In 2018, the Taiwanese government passed the Taiwanese Labor Standards Act which modified some of Taiwan’s labor laws.

There are some important factors in this act that would impact the opening of a new Chipotle:

• The minimum wage was raised to 140 TWD
  • Equivalent to about $4.50 USD
• An employee can work a maximum of 8 hours per day (12 hours per day with overtime)
  • Employers are required to provide a 30 minute break for every 4 hours of work
• After an employee has been working at an establishment for more than 6 months, the employer is required to provide at least 3 paid vacation days annually.
  • If an employee has worked for more than one year, but less than two years, the employer must provide 7 paid vacation days for the year.
  • The longer an employee stays at an establishment, the more vacation days, he/she will accumulate.

According to Glassdoor, the average starting salary for a McDonald’s worker in Taiwan (before the Taiwanese Labor Standards Act) was 100 TWD, so Chipotle should be able to recruit qualified workers at entry-level positions by offering to pay the minimum wage or an amount very close to the minimum wage.

In addition, the restrictions on working hours in Taiwan are similar to the restrictions on working hours in the United States, so Chipotle managers should be trained on how to schedule employees so that they are in compliance with the law.

The paid vacation days will create an expense for the business, but it is something that Chipotle must comply with if they would like to pursue expansion into Taiwan.