Collective Agreement Act

Link to law: http://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?PCode=N0020006

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Chapter I General Provisions

Article 1

The Collective Agreement Act (here-in-after referred to as the Act) is enacted to regulate the bargaining procedures and effect of collective agreement, stabilize labor relations, promote labor-management harmony, and protect rights and interests for the labor and the management.

Article 2

Collective agreement referred to in the Act is a written agreement which is concluded by an employer or employer organization with juristic person status and a labor union established in accordance with the Labor Union Act for the purpose of governing labor relations and other related matters.

Article 3

Stipulations in a collective agreement which contravene with the imperative or prohibitive provisions of statutes shall be null and void; except nullity and voidance are not implied in the provisions.

Article 4

When there are more than two collective agreements applicable, unless it is particularly stipulated by the agreement which has become effective first, the collective agreement applicable to the occupation which is more limited in scope or the type of job which is more special shall be given the priority; if the collective agreement is not for the purpose of governing occupation or job, the agreement applicable to a larger area or more persons shall be given the priority.

Article 5

The competent authority referred to in the Act is the Ministry of Labor at the central level; municipal city governments at the municipal level and county(city) governments at the county (city) level.

Chapter II Bargaining and Concluding of Collective Agreement

Article 6

Both the labor and the management shall proceed in good faith when bargaining for a collective agreement; any party without justifiable reasons cannot reject the collective bargaining proposed by the other party.
Without justifiable reasons referred to in the preceding paragraph denote to one of the following situations when one party proposes collective bargaining to the other party with bargaining qualification:
1.Rejecting to bargain when the contents, time, place and methods of bargain proposed by the other party are reasonable and proper.
2.Failing to offer counter-proposal within sixty days after receiving written notice of bargaining from the other party and proceed to bargain.
3.Rejecting to provide necessary information and materials for bargaining.
The labor side with bargaining qualification in accordance with the preceding paragraph denotes to the following labor unions:
1.The corporate union.
2.The industrial union whose members are joined by more than one half of employees employed by the other party of bargaining.
3.The professional union whose members are joined by more than one half of employees with the same professional skills employed by the other party of bargaining.
4.Several labor unions which are not pursuant to the preceding three sub-paragraphs and whose members in total are joined by more than one half of employees employed by the other party of bargaining.
5.The labor union which is determined by the decision rendered in accordance with provisions of the Settlement of Labor-Management Disputes Act.
When more than two labor unions on the labor side, or more than two employers or employer organizations on the management side, propose to bargain, the other party may request them to select bargaining representatives; if they cannot select bargaining representatives, the representatives can be selected in accordance with its percentage in total membership.
As if the negotiation period of collective agreement between the labor and the management sides have exceeded six months and is determined by the decision in accordance with the Act for Settlement of Labor-Management Disputes in violation of the stipulation concerning rejection to negotiate without justifiable reasons referred to Paragraph 1 and Subparagraph 1 or 2 of Paragraph 2, the municipal or county/city competent authority concerned may turn the case over for arbitration after considering the interests for both parties and the possibility of concluding a collective agreement; except both the labor and management sides have agreed otherwise.

Article 7

When the labor side or the management side providing information and materials for bargaining a collective agreement may request the other side to keep them in confidentiality and pay necessary expenses.

Article 8

When a labor union or an employer organization bargains a collective agreement, its bargaining representatives shall be selected by one of the following methods:
1.In accordance with its charter.
2.In accordance with the resolution of its members or member representatives meeting.
After noticing all members and receiving written consents from more than one half of total members.
Unless written consent is obtained from the other side, bargaining representatives referred to in the preceding paragraph shall be limited to members of labor union or employer organization.
The number of bargaining representatives referred to in the first paragraph shall be limited to that necessary for bargaining the collective agreement.

Article 9

In addition that there are provisions in the charter, a labor union or an employer organization concluding a collective agreement shall obtain the resolution which has been passed by more than two-thirds of attending members or member representatives who account for at least one half of members or member representatives of the member or member representative meeting, or obtain written consents of no less than three-fourths of all members after noticing them.
If a collective agreement is concluded without following the provision referred to in the preceding paragraph, it shall not become effective unless the procedures referred to in the preceding paragraph have been completed and an approval has been obtained.

Article 10

After a collective agreement is concluded, the party from the labor side shall submit it to the competent authority for review and record; the foresaid provision shall apply when the agreement is amended or terminated.
The following collective agreement shall be approved before concluding, otherwise, it cannot have any effect:
1.When one party is a public-owned business entity, the agreement shall be approved by its competent authority.
2.When one party is a subordinated agency (institute) or a school of the Ministry of Defense, the agreement shall be approved by the Ministry of Defense.
When one party is a government agency (institute) or a public school not included in the preceding two sub-paragraphs but with superior competent authority, the agreement shall be approved by its superior competent authority. However, when janitors (including technicians and drivers) are involved, the agreement shall be approved by the Central Personnel Administration of Executive Yuan.

Article 11

Both parties of the collective agreement shall publicly disclose the agreement, and shall prepare one photocopy of the agreement for members involved to review at any time.

Chapter III Contents and Restrictions of Collective Agreement

Article 12

The following matters can be stipulated in a collective agreement:
1.Wage, working hours, allowances, rewards, relocation, lay-off, retirement, compensation for occupational hazards, compensation for survivors, and other working conditions.
2.Establishment and utilization of labor organizations in business entity, utilization of employment services institutes, and the establishment and utilization of mediation or arbitration institute of labor-management disputes.
3.Bargaining procedures of collective agreement, provision of bargaining information and materials, scope of coverage of collective agreement, duration of its effect, and the obligation to implement the agreement in harmony.
4.Organization, operation and activities of labor union, and facility utilization in business entity.
5.Labor participation and the establishment and utilization of labor-management cooperation organization.
6.Grievance procedures, enhancement of labor-management cooperation, promotion, rewards and punishments, education and training, safety and health, enterprise welfare, and other related matters that both labor and management shall jointly comply.
7.Other matters agreed upon by the parties.
The matters referred to in the preceding sub-paragraphs may also be stipulated in a collective agreement for apprentices, trainees, rudimentary workers, interns, students of business-education cooperation project, and other persons similar to trainees in nature.

Article 13

A collective agreement may stipulate that an employer bounded by the agreement without justifiable reasons shall not adjust working conditions for workers who are covered by the agreement. Unless the agreement has stipulated that those workers not covered by the agreement shall pay a certain amount of fees to the labor union.

Article 14

It may be agreed upon in a collective agreement that an employer shall only employ workers who are members of a specific labor union unless there is one of the following situations:
1.The labor union has been dissolved.
2.The labor union does not have specifically skilled workers that the employer needs.
3.Members of the labor union do not want to be hired by the employer, or the number of its members is inadequate to satisfy the need of the employer.
4.Apprentices, trainees, rudimentary workers, interns, students of business-education cooperation project, and other persons similar to trainees in nature recruited by the employer.
5.Persons who are hired by the employer to manage his/her finance, official seals, or confidential matters.
6.The number of non-union workers hired by the employer is, after subtracting the number of persons referred to in the preceding two subparagraphs, not yet exceeding two-tenths of the employees in total.

Article 15

It shall not be agreed upon in a collective agreement to restrict an employer from using new type of machines, improving methods of production, or purchasing manufactured or processed goods.

Article 16

When the party from one side or both sides of a collective agreement is more than one, the parties involved may not separately agree upon matters that are different from those stipulated in the collective agreement. However, if other stipulations have been agreed upon in the foresaid collective agreement, they shall prevail.

Chapter IV Effects of Collective Agreement

Article 17

Except other matters stipulated in the collective agreement, the following employer and labor union shall be the interested parties of a collective agreement and shall comply with working conditions agreed-upon therein:
1.Employer who is the party of collective agreement.
2.Employers and workers who are affiliated with the organizations that are parties of a collective agreement.
3.Employers and workers who join the organizations that are parties of a collective agreement after concluding a collective agreement.
Matters concerning working conditions shall be applicable to the interested parties of a collective agreement referred to in the preceding Subparagraph 3 from the date that they obtain the status of interested parties of collective agreement, unless there are other stipulations therein.

Article 18

The relationship of rights and obligations that are arising from a collective agreement between the interested parties of the agreement referred to in Paragraph 1 of the preceding Article shall be extinguished on the date of terminating the collective agreement, except for matters prescribed in Article 21.
When employers or workers withdraw from an organization that is the party of a collective agreement after concluding the agreement, they shall continue to possess and perform the relationship of rights and obligations that are arising from a collective agreement during the effective period of the agreement.

Article 19

Working conditions agreed upon in a collective agreement are certainly the contents of a labor contract between an employer and workers of that collective agreement. If working conditions in a labor contract that are different from the stipulations in a collective agreement, those portions that are different shall become ineffective; and those portions that are ineffective shall be replaced by stipulations in the collective agreement. However, if the stipulations that are different from the collective agreement are allowed by that agreement, or are to change working conditions for the benefits of workers and are not forbidden by the collective agreement, then the foresaid stipulations shall remain effective.

Article 20

If stipulations in a collective agreement are not within the scope of Subparagraphs 1 and 2 of Paragraph 1 to Article 12, they cannot have any effect on those matters prescribed in the preceding three articles.
When interested parties of a collective agreement are in contravention of the stipulations that are not belong to Subparagraph 1 of Paragraph 1 to Article 12, the related provisions of the Civil Codes shall apply unless there are other stipulations in the collective agreement.

Article 21

If the duration of a collective agreement has been expired and a new agreement is not yet concluded, the stipulations concerning working conditions in the collective agreement shall continue to be the contents of a labor contract between the interested parties of the collective agreement before a new labor contract is agreed upon.

Article 22

During the effective period of labor contract if the interested parties of a collective agreement abandon their rights obtained from a labor contract that are arising from the collective agreement, their abandonment shall be null and void. However, if the rights are not exercised within three months after the termination of labor contract, those rights can no longer be exercised.
When an employer is bound by a collective agreement, it he/she terminates a labor contract because a worker claims the rights that are arising from the collective agreement or the rights that are contained in a labor contract arising from a collective agreement, the termination shall be null and void.

Article 23

The parties of a collective agreement and the successors of their rights shall not engage in any industrial action for the purpose of impeding with the existence of the collective agreement, or the existence of the separately agreed-upon matters that are different from those stipulated in the collective agreement.
The organizations that are parties of a collective agreement shall have obligations for not allowing their affiliated members to engage in any industrial action referred to in the preceding paragraph, and for not doing anything that is in contravention with the collective agreement.
It may be stipulated in a collective agreement that if one party of the agreement cannot perform its own obligations or is in contravention with the provisions referred to in the preceding two paragraphs, the party shall pay a forfeit to the other party.
The related provisions of the Civil Codes shall apply to the performance of a collective agreement unless there are other provisions in the Act.

Article 24

The organizations that are parties of a collective agreement may, in the name of that organizations, request the payment of damages from those who are in contravention with the agreed-upon stipulations regardless whether those are organizations, members of the foresaid organizations, or members of organizations of the other party.

Article 25

The organizations that are parties of a collective agreement may, in the name of that organization, file any lawsuit for its members concerning the agreement. However, they shall inform the members in advance and not against their express intension.
When its members become the defendants in a lawsuit which is arising from the collective agreement, the organizations that are parties of a collective agreement may join the lawsuit.

Chapter V Duration of Collective Agreement

Article 26

A collective agreement can be concluded in a form of fixed-term, non-fixed-term, or a specific period of accomplishing a certain assignment.

Article 27

When a collective agreement is concluded in the form of non-fixed- term, any party may terminate the agreement anytime after one year of concluding. However, it shall notice the other party in writing three months before the termination.
If the notice period agreed-upon in the collective agreement is longer than that of in the proviso referred to in the preceding paragraph, it shall prevail.

Article 28

When a collective agreement is concluded in the form of fixed-term, its duration may not exceed three years; if the duration exceeds three years, it shall be shortened to three years.

Article 29

When a collective agreement is concluded in the form of a specific period of accomplishing a certain assignment, if the assignment cannot be finished within three years, it shall be deemed as a collective agreement which is concluded with a three-year duration.

Article 30

When an organization is merged or splits, unless there are other stipulations in the collective agreement, the rights and obligations of the parties of a collective agreement or the organizations that are parties of a collective agreement shall be transferred to the new organization established after the merging or splitting.
When the organization that is party of a collective agreement is dissolved, the rights and obligations of its affiliated members of their organizations shall not be changed after the dissolution. However, when an organization with a non-fixed-term collective agreement is dissolved, the rights and obligations of its affiliated members of that organization shall be terminated after three months, unless there are other stipulations in the collective agreement.

Article 31

If major changes in economic conditions happen after a collective agreement is concluded, and if strict maintenances of that agreement will be inconsistent with the continued managing of the employer’s business, or sustaining the living standards of the workers, or it cannot obtain the goals of the agreement because of certain behaviors of the parties of a collective agreement, any party may request the other party to bargain and change the contents, or terminate the collective agreement.

Chapter VI Penal Provisions

Article 32

Any party in violation of Paragraph 1 to Article 6 of the Act, after it is decided through related procedures contained in the Settlement of Labor-Management Dispute Act, it shall be punished by an administrative fine of not less than N.T.$100,000 but not exceeding N.T.$500,000.
Any party has not undertaken any action or inaction within the period as prescribed in the decision rendered in accordance with preceding paragraph shall be punished again by an administrative fine of not less than N.T.$100,000 but not exceeding N.T.$500,000, and may also order to correct within a given period; if the party fails to take corrective action within a given period, the fine may be imposed consecutively.

Chapter VII Supplementary Provisions

Article 33

From the date that the Act is amended and enforced, except for Paragraph 2 to Article 10, the amended provisions of the Act shall apply to the collective agreement concluded before the enforcement of the Act.

Article 34

The date of enforcing the Act shall be determined by the Executive Yuan.