Tainan, Taiwan — January 18, 2026
A Tainan District Court has ruled in favor of a former manager who sued his employer after his agreed-upon salary was unilaterally reduced, awarding him both back pay, severance, and a proportional year-end bonus.
The manager, surnamed Gao, had originally negotiated a monthly salary of NT$130,000 with an annual total of NT$2 million, including NT$440,000 earmarked as a year-end bonus. However, the company reduced his salary starting March 2025 without his consent. Gao submitted his resignation in July 2025, citing the unauthorized salary reduction, and formally left the company in August 2025.
Claims and Court Findings
Gao argued that his wages were contractually agreed and could not be reduced without his approval. He sought NT$173,226 for missing wages from March to his resignation, NT$160,526 in severance pay, and a proportional year-end bonus of NT$283,288, calculated based on his service during the year.
The company contended that Gao had performed poorly and therefore deserved a pay cut. They argued that since he continued working for several months after the salary adjustment without formally protesting in writing, he had implicitly accepted the changes. The employer also claimed the NT$440,000 bonus was a discretionary “gift” and not owed because Gao had not completed a full year.
The court, however, found that Gao expressed dissatisfaction with the salary reduction and requested not to have his pay lowered, which negated any claim of implied consent. Regarding the year-end bonus, the court determined it was part of Gao’s contractual annual salary rather than a discretionary gift, and therefore he was entitled to receive it proportionally for the time he worked during 2025.
Judgment and Award
The Tainan District Court ordered the employer to pay:
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Proportional year-end bonus: NT$283,288
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Back pay and severance: NT$333,752
The payments are to accrue interest at 5% per year starting from late October 2025. The judgment can be enforced immediately under provisional execution.
This ruling reinforces that employers cannot unilaterally reduce agreed-upon salaries, and contractual year-end bonuses must be treated as part of the employee’s earned compensation, not discretionary rewards.