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The Act is enacted to provide minimum standards for working conditions, protect workers' rights and interests, strengthen employee-employer relationships and promote social and economic development. Matters not provided for herein shall be governed by other applicable statutes.
The terms and conditions of any agreement between an employer and a worker shall not be below the minimum standards provided herein.

The terms used in the Act shall be defined as follows:
1. Worker means a person who is hired by an employer to work for wages.
2. Employer means a business entity which hires workers, the responsible person of business operations, or the person who represents the business owner in handling labor matters.
3. Wage means the remuneration which a worker receives for his/her services rendered, including wages, salaries and bonuses, allowances and any other regular payments regardless of the name which may be computed on an hourly, daily, monthly and piecework basis, whether payable in cash or in kind.
4. Average wage means the figure reached by taking the total wages for the six months preceding the day on which an event requiring that a computation be made occurs, divided by the total number of days in that period. In the case of a period of service not exceeding six months, the term "average wage" means the figure reached by taking the total wages for the service period divided by the total number of days of that period. In the case of wages which are computed on a daily, hourly, or piecework basis, if the "average wage" figure reached according to the preceding formula is less than sixty percent of a figure determined by dividing the total wages for the particular service period by the actual number of work days, the "average wage" in this case shall be the sixty percent figure.
5. Business entity means any entity engaged in any of the business (or industries) that are governed by the Act, which employs workers to do work.
6. Labor contract means an agreement that establishes an employee-employer relationship.

The Act shall be applicable to the following business (or industries):
1. Agriculture, forestry, fishery and animal husbandry,
2. Mining and quarrying,
3. Manufacturing,
4. Construction,
5. Water, electricity and gas supply,
6. Transportation, warehousing and telecommunications,
7. Mass communication, and
8. Other business (or industries) designated by the Central Competent Authority.
When making designation referred to in Subparagraph 8 of the proceeding paragraph, a portion of the workplace or part of workers in the business entity may be designated as applicable.
The Act shall apply to all forms of employee-employer relationships. However, this principle shall not apply, if the application of the Act would genuinely cause undue hardship to the business entities involved due to the factors relating to the types of management, the administration system and the characteristic of work involved and if it belongs to the business (or industries) or worker designated and publicly announced by the Central Competent Authority.
The total number of workers employed in the business entities which will encounter genuinely undue hardships and shall not be applicable to the Act, shall not exceed one-fifth of the total number of workers employed outside of the business (or industries) as listed in Subparagraphs 1-7 of Paragraph 1 to this article.

The term “competent authority” referred to in the Act shall be the Council of Labor Affairs of the Executive Yuan at the central level, the municipal government at the municipal level, and the county (city) government at the county (city) level.

No employer shall, by force, coercion, detention, or other illegal means, compel a worker to perform work.

No person shall interfere in the labor contract of other persons and obtain illegal benefits therefrom.

An employer shall prepare and maintain a worker record card indicating the name, sex/gender, birth date, place of ancestral origin, educational background, address, national identification card number, employment starting date, wage, labor insurance starting date, merits and demerits, injury and disease and other significant facts of each worker.
The worker record card referred to in the preceding paragraph shall be kept on file by the employer for at least five years after the date a particular worker ceases to be employed.

An employer shall take precautions for the safety and benefit of his / her hired workers against occupational hazards, create a proper working conditions and provide welfare facilities. All safety, sanitation and welfare matters related thereto shall be governed by the regulations of applicable statutes.

Labor contracts may be divided into two categories: fixed term contracts and non-fixed term contracts. A contract in nature for temporary, short-term, seasonal or specific work may be made as a fixed term contract, but a contract for continuous work, should be a non-fixed term contract.
In any one of the following situations, a fixed term contract shall be deemed as to be a non-fixed term upon the expiration of the contract:
1. Where an employer raises no immediate objection when a worker continues his/her work.
2. Where, despite the execution of a new contract, the prior contract and the new one together cover a period of more than ninety days and the period of time between expiration of the prior contract and execution of the new one does not exceed thirty days.
The preceding paragraph shall not apply in the case of a fixed term contract for specific or seasonal work.

If a new contract is executed, or an existing contract is renewed, within three months after the expiration of a fixed term contract or the termination of a non-fixed term contract for cause, the service period accrued before the execution or renewal of the contract shall be combined with the service period of the new or renewed contract in any computation of service period.

No employer shall, even by advance notice to a worker, terminate a labor contract unless one of the following situation arises:
1. Where the employers' businesses are suspended, or has been transferred.
2. Where the employers' businesses suffers an operating losses, or business contractions.
3. Where force majeure necessitates the suspension of business for more than one month.
4. Where the change of the nature of business necessitates the reduction of workforce and the terminated employees can not be reassigned to other suitable positions.
5. A particular worker is clearly not able to perform satisfactorily the duties required of the position held.

In any of the following situations, an employer may terminate a labor contract without advance notice:
1. Where a worker misrepresents any fact at the time of signing of a labor contract in a manner which might mislead his/ her employer and thus caused him/her to sustain damage therefrom.
2. Where a worker commits a violent act against or grossly insults the employer, his /her family member or agent of the employer, or a fellow worker.
3. Where a worker has been sentenced to temporary imprisonment in a final and conclusive judgment, and is not granted a suspended sentence or permitted to commute the sentence to payment of a fine.
4. Where a worker is in serious breach of the labor contract or in serious violation of work rules.
5. Where a worker deliberately damages or abuses any machinery, tool, raw materials, product or other property of the employer or deliberately discloses any technical or confidential information of the employer thereby causing damage to the employer.
6. Where a worker is, without good cause, absent from work for three consecutive days, or for a total six days in any month.
Where an employer desires to terminate a labor contract pursuant to Subparagraphs 1 and 2, Subparagraphs 4 to 6 of the preceding paragraph, he/she shall do so within thirty days from the date he/she becomes aware of the particular situation.

An employer shall not terminate a contract with a worker who is on leave from work pursuant to Article 50 or, is receiving medical treatment pursuant to Article 59, unless the employer cannot continue operating the business due to an act of God, catastrophe or other force majeure and a prior approval has been obtained from the competent authorities.

A worker may terminate a labor contract without giving advance notice to the employer in any of the following situations:
1. Where an employer misrepresents any fact at the time of signing a labor contract in a manner which might mislead his/her worker and thus caused him/her to sustain damage therefrom.
2. Where an employer, his/her family member or his/ her agent commits violence or grossly insults the worker.
3. Where the work specified in a labor contract is likely to be injurious to the worker's health and the worker has requested his/her employer to improve working conditions but all in vain.
4. Where an employer, an agent of the employer or a fellow worker contracts a harmful, contagious disease and there is a possibility that the worker may contract this disease.
5. Where an employer fails to pay for work in accordance with the labor contract or to give sufficient work to a worker who is paid on a piecework basis.
6. Where an employer breaches a labor contract or violates any labor statute or administrative regulation in a manner likely to adversely affect the rights and interests of the particular worker.
Where a worker intends to terminate a labor contract pursuant to Subparagraphs 1 or 6 of the preceding paragraph, he/she shall do so within thirty days from the date he/she becomes aware of the particular situation.
Where there exist any of the situations set forth in Subparagraph 2 or 4 of the Paragraph 1 to this article, and the employer has already discharged the agent concerned or has hospitalized or discharged the person suffering from such harmful, contagious disease, the worker may not terminate the labor contract.
The provisions of Article 17 shall apply, mutatis mutandis, to the termination of labor contract pursuant to this article.

In the case of a specific fixed term contract for a term of more than three years, a worker may, upon completion of three years' work, terminate the contract by giving the employer an advance notice thirty days before he/her severance.
In the case of a worker terminating a non-fixed term contract, the provisions of Paragraph 1 of Article 16 pertaining to the prescribed time limit for serving an advance notice shall apply mutatis mutandis.

Where an employer terminates a labor contract pursuant to Article 11 or the provisions of Article 13, the provisions set forth below shall govern the minimum period of advance notice:
1. Where a worker has worked continuously for more than three months but less than one year, the notice shall be given ten days in advance.
2. Where a worker has worked continuously for more than one year but less than three years, the notice shall be given twenty days in advance.
3. Where a worker has worked continuously for more than three years, the notice shall be given thirty days in advance.
After receiving the advance notice referred to in the proceeding paragraph, a worker may, during hours of work, ask for leave of absence for the purpose of finding a new job. Such leave of absence may not exceed two work days per week. Wages shall be paid during such leave of absence.
Where an employer terminates the contract without serving an advance notice within the time limit prescribed in the first paragraph of this article, he/she shall pay the worker wages for the advance notice period.

When an employer terminates a labor contract pursuant to the preceding article, he/she shall pay severance pay to the worker in accordance with the terms set forth below:
1. A worker who has continuously worked for a business entity owned by the same employer shall be entitled to severance pay equal to one month of average wage for each year of service.
2. Severance pay shall be paid in proportion to months of service not comprising a full year where it is in the computation of service period under the preceding paragraph or where the period of service is less than one year. Any fraction of one month shall be deemed to be one month.

In any of the following situations, a worker shall not claim from the employer either additional wages for the advance notice period or severance pay:
1. A labor contract is terminated pursuant to Article 12 or 15.
2. The worker leaves his/her service upon expiration of a fixed term contract.

Upon termination of a labor contract, neither an employer nor the employer's agent shall reject a request from the worker for proof of service record.

When a business entity is restructured or changes ownership, except for those workers to be retained through negotiations between the old and the new employers, the employer shall terminate labor contracts with the remaining workers by giving the minimum advance notice prescribed by Article 16 and shall pay severance payment in accordance with Article 17. The new employer shall recognize the prior period of service of those workers to be retained.

A worker shall be paid such wages as determined through negotiations with the employer, provided, however, that such wages shall not fall below the basic wage.
The basic wage referred to in the preceding paragraph shall be prescribed by the basic wage deliberation committee of the Central Competent Authority and submitted it to the Executive Yuan for approval.
The matters regarding the organization and procedure of proceeding of the aforesaid basic wage deliberation committee shall be regulated separately by the Central Competent Authority.

Wages shall be paid in the statutory, circulating currency; provided, however, that part of such wages may, by custom or business nature, be paid partly in kind in accordance with the labor contract. If part of the wages is paid in kind, the conversion price of such wages in kind shall be fair and reasonable to meet the needs of both the worker and his/her family members.
Wages shall be paid in full directly to the worker, unless otherwise prescribed by applicable statutes or administrative regulations or agreed to by both the employer and the worker.

Except otherwise agreed by the parties to a labor contract, or where wages are paid in advance on a monthly basis, wages shall be paid on a regular basis at least twice a month. This shall also apply to wages computed on a piecework basis.
An employer shall keep a worker payroll roster in order to record entries such as wages payable, the items of wage computation and the total sum of wage payment. This payroll roster shall be kept on file for at least five years.

An employer shall pay a worker overtime wages on the following basis:
1. Where the overtime work does not exceed two hours, the worker shall be paid, in addition to the regular hourly wage, at least an additional one-third of the regular hourly rate.
2. Where the overtime work is further over two hours, but the total overtime work does not exceed four hours, the worker shall be paid, in addition to the regular hourly wage, at least an additional two-thirds of the regular hourly rate.
3. Where the overtime work is requested in accordance with Paragraph 3 of Article 32, the worker shall be paid two times the regular hourly rate.

An employer shall under no condition discriminate between the sexes in the payment of wages. Worker shall receive equal wages for equal work of equal efficiency.

An employer shall not make advance deduction of wages as penalty for breach of contract or as indemnity

If wages are not paid on schedule, the competent authority may order the employer concerned to pay them within the prescribed period.

In the case of an employer winding up or liquidating his/ her business or being adjudicated bankrupt, the worker shall have a top-priority right in receiving repayment for wages which are payable under the labor contract and should be paid up to six months arrear wage.
An employer shall make a monthly contribution at a prescribed fixed rate to the total insured wages of workers to "arrear wage payment fund” for paying the arrear wages referred to in the preceding paragraph. When the said fund has accumulated to a required certain sum, either the rate shall be reduced or the collection of such contribution shall be suspended.
The rate referred to in the preceding paragraph shall be determined by the Central Competent Authority at less than one- thousandth of the insurance-wage of all workers and shall be reported to the Executive Yuan for approval.
Where a worker is not paid arrear wages after having requested payment form the employer, the arrear wages shall be disbursed from the said arrear wage payment fund, whereupon the employer shall reimburse the said fund within the prescribed time limit.
The arrear wage payment fund shall be managed by a commission established by the Central Competent Authority. Matters concerning the collection of contributions to the fund may be handled by the Labor Insurance Agency at the request of the Central Competent Authority. The amount stipulated in Paragraph 2, the payment procedures, collection and management rules, and organizational regulations of the said commission shall be determined by the Central Competent Authority.

After the closing of books of account at the end of the business year, a business entity shall, after paying taxes, covering losses for the previous year and setting aside stock dividends and legal reserves, pay allowances or bonus out of the balance of net profits, if any, to workers who have worked the entire preceding year without committing fault and misconduct.

A worker shall not have regular working time in excess of eight hours a day and eighty-four hours every two weeks.
With the consent of a labor union, or if there is no labor union in a business entity, with the approval of a labor-management conference, an employer may distribute the regular working hours, referred to in the proceeding paragraph, of any two workdays in every two weeks, to other workdays, provided that no more than two hours shall be distributed to each of the other workdays. However, the total number of working hours shall not exceed forty-eight hours every week.
With the prior consent of the labor union, or if there is no labor union exists in a business entity, with the agreement of a labor-management conference, an employer may distribute the regular working hours, referred to in the Paragraph1, in every eight weeks, provided that the regular working time shall not in excess of eight hours a day and the total number of working hours shall not exceed forty-eight hours every week.
Paragraphs 2 and 3 are only applicable to the business (or industries) designated by the Central Competent Authority.
The employer shall prepare and keep worker sign-in books or time cards to record worker attendance on a day-to-day basis. These books and cards are to be kept on file for at least one year.

For the business (or industries) designated by the Central Competent Authority, upon the consent of a labor union, or if there is no labor union in a business entity, with the approval of a labor-management conference, an employer may change his/her working hours under the following principles:
1. The distribution of regular working hours to other work days in four weeks shall not exceed two hours a day and is not subject to the restrictions referred to in Paragraphs 2 to 4 of the preceding article.
2. When the regular workday is ten hours a day, the overtime work shall not exceed two hours for that particular day.
3. Every two weeks shall have at least two days off as a regular leave and is not subject to the restrictions referred to in Article 36.
4. Female workers on night shift, except for those who are pregnant or are feeding their babies, are not subject to the restrictions referred to in Paragraph 1 of Article 49, however, the employer must provide satisfactory safety and health facilities.
The business (or industries) that are applicable to Article 3, which was amended and enforced before December 27, 1996, except for agriculture, forestry, fishery, and pasturage business, referred to in Subparagraph 1, Paragraph 1, are not applicable to the preceding paragraph.

The working hours of a worker operating in a pit or tunnel shall begin from the time of entrance to the pit or tunnel and shall end at the time of departure therefrom.

When an employer has a necessity to have his/her employee to perform the work besides regular working hours, he/ she, with the consent of a labor union, or if there is no labor union exists in a business entity, with the approval of a labor-management conference, may extend the working hours.
The extension of working hours referred to in the preceding paragraph, combined with the regular working hours shall not exceed twelve hours a day. The total number of overtime shall not exceed forty-six hours a month.
Due to the occurrence of an act of God, an accident, or an unexpected event and when an employer has a necessity to have his/her employee to perform the work besides regular working hours, may extend the working hours. However, the employer shall notify the labor union within twenty-four hours after the beginning of the extension. If there is no labor union, shall report it to the local competent authority for record. Subsequent to the over time, the employer shall offer worker suitable time off.
Except for supervisory duties or in any of the situations referred to in the preceding paragraph, the working hours of a worker in a pit or tunnel shall not be extended.

Where the living convenience of the public or other special cause necessitates the adjustment of regular working hours and overtime hours for business (or industries) under Article 3 other than manufacturing and mining in a manner not contemplated in Articles 30 and 32, the local competent authorities, may if necessary, by order permit such adjustment after having consulted both the competent authority with jurisdiction over the business (or industries) and the labor union.

If a rotation system of a day and night shift is adopted, workers on such shifts shall be rotated on a weekly basis except as otherwise consented by the worker.
Those workers who are rotated in accordance with the preceding paragraph shall be granted appropriate recess.

A worker shall be permitted to have a break for at least thirty minutes after having worked for four continuous hours; provided, however, that such break may be rescheduled by the employer to be taken within other working hours if a rotation system is adopted or work of a continuous or urgent nature is involved.

A worker shall have at least one regular day off in every seven days.

A worker shall be granted recess on all holidays, the Labor Day and other days prescribed by the Central Competent Authority.

Where a worker continues to work for one same employer or business entity for a certain period of time, he/ she shall be granted annual paid leaves on an annual basis on the following basis:
1. Seven days for the services of more than one year but less than three years.
2. Ten days for the service of more than three years but less than five years.
3. Fourteen days for the service of more than five years but less than ten years.
4. One additional day for each year of service over ten years up to a maximum of thirty days.

Wages shall be paid by an employer to a worker for taking a regular day off under Article 36, a holiday under Article 37 and an annual paid leave under Article 38. When an employer has obtained the consent of a worker to work on a holiday, he/ she shall pay the worker at double the regular rate for such work. This shall also apply where, with the consent of the worker or the labor union, the worker is required to work to meet urgent, seasonal requirements.

An employer may require workers to suspend all leaves of absence referred to in Articles 36 to 38, if an act of God, an accident or unexpected event requires continuance of work; provided, however, that the worker concerned shall receive wages at double the regular rate for work during the suspended leave, and then also be granted leave to make up for the suspended leave of absence.
In respect of the suspended leaves of absence referred to in the preceding paragraph, the employer shall, within twenty-four hours after the end off suspension, file a report stating details and reasons with the local competent authorities for the approval and record of the suspension.

If it is deemed necessary by the local competent authorities, the annual paid leave of workers in public utilities referred to in Article 38 may be suspended, for which the employer shall pay wages at double the regular rate.

An employer shall not compel a worker to accept work beyond regular working hours if the worker is unable to do so on account of poor health or other proper reasons.

A worker may take time off for wedding, funeral, sickness or other proper causes. The duration of such leave and the wage standards for leaves other than unspecified casual leave shall be prescribed by the Central Competent Authority.

A worker over fifteen years old, but less than sixteen, shall be considered as a child worker.
No child worker shall be permitted to do heavy and hazardous work.

No employer shall employ any person under the age of fifteen. This does not apply if the person has graduated from junior high school or the nature and environment of the work have been determined and authorized by the competent authority that no harm will result to the worker's mental and physical health. Provisions in child labor regulations shall apply, mutatis mutandis, to the employee of the preceding paragraph.
The Central Competent Authority shall stipulate the determination criteria, review procedures, and other measures governing the complying matters for determining the nature and environment of the work that will not do any harm to the worker's mental and physical health stated in the first paragraph based on factors such as the worker's age, nature of work, and the length of compulsory education received. For persons under the age of fifteen providing labor service to a third party through others, or directly providing labor service to receive remuneration with no employment relationship, the provision stated in the previous paragraph and child labor protection regulations shall apply, mutatis mutandis.

Employer of workers who are below sixteen years old shall keep the letters of consent from the legal guardians and age certificates of such workers on file.

Child workers' daily working hours shall not exceed eight hours, weekly working hours shall not exceed forty hours, and working on regular day off is not permitted.

No child worker shall be permitted to work between eight o'clock in the evening and six o'clock in the following morning.

An employer shall not make his /her female worker perform her work between ten o'clock in the evening and six o'clock in the following morning. However, with the consent of a labor union, or if there is no labor union in a business entity, with the approval of a labor-management conference, and the following requirements in each subparagraph are met, the preceding restrictions are not applied:
1. The necessary safety and health facilities are provided.
2. When there is no public transportation facilities available, transportation facilities are provided or dormitories for female workers are arranged.
For the necessary safety and health facilities referred to in Subparagraph 1 of the preceding paragraph, their standards shall be determined by the Central Competent Authority. However, the safety and health facilities set forth in an agreement between the employer and the female worker are better than requirements in the Act, the said agreement shall be controlling.
When a female worker is unable to work between ten o'clock in the evening and six o'clock in the following morning due to health or other justifiable reasons, the employer shall not force her to work.
Due to the occurrence of an act of God, an accident, or an unexpected event, and so the employer has a necessity to make his/ her female worker perform her work between ten o'clock in the evening and six o'clock in the following morning, the requirements in the Paragraph1 shall not be applied.
For those female workers who are pregnant or are feeding their babies, the proviso clause of Paragraph 1 and the preceding paragraph shall not be applied.

A female worker shall be granted maternity leave before and after childbirth for a combined period of eight weeks. In the case of a miscarriage after the first three months of pregnancy, the female worker shall be permitted to discontinue her work and shall be granted maternity leave for a period of four weeks.
If the female worker referred to in the preceding paragraph has been employed for more than six months, she shall be paid regular wages during the maternity leave, while if her period of service is less than six months, she shall be paid wages at half of the regular payment.

A female worker may apply to be transferred to less strenuous work during her pregnancy. The employer shall neither reject her application nor reduce her wage.

Where a female worker is required to breast-feed her baby of less than one year of age, the employer shall permit her to do so twice a day, each for thirty minutes, besides the break period set forth in Article 35.
The breast feeding time referred to in the preceding paragraph shall be deemed as working time.

A worker may apply for voluntary retirement under any of the following conditions:
1. Where the worker attains the age of fifty-five and has worked for fifteen years.
2. Where the worker has worked for more than twenty-five years.
3. Where the worker attains the age of sixty and has worked for ten years.

An employer shall not force a worker to retire unless any of the following situations has occurred:
1. Where the worker attains the age of sixty-five.
2. Where the worker is unable to perform his/ her duties due to mental handicap or physical disability.
A business entity may request the central competent authority to adjust the age prescribed in Subparagraph 1 of the preceding paragraph if the specific job entails risk, requires substantial physical strength or otherwise of a special nature; provided, however, that the age shall not be reduced below fifty-five.

Retirement payments shall be paid to worker on the basis of the following standards:
1. A lump sum payment of retirement payments equal to two units shall be paid for each year of service, provided that each year of service exceeding fifteen years shall be entitled to only one unit of base wage, but the maximum shall be forty-five units. Any fraction of a year which is equal to or more than six months shall be counted as one year of service, but any fraction of a year which is less than six months shall be counted as half a year of service.
2. An additional twenty percent of the retirement payments provided for in the preceding Subparagraph 2 shall be paid to the worker whose retirement is mandated by Subparagraph 2, Paragraph 1 of Article 54 and whose mental handicap or physical disability is caused during the performance of work.
The unit for payment of retirement benefit as referred to in Subparagraph 1 of the preceding paragraph, is a standard measure which denotes the average wage received by a particular worker at the time of his/her application for retirement is approved.
If an employer is unable to make a lump sum payment of the retirement benefits required by the Paragraph 1 of this Article, he/ she may seek approval from the Central Competent Authority for paying the said benefits in installments. Where the retirement standards adopted by a business entity before the Act becomes effective than those provided herein, such standards shall be controlling.

An employer shall appropriate a certain sum of money every month and deposit the same in a special account as the reserve fund for retirement benefit for workers. This fund shall not be permitted to be used for assignment, attachment, set-off, mortgage or guarantee. The matters related to the appropriation rate, procedures and administration shall be determined by the Central Competent Authority and then approved by the Executive Yuan.
The reserve funds of retirement benefit for workers appropriated and deposited by employers each month mentioned in the preceding paragraph shall be put together as a Labor Retirement Fund. This fund shall be administered by a Supervisory Committee of Labor Retirement Fund. The organization meetings and other related matters of the Fund shall be prescribed by the Central Competent Authority.
The income and outlay, safekeeping and utilization of the Fund mentioned in the preceding paragraph shall be handled by the financial institutions assigned jointly by the Central Competent Authority and the Ministry of Finance.
The minimum earnings shall not be below that of a two-year deposit interest rate of a local banking institution. Any loss sustained of it shall be made up by the National Treasury. The measures related to the matters of income and outlay, safekeeping and utilization of the Fund shall be prescribed by the Central Competent Authority and then approved by the Executive Yuan.
Workers' retirement reserve funds appropriated and deposited by the employers shall be under the direction and supervision of the said supervisory committee composed of workers and employers. Worker representatives shall not be less than two-thirds of the total membership of said committee. The organizational regulations of said committee shall be prescribed by the Central Competent Authority.

Workers' years of service shall be limited to years of employment by the same business entity. In determining the years of service of a worker who is transferred to another business entity owned by the same employer, and in determining accumulated service years recognized by a new employer on a continued basis under Article 20 of the Act, the years of service at the different business entities shall be combined for calculation purposes.

The right of a worker to claim retirement benefits shall be lost recognized if not exercised within five years from the month following the effective date of retirement.

An employer shall pay compensation to a worker who is dead, injured, incapacitated or sick due to occupational accidents according to the following provisions; provided that if, in respect of the same accident, the employer has already paid compensation to the worker concerned in accordance with the provisions of the Labor Insurance Act or other applicable statutes and administrative regulations, The employer may deduct those already paid compensation therefrom:
1. When a worker is injured or suffers from any occupational disease, the employer shall compensate him the necessary medical expenses. The categories of occupation-related diseases and the scope of medical treatment covered shall be governed by the relevant provisions of the Labor Insurance Act.
2. When a worker under medical treatment is not able to work, the employer shall pay him compensation according to his/her pre-existing wage. The employer shall be released from such compensation obligation by giving to the worker a lump sum payment equal to forty months of average wage if the worker failing to recover after two years of medical treatment has been diagnosed and confirmed by a designated hospital as being unable to perform the original work and so does not meet the disability requirements under Subparagraph 3 hereof.
3. When after the termination of medical treatment the designated hospital has definitely diagnosed that the worker is disabled forever, the employer shall pay him a lump sum as disability compensation in accordance with he/her average wage and the degree of disability. The standards of disability compensation shall be prescribed in the applicable provisions of the Labor Insurance Act.
4. When a worker dies of occupational injury or disease, his/ her employer shall pay funeral subsidy equal to five months of average wage and a lump sum survivors compensation equal to forty months of average wage to his/her survivors. The said survivors compensation shall be paid to survivors in the following order:
a. Spouse and children,
b. Parents,
c. Grandparents,
d. Grandchildren, and
e. Brothers and sisters.

The compensation paid by an employer in accordance with the preceding article may be deducted from the payment of compensation for damages arising out of the same accident.

The statute of limitation for claim right to receive compensation prescribed in Article 59 shall not be within two years from the date of the employee becomes entitled to receive the said compensation.
The right to receive compensation shall not be prejudiced by the severance of service by the particular worker, nor shall it be used for transference, assignment, set-off, attachment, mortgage or guarantee.

The owner of a business entity who contracts his/her work to a subcontractor who subsequently subcontracts, the contractor, the subcontractor, and the last subcontractor shall be jointly and severally liable to pay the compensation prescribed in this Chapter for occupational accidents related to the work performed by the workers hired by the contractor and the subcontractor.
When a business entity or contractor or subcontractor pays compensation for occupational accidents in accordance with the provisions of the preceding paragraph, each may claim reimbursement from the last subcontractor for the portion borne.

Where a contractor's or subcontractor's work site is located within the scope of work site of the original business entity or is provided for by the same, the said original business entity shall supervise the contractor or subcontractor to provide their hired workers with such labor conditions as prescribed in applicable statutes and administrative regulations.
A business entity shall be jointly and severally liable with the contractor or subcontractor for the compensation of occupational accidents caused to workers hired by the contractor or subcontractor for having violated the provisions of the Labor Safety and Health Act pertaining to obligations which the contractor or subcontractor are required to perform.

No employer shall be permitted to recruit any apprentice of less than fifteen years of age, unless such apprentice has graduated from the junior high school.
For the purposes of the Act, the term apprentice shall refer to a person whose objective is to learn technical skills in a job category prescribed by the competent authorities for apprentice training, and who receives training from an employer in accordance with the provisions of this Chapter.
The provisions of this Chapter shall apply, mutatis mutandis, to foster workers and interns of a business entity, students under any business-education cooperation project, and other persons similar to apprentices in nature.

In recruiting an apprentice, an employer shall sign a written training contract in triplicate with each apprentice, particularizing the training subjects, training period, boarding and lodging arrangements, living allowances, relevant teaching subjects, labor insurance, certificate of completion of training, the effective date of contract, the conditions for the termination of the contract, and other clauses relating to the rights and obligations of both parties to the contract. One copy of the contract shall be kept by each member of the parties thereto, and the remaining copy shall be forwarded to the competent authorities for recording.
Without the prior consent of his/her legal guardian, no apprentice referred to in the preceding paragraph shall be allowed to sign an apprenticeship training contract if he/she is a minor

No employer shall be permitted to collect training fees from an apprentice.

An employer may retain an apprentice upon expiration of his/her training period and shall pay him the same wage rate payable to other workers doing the same work. The retention period, if specified in an apprenticeship training contract, shall not be longer than the training period

The number of apprentices shall not exceed one fourth of the total number of workers. The number of workers shall be deemed four for calculation purposes even if it is below that number.

The provisions of Chapter IV pertaining to working hours, recess and holidays, Chapter V pertaining to child workers and female workers, and Chapter VII pertaining to compensation for occupational accidents and other related labor insurance matters shall apply mutatis mutandis to apprentices.
The standards for calculating the wages of an apprentice in connection with compensation for occupational accidents shall not fall below the basic wage.

An employer hiring more than thirty workers shall set up work rules in accordance with the nature of the business, and shall publicly display the said rules after they have been submitted to the competent authorities for approval and record. The rules shall specify the following subject matters:
1. Working hours, recess, holidays, annual paid leave of absence and the rotation of shifts for continuous operations,
2. Standards, method of calculation and pay day of payable wages,
3. Length of overtime work,
4. Allowances and bonuses,
5. Disciplinary measures,
6. Rules for attendance, leave-taking, award and discipline, promotions and transfer,
7. Rules for recruitment, discharge, severance, termination and retirement,
8. Compensation and consolation payment for accident, injury or disease,
9. Welfare measures,
10. Safety and health regulations to be followed and observed both the employer and the worker,
11. Methods for communication of views and enhancement of cooperation between employer and worker, and
12. Miscellaneous matters.

The work rules shall be null and void if they violate any mandatory or prohibitive provisions of statutes, administrative regulations, or collective agreements applicable to a particular business entity.

To enforce the Act, other labor statutes and administrative regulations, the Central Competent Authority shall either establish a labor inspection agency or delegate this power to the competent authorities in the municipal cities. The local competent authority may also as necessary, dispatch staff members to conduct inspections.
The organizational structure of the labor inspection agency referred to in the preceding paragraph shall be prescribed by the Central Competent Authority.

An inspector in the course of performing his official duties shall display the Labor Inspection badge. No business entity may reject such inspection. In the event the said business entity rejects inspection, the inspector may enforce the visit in concert with the local competent authority or the police.
An inspector in the course of performing official visit may request the business entity to produce necessary reports, records, books of account and other relevant documents or written explanations as prescribed by the provisions of the Act. If it becomes necessary for the inspector to obtain any raw materials, supplies, samples, or information, a prior notice shall be given to the employer or his agent and a receipt shall be issued to acknowledge the materials given to him.

A worker may, upon discovery of any violation by the business entity of the Act and other labor statutes and administrative regulations, file a complaint with the employer, the competent authorities or the inspection agencies.
An employer may not discharge, transfer or take any unfavorable measure against the worker who files a complaint according to the preceding paragraph.

An employer who violates the provisions of Article 5 shall be imprisoned for a term not exceeding five years, detained and/or fined a sum less than N.T.$ 750,000.

Any person who violates the provisions of Article 6 shall be imprisoned for a term not exceeding three years, detained and/or fined a sum less than N.T.$ 450,000.

An employer who violates Article 42, Paragraph 2 of Article 44, Paragraph 1 of Articles 45, Article 47, Article 48, Paragraph 3 of Article 49 or Paragraph 1 of Article 64 shall be sentenced to a maximum of 6 months imprisonment, detained, or fined a concurrent maximum amount of NT$300,000.

An employer who violates the provisions of Articles 13, 17, 26, 50, 51 or Paragraph 1 of Article 55 shall be fined a sum more than N.T.$ 90,000 but less than N.T.$ 450,000.

An employer who commits any one of the following acts shall be punished by an administrative fine of no less than N.T.$ 20,000 but not exceeding N.T.$ 300,000:
1. Violation of Article 7, Paragraph 1 of Article 9, Articles 16 and 19, Paragraph 1 of Article 21, Articles 22-25, Paragraph 2 of Article 28, Articles 30, 32, 34-41 and 46, Paragraph 1 of Article 49, Paragraph 1 of Article 56, Article 59, Paragraph 1 of Article 65, Articles 66-68 and 70 or Paragraph 2 of Article 74.
2. Violation of any order rendered by the competent authorities concerning wage payment within the time limit as stipulated in Article 27, or adjustment of working hours as stipulated in Article 33.
3. Violation of provisions concerning recess or the minimum wage rates payable during leave of absence other than casual leave as prescribed by the competent authorities in accordance with Article 43.
Violation of Paragraph 5 of Article 49 shall be punished by an administrative fine of no less than N.T.$ 90,000 but not exceeding N.T.$ 450,000.
For an employer who commits any one of the acts prescribed in the preceding two paragraphs, the competent authority may publicly announce the name of the business entities, the name of the owner of a business entity, and/or the name of responsible person and order the employer to rectify such violation within a specified period of time. In the event if the said employer fails to rectify within the specified period of time, the said employer shall be fined per violation.

Penalty applying mutatis mutandis to violations to Paragraphs 2 and 4 of Articles 45, Paragraph 3 of Article 64 and Paragraph 1 of Article 69 is applicable to the Penal Provisions of this Act.

Any person who refuses, avoids or obstructs a labor inspector in the performance of his/her official duties shall be punished by an administrative fine of no less than N.T.$ 30,000 but not exceeding N.T.$ 150,000.

If the representative of a legal entity, the agent of a legal entity or a natural person, an employee or any other staff member violates the Act in the rendering of his respective services, the violator shall be punished pursuant to this Chapter; in addition, the legal entity itself or the natural person shall also be subject to punishment by such fine or administrative fine as prescribed in the respective articles of the Act; unless the representative of the legal entity or the natural person has done his best to avoid the occurrence of the violation.
The representative of a legal entity or the natural person shall be deemed as an offender, if he/she instigate or ignores the violation.

Where an administrative fine remains unpaid after a demand for payment from the competent authority, the case shall be referred to the court for compulsory execution.

A business entity shall hold meeting to coordinate worker-employer relationships and promote worker-employer cooperation and increase work efficiency. The regulations governing for labor-management conference shall be prescribed by the Central Competent Authority in concert with the Ministry of Economic Affairs and then reported to the Executive Yuan for approval.

In the case of a civil servant who also has the legal status of a worker, civil service laws and regulations shall govern such matters as appointment, discharge, wage, salary, award and discipline retirement, survivors compensation and insurance (including that for occupational accidents). If the rest of the labor conditions are more favorable than the relevant provisions of the Act, the more favorable parts shall apply.

After the approval and public announcement of the Central Competent Authority, the following types of workers may arrange their own working hours, regular days off, national holidays and female workers' night work through other agreements with their employers. These agreements shall be submitted to the local competent authorities for approval and record and shall not subject to the restrictions imposed by Articles 30, 32, 36, 37 and 49 of the Act:
1. Supervisory, administrative workers, and professional workers with designated responsibility,
2. Monitoring or intermittent jobs, and
3. Other types of job in special nature.
The agreement made under the preceding paragraph shall be in the form of written document. They shall use the basic standards contained in the Act as reference and shall not be detrimental to the health and well-being of the workers.

The seniority of a worker is calculated from the first day of his/her employment. The standards of severance and retirement benefit for the seniority accumulated before the application of the Act shall be calculated in accordance with the applicable Acts and administrative regulations effective during that time. In cases there were no applicable Acts and administrative regulations, these standards shall be calculated in accordance with the rules promulgated by the respective business entities or the agreements reached by workers and employers themselves. After the application of the Act, the standards of severance pays and retirement benefits for the seniority accumulated shall be calculated in accordance with Articles 17 and 55 of the Act.

The enforcement rules of the Act shall be prescribed by the Central Competent Authority and reported to the Executive Yuan for approval.

The Act shall become effective on the date of promulgation. However, Paragraph 1 and 2 of Article 30 amended and promulgated on June 28, 2000 of the Act shall become effective on January 1, 2001.