2017-11-20

Proposed Amendment to Labor Standards Act

Taiwan's Executive Yuan has officially proposed an amendment to the Labor Standards Act ("LSA") to resolve issues arising from the previous amendment which introduces the "one fixed day off and one flexible rest day" system.

Premier Lai explained the proposed amendment at a press conference and stated that four items will remain unchanged, meanwhile there are four flexible measures in the amendment. The four items that will remain unchanged are the total number of working hours, the cap on overtime working hours, the rate for overtime wages, and the principle of rest on weekends.

The four flexible measures introduced in the amendment are as follows:

1. The cap on total overtime will be raised from 46 hours per month to a maximum of 138 hours over a three-month period, with a cap on overtime hours at 54 hours per month.

2. The amendment will allow businesses to be exempted from the mandatory day off every week, provided they obtain required approvals.

3. The amendment will also allow for a one-year extension of unused days of annual leave.

4. Finally, the amendment will allow businesses to reduce the minimum rest time between shifts to between 8 to 11 hours with the consent of employees or unions.

Labor groups have expressed strong objections to this proposed amendment and have stated that the basic spirit of the LSA is violated by these proposals.
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