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What Iis the middle-aged and elderly employment promotion act in Taiwan?

The Middle-aged and Elderly Employment Promotion Act is a labor law enacted in Taiwan in 2019 to encourage continued employment for individuals aged 45 and above, particularly those over 65. This law reflects the government's response to an aging population and increasing labor shortages by promoting workforce participation among older adults while ensuring legal clarity and protections.

Scope and Purpose

The Act applies to two primary groups:

Middle-aged workers: Ages 45 to 64
Elderly workers: Age 65 and above

Its purpose is to support fair treatment, create reemployment opportunities, and promote age-inclusive labor practices in both public and private sectors.

Key Provisions

1. Mandatory Use of Fixed-Term Contracts for Employees Over 65

Under the Act, companies must employ workers over the age of 65 under fixed-term contracts. Indefinite-term (permanent) employment is not permitted for this group. This provision ensures:

Clarity around the duration of employment beyond statutory retirement age
Legal compliance with labor protections applicable to elderly workers
Flexibility for both employers and employees regarding contract renewals

2. Prohibition of Age Discrimination

The law prohibits discrimination against middle-aged and elderly individuals in hiring, promotion, compensation, or training. Employers are required to ensure equal treatment and fair opportunity regardless of age.

3. Reemployment and Training Support

The government provides resources such as:

Job matching services
Skills training programs
Subsidies for employers who hire or retain middle-aged and elderly workers

This aims to ease re-entry into the workforce for those who may have previously retired or exited the labor market.

4. Encouragement of Flexible Work Arrangements

The Act promotes the use of flexible schedules, part-time roles, or job-sharing arrangements for older employees. Employers are encouraged to adapt workplace conditions to suit the health and lifestyle needs of senior workers.

Compliance for Employers

For companies employing individuals over 65 in Taiwan, it is important to:

Draft and execute a fixed-term employment contract with clear start and end dates
Ensure proper registration with Taiwan’s Bureau of Labor Insurance (BLI) and National Health Insurance Administration (NHIA)
Understand any variations in social insurance contributions or pension eligibility that may apply

There is typically no requirement to report fixed-term contracts to labor authorities, provided they are in compliance with standard employment regulations.

Implications for Horizons

Employer of Record (EOR), like Horizons, providers must ensure that:

Employment contracts for individuals over 65 are properly structured as fixed-term
Clients are informed of age-related compliance obligations
Renewals of such contracts are managed transparently and justifiably to avoid the appearance of continuous employment

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Taiwan