As global companies continue to explore opportunities in Asia, Taiwan has emerged as an attractive destination due to its strategic location, advanced technology sector, and skilled workforce. However, navigating Taiwan’s legal, tax, and employment regulations can be complex for foreign businesses. This is where an Employer of Record (EOR) becomes an essential strategic partner.
What Is an Employer of Record (EOR)?
An Employer of Record like Quadlux, is a third-party organization that legally employs workers on behalf of another company. While the client company manages the day-to-day tasks and supervision, the EOR assumes legal responsibility for employment, including:
- Payroll and tax compliance
- Employment contracts
- Statutory benefits and insurance
- Labor law adherence
- Visa and work permit support (if applicable)
This arrangement allows companies to quickly and compliantly hire employees in Taiwan without needing to establish a local legal entity.
Why Use an EOR in Taiwan?
1. Ease of Market Entry
Setting up a branch or subsidiary in Taiwan can take several months and require significant administrative overhead. An EOR enables companies to bypass this process and start operations within days.
2. Compliance with Local Labor Laws
Taiwan has specific labor regulations regarding working hours, severance, benefits, and contract types. An EOR ensures all employment practices are fully compliant with the Labor Standards Act and related regulations.
3. Focus on Core Business
By outsourcing employment administration, companies can focus on strategic operations, product development, and customer engagement while the EOR handles the HR complexities.
4. Cost Efficiency
Avoiding the costs of establishing a local entity, hiring legal counsel, and managing payroll systems makes the EOR model more affordable—especially for pilot projects or small teams.
Key Employment Considerations in Taiwan
When hiring in Taiwan through an EOR, it’s essential to understand certain employment basics:
- Probation Period: Usually up to 3 months.
- Working Hours: Standard is 8 hours/day, 40 hours/week.
- Leave Entitlements: Includes annual leave, sick leave, maternity/paternity leave, and public holidays.
- Social Insurance: Covers labor insurance, national health insurance, and pension contributions—all of which must be handled accurately.
An EOR will ensure these elements are managed properly and transparently.
Who Should Consider an EOR in Taiwan?
- Startups and SMEs looking to test the Taiwanese market before setting up a full entity.
- Global corporations needing local support staff or sales teams without establishing a subsidiary.
- Companies hiring remote employees based in Taiwan.
- Organizations undergoing M&A transitions or reorganization.
Using an Employer of Record in Taiwan provides a fast, compliant, and flexible way to build and manage a local workforce. Whether your business is entering the market, expanding operations, or supporting a remote team, an EOR can help mitigate risk and reduce time-to-hire—allowing you to focus on growth and innovation.
Talk to Quadlux today to discuss how we can support your business growth in Taiwan!
Maybe it’s EOR, maybe it’s another employment solution. Quadlux is your go to, for full life cycle employment support.
