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The New Amended Labor Standards Act (LSA) Enacted March 1, 2018

       The new amended Labor Standards Act (LSA) has been enacted as of March 1, 2018. This amendment refers to the adjustment of individual labor rights. Taking the overtime pay on the rest day as an example, it should be calculated by the actual number of work hours. The system of compensatory leaves for covering overtime work is legislated. The number of days of the annual paid leaves is deferred; and the bridge holidays, flexibly adjusted holidays, are subject to the negotiation of the collective bargaining.

       The head of the Department of Labor, Taipei City Government (DOL), Lai Hsiang-Lin, is urging the business entities and the industries designated by the Ministry of Labor (MOL) to follow the appended law.

       If the employer wants to extend the limited overtime hours, Article 32, cut down or shorten the rest intervals of the shift rotations, Article 34, and adjust the regular leaves for the special conditions, Article 36, then, it is necessary to obtain the collective bargaining agreement of the labor union, or if there is no labor union in a business, the approval of a labor-management conference is needed.

       For Articles 34 and 36, the business entity that is not designated by the MOL is not permitted to negotiate on an individual basis with the employees. We, the DOL, will do a labor inspection. If any business is found in violation of the regulations of cutting down the rest intervals between shift rotations or adjusting regular days off to one day off every seven days, they will be penalized.

       This amendment stipulates that the legal process, of extending the restrictions of overtime hours, cutting down or shortening the rest interval between shift rotations and adjusting the regular leaves for the special conditions, should be dealt with by the Labor-Management Meeting (LMM).

       The DOL clarified that the negotiation records of the LMM from some of the business entities received this February have been returned since the Act had not yet been implemented. The LMM held after this March will be considered legal.

       When negotiating, the representatives of the labor side can demand that the management side clarifies the period of time, the departments, number of people and the objectives to be implemented.

       Also, the representatives of the labor side are expected to assure that the business entities are designated by the MOL.

       As of January 2018, the DOL has listed and guided 578 companies, including the listed companies and the companies with more than 200 employees, which have not yet established or organized the LMM. At present there are 209 companies in total having established the LMM by law.

       More than half the enterprises have not yet established the LMM. The DOL is posting those listed companies which have not established the LMM, for which the DOL is going to primarily inspect.

       Those, which have reported the LMM for our references, will be irregularly inspected. The business entity with less than 30 employees is exempted, but the negotiated content should be published by law.

       As long as the employee finds that their business entity is in violation of the LSA or other labor regulations, such as the LMM being held without following the Regulations for Implementing Labor-Management Meeting, the employee can file a complaint with the competent authority or the inspecting authority.

       Please be aware that there are 12 industries or fields, for which the MOL specifies the terms of “shortening the intervals of shift rotations” and 4 special types of “adjusting regular days off” that are permitted.

       The MOL has specified the 12 industries that can shorten the intervals of shift rotations and can adjust the 4 special types of regular days off. This information can be navigated to on the MOL’s website or DOL’s website at the menu titled “2018 new amended Labor Standards Act”.

       Regarding the three flexible adjustment systems stipulated in articles 32, 34 or 36 of the LSA, the regulation of “extending the restrictions of overtime hours” is applied to all industries, and the other two flexible adjustment systems are only suitable for the business entities designated by the DOL. The business entities should implement and practice the legal procedures in accordance with the preceding specifications, and should clarify and announce the objectives and the starting and finishing times of the implementations.

       The MOL has established an online system for future reference, which has been online since March 1, 2018. The website address is https://labcond.mol.gov.tw(Chinese website).

       As to the related information on this new amendment of the law, the DOL has made the webpages “Labor-Management Meeting” and the “new amended Labor Standards Act” at its official website.

       For information on the LMM and the work regulations, please dial 1999, or dial 02-27208889 at extension 7013, 7031 or 7033 to consult with the Labor Relations Division.

       For information on the LSA, dial 1999, or dial 02-27208889 at extension 3325, 3327, 3349, 7015 to 7018 to consult with the Labor Standards Division.