History

This law is enacted according to the provisions of Article 154 of the
Constitution of the Republic of China.

This law applies to disputes arising between employer (s) or employers’
organization and worker (s) or workers’ organization.

The term “competent authority” referred to in this Law denotes the Council
of Labor Affairs of the Executive Yuan in the Central Government, the
Provincial (Municipal) Government in the province or municipality, or the
Hsieh (City) Government in the hsien or city.

The term “labor disputes” referred to in this Law denotes either rights
disputes or adjustments disputes.
Right disputes concern those between workers and employers collective
agreements, or labor contracts.
Adjustment disputes arise between workers and employers when they cannot agree
whether to continue or to change the terms of the conditions of work.

Rights disputes shall be settled by conciliation procedures provided for in
this Law.
For the purpose of adjudicating labor disputes referred to in the preceding
paragraph, the Law Court shall, when necessary, set up a labor-court.

Adjustment disputes shall be settled by conciliation or arbitration procedures
provided for in this Law.
The labor party of the disputes referred to in the preceding paragraph shall
be a labor organization or more than 10 workers. In case an undertaking has
less than 10 workers, the labor party may be those who constitute over two-
thirds of the workers of an undertaking.

During the period when labor disputes are in the process of conciliation or
arbitration, an employer may not close shop, suspend work, terminate labor
contract, or carry out other activities unfavorable to the workers on
account of such disputes.

During the period when labor disputes are in the process of conciliation or
arbitration, workers may not resort to strike, sabotage, or carry out other
activities on account of such disputes which may interfere with normal work
procedure.

In care the parties of labor dispute apply for conciliation, the application
form shall be sent to the competent authority in the municipality directly
affiliated to the Cabinet or in the hsien (city) as the case may be.
In case the labor parties to the rights disputes are individual workers,
they may entrust the workers’ organization to which they belong to apply
for conciliation on their behalf.
When the competent authority deems it necessary, it may exoffice initiate
conciliation procedures and notifies both parties of the dispute.

An application form for conciliation shall contain the following particular:
1. Name, sex, age, occupation and residential or house address of the
parties to the dispute; in care of legal entity, employers organization,
workers’ organization, or company, its name and office or business
address.
2. If they have representatives, the names and the residential or home
address of such persons.
3. The number and the name-list of workers pertaining to the dispute.
4. Essential contents of the dispute.
5. In case the conciliators have been chosen, their names, sex, age,
occupation, and residential or home address.

In the conciliation of labor disputes, the competent authority in the
municipality directly affiliated to the Cabinet or in the hsien (city) shall
set up the conciliation committee to deal with this matter within seven days
after the receipt of the application for conciliation sent by the parties of
the dispute or the initiation of conciliation procedures.
In care the same labor dispute involves the concern of two provinces (
municipalities) or two hsiens (cities), the competent authority shall be
determined by the common higher competent authority concerned.

When labor disputes have been submitted to conciliation through the
application of the parties or the initiation of the competent authority, the
parties to the dispute shall, within 3 days after the receipt of the
notification of the competent authority, choose the conciliators respectively,
and make reports addresses of the conciliators.
In case the competent authority deems it necessary, the date line referred
to in the preceding paragraph may be extended to a certain; but if no response
is make after the expiration of the extension, the competent authority may
ex office make the appointment.

The conciliation committee of labor disputes is imposed of from 3 to 5 members
listed below under the chairmanship of one of the represent-actives
appointed by the competent authority in the municipality directly affiliated
to the Cabinet or in the hsien (city):
1. from 1 to 3 members appointed by the competent authority;
2. 1 member each chosen by the parties to the dispute respectively.

After the conciliation committee has been set up, it shall immediately conduct
a meeting, and assign members to investigate the facts. The members shall,
except under special circumstances, complete the investigations within 10 days
during which they shall send to the committee the results of their
investigations and their recommendations.
When conducting investigations referred to in the preceding paragraph, summons
may be sent to the parties concerned to appear before the committee for
interrogations or to present written statements. Investigations may also be
made in undertakings relevant to dispute.

After receive the results of investigations and recommendations for
solutions referred to in the preceding Article, the conciliation committee
shall call for a meeting within 7 days. It may however be extended to 15
days when it is deemed necessary or when agreed to by the parties of the
disputes.

The conciliation committee may conduct a meeting only when the quorum of
over fifty percent attendance is obtained; it may make decisions and
conciliation agreements with the vote of over fifty percent of the quorum.

When both parties of the labor dispute agree with the conciliation proposals
and put their signatures on the minutes, the conciliation is successfully
concluded.

In case both parties of the labor dispute disagree with the conciliation
proposals, the conciliation is a failure.

Where any of the following situations exists, the conciliation is considered a
failure:
1. when the quorum has not been obtained in two consecutive meetings
summoned by the chairman of the conciliation committee;
2. when an agreement has not been reached on conciliation proposals.

No matter whether the conciliation is successfully concluded or not, the
minutes of conciliation shall be sent by the conciliation committee to the
committee to the competent authority in the municipality directly affiliated
to the Cabinet of in the hsien (city) for transmission to the parties of the
labor dispute.

When the conciliation is successfully concluded, the agreement is deemed as
a contract between the parties to the dispute; and in case one of the
parties is a workers’ organization, as a collective agreement between the
parties.

Members of a conciliation committee shall attend conciliation meetings
personally, and shall not delegate it to their representatives.

Members of a conciliation committee of a labor dispute, and persons who
participate in the conciliation or conciliation affairs shall guard the
secrecy of conciliation matters, except those that are already revealed to the
public.

In case labor disputes of adjustment nature have not been settled through
conciliatory procedures, they shall be dealt with, through the demand of
both parties concerned, by an arbitration committee of labor disputes.
Labor disputes considered by the competent authority to be of serious nature
may, ex office, be referred to arbitration, and the parties to the labor
dispute are so notified.
When both parties to the dispute agree, the adjustment portion of the labor
dispute may be directly referred to arbitration without going through prior
conciliation procedures.

When the parties to a labor dispute apply for arbitration of dispute of
adjustment nature, the application form shall be filed with the competent
authority in the municipality directly affiliated with the Cabinet or in the
hsien (city).

When the parties to a labor dispute of adjustment nature apply for arbitration
on account of the failure of conciliation, the written application shall
contain the following particulars:
1. Name, sex, age, occupation, and residential or home address of the
parties to the dispute; in case of legal entity, employers’ organization,
workers’ organization, or company, its name and office business
address.
2. If they have representatives, the names and the residential or home,
address of such persons.
3. The reason for the failure of conciliation.
4. Matters on which arbitration is requested.
5. The name of the arbitrators chosen.

When the parties to a labor dispute of adjustment nature apply for the
arbitration, the necessary items contained in the application form include:
1.Name, sex, age, occupation, and residential or home address of the
parties to the dispute; in case of legal entity, employers’ organization,
or company, its name and office or business address.
2. If they have representatives, the names and the residential or home
address of such persons.
3. The number and the name-list of workers pertaining to the dispute.
4. Essential contents of the dispute.
5. Matters on which arbitration is requested.
6. The name of the arbitrators chosen.

The competent authority in the municipality directly affiliated with the
Cabinet or in the hsien (city) shall, within 5 days after the receipt of the
application for the arbitration of the labor dispute of adjustment nature, set
up an arbitration committee to deal with this matter.
In case the same labor dispute involves the concern of two provinces (
municipalities) or two hsiens (cities), the competent authority shall be
determined by the common higher competent authority concerned.

The arbitration committee of labor dispute is composed of 9 to 13 members
listed below under the chairmanship of one of the representative appointed
by the competent authority in the municipality directly affiliated with the
Cabinet or in the hsien (city):
1.from 3 to 5 members appointed by the competent authority and other
institutions concerned.
2. from 3 to 4 members chosen respectively by the parties of the dispute
concerned from the arbitrators mentioned in Article 30.

In case the arbitration procedure of the adjustment issues of the labor
dispute is initiated, ex office, by the competent authority, the arbitrators
referred to in the section 2 of the preceding paragraph shall be chosen and
reported by both parties of the dispute concerned respectively within 3 days
after the receipt of the notification of the competent authority. In case no
report has been made after the expiration of the date line, the appointment is
made by the competent authority.

The arbitration committee members referred to in section 2, paragraph 1 of the
preceding Article shall be chosen by workers’ organizations and employers’
organizations separately. In every 2-year period, the competent authority in
the municipality directly affiliated with the Cabinet or in the hsien (city)
shall notify workers’ organizations and employers’ organizations to
respectively appoint from 12 to 48 arbitrator from impartial and experienced
persons, and report the same to the competent authority for registration and
approval.

Under ant of the following circumstances, it is inappropriate for the person
to arbitrate in the same labor dispute:
1.the person who served as a member of the conciliation committee of
the said labor dispute;
2. the person, or his espouse, his former espouse, his fianc幨oche is a
party of
the said dispute;
3. the person within eight degrees of blood relationship and five degrees
of marriage relationship of one party of the said dispute, or formerly
had such a relationship;
4. the person or his espouse, his former espouse, his fianc幨oche has common
creditor or debtor or debt-paying obligation relationship with one
party of the said dispute;
5. the person who is presently, or was formerly, the legal representative,
the ascendant or the descendant of one party of the said dispute;
6. the person who is presently, or was formerly, the representative of one
party of the said dispute.

The quorum of a meeting of an arbitration committee shall be the attendance of
over two-thirds of its members; and a decision is made with the vote of more
than three-fourth of the attending members. In case no decision is reached
in the first 2 meetings of the arbitration committee, a decision at the
third meeting is obtained with the majority vote.
In case arbitrators are absent in 2 consecutive meetings rendering it
impossible to obtain a quorum, the competent authority may appoint
substitute arbitrators.

Within five days after an arbitration committee assumes arbitration of a labor
disputed, an arbitration award shall be rendered any sent to the competent
authority in the municipality directly affiliated with the Cabinet or in the
hsien (city) for transmission to both parties of the labor dispute concerned.

In case the parties of the labor dispute resort to mutual consultation and
reach a compromise during the process of arbitration, a written report on
the contents of the compromise shall be sent to the arbitration committee
and the competent authority in the municipality directly affiliated with the
Cabinet or in the hsien (city).
On the day when the arbitration committee of the labor dispute and the
competent authority in the municipality directly affiliated with the Cabinet
or in the hsien (city) receive the written report referred to in the preceding
paragraph, the arbitration procedure in concluded.
Compromised have the same effect as conciliation concluded under the
provisions of this Act.

The awards rendered by the arbitration committee of a labor dispute shall be
considered binding to both parties of the labor dispute.
The awards referred to in the preceding paragraph may be considered as
contracts between both parties of the labor dispute. In case one of the
parties is a workers’ organization, they may serve as collective agreement
between the parties concerned.

The provisions of Article 14, Article 15, Article 22, and Article 23 shall
apply mutais mutandis to arbitration procedure.

In case on e of the parties of the dispute refuses to carry out its
obligations after conciliatory or arbitratory procedures have been
successfully concluded, the other party may request the competent law court
law court to initiate compulsory execution measures without charging either
decision or executive fees concerned.
The law court shall make its decision on the request referred to in the
preceding paragraph within 7 days.
A party of the dispute may appeal on the decision referred to above. The law
on non-legal procedure shall apply, mutates mutandis, on the appeal
proceedings. In case of no applicable provisions in the non-legal procedure,
the law on the legal procedure of civil affairs shall apply mutates mutandis.

In making a decision on the request for compulsory execution referred to in
the preceding Article, the court may not reverse the appeal unless the
following circumstances prevail:
1. When the conciliation agreement or arbitration award demands that a
party carry out activities prohibited by law;
2. When the contents of the conciliation agreement or arbitration award
are irrelevant to the aims of the dispute, or in appropriate for
compulsory execution;
3. When compulsory execution may not be materialized under the
provisions of other laws;
4. When there is violation of the provisions of this Act concerning
conciliation and arbitration.

In case the court has made a reverse decision on the request for compulsory
execution, the conciliation agreement is considered annulled; in case of
arbitration award, the parties concerned may demand for another arbitration.

In case of violation of the provisions of Article 7, there shall be a fine
exceeding 20,000 yuan, but not exceeding 200,000 yuan.

In case of violation of the provisions of Article 8, there shall be a fine not
exceeding 20,000 yuan for each.

When an investigation is made under the provisions of paragraph 2, Article 14,
there shall be a fine not exceeding 10,000 yuan for making false statements,
refusal to answer, refusal for no appropriate reason to appear before the
committee for making statements or written statements.

In case a fine under this Act has not been paid after notifications and the
expiration of the date line, it shall be transmitted to a law court for
compulsory execution.

Rights disputes which have been successfully conciliated under the
provisions of the Village and Town Conciliation Regulations shall be
considered as concluded under this Act.

This Law shall become effective upon promulgation.