Collective laborlaws have recently undergone the following changes. Businesses should pay moreattention and keep the harmony between labor and management to avoid legaldisputes and responsibilities arising from violations of the laws:

1. The Labor Union Act increases the finesimposed on employers for improper labor practices

In order to protect workers’ exercise ofcollective labor rights, i.e., the right of union, negotiation, and dispute,Article 35 expressly prohibits employers from unfair treatment or improperinfluence against workers or impeding activities of labor unions. In case ofviolation which has been ruled to have constituted improper labor practice, ifthe employer has not undertaken any action or inaction within the period asprescribed in the decision, pursuant to Article 45 of the Labor Union Act, thecentral competent authority, i.e., the Ministry of Labor, shall impose a fine onthe employer.

Since incidents of employers conductingimproper labor practices to suppress labor unions and workers still oftenoccur, on November 15, 2022, the Legislative Yuan passed the amendment toArticle 45 of the Labor Union Act by third reading in the hope of strengtheningthe inhibition of employers’ illegal labor practices. Businesses should beaware of such an amendment:

(1)With respect to improper labor practices of anemployer as provided in Paragraph 1 of Article 35 of the Labor Union Act, theamount of fine has been increased from the original range ofNT$30,000 to NT$150,000 to the new range of NT$100,000 to NT$500,000.

In addition to the fines, the provision adds“penalties affecting reputation,” i.e., the central competent authority shallpublicly announce the name of the offending company and its representatives,the date of the disposition, the violation of provisions, and the amount offine.

(2)If an employer has not undertaken any actionor inaction within the period as prescribed in the decision rendered inaccordance with the decision, the amount of the fine has been increasedfrom the original range of NT$60,000 to NT$300,000 to the new range of NT$200,000to NT$1,000,000.

2.The Ministry of Labor announced the“Directions for the Negotiation Meeting of Collective Agreement”

In the past, the Ministry of Labor (formerlythe Labor Commission of the Executive Yuan) compiled the “Reference Manual for Enteringinto a Collective Agreement” as a reference for labor and management in conductingcollective negotiations and entering into collective agreements.

Both the labor and the management have theobligation of good faith in bargaining for a collective agreement (Article 6 ofthe Collective Agreement Act). Violations of such obligation also constituteimproper labor practice. A certain number of cases have accumulated over time.The Ministry of Labor then collected relevant rulings, court judgments, andopinions of administrative agencies and compiled the “Reference Manual for GoodFaith Negotiation Obligations in the Collective Agreement Act” in the hope of preventingsimilar malicious negotiation behaviors between labor and management.

Considering the disputes that often occurred inthe past during collective negotiations between labor and management, theMinistry of Labor issued the “Directions for the Negotiation Meeting ofCollective Agreement” (Letter Lao-Dong-Guan-2-Zi No. 1110139825) on November18, 2022. It provides for relevant principles and structures regarding thenegotiation procedures and directions for collective agreements, including confirmationof qualifications for negotiation at the beginning, selection of negotiationrepresentatives, preparation for negotiation meetings and procedural provisions,matters needing attention and methods suggested.

Businesses can refer to the aforementioneddirections and related manuals provided by the Ministry of Labor to facilitatesmooth collective negotiations with labor unions and avoid improper laborpractices that constitute malicious negotiations.

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