The President promulgated Articles 24, 32, 34, 36-38 and 86 of the Labor Standards Act (hereinafter, the “Act”)as amended and the addition of Article 32-1 of the Act via the President-Hua-Zhong-One-Yi-Zi-10700009781 Directive of January 31, 2018. The Act came into effect on March 1, 2018. The amendments are highlighted below:
1. The overtime compensation for rest days is changed into payment based on actual overtime.
Article 24, Paragraph 3 of the Act is deleted. To wit, when an employer asks an employee to extend the work hours and work overtime on a rest day, it is only necessary to assess and pay the overtime pay based on the actual overtime hours pursuant to Paragraph 2 of the same article.
2. The extended work hours are revised into the ceiling of 54 hours in a single month and shall not exceed 138 hours every three months
Article 32, Paragraphs 2 and 3 of the Act as amended provide that with the consent of the labor union or, in the absence of a labor union for a business organization, with an agreement reached in an employee-management meeting, the extended work hours shall not exceed 54 hours each month and 138 hours every three months. When hiring over 30 workers, an employer shall report it to the local competent authority for record. To wit, restrictions are conditionally eased to the extent that the overtime does not exceed 54 hours each month and 138 hours very three months.
3. The rest time between shifts may be reduced to eight hours due to specific or special work-related reasons.
Paragraphs 2 and 3 are added to Article 34 of this Act. In the case of special work characteristics or special reasons with the approval of the central competent authority for specified business which has requested the central competent authority to make a public announcement and with the consent of the labor union or, in the absence of a labor union for the business organization, with an agreement reached in an employee-management meeting, the rest time may be changed to the extent that it does not fall short of eight consecutive hours. However, if an employer changes the work hours pursuant to the above requirement, the consent of the labor union shall be obtained; or, in the absence of a labor union for the business organization, an agreement shall be reached in an employee-management meeting before such change may be effected. When hiring over 30 workers, an employer shall report it to the local competent authority for record.
4. The requirement that a worker shall have one regular day off for every seven days of work is relaxed so that the worker may continuously work for 12 days before two rest days are granted.
Article 36, Paragraphs 3 and 4 of the Act are amended so that in case of an industry designated by the central competent authority, with the approval of the central competent authority for specified business and with the consent of the labor union or, in the absence of a labor union for the business organization, with an agreement reached in an employee-management meeting, an employer may adjust regular holidays within each seven-day cycle. The adjustment to regular holidays requires the approval of the labor union. If a business organization has no labor union, such adjustment requires an agreement reached in an employee-management meeting. When hiring over 30 workers, an employer shall apply to the local competent authority for reference. After the amendments, workers in a designated industry may be adjusted to two regular holidays after work has been performed continuously for 12 days.
5. The number of days of untaken special leave at the end of a year may be rolled over for another year as a result of employee-management negotiation.
Article 38, Paragraph 4 of the Act is amended with the additional requirement that if the number of days of untaken leave at the end of a year which are rolled over to the following year as a result of employee-management negotiation are still not taken at the end of the following year or upon termination of the labor contract, the employer shall pay wages for the untaken leave.
6. New supplemental provisions are made.
Article 32-1 is added to this Act. Under circumstances where an employer has caused a worker to extend work hours pursuant to Article 32, Paragraphs 1 and 2 or has agreed to supplement rest days selected by the worker after the worker has worked on the rest day stipulated under Article 36, the number of the supplemental rest hours shall be calculated based on the number of the worker’s work hours. The period of supplemental rest shall be negotiated between the employee and the employer. For the number of remaining rest hours upon expiration of the rest period or the termination of the contract, the wage shall be calculated and paid based on the wage for extended work hours or for a rest day on which work is performed. If the wage is not paid, a penalty will be imposed for violation of Article 24 of the Act.