Q: Do rules stipulate whether a labor contract signed by an employer and a foreign worker has to be for a fixed term or non-fixed term? When a contract is terminated does the worker have to be given advanced warning and receive severance pay?

Answer:

(1) In accordance with the provisions in Article 9 of the Labor Standards Act, other than temporary, short-term, seasonal and specific work, which require fixed-term contracts, in the case of continuous work non-fixed term contracts are standard. As such, based on the above regulation current labor contracts for intermediate skilled workers depend on whether the worker is engaged in continuous work or not.
(2) If an employer signs a fixed term labor contract with an intermediate skilled foreign worker, when the contracts is terminated on expiration, in accordance with Article 18 of the Labor Standards Act, the worker cannot ask the employer to provide severance pay. However, if an employer terminates a foreign worker before the expiration date of a fixed term contract, in accordance with the provisions of Article 11 or Article 13 proviso of the Labor Standards Act, or when a foreign worker detailed in Sub Paragraphs 8-10, Paragraph 1, Article 46 of the Employment Service Act seeks to transfer to work detailed in Sub Paragraph 11, Paragraph 1, Article 46 of the Employment Service Act as an intermediate skilled worker, where the labor contract remains valid, the contract is terminated in accordance with the provisions of Article 11, Article 13 proviso, Article 14 and Article 20 of the Labor Standards Act. In such situations, the employer is required to give the worker advanced warning and pay severance pursuant to the provisions of Article 16 and Article 7 of the same Act.