The Settlement of Labor-Management Disputes Act (here-in-after referred to as the Act) is enacted for the purpose of settling labor-management disputes, protecting workers’ rights and interests, and stabilizing employment relations.

The parties to labor-management dispute shall resolve their dispute in good faith and through the principle of self-governance.

The Act applies when a labor-management dispute arises between employer(s) or an employer organization with legal person status (here-in-after referred to as the employer organization) and worker(s) or a labor union. Provided that, the Act is not applicable to a teachers’ labor-management dispute involving matters which shall be resolved through administrative remedies in accordance with other related statutes.

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

The terms used in the Act are defined as follows:
1. Labor-management disputes denote to the rights disputes and the interests disputes.
2. Rights disputes denote to the disputes over the rights and obligations under the laws, regulations, collective agreements, or labor contracts between employers and employees.
3. Interests disputes denote to the disputes between employers and employees with respect to maintaining or changing terms and conditions of employment.
4. Dispute activities denote to strikes or any industrial actions impeding business operations by labor unions to disputes and activities conducted by employers concerned in order to accomplish their objectives respectively.
5. Strike denotes to the activity that employees refuse temporarily to provide their services.

Rights disputes may be settled by the procedures of mediation, arbitration or decision on unfair labor practices in accordance with the Act.
The court, if necessary, shall set up a labor court to adjudicate rights disputes.
The Central Competent Authority may provide proper support if employees in the labor dispute falls under any of the following situations:
1. Files a lawsuit;
2. Files for arbitration in accordance with the Arbitration Act;
3. Applies for a decision in accordance with the Act for any of the causes specified in Subparagraphs 1 to 4 of Paragraph 1 of Article 35 of the Labor Union Act.
The Central Competent Authority may authorize a civic organization to provide supports referred to in the preceding Paragraph.
Application qualification, scope of support, review method and authorization for any given aid referred to in the preceding two Paragraphs shall be determined by the Central Competent Authority.

Interests disputes shall be settled by the procedures of mediation or arbitration in accordance with the Act.
The party from the labor side to the labor-management dispute referred to in the preceding Paragraph shall be a labor union. Provided that, in the following situations, the claimants may be the party from the labor side:
1. Ten or more employees not joining in a labor union but having the same claim.
2. Two-thirds or more employees hired by a business entity of less than ten employees not joining in a labor union but having the same claim.

During the procedures of mediation, arbitration or decision on unfair labor practices, an employer may not suspend or shut down its business, terminate the labor contract, or undertake any other activities unfavorable to employees arising from a labor-management dispute. Employees may not resort to strikes or undertake any other dispute activities arising from a labor-management dispute.