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Is It Legal Not to Sign a Labor Contract?

Many part-time workers or fresh graduates may encounter employers who, under the pretext of a “trial period” or “temporary help,” do not sign a formal written contract. At this point, some may wonder, “No labor contract? Is that even legal?” In fact, as long as an employment relationship can be proven, even without a written contract, both the employer and employee are still legally obligated to each other. This article aims to help readers quickly understand: Is it legal not to sign a labor contract? How can one determine if an employment relationship exists? And when disputes arise, how can both parties assert their rights?
Three Types of Service Contracts Under the Civil Code – Employment, Contracting, and Mandate
Before discussing what constitutes a labor contract, let's first briefly introduce the three major types of service contracts under the Civil Code: Employment, Contracting, and Mandate.
- Employment Contract: Under Supervision, Focus on Providing Labor 
According to Article 482 of the Civil Code:“An employment contract is an agreement whereby one party agrees to render services for a certain or uncertain period to another, who agrees to pay remuneration.”In an employment relationship, the employee must follow the employer's instructions to complete assigned tasks, and regardless of the work outcome, the employer is obligated to pay remuneration.
- Contract for Work: Independent Operation, Focus on Results 
Article 490 of the Civil Code states:“A contract for work is an agreement whereby one party agrees to complete a specific task for another, who agrees to pay remuneration upon completion.”
In a contract-for-work relationship, the contractor can decide how to complete the job. However, if the result does not meet the agreed specifications, the client may refuse payment.
Example: A company outsourcing brochure printing to a print shop.
- Mandate Contract: High Flexibility, Focus on Managing Affairs 
Article 528 of the Civil Code states:“A mandate is an agreement whereby one party commissions another to handle affairs, and the other agrees to do so.”
In a mandate relationship, as long as the agent provides assistance as agreed, the principal must still pay remuneration even if the outcome does not meet expectations.
Example: A lawyer handling a litigation case for a client.
From the above, we can see that the key differences among the three contracts lie in the degree of subordination, responsibility for results, and nature of remuneration. Among these, “subordination” is the most crucial factor in determining whether a contract qualifies as a labor contract.
Characteristics of a Labor Contract – Subordination
According to Article 2 of the Labor Standards Act, a labor contract refers to “an agreement that establishes an employment relationship characterized b
- Personal Subordination: The worker’s working hours, methods, and locations are subject to the employer’s direction and supervision, and failure to comply may lead to disciplinary action. 
- Economic Subordination: The employer provides the necessary tools or equipment for the job, while the worker receives payment for their labor. The employer bears performance risks and business profits. 
- Organizational Subordination: For tasks that cannot be completed independently, the worker must cooperate with other employees within the organization. 
From this, we can conclude that although many contractual relationships involve the exchange of labor and remuneration, only those that meet the subordination criteria under the Labor Standards Act are considered “labor contracts.”
Must a Labor Contract Be in Writing?
Is a written contract required to validate an employment relationship? Not necessarily. A labor contract is a “consensual contract.” Under Article 153, Paragraph 1 of the Civil Code, as long as both parties reach mutual consent, the contract is valid—whether verbal or written.
Since the absence of a written labor contract is not illegal, what should one do to protect themselves in case of a dispute when no contract is available?
How to Prove the Existence of an Employment Relationship Without a Contract
Generally, if the following three elements are met—(1) one party provides labor, (2) the other provides remuneration, and (3) there exists clear direction and supervision (i.e., subordination)—an employment relationship can be presumed. Common forms of supporting evidence include:
- Attendance Records: Sign-in sheets, punch-in systems, or group chat logs showing work hours—all serve as proof of actual work performed. 
- Transfer Records / Proof of Income: Salary slips or bank transfer statements showing regular payments from the company account to the employee's account demonstrate a remuneration relationship. 
- Communication Records: Messages via LINE, email, or internal company chats containing work schedules, assignments, or progress requests should be saved as evidence to support the existence of supervision and control. 
Both employers and employees are advised to proactively keep such records to assert their rights before the courts or competent authorities if labor disputes arise.
Full-Time or Part-Time – All Are Protected by the Labor Standards Act
Many people mistakenly believe that “part-timers,” “hourly workers (PT),” or “probationary employees” are not covered by the Labor Standards Act. This is a common misconception. In reality, whether it's a part-time student worker or a new employee on probation, as long as an employment relationship exists, all fundamental rights under the Labor Standards Act apply.
In other words, the employer is still required to enroll workers in labor and health insurance, contribute to the pension fund, and pay fair wages and overtime pay. The employer cannot use “trial period” or “temporary work” as excuses to evade their obligations.
No Contract ≠ No Protection – Keeping Evidence Is the Best Strategy
In short, the absence of a written labor contract does not mean a lack of legal protection. As long as both parties meet the criteria of providing labor, receiving supervision, and being paid remuneration, an employment relationship exists and the Labor Standards Act applies. Therefore, if an employer tries to evade responsibility by saying “it's only a trial,” “it's short-term help,” or “no contract means no legal relationship,” remember: always keep records of daily work communications and salary transfers, and seek professional legal assistance when necessary. That is the best way to ensure you receive the protection and respect you deserve in the workplace.
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