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How Collective Bargaining Works in Taiwan

Taiwan collective bargaining involves eligible unions and employers negotiating in good faith, securing required approvals, and filing and disclosing a written agreement.
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In Taiwan, collective bargaining is a legally structured negotiation between an employer (or a qualifying employer organization) and a union eligible under the Labor Union Act. The parties negotiate a written collective agreement, observe a statutory duty to bargain in good faith, complete applicable approval steps, and file and disclose the signed agreement. The rules are set chiefly by the Collective Agreement Act; eligibility and formalities depend on the parties and circumstances.

Who can bargain collectively?

The Act does not make every union automatically eligible to bargain with every employer. Eligibility depends on union type and the statutory relationship between the union and employer. Enterprise unions may qualify, as may specified industry and occupational unions that meet membership requirements. The statute also recognizes a union found eligible through the labor-dispute decision process.

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When more than one union or employer-side organization is involved, the other side may request selection of bargaining representatives. The parties may agree on the representatives; if they cannot, the Act provides for selection in proportion to membership. The Ministry of Labor’s collective bargaining guidance covers eligibility and multiple-union bargaining. In a specific case, eligibility should be checked against the applicable statutory criteria and facts.

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What happens before negotiations?

Preparation is a practical step, not a substitute for the law’s specific duties. Parties can identify representatives, develop proposals, gather supporting information, and agree on meeting arrangements. The Ministry provides practical materials on preparation and bargaining meetings in its collective bargaining guidance.

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Information exchange has legal boundaries. A party may request confidentiality for information it supplies and may seek necessary expenses. At the same time, refusing information necessary for bargaining can be treated as an unjustified refusal to bargain. The rule does not mean that every document or financial record must be disclosed; whether particular information is necessary depends on the bargaining issue and circumstances.

What does good-faith bargaining require?

The Collective Agreement Act states: “The labor and management sides shall bargain a collective agreement in good faith; neither party may refuse to bargain without justifiable reasons.” The Act identifies examples of conduct that may constitute refusal without justifiable reasons:

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  • Rejecting reasonable bargaining proposals or reasonable arrangements for the time, place, or method of meetings.
  • Failing to respond to a written bargaining notice and bargain within 60 days.
  • Refusing to provide information necessary for bargaining.

These are statutory examples, not a checklist that resolves every dispute automatically. The facts and the relevant labor-dispute decision process matter. The 60-day period is tied to responding to a written notice and bargaining; it is not a general deadline for concluding an agreement.

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What can a Taiwan collective agreement cover?

The Ministry lists a broad range of possible subjects. Depending on the parties’ negotiations, an agreement may address:

  • Wages, working hours, allowances, and bonuses.
  • Transfers, layoffs, retirement, and occupational injury compensation.
  • Union organization and operations, including workplace facilities.
  • Grievance procedures, occupational safety and health, and employee welfare.
  • Other matters the parties agree to observe.

A Ministry publication gives examples from newly signed agreements, including overtime-pay calculations, scheduled negotiations over salary-increase rates, rights related to mergers or transfers, preferential layoff or retirement arrangements, job guarantees, occupational-accident compensation, and insurance for union members. These illustrate possible terms; they are not a survey of current agreements or a statement that such clauses are common today.

How does an agreement get approved and take effect?

Obtain the required internal approval

Under the Ministry of Labor’s FAQ, updated September 3, 2026, approval generally follows the organization’s charter when a union or employer organization signs in its collective name. Otherwise, the Act’s approval routes generally include either a meeting attended by more than half of members, with at least two-thirds of those attending approving, or written approval from at least three-quarters of all members. An agreement signed without required approval does not take effect until the approval process is completed and the agreement is ratified.

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Check public-sector approval requirements

Some agreements involving public-sector parties require prior approval from a specified authority. The Ministry FAQ identifies public enterprises and particular government bodies and schools. The authority can depend on the entity involved, so parties should check the current Chinese statutory text and the Ministry’s agreement-effect FAQ for the applicable route.

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File and make the agreement available

After signing, the labor-side party submits the agreement to the competent authority for record. Both parties must publicly display it and keep a copy available for interested parties to inspect. The Ministry’s FAQ explains these formalities and the effect of the agreement.

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What obligations follow signature?

The agreement governs the labor relationship covered by its terms. The Ministry’s English text of the Act says that the relevant employer and union are bound by the agreed working conditions unless the agreement provides otherwise. The Ministry’s practical guidance also treats performance and effect as part of the agreement’s lifecycle, rather than treating signature as the end of the process.

What if bargaining reaches a deadlock?

Six months of bargaining does not automatically trigger arbitration. The Act allows a local competent authority to refer a case to arbitration only when bargaining has lasted more than six months and a decision under the labor-dispute settlement law finds a qualifying instance of unjustified refusal. The authority must also consider the parties’ interests and the likelihood of reaching an agreement, and the parties may agree otherwise. The provision is conditional authority, not an automatic next step whenever negotiations stall.

What is not established about bargaining coverage?

The Ministry’s statistical glossary defines collective agreements, but the material cited here does not establish a current count of agreements in force, the number of workers covered, a bargaining-coverage rate, average negotiation duration, or typical outcomes. Those figures should not be inferred from examples of agreement terms.

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