Also, make sure your contract has been verified before leaving the Philippines—this protects you under bilateral labor agreements between Taiwan and the Philippines.

Seek Legal Aid from MWO or MECO

The Migrant Workers Office (MWO) in Taipei, under MECO, provides:

  • Legal counseling
  • Dispute mediation
  • Repatriation services

You can contact them if your employer fails to follow legal procedures or if you’re unsure how to proceed.

MWO Hotline: +886 2 8725 2448
MECO Office: meco.org.tw

Consider Negotiating an Exit Agreement

Sometimes, an early end to your contract can be resolved amicably. If you’re on good terms with your employer, you can request:

  • A positive reference for your next job
  • Relocation assistance or help transferring to a new employer
  • Final pay clearance or bonus if applicable

Being professional during this process can make a big difference.

File a Complaint If Needed

If the termination is clearly illegal or abusive, you can:

  • File a case through MWO or the Taiwan Labor Bureau
  • Ask DMW for help repatriating or seeking employment again
  • Use evidence like messages, payslips, and the termination letter to support your case

Remember, filing a complaint is your right—not a sign of disloyalty.

Protections OFWs Have in Taiwan

OFWs are protected under both Taiwanese laws and Philippine regulations:

Area Protection
Labor Law Taiwan’s Labor Standards Act guarantees fair wages, termination notice, and severance pay.
Work Permits The Employment Service Act ensures employers follow proper hiring practices.
Health Care You’re covered under National Health Insurance (NHI).
DMW Support Offers legal help, reintegration programs, and insurance via OWWA.
Contract Verification Ensures you have a legal, binding agreement before working abroad.

Frequently Asked Questions

  1. Can I stay in Taiwan if my contract is terminated early?
    Yes, but only for a short time. You may be granted a grace period to find another job if allowed by your visa. Coordinate with MWO for assistance.
  2. What happens if I don’t report the termination to DMW?
    Not reporting may affect future applications and benefits. Always inform your agency and DMW immediately.
  3. Will I be blacklisted if I complain about my employer?
    No. Filing a complaint through official channels will not automatically blacklist you, especially if the claim is valid and backed by evidence.
  4. Can I find another job in Taiwan right away?
    You can apply for a transfer to a new employer, but you’ll need proper documentation and approval from Taiwan’s Ministry of Labor. Some conditions may apply based on your visa status.

Final Thoughts

Facing an early contract termination in Taiwan can feel like a major setback—but it doesn’t mean the end of your journey. Know your rights. Keep your documents safe. And most importantly, don’t be afraid to ask for help.

Whether you’re aiming to stay or return home with dignity, there are support systems in place to guide you through.

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