New Labor Regulations Are Coming into Force in 2022. Are Businesses Keeping Up?

January 20, 2022

The new year has arrived in the blink of an eye. After the atrocity brought by the pandemic last year, businesses really look forward to a year of growth and prosperity. Companies should pay close attention to avoid such situations.

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The new year has arrived in the blink of an eye. After the atrocity brought by the pandemic last year, businesses really look forward to a year of growth and prosperity. However, with the implementation of labor-related regulations this year, businesses should pay attention to the following provisions so that they may avoid violations and unnecessary legal disputes:

I. Amendments related to the Labor Standards Act
From January 1, 2022, the monthly minimum wage is adjusted to NT$25,250, and the hourly minimum wage is adjusted to NT$168.
II. The Act of Gender Equality in Employment (hereinafter the “Gender Equality Act”) and related amendments
Amendment to Gender Equality Act has been promulgated by the President on January 12, 2022, and is set to come into force on January 18, 2022. Wherein the parts to which businesses need to pay special attention are as follows:
(I) Leave for Pregnancy checkup, pregnancy checkup accompaniment and paternity leave have been increased from five days to seven days.

1. Paragraphs 4, 5, & 7 of Article 15 of the Act now provide that, “During an employee’s term of pregnancy, their employer shall grant seven days of leave for pregnancy checkups. (Paragraph 4) When an employee accompanies their spouse for pregnancy checkups or such spouse is in labor, their employer shall grant the employee seven days off as pregnancy checkup accompaniment and paternity leaves. (Paragraph 5) For the payment of wages for the periods of pregnancy checkups, pregnancy checkup accompaniment and paternity leaves in accordance with the provisions of the preceding Paragraph, employers may apply to the central competent authority for subsidies for the payment of wages for the parts of periods exceeding a five-day period of leave, excluding the situations in which a period of pregnancy checkups, pregnancy checkup accompaniment and paternity leaves of over five days and the regular wages are required to be granted in accordance with other laws or regulations. (Paragraph 7)” The new provisions increased the leave for pregnancy checkups from five days to seven days and amended the phrase “paternity leave” to “pregnancy checkup accompaniment and paternity leaves,” which is also increased from five days to seven days.
2. It is worth noting that after a company pays the wages for “pregnancy checkup leave” and “pregnancy checkup accompaniment and paternity leaves,” it may apply for subsidies to the Bureau of Labor Insurance of the Ministry of Labor for the payment of wages for the parts of periods exceeding five days, that is, the wages for the sixth and seventh day.
(II) Employees hired by employers with less than thirty employees may apply the provisions provided in Paragraph 1 of Article 19 of the Act and request to reduce working hours one hour per day or reschedule working hours after discussing with their employers and reaching mutual consent.
Paragraph 2 of Article 19 of the Act provides, “Employees hired by employers with less than thirty employees may request to apply the above provisions by discussing with their employers to reach mutual consent.”
(III) Regardless of whether the spouse of an employee is engaged in any gainful employment, the employee and his/her spouse may, at the same time, decide to apply for non-pay parental leave or family care leaves base on their situation.
Article 22 of the Act originally provided that, “If the spouse of an employee is not engaged in any gainful employment, the stipulations of Articles 16 and 20 of the Act shall not apply, provided that, the employees have justifiable reasons.” This article is deleted by the amendment in consideration that parents may weigh and consider their own economic status and how to share parenting and household work.
(IV) Because of aforementioned amendments of Gender Equality Act, Articles 7, 9 & 15 of the Enforcement Rules of the Act of Gender Equality in Employment, Articles 2 & 9 of the Regulations for Implementing Unpaid Parental Leave for Raising Children, and the Guidelines for Salary Subsidy for Pregnancy Checkup Leave, Pregnancy Checkup Accompaniment Leave and Paternity Leave have all been amended accordingly. Businesses should take note of such amendments.
(V) Another thing worth noting is that the unit of leave for “pregnancy checkup leave” and “pregnancy checkup accompaniment and paternity leaves.” According to the interpretation of Ministry of Labor Lao-Dong-Tiao-4-zi No. 1110140008, “If an employee has a need and in fact to leave for pregnancy checkup, or has a need and in fact to accompany his spouse for pregnancy checkup or childbirth, one may choose to request for “half day” or “hours” as the unit to calculate for leave, the employer shall not reject. If the unit of aforementioned leave is calculated by “hours,” the calculation of “seven days” may be eight hours per day times seven, which is fifty-six hours in total. Once the employee decides the way to calculate for leave by the unit of “half day” or “hours”, it shall not be altered later,” In such interpretation, it is expressly provided that the unit to calculate for “leave for pregnancy checkup” and “pregnancy checkup accompaniment land paternity leave” may be “half day” or “hours,” which gives employees more flexibility.
(VI) Lastly, if an employee applies for leave for pregnancy checkup, pregnancy checkup accompaniment and paternity leaves, or non-pay parental leave, the employers shall not reject. otherwise the employers would be fined no less than NT$20,000 but not exceeding NT$300,000, and their names or titles would be put on public notice. Those who have not improved within the specified period, they shall be fined and punished consecutively for each violation after the aforementioned period expires. Companies should pay close attention to avoid such situations.