1. Review the employment contract: Begin by thoroughly reviewing the employee’s contract, paying close attention to the terms and conditions related to termination, notice periods, severance pay, and disciplinary procedures. Adhering to the contractual obligations and legal requirements is crucial.
2. Assess grounds for termination: Determine the valid grounds for terminating the employee’s contract. Taiwanese labor laws permit termination under various circumstances, such as poor performance, misconduct, violation of company policies, redundancy, or mutual agreement. It is crucial to establish a legitimate and justifiable reason for termination to minimize the risk of potential legal disputes.
3. Provide notice or pay in lieu: According to Taiwanese labor laws, employers are generally required to provide written notice of termination to the employee in advance. The notice period typically ranges from 10 to 30 days, depending on the length of employment. Alternatively, employers can choose to pay the employee salary in lieu of notice.
4. Document performance issues or misconduct: If the termination is based on poor performance or misconduct, it is important to have proper documentation to support your decision. This may include warning letters, performance evaluations, or any evidence of misconduct that can help substantiate your grounds for termination.
5. Conduct a termination meeting: Schedule a meeting with the employee to communicate the decision and reasons for termination. Throughout the process, maintain professionalism and respect, and provide the employee with an opportunity to express their perspective.
6. Settle outstanding dues: Calculate and settle any outstanding dues, such as salary, unused vacation days, or other entitlements, based on the employee’s contract and local labor laws. Promptly addressing these financial matters after termination is important for ensuring compliance and maintaining a positive relationship.
7. Determine severance pay: Depending on the circumstances and length of employment, severance pay may be required by law. It is advisable to consult the Labor Standards Act of Taiwan or seek legal advice to determine the appropriate amount of severance pay, if applicable.
8. Comply with legal requirements: Ensure full compliance with all legal requirements, including reporting the termination to the local labor authorities or other relevant agencies within the prescribed timeframe. Following these steps will help you fulfill your obligations as an employer and mitigate potential legal risks.
It is crucial to note that the specific steps and requirements for terminating an employee may vary depending on factors such as the nature of employment, contract terms, collective agreements, and local regulations. Seeking guidance from employment lawyers who are knowledgeable about Taiwanese labor laws is highly recommended to navigate the termination process effectively and minimize legal complications.