Newsletter
DRAFT MEASURES TO PROTECT WORKERS IN MASS LAYOFFS APPROVED
The Executive Yuan approved on 9 September the Protective Measures for Laid-Off Workers to protect workers made redundant in large-scale layoffs. A large-scale layoff is defined as: a) an enterprise with more than 200 employees dismissing one-third of its workforce within a period of six months, or more than 30 at one time; or b) an enterprise with less than 200 employees dismissing one-third of its workforce within six months, or more than 20 at one time. To reduce the risk of industrial disputes arising out of large-scale layoffs, three major preventive mechanisms are to be established: an early warning mechanism, a rights protection mechanism, and an assistance mechanism. Under these mechanisms, among other things, employers will have a duty to inform and consult their employees before plant closures; restrictions on claiming compensation for unpaid wages will be relaxed, to assist workers whose interests have been harmed; and financial aid will be available for payment of legal fees incurred in joint legal actions. The measures took effect retroactively as of 1 July 1999 and shall remain in force until 31 December 2004.