New Guideline On Employment-Related Noncompete Restrictions

In its recent public statement, the Ministry of Labor (the "MOL") has announced that it will soon publish a new administrative guideline with respect to employment-related noncompete provisions. This will be a first-of-its-kind regulation in the realm of noncompetes for employees.

There is currently no legislation in Taiwan that specifically governs employment-related noncompete provisions. In practice, employers typically bind important employees to noncompete restrictions as part of the employment agreement. Binding employees to noncompetes during their term of employment usually does not raise too much of a concern. However, enforcement of post-employment noncompete provisions is generally decided by courts on a case-by-case basis. Courts will typically look at all circumstances of the case including: