TAIWAN Law and Practice Contributed by: Chengkai Wang, Yachi Huang, Herman Lin and Tzutien Huang, Dentons Taiwan (Dacheng Taiwan)
the Labor Union Act allows workers to legally strike or engage in collective dispute actions to compel employers to agree to the conditions proposed by the union. Role and Importance of Unions Unions are voluntary organisations for workers that embody the right to free association, which is a spe - cial and important human right and a core labour standard crucial for supporting democratic and legal order. Additionally, unions play a unique role as a bridge in establishing stable and harmonious labour relations. The Labor Union Act underscores the pur - pose of union formation to promote worker solidarity, elevate their status and improve their living conditions, thereby acting as a vital component in the social and economic development of Taiwan. 6.2 Employee Representative Bodies Formation and Legal Rights In Taiwan, every worker has the right to organise and join unions, as stipulated by Article 4 of the Labor Union Act. Furthermore, Article 11 of the same Act requires a union to initially be formed by at least 30 workers. These workers must organise a preparatory committee, which is responsible for conducting public membership drives, drafting statutes and convening an inaugural meeting. The committee is then required to submit the necessary documentation, including statutes and member directories, to the local compe - tent authority within 30 days after the union’s estab - lishment meeting for official registration. If the union is organised on a national scale, registra - tion must be sought directly from the central compe - tent authority, namely the Ministry of Labor. Role in Collective Bargaining These representative bodies play a crucial role in the collective bargaining process, negotiating on behalf of all members to enhance labour conditions and protect employment rights. Should negotiations fail, the law empowers workers to legally strike or initiate collective dispute actions to enforce the conditions proposed by the union. This process is foundational in maintaining fair labour prac -
tices and protecting worker rights under Taiwanese law. 6.3 Collective Bargaining Agreements Legal Framework and Implementation A collective bargaining agreement in Taiwan is a formal written contract negotiated between an employer (or an employer’s organisation) and a union established under the Labor Union Act. The agreement is struc - tured to manage labour relations and related matters, conforming to the procedural guidelines outlined in The potential contents of these agreements are com - prehensive, including labour conditions like wages, work hours, allowances and safety, as well as organi - sational matters such as union operations and enter - prise facilities. Article 12 of the Collective Agreement Act provides a detailed list of negotiable items that can be included in these agreements. Ratification Process the Collective Agreement Act. Content and Binding Nature According to Article 9 of the Collective Agreement Act, for an agreement to be effective, it must be ratified either by a majority vote at a general or representative assembly of the union or employer group or through written consent from three-quarters of all members. If the collective bargaining agreement is not ratified according to these stipulations, it lacks legal force until the required approval process is completed. This ensures that all agreements genuinely represent the interests of the members and contribute positively to the labour management relationship, fostering a sta - ble and harmonious work environment. 7. Termination 7.1 Grounds for Termination Requirements for Dismissal and Procedures Based on Grounds for Termination Employers must adhere to a fair process before termi - nating an employee, which varies based on the spe - cific grounds for dismissal. The process must include severance pay, reporting the dismissal to competent
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