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Things you've never known about the Labor-Management Meeting (LMM) - the importance of LMM has been increased after revision of the law

       After the implementation of the revised provisions of the Labor Standards Act on 1st March this year, the rules such as to loosen the monthly work overtime limit, to shorten the shift interval, or to flexibly adjust the seven-working days with one-fixed day off should only be implemented after the convening and approval of the labor-management meeting (LMM). Companies employing more than 30 workers shall report to the local authorities for references. After the revision of the law, the role of LMM has become more important.

       In practice, companies often mistakenly believe that convening all employees and obtaining the agreement means "labor-management meeting." However, what is the real meaning of LMM according to the Labor Standards Act? How should the labor representatives be selected? How to one exercise the consent in accordance with the Labor Standards Act for extended working hours, flexible working hours, night shifts for females, and other flexible adjustments related to this revision?

       According to Article 83 of the Labor Standards Act, "in order to coordinate the relations between labor and company, to impel the cooperation, and to improve work efficiency, it is necessary to host the labor-management meeting." Therefore, the establishment of LMM is a kind of consulting and negotiating system to coordinate labor-management relations, to motivate labor-management cooperation, and to prevent various labor issues. Based on Articles 3 to 5 of the Regulations for Implementing Labor-Management Meeting (hereinafter referred to as "the same law"), a labor-management meeting is composed of the same numbers of representatives from both employers and employees. The number of representatives depends on the total members of a company, and can be defined with 2 to 15 people, while a company with more than 100 persons shall have at least 5 representatives from both sides. The employer's representative is directly assigned by the company, who shall have the decision-making power and shall be familiar with the business and the situation of labor. The employer himself may also act as the representative. The employee's representative can be elected by a labor union or be directly voted for by all employees as required.

       The following two rules should be well considered during the election of labor representatives: firstly, when the number of a single gender in a company exceeds one-half of the total employees, the number of representatives in this gender shall not be less than one-third (for instance: more than one-half of employees in a company are female, and if 5 employee's representatives are required, there should be at least 2 females). Secondly, people who hold the titles of chief executive officers are not allowed to represent employees. In addition, when all the representatives are assigned or elected, the company shall report the name list actively to the local authority for reference within 15 days, and hold the LMM every three months in accordance with Article 18 of the same law.

       If a company expects to implement flexible working hours, to extend working hours, to execute night shifts for females, to loosen the monthly work overtime limit, to shorten the shift interval, or to flexibly adjust the seven-working days with one-fixed day off, they shall get the approval from the LMM before execution according to the provisions of Articles 30, 32 and 49 of the Labor Standards Act. Moreover, more than half of the representatives from both employer and employee sides must attend the meeting. After consensus is reached, a resolution shall be made; if no consensus can be reached, the resolution shall be approved by three-quarters of the attendees.

       In order to enable the companies to hold LMM in accordance with the law and to implement the labor participation system in the enterprise, a total of 578 institutions that are listed companies and are with more than 200 employees, yet without LMM, have been listed as the inspection targets in priority in the first half of this year. Until mid-May, a total of 479 companies have been coached. The completion rate reached about 83% (93% are listed companies and 74% are companies with more than 200 employees). The Department of Labor will continue to coach and set up LMM aggressively for new companies with more than 5 employees and the enterprises employing 100 to 200 persons.

       Finally, we remind all companies that have not yet held LMM that they should take action as soon as possible. After the selection of LMM representatives, the name list or the transaction list shall be reported through the online system (URL: https://ap.bola.taipei/bola_front )within 15 days. The feedback will be sent out systematically (no more paper copies), therefore, companies can directly check the status online and print out the results in a convenient way.