Employment & Benefits, Taiwan updates

 
How to make a post-termination restrictive covenant for non-competition legally binding
  • Taiwan
  • 20 December 2017

A post-termination restrictive covenant for non-competition restricts an employee from joining the employer's competitor or conducting business in competition with the employer following termination of employment. The employee is usually required to provide such a covenant on being hired, making it difficult for the employee to decline. As the legality of such a covenant was controversial, when the Labour Standards Act was revised in 2016, a new article was added to regulate it.

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