TAIWAN Law and Practice Contributed by: Chengkai Wang, Yachi Huang, Herman Lin and Tzutien Huang, Dentons Taiwan (Dacheng Taiwan)
employees. • Representation in court:
as binding as a mediation agreement established through labour dispute mediation. Pre-Dispute Arbitration Agreements Regarding the enforceability of pre-dispute arbitra - tion agreements, while the legal framework allows for arbitration, the specifics regarding the enforceability of such agreements before a dispute arises typically depend on the agreement’s adherence to the legal standards set by the Act for Settlement of Labor-Man - agement Disputes. Employers and employees are encouraged to clearly define the terms and conditions of any arbitration agreement within the scope of this Act to ensure its enforceability. In summary, arbitration serves as an effective and legally binding alternative to court litigation for resolving employment disputes in Taiwan, provided the involved parties adhere strictly to the legislative
(a) labour unions play a significant role as rep - resentatives in court for collective actions, enhancing the efficiency and effectiveness of the legal process by consolidating similar claims into a single proceeding. This specialised approach to employment litigation and dispute resolution in Taiwan ensures that both individual and collective employment grievances are handled efficiently, with opportunities for resolution through mediation before escalating to more formal legal proceedings. 9.2 Alternative Dispute Resolution Possibility and Enforceability of Arbitration In Taiwan, arbitration is indeed a viable method for resolving employment disputes outside of traditional court proceedings. This alternative dispute resolution mechanism is supported by the framework provided under the Act for Settlement of Labor-Management Disputes. Procedure for Initiating Arbitration According to Article 26 of the Act for Settlement of Labor-Management Disputes, the process for initiat - ing arbitration requires the parties involved to prepare and submit a written application for arbitration to the competent authority. This submission must adhere to the specific procedures and requirements outlined in the Act, ensuring that all necessary documentation Decisions made through arbitration in labour disputes carry the same legal force as final judgments made by courts. This equivalency means that: • an arbitration award pertaining to adjustments in labour disputes is considered a court’s judgment between the parties involved; • if one of the parties is a union, the arbitration award is treated as a collective agreement between the parties; and • if the parties reach a settlement during the arbitra - and details are properly presented. Legal Force of Arbitration Decisions tion process, this must be reported to the local government for record-keeping and is considered
guidelines. 9.3 Costs
In Taiwan, the issue of covering legal costs, including attorney’s fees, in labour disputes is regulated with specific provisions to aid employees under certain
conditions. Court Fees
Employees who meet specified criteria can apply for reduced court fees, providing financial relief during the process of seeking justice. This concession is designed to make the legal process more accessible to employees who might otherwise be deterred by the costs associated with litigation. Attorney’s Fees As per the current legal framework in Taiwan, the fol - lowing applies. • The prevailing party in a labour dispute can request the losing party to cover the attorney’s fees, but this is generally limited to the costs incurred during the third (final) instance in the litigation process. This provision ensures that the financial burden of prolonged legal disputes can be mitigated for
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