Newsletter
LABOR STANDARDS LAW AMENDMENT PROPOSAL
The Council of Labor Affairs (CLA) plans to submit a draft amendment to the Labor Standards Law to the Executive Yuan by the end of June for examination. Major points of the draft amendment are outlined below:
The calculation period for average wages will be extended from the current six months to one year, and term "wages" will not include overtime pay, nor double pay for work on holidays, vacations, or special holidays.
A provision is added that "the probationary employment period may not exceed three months." During such period, either an employer or employee may terminate the labor contract without prior notice, and the employer need not make any severance pay. Once the probation period has concluded, calculation of the employee's service should begin from the first day of employment.
Provisions are added that if an employee has a statutory communicable disease that cannot be cured, and a danger of transmission continues to exist, the employer may terminate the employment contract by giving prior notice and making severance pay; and that an employer may terminate without prior notice the employment contract of an employee who has been absent from work for 12 days, cumulatively, within one year.
The current statutory weekly working hours will be lowered from 48 hours to 44 hours, but business entities are given a two year buffer period to implement the change. The ceiling on overtime hours is unified for male and female workers at 4 hours per day, and 46 hours per month, provided that daily working hours cannot exceed 12.
The provisions concerning "four-week modified work hours" are made applicable to all industries.
Business entities may, with the consent of the labor union or more than half the employees and with permission from the CLA, adopt "eight-week modified work hours." That is, the daily ceiling on work hours can be lifted for employees in industries approved to use "eight-week modified work hours," so the employees will not be subject to the 12-hour daily work time restriction and restrictions concerning holidays and vacations, and may work for 7 consecutive weeks and then have 1 week off, provided that the 384-hour (or 352-hour) ceiling on regular work time and 92-hour ceiling on overtime within the 8-week period continue to be observed.
An employer who obtains the consent of the labor union or employees and notifies the CLA (formal approval is not needed), and who provides sound safety and hygiene facilities and dormitories or transportation services, may employ female workers between the hours of 10:00 p.m. and 6:00 a.m., except during periods of pregnancy and nursing.