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  • The Settlement of Labor Disputes Law

    PublishDate：2011/12/28

    The Settlement of Labor Disputes Law ( 1988.06.26 Modified )
    Chapter I General Provisions
    Article    1This law is enacted according to the provisions of Article 154 of the Constitution of the Republic of China.
    Article    2This law applies to disputes arising between employer (s) or employers' organization and worker (s) or workers' organization.
    Article    3The 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.
    Article    4The 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.
    Article    5Rights 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.
    Article    6Adjustment 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.
    Article    7During the period when labor disputes are in the process of conciliation or arbitration, an employer may not close shop, suspend work, erminate labor contract, or carry out other activities unfavorable to the workers on account of such disputes.
    Article    8During 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.

    Chapter II Conciliation
    Article    9In 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 ecessary, it may exoffice initiate conciliation procedures and notifies both parties of the dispute.
    Article   10An 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.
    Article   11In 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.
    Article   12When 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 aragraph 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.
    Article   13The 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.
    Article   14After 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.
    Article   15After 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.
    Article   16The 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.
    Article   17When both parties of the labor dispute agree with the conciliation proposals and put their signatures on the minutes, the conciliation is successfully concluded.
    Article   18In case both parties of the labor dispute disagree with the conciliation proposals, the conciliation is a failure.
    Article   19 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.
    Article   20No 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.
    Article   21When 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.
    Article   22Members of a conciliation committee shall attend conciliation meetings personally, and shall not delegate it to their representatives.
    Article   23Members 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.

    Chapter III Arbitration
    Article   24In 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.
    Article   25When 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).
    Article   26When 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.
    Article   27When 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.
    Article   28The 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.
    Article   29

    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.

     

    Article   30The 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.
    Article   31

    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.
    Article   32The 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.
    Article   33Within 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.
    Article   34In 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 unicipality 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.
    Article   35The 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 arties is a workers' organization, they may serve as collective agreement between the parties concerned.
    Article   36The provisions of Article 14, Article 15, Article 22, and Article 23 shall apply mutais mutandis to arbitration procedure.

    Chapter IV Decisions for Compulsory Execution
    Article   37In 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.
    Article   38In 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.
    Article   39In 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.

    Chapter V Penal Provisions
    Article   40In case of violation of the provisions of Article 7, there shall be a fine exceeding 20,000 yuan, but not exceeding 200,000 yuan.
    Article   41In case of violation of the provisions of Article 8, there shall be a fine not exceeding 20,000 yuan for each.
    Article   42When 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.
    Article   43In 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.

    Chapter VI Supplementary Provisions
    Article   44Rights disputes which have been successfully conciliated under the provisions of the Village and Town Conciliation Regulations shall be considered as concluded under this Act.
    Article   45This Law shall become effective upon promulgation.

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