Enforcement Rules of the Labor Standards Act（2016.10.07）
Amended and promulgated Articles 7-1, 7-2 and 7-3 by the Order of the Ministry of Labor No. 1050127775 on Oct. 7, 2016 .
Article 7-1 The after-resignation business strife limitation agreement shall be made in writing, and shall also specify in detail the contents of the provisions referred to in Subparagraphs 3 and 4 of Paragraph 1 of Article 9-1 of the Act. The employer and the employee shall respectively keep a copy of the agreement with their signatures or seals on it.
Article 7-2 The “not exceeding a reasonable range” referred to in Subparagraph 3 of Paragraph 1 of Article 9-1 of the Act shall be subject to the followings requirements:
1. The period of business strife limitation shall not exceed the trade secrets or the lifecycle of technological information protected by the employer, but with a maximum up to two years.
2. The area of business strife limitation shall be limited to the area of the employer’s actual business activities.
3. The scope of occupational activities of business strife limitation shall be concretely specified and shall be identical or similar to the scope of the employee’s current occupational activities.
4. The prospective employer of business strife limitation shall be concretely specified and has business activities that are identical or similar to and competitive with those of the employer.
Article 7-3 The “reasonable compensation” referred to in Subparagraph 4 of Paragraph 1 of Article 9-1of the Act shall be considered based upon the following matters:
1. The amount of compensation per month shall be no less than 50% of one month’s average wage of the employee upon resignation.
2. The amount of compensation shall be sufficient to support the resigned employee during the period of business strife limitation.
3. The amount of compensation shall be equivalent to the loss incurred by the employee in compliance with the period, area, scope of occupational activities and prospective employer of the business strife limitation.
4. Other matters relevant to the consideration of reasonable compensation criteria.
The reasonable compensation referred to in the preceding paragraph shall be agreed to pay to the employee in a lump sum upon resignation or on a monthly basis to the employee after resignation.
Article 25 The dangerous or harmful work mentioned in Paragraph 2 of Article 44 of the Act means work defined pursuant to the statutes and administrative regulations governing the Occupational Safety and Health Act.