Post-employment covenants not to compete (CNC) are lawful in
Taiwan if the following four requirements set in the Labor
Standards Act (LSA) are met:
(1) The employer has legitimate business interests that need be
protected with a CNC;
(2) The employee, due to his/her position or nature of work, can
access or use the employer's trade secrets during the
employment relationship;
(3) The CNC does not contain unreasonable restrictions on the
employee's future works in terms of time period, area,
occupation scope and choice of new employers; and
(4) The employer provides reasonable compensation to the
employee for his/her losses due to the CNC, and the payment the
employee receives during employment shall not be deemed as part of
the compensation.
