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Hidden Challenges of Cross-Border Employee Mobility in Taiwan

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Hidden Challenges of Cross-Border Employee Mobility in Taiwan

Hidden Challenges of Cross-Border Employee Mobility in Taiwan

Organisations are steadily broadening their regional and international reach in today’s fast-paced global landscape. Taiwan, praised for its robust digital ecosystem, dependable governance, and central positioning in Asia, remains an attractive destination for global enterprises. Yet, beneath it’s appeal lie subtle complexities surrounding cross-border employee mobility, particularly in relation to immigration, labour laws, and regulatory requirements.

 

Transferring staff internationally requires more than logistical preparation – it necessitates a comprehensive awareness of the host country’s legal, cultural, and economic environment. Although Taiwan’s employment structure is broadly investor-friendly, it comes with distinct challenges. These include employment contracts in Taiwan, changing norms around employee benefits in Taiwan, and legislation that favours local employee protection.

 

Understanding these less obvious but critical aspects of employee mobility is essential for any organisation seeking a smooth and sustainable expansion into Taiwan. In the sections that follow, we will examine the hidden challenges that businesses must anticipate and navigate to ensure both compliance and operational success in this dynamic market.

Table Of Content

Social and Cultural Meshing

Foreign professionals in Taiwan often encounter social and cultural hurdles that complicate workplace integration. The local communication style, which avoids confrontation and promotes politeness, may lead to miscommunication. Confucian traditions, which emphasise hierarchy and respect for titles, can clash with the flatter organisational cultures common among expatriates.

 

Given the importance of Guanxi networks, business practices such as after-hours gatherings may feel obligatory and complicate social interactions. Informal language barriers and limited awareness of cultural norms may further inhibit cohesion. To address these issues, employers should provide pre-arrival cultural training, ongoing language support, dual-language communication, mentorship, and inclusive team-building. Emphasising diversity training and fostering cross-cultural dialogue are also critical for long-term integration.

The Immigration Framework in Taiwan

Taiwan adopts a layered immigration policy, with distinct categories for foreign nationals, Mainland Chinese citizens, and individuals from Hong Kong and Macau. Programs like the Employment Gold Card and simplified channels via the Workforce Development Agency (WDA) have enhanced accessibility for select professionals. Yet, companies must still navigate a thorough application and approval process.

 

Foreigners may only work in Taiwan if their individual qualifications and employer credentials meet specific criteria. Most foreign employees are required to hold a relevant degree or possess considerable industry experience. Simultaneously, employers must demonstrate financial viability, often through revenue or capital thresholds, to sponsor foreign staff.

Facing Labour Law Restrictions and Employment Risk

Taiwan’s labour system does not support ‘at-will’ employment. Termination must have substantial legal grounds, such as restructuring or underperformance. Additionally, procedural compliance is essential, encompassing notice periods, severance compensation, and job search leave.

 

While designed to uphold workers’ rights, these provisions may prove difficult for foreign firms less familiar with the local framework. Misaligned employment contracts in Taiwan  or improperly managed terminations can lead to costly legal disputes and reputational damage.

Limited Sectoral Mobility and Workforce Reassignment Issues

A frequently overlooked obstacle is limited sectoral mobility. Employees in Taiwan are typically retained within their current industry – transitions from manufacturing to services, for instance, are rare. This limits versatility and complicates workforce planning for organisations aiming to develop cross-functional teams.

 

In addition, evolving policies on the minimum wage in Taiwan and entitlements require businesses to recalibrate their workforce mobility strategies accordingly.

 

Our guide: Minimum Wage Trends in 2025 : A Comprehensive Global Overview

Permit Approvals and Employer Eligibility

Companies seeking to employ foreign professionals must meet specific qualifying conditions, including revenue or trade volume benchmarks. Without such credentials, even highly skilled individuals may be unable to obtain a valid work permit.

 

Even intra-company transfers face scrutiny, requiring adherence to employment law and confirmation that the local entity is authorised to sponsor overseas employees.

Legal Disputes and Employment Litigationy

Mediation is commonly encouraged in Taiwan, but courts frequently intervene in unresolved employment cases. Disputes often center around unfair dismissal, contract ambiguity, or workplace discrimination.

 

To avoid complications, businesses must operate in accordance with Taiwanese labour standards, especially in areas involving Taiwan employee benefits, severance practices, and reassignments. Failing to do so could result in back pay, reinstatement orders, or legal penalties.

Managing Non-Compete Covenants

To safeguard intellectual property and sensitive information, many businesses use post-employment restrictions. In Taiwan, non-compete clauses are only valid if four requirements are met:

  • The employer has a lawful interest to protect
  • The employee had access to sensitive business information
  • The clause is logical in scope and duration (maximum two years)
  • The employee receives fair compensation

Such clauses may be deemed invalid without adequate compensation or clarity, which could potentially increase competitive vulnerability.

 

Our guide: How to Hire International Employees : A Comprehensive Guide

Remote Work and the Shifting Definition of Employment

The growing trend of remote work has altered the traditional understanding of employment. Courts in Taiwan now evaluate employment status based on practical controls, operational integration, and economic dependence – rather than relying solely on contractual designations or physical presence.

 

Companies with a remote workforce in Taiwan should carefully structure these arrangements to avoid unintentionally triggering employer obligations under Taiwanese law.

Strains in the Compensation and Payroll Processes

Managing payroll in Taiwan entails compliance with tax regulations, social contributions, and the Labour Standards Act. Salaries must meet the legal minimums, and statutory benefits – such as National Health Insurance, labour insurance, and retirement funding – must be applied correctly.

 

Although the average salary in Taiwan varies across sectors, international employers must ensure that their compensation structures meet both legal and market demands to recruit and retain qualified personnel.

Conclusion

Cross-border employee mobility in Taiwan offers immense opportunities but also demands informed navigation. From immigration compliance to local employment laws, success hinges on expert support.

At Galaxy Payroll, we deliver more than consultation. We offer a fully managed solution for companies relocating employees, setting up new branches, or testing the market without full legal incorporation.

Our offerings include:

  • Business incorporation in Taiwan and regulatory compliance
  • Legally Compliant Employment Contracts in Taiwan
  • Comprehensive payroll services in Taiwan, including taxation and benefits
  • Immigration assistance, including permits for foreigners who can work in Taiwan
  • Employer of Record (EOR) options for companies not ready to establish an entity
  • Operational support for both remote and hybrid teams

With Galaxy Payroll as your compliance and payroll partner, you gain clarity, avoid regulatory setbacks, and scale operations efficiently.

 

Disclaimer: This blog is for informational purposes only and does not constitute any legal advice.

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FAQ’S

Can foreigners work in Taiwan legally?

Yes, foreigners can work in Taiwan legally, provided they obtain the appropriate work permit and meet eligibility criteria such as qualifications, salary thresholds, and sector-specific requirements.

Cultural and family integration, work permit and visa compliance, employment contract alignment, managing compensation and employee benefits and adapting to Taiwan’s Compliance system, are some of the lesser-known but critical challenges.

Employment contracts in Taiwan must comply with the Labour Standards Act and include necessary terms such as wages, working hours, leave, and termination. Bilingual contracts should specify the governing language in case of disputes.

Spouses and dependents may face challenges like visa restrictions, job limitations, and adapting to local schools and healthcare systems. Proper support can ease their integration.

Minimum Wage Trends in 2025: A Comprehensive Global Overview

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Minimum Wage Trends in 2025 : A Comprehensive Global Overview

Minimum Wage Trends in 2025: A Comprehensive Global Overview
Remuneration is a critical aspect of working conditions. Decent work is productive work that provides workers with adequate earnings, ensuring satisfactory living conditions for workers and their families,” explains the International Labour Organization (ILO).
 
Policymakers across the globe seek to equalize opportunities and outcomes for their citizens through distinct labour market policies, which are influenced by each nation’s economic conditions, political landscape and cost of living.
Why Is This Important?
For employers operating internationally or those expanding into new markets, adhering to the varied labour laws in each jurisdiction is essential. A clear understanding of minimum wage rates, which differ significantly across countries, allows businesses to identify the most suitable regions for expansion while aligning with their financial plans.
Furthermore, having insight into the worldwide minimum wage strategically benefits employers planning to hire a diversified workforce.

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Minimum Wages Around The World

Countries with higher living costs, such as the United States and Germany, generally establish higher minimum wages to ensure workers can afford basic necessities.

 

Luxembourg, with its finance- and technology-driven economy, offers a high minimum wage of approximately USD 2,711 per month for unskilled workers. In contrast, Vietnam, which relies on low-cost manufacturing as part of its “China Plus One” strategy, has a regional minimum wage ranging from USD 151 to USD 194 per month.

 

France, with its strong tradition of labour unions advocating for higher wages, sets a minimum salary of USD 1,851 per month. In the Philippines, where union influence is comparatively weaker, the minimum wage ranges between USD 169 and USD 231 per month, depending on the region.

 

For distinct reasons, Switzerland and Ethiopia are examples of countries without a national minimum wage. Switzerland relies on collective bargaining and economic flexibility, making a national minimum unnecessary, whereas in Ethiopia, where over 80% of the workforce is employed informally in agriculture and street vending, introducing a national minimum wage could lead to higher unemployment and increased labour costs.

Regional Insights

To comprehensively compare minimum wage levels across the globe, we have categorised the data based on continents. This allows us to observe significant regional differences and clarify how minimum wages vary according to local economic conditions, labour market policies, and cost of living.

  • Europe: Minimum wages tend to be higher, particularly in wealthier nations such as Luxembourg, the United Kingdom and the Netherlands. These countries set minimum wage rules to ensure workers meet basic living expenses in their high-cost economies.
  • North America: The United States and Canada also have relatively high minimum wages, though the range varies widely within each country. The U.S. has different wage standards by state, while Canada has a progressive wage scale across provinces.
  • Asia: Minimum wages starkly contrast between advanced economies (such as South Korea) and developing nations, like Indonesia and India. The variation is due to differing economic structures – with more developed countries offering higher wages, for workers to keep up with living standards.
  • Australia and New Zealand: Both countries feature relatively high minimum wages, reflecting their higher living costs and strong labour protections.
  • South America: Minimum wages in South America tend to be lower than other continents. Countries like Brazil and Argentina have minimum wages that are significantly lower than those in Europe or North America. However, these wages are still adjusted to meet the economic context of the region.
  • Africa: African countries such as South Africa have minimum wages that are comparatively low, especially when compared to more developed regions, reflecting the economic challenges faced in many parts of the continent.
Global Minimum Wage Comparison by Country and Continent :
Global Minimum Wage Comparison by Country and Continent
While this is a non-exhaustive list of minimum wage rates across various countries, we encourage you to visit ILOSTAT for a complete list and for more precise wage comparisons using PPP-converted figures.

Countries Without a Statutory Minimum Wage

Several nations operate without a statutory minimum wage, each for distinct reasons. Let’s delve into some noteworthy examples.
Countries Without a Statutory Minimum Wages

How Galaxy Payroll Can Help?

Staying informed about minimum wage regulations is crucial for global employers to ensure compliance, maintain a competitive workforce, and avoid potential legal consequences. Given the significant wage variation across countries, businesses must carefully plan their employee distribution and scaling efforts.
 
To streamline global payroll management, services like Payroll Outsourcing and Employer of Record (EOR) offer solutions for managing market entry, hiring, complex wage laws, tax requirements, and legal compliance – without establishing a local entity.
 
At Galaxy Payroll, we specialise in assisting companies with market expansion by establishing new entities or entering new markets with a “boots on the ground” approach. Our “plug and play” solution system saves clients significant time and prevents costly errors. You can focus on expanding your business while we handle the complexities behind the scenes.
 
Partner with us for seamless corporate scaling.
 
 

Disclaimer: This blog is for informational purposes only and does not constitute any legal advice.

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FAQ’S

What is minimum wage, and why is it important for employers?

Minimum wage is the lowest hourly, daily, or monthly salary that employers must pay their employees to ensure access to basic necessities and protection against exploitation. It is a legal mandate by the government binding employers to commit to minimum wages as fixed under the statute for work performed during a given period. Minimum wage rates can vary significantly based on location (country, state or region) and sometimes even by industry or occupation.  For global employers, understanding minimum wage ensures compliance with labour laws, prevents legal penalties, and promotes fair employee compensation.

Minimum wages differ significantly by country and even by region within a country due to various factors affecting each region, such as inflation, economic conditions and labour policies. Employers should check the latest local regulations before fixing salaries.

As of 2025, countries with the highest minimum wages include Luxembourg, Netherlands, Australia, New Zealand, United Kingdom, Ireland, Germany, France, etc. with Luxembourg paying the highest at US $ 2711 to US $3254 per month. However, the exact figures vary due to exchange rates, cost of living and government policies.

Cambodia, Sudan, Burundi, Rwanda, Georgia, Eswatini, Gambia, Guinea-Bissau, Kyrgyzstan, Uganda, Ghana, Nigeria and Madagascar are some of the countries that have lower minimum wages.

Governments typically review and adjust minimum wages annually, but some make changes more frequently based on inflation or economic crises. Employers should stay updated on local labour laws to ensure compliance.

Failure to comply with minimum wage laws can result in fines, legal action, back payments to employees, and reputational damage. In some jurisdictions, repeat violations can lead to business license revocations.

Certain exceptions such as internships, apprenticeships, or training periods where lower wages are permitted, may apply. However, these exemptions vary by country and should be reviewed carefully.

Employers can monitor government labour websites, consult local legal experts, or use compliance management services to stay informed about wage updates and regulatory changes.

Yes, employers must account for payroll taxes, social security contributions, healthcare and other employee benefits. These elements can significantly impact total labour costs in different countries.

In many countries, labour unions negotiate minimum wage levels through collective bargaining, often resulting in industry-specific wage agreements that employers must follow.

 

Work Permits in Thailand: What Employers Should Know?

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Work Permits in Thailand : What Employers Should Know?

Work Permits in Thailand What Employers Should Know

Thailand is a gateway to the ASEAN Economic Community, offering access to a market of 676.6 million consumers and robust trade connections with neighbouring economies such as China and India. To achieve high-income status by 2036, the Royal Thai Government has outlined a 20-year Strategy that drives economic transformation through Thailand 4.0. This initiative fosters innovation across key sectors like automation, aviation, biofuels, and digital industries, while the Eastern Economic Corridor (EEC) plays a pivotal role in accelerating industrial growth.

 

To further strengthen its position as an economic hub, Thailand offers various visa programs designed to attract skilled professionals and investors. The SMART Visa targets individuals in 13 key S-Curve industries, while the Long-Term Resident (LTR) Visa offers tax incentives for high-potential individuals. The Thailand Elite Visa also permits long-term stays ranging from 5 to 20 years, providing exclusive privileges such as settlement assistance and VIP services. These visa programs and BOI incentives help create a favourable environment for expatriates to contribute to Thailand’s thriving economy.

 

This guide provides employers with a detailed overview of work permit in Thailand and work visa regulations, empowering them to navigate the application process and ensure compliance with Thai labour laws.

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Regulation of Foreign Employment in Thailand

The Alien Working Act B.E. 2551 (2008) primarily regulates foreign employment in Thailand, requiring all foreigners to secure a work permit before employment in Thailand alongside strict compliance with immigration laws. 

 

However, certain occupations – such as labour, agriculture, accounting (excluding internal audits on occasions), civil engineering, clerical roles, legal services, and more – are strictly prohibited for foreigners. Only Myanmar, Laos, and Cambodian nationals can work in the labour and domestic sectors.

 

Therefore, one must refer to the list of restricted occupations before planning a career move in Thailand.

Who needs a Work Permit in Thailand?

All foreign nationals who wish to work legally in Thailand must obtain a work permit, except those exempted under the laws governing work permit requirements in the Kingdom. Specifically, a work permit is required for:

  • Foreign nationals employed by a Thai company or a foreign entity operating in Thailand.
  • Entrepreneurs wishing to establish and run a business in Thailand.
  • Freelancers or self-employed individuals providing services in Thailand (even if not employed by a company).

In summary, if you work in Thailand, you must obtain a work permit before commencing any work unless you fall under specific exemptions.

Exemption from a Work Permit

Under Thai law, certain activities are not classified as ‘work’ and do not require a work permit. These exemptions include:

  • Attending meetings, seminars, exhibitions, or trade fairs.
  • Attending technical training or seminar.
  • Purchase of goods at a trade fair. 
  • Participating in business visits, academic lectures, or board meetings of one’s company.

Exemptions also apply to:

  • Diplomats or Consulars entering Thailand for official duties.
  • UN officials and representatives of member countries.
  • Personal Servants of above officials.
  • Individuals on missions under Government agreements or to benefit education, culture, arts or sports.
  • Individuals with Government’ special permission.

Entry for Work Without a Work Permit in Special Cases

At its discretion, the Government can conditionally allow foreigners to enter the kingdom without a work permit in exceptional cases to fulfill ‘urgent and essential work’ for a period not exceeding 15 days, provided that they submit a written notification (form WP-10) along with other required documents.

In such cases, foreigners can enter Thailand with any visa, including a transit visa.

How do you get a Work Permit in Thailand?

While employers can submit applications on employees’ behalf, the permit is only issued after the employee legally enters Thailand.

  • Before applying, those entering on a tourist or transit visa must convert their status to a Non-Immigrant B Visa.
  • Required documents include a passport with a valid Non-Immigrant B visa, educational qualifications, work references, a medical certificate, three recent photographs (5×6 cm), and, if applicable, additional documents for licensed professions or marriage to a Thai national.
  • Applications must be submitted to the Department of Employment in Bangkok or provincial employment offices. Depending on the case, additional evidence or translations may be necessary to complete the process efficiently.

 

Visas and Immigration Law

Foreign nationals who intend to remain in Thailand to work or conduct business must obtain a work permit and comply with visa requirements in various visa categories, including tourist, visitor transit, immigrant, non-quota immigrant, and non-immigrant.  While many non-immigrant visas exist, a valid non-immigrant B visa is a prerequisite for applying for a work permit. It also entitles the holder to apply for multiple re-entry visas and permanent residency.

 

The non-immigrant visas include several categories. Some work visas among them are as follows:

Visas and Immigration Law

Duration of a Visa and Work Permit in Thailand

The duration of a work permit or visa depends on the purpose for which it is issued. For example:

Duration of a Visa and Work Permit in Thailand

Renewal Conditions for Work Permits

  •           A work permit must be renewed before it expires to avoid lapsing.
  •           During renewal, the applicant must provide proof of tax payments for the previous year.

Work Permit and Visas for BOI Promoted Companies

The Board of Investment (BOI) Thailand promotes valuable investments, offering a fast-tracked visa and work permit process for priority-sector businesses.

 

A foreigner in this category can enter Thailand for investment assessments, project work, or activities benefiting investment, provided they submit essential documents such as company registration, academic credentials, and project details.

 

A foreign applicant seeking permission to work under the Investment Promotion Act must apply for a work permit within 30 days of the BOI’s approval and may engage in authorised work while the application is being processed.

Smart Visa

The SMART Visa is a specialised visa that attracts skilled professionals, investors, executives, and entrepreneurs to targeted industries. It provides long-term stay options and exemption from work permits. It’s benefits include extended reporting requirements, fast-track services at international airports, and permission for spouses and children to stay and work in Thailand.

 

The visa has various categories, such as T, I, E, and S. Applicants must obtain a qualification endorsement before applying, and they can extend their visa through a streamlined renewal process. The SMART Visa simplifies work authorisation and fosters innovation and investment in Thailand’s priority sectors.

Single Window For Visa And Work Permit System

Bangkok’s One-Stop Service Center (OSSC) simplifies obtaining visas and work permits for foreigners to streamline the process. It’s main objective is to accelerate the application and renewal procedures and complete processing within three hours. The OSSC handles various services, including visa and work permit applications, renewals, multiple re-entry permit issuances, visa class changes, and fine payments.

Duties of Employers

The Foreign Working Act, 1978, specifies employers’ duties regarding issuing and maintaining work permits. Employers must:

  • Not allow foreigners to perform any function other than that described in their work permit.
  • Report changes in employment, transfers, and termination of foreign employees to labour authorities within 15 days.
  • Ensure that dismissed employees return their work permits to the labour authorities in Bangkok or to the provincial Department of Employment.
  • Ensure that permit holders obtain prior permission to change their occupation or workplace.
  • Notify the Immigration Bureau of any address changes every 90 days.
  • Report any change in address or status to the local police within 24 hours.
    The law does not force employers to return the work permit of their foreign employees, but if employers or employees wish to return it, they are allowed to do so.

Please read our Latest Guide On: Building Trust in Short-Term Employment – 7 Key Strategies 

Fines and Penalties

Thai laws are strict regarding compliance with work permits and visas.

 

Foreigners working without a valid work permit may face imprisonment of up to five years, a fine of 2,000 to 100,000 Baht, or both.

 

Employers who hire foreigners without a work permit may be fined 10,000 to 100,000 Baht per employee. While allowing a foreigner to work beyond the permitted scope can lead to a fine of up to 10,000 Baht.

 

Non-compliance or violations of other laws may result in one-time or daily fines until the laws are complied with.

 

Therefore, employers and employees must strictly adhere to work permit and immigration laws to avoid fines and legal issues.

Conclusion

Expanding into Thailand presents distinct challenges, particularly in navigating the complexities of work permits and visa regulations. However, with a clear understanding of the legal requirements, eligibility criteria, and compliance obligations, businesses can ensure a smooth entry into the market.

 

As a trusted leader in the workforce outsourcing industry, Galaxy Payroll brings 18 years of experience providing Employer of Record (EOR), outsourced payroll, and immigration services across Asia Pacific. Our expertise and established network enable us to streamline the work permit, visa process and employment process, ensuring full compliance with Thai regulations.

 

Galaxy Payroll is your trusted partner if you are considering hiring in Thailand. We will manage the work permit, visa, employment, payroll, and compliance processes, allowing you to focus on your core business objectives confidently.

 

Read our latest guide on : Employee Engagement in Difficult Times: 6 Key Strategies

Fast-Track Your Work Permit & Visa in Thailand

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FAQ’S

What types of work permits are available in Thailand?

Work permits are typically issued for regular employees, executives, specialists and investors, with varying durations and conditions.

The Ministry of Labor, Thailand, generally processes applications within 30 business days. However, discrepancies in the applications, the requirement for additional documents, or departmental workloads may extend the processing time.

Yes, but you can work with an employer only if your work permit allows it specifically. Therefore, you must cancel it and get a fresh visa and work permit, when changing to a new employer. Do note also that the immigration department typically requires you to leave the country upon cancellation of your visa and work permit.

 

However, you can apply for an extension of stay. If granted, you can meanwhile obtain a new work permit to avoid leaving Thailand.

The Thailand Elite Visa is a long-term, privilege-entry visa designed for affluent individuals, investors and frequent visitors. It offers multiple entry benefits, extended stay options (5 to 20 years), and exclusive services like airport assistance, concierge support and lifestyle perks.                

Hiring in Macau: Essentials That Employers Should Know

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Hiring in Macau: Essentials That Employers Should Know

Hiring in Macau Essentials That Employers Should Know

The Hiring Edge: Why Macau Stands Out?

 

Patrick Dumont, President and COO of Las Vegas Sands Corp., stated that they believe strongly in the HCL story and have been investing in growth in Macau for years. The strategy is to grow the business and strategic advantages, and plans to continue acquiring more HCL shares, demonstrating their belief in its future value when asked about their allocation strategy regarding HCL shares.

 

Reflecting confidence in Macau’s evolving economy, Companies like Sands China also uphold investment efforts in non-gaming ventures such as luxury hotels and entertainment projects.

 

As the globally leading gambling hub, Macau attracts millions of tourists annually, fueling its growing service sector. With institutions like Citigroup providing corporate banking and investment services since 1902 and the introduction of the new Financial System Act, Macau is poised to surface as a scaling financial centre in the Greater Bay Area.

 

Its prestigious standing as a growing free port, absence of foreign exchange controls and competitive tax regime, make it a high-profile nexus for international business. The luxury goods market for instance is flourishing with international fashion brands establishing strong footholds to cater to high-spending tourists.

 

However, having recognised the risks of overdependence on the gaming industry and on mainland China for labour, resources and trade, the Government is actively taking steps to diversify the nation’s  economy.

 

Initiatives such as the Macau Development Plan 2024-2028 focus on the “1+4” strategy: integrated tourism and leisure, modern financial services, “big health”, high technology, and MICE (meetings, incentives, conventions, and exhibitions). 

 

These transformations, combined with structured employment contracts in Macau and a clear employment law framework, positions the country as an increasingly attractive destination for companies and professionals. 

Table Of Content

Options to Legally Hire in Macau

Hire in Macau

Employment Of Non-Residents In Macau

When local expertise is insufficient, hiring non-resident workers becomes quite a necessity. Employers who would like to employ non-residents must first obtain quota approval and an employment permit from the Labour Affairs Bureau and subsequently apply for a ‘Non-Resident Workers Identification Card’ known as the ‘Blue Card’ from the Public Security Police Force. Blue Card holders are allowed to perform work under authorized conditions such as with the approved employer, workplace, job position and term of employment.

 

The Government also allows foreign nationals to work in Macau as nanagerial personnel with technical and professional qualifications under one of its schemes that also provides residency options.

Upon fulfilling certain legal requirements, foreign entities are also allowed to send their employees to Macau to work as “consultants/technicians” and perform approved work tasks for a maximum of 45 continuous or non-continuous days within a 6 month period.

 

Given Macau’s emphasis on prioritising local employment, genuine efforts to recruit local citizens need to be demonstrated before hiring non-resident candidates. Collaborating with local universities and participating in job fairs are effective ways for companies to tap the local talent pool. 

Legal Framework Governing Employment In Macau

Macau’s Labour Relations Law (Law No. 7/2008) establishes the fundamental legal framework governing employment in the region. It defines employers’ and employees’ rights, obligations, and protections, ensuring a fair and regulated labour market.

1. Employment Contracts & Working Conditions

Employment contracts in Macau can be fixed-term, variable-term, or indefinite. Contracts exceeding 90 days require written agreements. Employment of 16- to 18-year-olds is allowed but with special provisions for minors. Normal working hours are 8 hours per day and 48 hours per week, with mandatory rest periods and compensation for overtime, night shifts, and holiday work.

2. Employee Rights & Protections

Equal employment opportunities must exist and discrimination based on gender, race, age, religion or political beliefs, are prohibited. Employers must provide safe working conditions, and employees have the right to privacy, fair wages and protection from unfair dismissal.

3. Leave Entitlements
  • Annual Leave: Minimum 6 paid days after one year of service.
  • Maternity Leave: 70 days (paid if employed for over a year).
  • Paternity Leave: 5 paid working days.
  • Sick Leave: Up to 30 consecutive days or 45 non-consecutive days per year.
4.   Benefits
  • Minimum Wage: As of January 1, 2024, the minimum wage in Macau is set at MOP 7,072 per month.
  • Social Security Contributions: Employers must contribute MOP 60 per month to the Social Security Fund for each permanent employee, while employees contribute MOP 30.
5. Termination & Compensation

Employers can terminate contracts with just cause (e.g., misconduct) or without cause, in which case severance pay applies. Compensation varies based on tenure, with rates increasing progressively for longer service. The maximum compensation is capped at 12 times the employee’s basic monthly salary unless a higher amount is agreed upon between the employer and employee (Article 70). Unlawful dismissals may result in fines or legal claims.

5. Compliance & Penalties

Employers must maintain employee records and adhere to payroll regulations. Violations- such as failure to pay wages, denying leave or engaging in unfair dismissal, will incur fines ranging from MOP 5,000 to MOP 50,000 per employee.

 

This legal framework ensures a balanced and fair employment environment in Macau while safeguarding workers’ rights and business interests.

Cultural Sensitivity and Workplace Integration in Macau

Understanding and respecting Macau’s cultural nuances is paramount for successful employee integration. Employers should consider:

  • Language Proficiency: While English is widely spoken, language support or training can enhance communication, especially with local staff who primarily speak Cantonese or Portuguese.
  • Cultural Training: Cultural awareness programs can facilitate better understanding and collaboration within a diverse workforce.

Unlock Brilliance: Hire With Galaxy Payroll Group

Hiring employees will manifest various critical aspects, such as legal compliance and the administrative burden.

 

By engaging an EOR in Macau, businesses can liberate themselves from the ordeal of tedious and costly process of establishing a legal entity in a new country. Through an EOR, companies are also free of the associated compliance tasks and administrative burden.

 

Galaxy Payroll Group has a long-standing presence in Macau and we are able to not only help you frame a clear expansion strategy, but at the same time, relieve your HR team of efforts around legal compliance and HR administrative work. We are poised to offer faster and effective hiring in Macau, so contact us now!

 

Disclaimer: This blog is for informational purposes only and does not constitute any legal advice.

 

READ ALSO: Work From Anywhere Policies: How EORs Can Help?

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FAQ’S

How can employers leverage technology to streamline recruitment in Macau?

Employers can use AI-driven recruitment platforms to ease locating the right talent and assessing candidate capabilities. Other Applicant Tracking Systems (ATS) exist to assist in workflow, organization and candidate tracking. 

Employment in Macau can be terminated under the Labour Relations Law through:

  • Revocation – Mutual agreement between employer and employee, with no notice or compensation required.
  • Rescission – Either party may terminate the contract with or without just cause. In case of rescission without a just cause, the Act provides for notice and compensation laws. Termination with just cause requires 15 days’ notice by the employer and 7 days’ notice by the employee.
  • Expiry – The contract ends when its term expires or the task is fulfilled or the employee is unable to work due to chronic illness or disability.
  • Denunciation – Parties may denounce the contract during the probationary period.

To hire foreign employees, employers must obtain a Non-Resident Work Permit (Blue Card) from the Macau Labour Affairs Bureau. The employer must also prove that the role cannot be filled by a local worker. 

The Government also allows foreign nationals to work in Macau as managerial personnel. This can happen upon the fulfilment of eligibility and completion of needful government requirements. 

Yes, while verbal contracts are legally valid, contracts exceeding 90 days require written agreements. The written employment contract must clearly specify salary, working hours, benefits and job duties, to avoid disputes.

How Global Companies Can Legally Hire Talent in The Philippines?

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How Global Companies Can Legally Hire Talent in The Philippines ?

How Global Companies Can Legally Hire Talent in The Philippines Galaxy

The Philippines has always been one of the preferred destinations for businesses looking to expand their global workforce. Cost efficiency is one of the key concerns and prime factors for these companies.

 

The Philippines is a developing economy with a lower GDP per capita compared to more developed nations, hence an employer can enjoy lower costs for operations. According to PayScale, the expected average annual salary for a Filipino customer service representative in 2025 is USD 4,013 as compared to USD 44,779 in the US.

 

The Asian Development Bank states in one of it’s reports, that besides facilitating lower operational costs for businesses, The Philippines is also home to approximately 700 active startups. These startups benefit from a workforce that possesses, higher levels of knowledge and advanced skills, to generate needful technological output.

 

Companies in the Philippines thus enjoy a combination of an affordable and skilled workforce together with high English proficiency – deeming it ideal for foreign investment.

 

In this guide, we explore different hiring models, from Employer of Record services to direct hiring and payroll management in Philippines, to help you navigate the legal and regulatory landscape when hiring in the Philippines.

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How to hire in the Philippines?

Direct Hiring

The Philippines government allows foreign companies or entrepreneurs to directly hire Filipinos, upon fulfilling the requirements of the SEC’s Company Registration System (CRS) for Corporations, or DTI Business Name Registration System for Sole Proprietorships – and having their respective businesses registered thereunder. 

 

One needs to check if they fall under the restricted category within the Foreign Investments Negative List (FINL), attain the required business permits, register with the Bureau of Internal Revenue (BIR) for taxes, and with the Filipino Social Security System, PhilHealth and Pag-IBIG.

 

Setting up a legal entity is beneficial for those who aim for long-term projections in The Philippines. Additionally, every business has its own differentiated need to opt for a particular business structure. For instance, large companies can quickly enter the Filipino market by acquiring companies and inherit it’s local capabilities. 

Engage an Employer of Record

Engaging an Employer of Record is a preferred choice for companies looking for an easier entry into the a foreign workforce. As local entity setups can take a lengthy and expensive process, companies can consider the EOR offering as a quicker and more cost-effective method.

 

Companies who have engaged an EOR service, are better able to devote their attention and resources to core business activities. A relief as well from the administrative burden of hiring and handling payroll, HR, and other related functions.

 

As EORs have a better understanding of their local labour laws, it helps to effectively mitigate any risk of non-compliance. Furthermore, it is also recommended for those who do not plan to make any heavy investments into The Philippines until some exploration has been carried out. 

BPO Model and Independent Contractors

It is worth noting that according to the IT & Business Process Association of The Philippines – IBPAP, the BPO industry in The Philippines employs over 1.4 million people and contributes to 8% of the country’s GDP.

 

However, it is also worth noting that not every business benefits from utilising a Business Process Outsourcing (BPO) model. This model will work for specific business tasks that often includes customer support, IT services and back-office operations. 

 

Similarly, Independent Contractors are more suitable for short-term projects and business needs for specialised skills; however, this presents a speedy and cost-effective avenue for hiring workers. It is thus important for future employers in The Philippines to have a grasp of the different models of hiring that can be employed, for specific needs.

Understanding Labor Laws & Employment Contracts

The principle that any doubts in the interpretation of labour laws should be resolved in favour of the employee rather than management – is critical for employers to understand about the fundamental thinking in Philippines jurisprudence. One can easily observe the kind of importance The Philippines government affords to labour rights. The basic laws are however similar to many other countries, few of the notable laws are as follows:

 

Ø  The employees have a right to a 13th month salary which should not be less than one twelfth of the total basic salary earned within a calendar year.

 

Ø  Contribution of 10% to Social Security System (SSS), 2.5% to the Philippine Health Insurance Corporation (PhilHealth), and 2% to Home Development Mutual Fund by the employer for fund salary above ₱1500.

 

Ø  Work performed beyond eight (8) hours is considered overtime. An additional compensation equivalent to employee’s regular wage plus at least twenty-five percent (25%) thereof, is required to be paid for overtime. Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.

 

Ø  Provision of service incentive leaves, paternity leaves and maternity leaves is duly required.

 

Ø  The Social Security Program provides a package of benefits in the event of death, disability, sickness, maternity and old age.

Conclusion

Companies need to assess and decide on choosing an appropriate way for effective hiring in The Philippines. By setting up a legal entity in The Philippines, companies can hire directly and retain full control over the process.

 

Alternatively, an EOR shoulders the responsibility of hiring by acting as the official legal employer. The EOR takes on the administrative burden of handling the entire process, and is in charge of the compliance and risk management of the engagement.

 

Contact Galaxy Payroll Group – a leading HR and Business Advisory service provider for the Asia Pacific region.

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FAQ’S

Can a foreign company hire employees in the Philippines without a local entity?

Yes, foreign companies can hire employees in the Philippines by engaging an Employer of Record (EOR) service provider. They can also outsourcing the required function to a Business Process Outsourcing (BPO) provider, if suitable.

Foreign employers must comply with Filipino labour laws. This covers properly crafted employment contracts, adherence to statutory benefits, contributions and tax obligations.

There is high competition for skilled talent. There also needs to be clear understanding of employment regulations and cultural differences. Payroll and workforce management are common challenges for new overseas employers.

Building Trust in Short-Term Employment – 7 Key Strategies

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Building Trust in Short-Term Employment - 7 Key Strategies

Building Trust in Short Term Employment 7 Key Strategies Galaxy

As economies progresses, employer-employee relationship trends at times witness upside-down shifts. In the past, employees and employers have expectations of long-term work commitments. In today’s era of work, employees have a higher focus on work-life balance and look for more flexibility in work. On the other hand, as the marketplace evolves, companies have a higher need for access to  more specialised roles.

 

Short-term employment has therefore become a prevalent trend across the globe, especially, in the Asia-Pacific (APAC) region. This is driven by the gig economy, project-based roles, and evolving workplace dynamics. However, since the employees are engaged for a specific or short duration, building trust among them is challenging.

 

This article will explore what short-term employment entails and strategies to build trust with short-term employees.

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What Is Short-Term Employment ?

Short-term employment refers to a work arrangement where employees are hired for a fixed duration, often ranging from a few weeks to a few months. Unlike traditional long-term roles, these positions are time-line focused, project-based, seasonal, or require specific expertise.

 

Freelancers or consultants for specialised tasks, temporary staff for peak business periods, and project teams for short-term assignments, all come under the short-term employment category.

 

Importance Of Building Trust In Short-Term Employment

Just like long-term employees, trust needs to be established for those under short-term work arrangements. This is because of the following reasons:

  1. Enhanced Productivity: trust creates a positive work environment which leads to employee engagement and higher productivity.
  2. Reputation and Branding: Trustworthy organisations gain positive feedback in the market, attracting top talent even for short-term roles, thereby building a strong brand image.
  3. Retention of Knowledge: Employees who trust their employers do not hesitate to share knowledge with peers and trained successors, minimizing disruptions when they leave.
  4. Collaboration and Innovation: Trust enables employees to stay collaborated and share innovative ideas, leading to long-term business growth.
  5. Ethical and Sustainable Practices: Trust reflects the company’s commitment to employee respect and engagement which aligns to long-term sustainability and ethical practices.

Building Trust In Short-Term Employment – 7 Key Strategies

Building trust among employees is challenging, especially for short-term engagements. It requires intentional strategies tailored to meet the needs of the business. Here are key strategies that companies should adopt:

 

1.Create Inclusivity Through Employee Orientation And Effective Communication : The initial experience of employees, whether long-term or short-term, plays a crucial role in establishing trust. Creating a welcoming environment from day one reduces the “outsider” complex that short-term employees might experience. This would help foster better collaboration and develop the team dynamic. One of the best starts is to conduct an effective orientation by introducing new short-term employees to team members and vice-versa.

 

To add further, the exercise of effective communication will help build a foundation of trust. Businesses must provide detailed contracts, outlining roles, responsibilities, expected outcomes, and expected timelines. This will help ensure that short-term employees are well-informed about compensation, benefits, and company expectations.

 

2.Know About Your Team and Extend Support : Businesses who have a better understanding of their short-term employees’ backgrounds, skills and motivations, are best suited to tailor assignments or feedback to align with the individual’s strengths. This will also significantly help increase employee productivity and build employee confidence.

 

Additionally, extend support by :

  • Encouraging them to learn from mistakes without fear of blame, acknowledging your own errors to set an example of accountability.
  • As it is a short-term engagement, it is important to be able to provide guidance and constructive solutions.
  • It is also important to equip short-term employees with the right tools and resources for them to do the job and meet expectations.

When short-term employees feel prepared and supported, they are more likely to trust the organisation and deliver high-quality work.

 

3.Respect Ideas and Use Feedback Constructively : Actively listen to short-term employee suggestions and give assurance that their feedback is acknowledged.

Recognise and appreciate innovative ideas to problem-solving and offer constructive feedback that focus on improvement rather than criticism.

 

4.Foster Approachability and Friendliness : Short-term employees are more likely to trust leaders who are friendly and approachable. Creating an open communication channel where they can feel comfortable sharing concerns and conducting informal interactions helps maintain a positive and supportive demeanor, even in challenging periods during their short employment.

 

5.Honor Your Commitments : In lieu of the nature of short-term employment, keeping to your commitments is particularly important when building trust with short-term employees. Do ensure that you fulfil all your commitments made to short-term employees :

  • payment schedules and role expectations.
  • timely delivery of resources or support promised during onboarding.
  • Consistency in action builds credibility. Therefore,
  • Uphold company values uniformly across all employee levels.
  • Clearly communicate expectations and follow through consistently.
  • Demonstrate reliability in all interactions.

 

6.Create An Equitable Environment : An equitable environment has to exist to build trust with short-term employees. Therefore, companies should ensure:

  • that they offer competitive and fair compensation,
  • access to the same tools and resources as other employees,
  • provide additional benefits like completion bonuses, access to wellness programs or flexible work arrangements (if possible),
  • consistent and ethical treatment of all employees,
  • implement fair policies that reflect the company’s values.

 

7. Highlight Growth and Networking Opportunities : While short-term roles may not always lead to full-time positions, companies can foster a good relatiolnship by demonstrating long-term value. Consider:

  • facilitating networking opportunities within and outside the company,
  • providing certificates of service or endorsements for future work opportunities,
  • supporting employees in exploring company-wide roles across other projects or regions.

Being transparent about growth avenues demonstrates genuine care for the short-term employee’s future with the company.

Conclusion

Although there is currently a shift from long-term to short-term employment trends, it is essential for a business to not lose focus on it’s mission and organisational culture. However, taking strategic advantage of short-term employment might be challenging for HR teams who need to focus more on their core operations rather than short-term employee management.

In this regard, partnering with an EOR service provider can present a win-win situation for both your company and your employees. Engage Galaxy Payroll Group as your partner for short-term employment. As a leading EOR service provider in the APAC region, we can help simplify short-term employment operations like onboarding, compliance assurance, payroll management and employee support.

 

Read our latest guide on: How to Hire International Employees: A Comprehensive Guide

Building Trust With Short-Term Employees

Partner with Galaxy Payroll Group, a leading EOR service provider in APAC. Let us handle the brunt work while you focus on core business operations.

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FAQ’S

How can trust be established in short-term roles?

Trust can be built by offering open communication channels, clear expectations, constructive feedback, resource support, equitable treatment and adhering to mutually agreed commitments. 

Trust fosters better collaboration and helps improve productivity. When trust in the company is established, short-term employees are more motivated  to share ideas and train new incoming colleagues or replacements. Lastly, a happy short-term employee will likely give positive feedback in the marketplace which helps build a positive employer brand for the business.

Clear visibility on roles, goals, challenges and expected outcomes reflects transparency in the system. This energizes mutual understanding and helps avoid misconceptions.