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When a mediation of labor-management dispute is not successfully concluded, the parties may jointly apply for a hand-over arbitration to the municipal or county (city) competent authority. However, for an interest dispute, if one party that is an agency (institution) or a school as prescribed in Paragraph 2 to Article 10 of the Collective Agreement Act shall not apply for arbitration without the approval by the superior agency of foresaid agency (institution) or school.
When one of the parties to an interest dispute is a worker as referred to in Paragraph 2 to Article 54 of the Act, either party to the dispute may apply for a hand-over arbitration to the municipal or county (city) competent authority; when the industries referred to in Paragraph 3 to Article 54 of the Act are involved in an interest dispute and both parties fail to reach a minimum service clause, either party may apply for a hand-over arbitration to the Central Competent Authority.
With the written consent of both parties to the labor-management dispute, any party may apply for a hand-over arbitration to the municipal or county (city) competent authority without going through mediation procedures.
When an interest dispute is not successfully concluded, the municipal or county (city) competent authority regards that the dispute is of great impact on livelihood and interests of the public or receives the request of the competent authority of related business, and may ex officio hand over the dispute to arbitrate and notify both parties.

After the competent authority receiving the application for arbitration, the applicant can request to arbitrate by either of the two following methods, however, if the arbitration is applied by one of the parties for a hand-over arbitration or handed over by the competent authority ex officio, the arbitration may only be conducted by the method as referred to in Subparagraph 2:
1. Selecting an arbitrator with full authority.
2. Organizing an arbitration committee of labor-management dispute (here-in-after referred to as the arbitration committee).
Regulations concerning qualifications of arbitrator and members of the arbitration committee, methods of appointment, selection, arbitration procedures and other matters to be complied shall be prescribed by the Central Competent Authority.

When the parties agree to select an arbitrator to arbitrate, the municipal or city (county) competent authority shall, upon receiving the application for arbitration, notify the parties to labor-management dispute to select an arbitrator from the name list of arbitrators prepared by the municipal or city (county) competent authority, and they shall report the result of their selection within five days on the date of receiving the notice; if the arbitrator is not selected within the given days, the municipal or city (county) competent authority shall designate an arbitrator on behalf of the parties.
Arbitrators referred to in the preceding paragraph shall be appointed from persons who are qualified, impartial and with professional knowledge and experiences by the municipal or city (county) competent authority, and their name list shall be compiled and filed by the municipal or city (county) competent authority to the Central Competent Authority for review and record.
Articles 32, 33, and 35 to 37 of the Act shall apply, mutatis mutandis, to arbitration procedures conducted by an arbitrator with full authority.

An application in writing by the parties for a hand-over arbitration shall be submitted together with the mediation record or a written consent of not going through mediation procedures; if a hand-over arbitration is applied for by any of the parties, documents pursuant to Paragraph 2 to Article 25 of the Act shall be submitted.

When an arbitration is conducted by the arbitration committee, the competent authority shall, upon receiving the application for arbitration or handing over the arbitration ex officio, notify the parties to labor-management dispute to respectively select members of arbitration committee from the name list of members of arbitration committee prepared by the competent authority, and the parties shall report the result of their selection within five days on the date of receiving the notice; if members of arbitration committee are not selected within the given days, the competent authority shall designate the members on behalf of the parties.
The competent authority shall notify members of the arbitration committee within three days of selecting or designating members of the arbitration committee, the members shall select the chief member and other members of arbitration committee in accordance with Paragraphs 1 and 2 or 4 to Article 30 and report the result of selection to the competent authority within seven days of receiving the notice; if the selection cannot be made within given days, the competent authority shall designate on behalf of the members.

The arbitration committee shall have three or five members organized by the following persons:
1. Two persons respectively selected by the parties to labor-management dispute.
2. One or three persons jointly selected by the members of arbitration committee who are selected by the parties to labor-management dispute from the name list of members of arbitration committee.
The arbitration committee referred to in the preceding paragraph shall have a chief member selected by members referred to in Subparagraph 2 of the preceding paragraph, and the chief member shall be the chair of the committee meeting(s).
Members of arbitration committee shall be appointed from persons who are qualified, impartial and with professional knowledge and experiences by the municipal or city (county) competent authority, and their name list shall be filed by the municipal or city (county) competent authority to the Central Competent Authority for review and record.
When the arbitration is handed over ex officio by the Central Competent Authority in accordance with Paragraph 2 to Article 25, the arbitration committee shall have five or seven members; among them, two members shall be respectively selected by the parties to labor-management dispute and one or three members shall be jointly selected by those members. One member who is selected by jointly selected members shall be the chief member and also the chair of the committee meeting(s).
The members of arbitration committee referred to in the preceding paragraph shall be appointed by the Central Competent Authority after consulting with the competent authorities of related business.

The competent authority shall organize the arbitration committee and convene an arbitration meeting within fourteen days of after completing the selection or designation of the chief member of arbitrator committee.

A person who has any of the following situations shall not be a member of the arbitration committee in the same labor-management dispute:
1. He/she was a member of the mediation committee for the labor-management dispute.
2. He/she, his/her spouse, ex-spouse or the person who has engagement with him/her is a party to the labor-management dispute, or he/she has the relationship in joint rights, joint obligations or obligations for payment of debt with the parties.
3. He/she is a relative of one of the parties within the eighth degree by blood, or within the fifth degree by marriage or who had such a foresaid relationship.
4. He/she is or was an agent, parent or family member of a party to the labor-management dispute.
5. When a labor union is a party to the dispute, its members, directors, supervisors or staff members of the labor union.
6. When an employer organization or employer is a party to the dispute, its members, directors, supervisors, staff members or employees.
If a member of the arbitration committee has any of the situations referred to in the preceding subparagraphs and does not recuse by himself/herself, or there are substantial facts indicating that he/she is likely not to be impartial, the parties to the labor-management dispute may apply to the competent authority for removing the member; Article 33 of the Administrative Procedures Act may apply, mutatis mutandis, to the foresaid application procedures.

The arbitration committee shall assign member(s) to find the fact of the the dispute; unless there are unusual circumstances, the member(s) shall submit the fact-finding report to the committee within ten days after the assignment.
The arbitration committee shall make an arbitration decision within twenty days after receiving the fact-finding report; nevertheless, with the consent of the parties, the foresaid time limit can be extended by ten days.
When the member(s) of arbitration committee conducts the fact-finding or the arbitration committee is convened, the competent authority shall notify the parties, persons or business entities concerned to provide oral or written statements; if necessary, the member(s) may enter into the business entity concerned for interviewing and finding with the approval of the competent authority.
The persons being notified or interviewed as referred to in the preceding paragraph shall not make false statements, provide false information or refuse to explain without justifiable reasons.

Meeting of the arbitration committee shall be called by the chief member. When the arbitration committee is organized by three members, the arbitration decision shall be made only when all three members attend the meeting and the majority of the attending members agree. When the arbitration committee is organized by five or seven members, the arbitration decision shall be made only when no less than two-thirds of the members attend the meeting and no less than three-fourths of the attending members agree.
If a member fails to attend the meeting twice consecutively, he/she shall be relieved of his/her duty as a member of the arbitration committee, and the competent authority shall designate another member to replace.

The arbitration award shall be rendered within ten days after the arbitration committee makes the arbitration decision, and be submitted to the competent authority for delivery to the parties to the labor-management dispute.

If the parties to the labor-management dispute agree to settle the dispute during the arbitration procedures, the written settlement shall be submitted to the arbitration committee and the competent authority for review and record, and the arbitration procedures can be terminated. The settlement has the same effect as the mediation successfully concluded in accordance with the Act.

The arbitration award rendered by the arbitration committee for rights dispute has the same effect as the final ruling of the court on the parties to the labor-management dispute.
The arbitration award rendered by the arbitration committee for interests dispute is deemed as a contract between the parties to the dispute. If one of the parties is a labor union, the arbitration award is deemed as a collective agreement between the parties.
When one party to a labor-management dispute may bring a lawsuit against the other party to revoke the arbitration award referred to in the preceding two paragraphs, Chapter 5 of the Arbitration Act shall be, mutatis mutandis, applied.
When an arbitration award is rendered for interests dispute, the parties to the labor-management dispute may not conduct an industrial action again for the same dispute; this provision shall be applicable if a lawsuit for revoking the arbitration award is brought in accordance with the preceding paragraph.

Paragraph 4 to Article 9, Article 10, Paragraph 1 to Article 17 and Article 24 of the Act shall be, mutatis mutandis, applied to the arbitration procedures.