Application of Labor Standards Act for Academia Sinica Contract-based Employees Dr. Chau-Chung Han Institute of Atomic and Molecular Sciences 2009/8/13

Outline 1 、 Labor Standards Act 2 、 Vacations 3 、 Miscellaneous Authorized Absences 4 、 Termination of Contract 5 、 Severance Fee 6 、 Retirement 7 、 Final Remarks 8 、 Questions

1. 、 Labor Standards Act  According to the Council of Labor Affairs’ No announcement published on November 30, 2007, the A. S. is under the power of the Labor Standards Act (hereinafter referred to as “the Act”) as of January 1,  All contract-based employees under non- personnel fees are covered by the Act.

2 、 Vacations ◎ Where the current regulations adopted by the Academy containing more favorable terms than those provided in the Act are preserved. ※ 7 Days : Has served a complete fiscal year, the leave is effective from the 2nd year. ※ 14 Days : Has served for 3 fiscal yeas, increase of leave length is effective from the 4th year. (vs. 6 th yr.) ※ 21 Days : Has served for 6 fiscal years, increase of leave length is effective from the 7th year. (vs. 18 th yr.) ※ 28 Days : Has served fro 9 fiscal years, increase of leave length is effective from the 10th year. (vs. 25 th yr.) ※ 30 Days : Has served for 14 fiscal years, increase of leave length is effective from the 15th year. (vs. 27th yr.)

3 、 Miscellaneous Authorized Absences (1) Days Type Miscellaneous Authorized Absences Personal Leave 14 Days （ Leave without pay from the 6th day ） Family Care Leave 7 Days (Family leave is regarded as personal leave.) Ordinary Injury or Sick Leave 30 Days （ Leave without pay from the 16th day ） Menstrual Leave 1 day for each month (Menstrual leave is regarded as sick leave. ) Martial Leave 8 Days Pre-Maternity Leave 6 Days Accompanying Maternity Leave 3 Days

3 、 Miscellaneous Authorized Absences (2) Days Type Miscellaneous Authorized Absences Maternity Leave 42 Days (Delivery) 42 Days （ For pregnancy over 5 months and miscarriage. ） 21 Days （ For pregnancy over 3 months but less than 5 months and miscarriage. ） 14 Days (For pregnancy less than 3 months and miscarriage. ） Funeral Leave 10 Days (Death of parent, spouse) 8 Days (Death of foster-parent, step-parent ) 7 Days (Death of parent of spouse, son or daughter ) 6 Days (Death of grand-parent, foster-parent or step-parent of spouse ) 3 Days (Death of brother or sister, grand-parent or great-grand parent of spouse)

4 、 Termination of Contract (1) Voluntary Job Quit ※ Voluntary Quit ※ Voluntary retirement ※ Paragraph 1 of Article 14 of the Act

4 、 Termination of Contract (2) ※ Employer’s Suspension ＊ Severance （ Article 11 of the Act ） ＊ Lay Off （ Article 12 of the Act ） ＊ Mandatory Retirement （ Article 54 of the Act ）

4 、 Termination of Contract (3) ※ Terminate Employment Agreement （ Article 16 of the Act ) The minimum period of advance notice ＊ 3 months to 1 year : 10 days ＊ 1 year to 3 years : 20 days ＊ 3 years above: 30 days

5 、 Severance Fee Fixed- Term Contract No Severance Fee Non- Fixed Term Contract Labor Standards Act 、 、 、 ） （ Article 11 、 Article 13 、 Article 14 、 Article 20 of the Act ） 1. A worker who has continuously worked for a business entity owned by the same employer shall be entitled severance payment equal to one month of average wage for each year of service. 2. Severance payment shall be paid in proportion to months of service not comprising a full year and not take into consideration under the computation in the preceding paragraph or where the period of service is less than one year. Any fraction of one month shall be deemed to be one month. (Article 17 of Labor Standards Act)

6 、 Retirement (1) Foreign Contract-based Employee ： A 、 Requirement for Applying Retirement: ※ 1. An employee may apply for voluntary retirement under either of the following conditions (Article 53 of the Act) : (1) Where the employee attains the age of 55 and has worked for 15 years. (2) Where the employee has worked for more than 25 years. (3) Where the employee attains the age of 60 and has worked for 10 years. ※ 2. An employer may force a worker to retire under either of the following conditions (Article 54 of the Act) : (1) Where the worker attains the age of 65. (2) Where the worker is unable to perform his duties due to mental handicap or physical disability. ※ 3. Seniority shall be limited to years of employment by the same business entity. B 、 Reserve Fund of Retirement Payment: ※ Academy had to follow the Act to start the contributions to the labor retirement reserve fund dating back to January 1, 2008.

6 、 Retirement (2) C 、 Calculation of base unit ＊ Article 55 of the Act A lump-sum payment of retirement payments equal to two base units shall be paid for each year of service, provided that each year of service exceeding fifteen years shall be entitled to only one unit of base wage, and that the maximum shall be forty-five units. Any fraction of a year which is equal to or more than six months shall be counted as one year of service, and any fraction of a year which is less than six months shall be counted as half a year of service. D 、 Claim of Retirement Payment An employee who meets the retirement requirement may file an application with the Academy for payment of retirement pension. The right of an employee to claim retirement payment shall not be recognized if not exercised within five years from the month following the effective date of retirement

7 、 Final Remarks AS has a very different nature from other organizations that fit the Labor Standards Act, and immense increase in personnel budgets will adversely affect budget allocation to research once AS is subjected to the Act. AS had made every possible efforts to exclude itself from the reign of the Act (i.e., continue to apply the original regulation prior to January 1, 2008) by asserting Paragraph 3 of Article 3 “…The Act shall apply to all forms of employee-employer relationships. However, this principle shall not apply, if it is discovered that the application of the Act will genuinely cause undue hardship to the business entities involved due to the factors relating to the types of management, the administration system and the characteristic of work involved and if it belongs to the lines of business or work designated and publicly declared by the Central Competent Authority.…” AS’s petition was rejected multiple time by the Council of Labor Affairs; even the ROC President could not help to push our petition through. While the long-term negative impact on the AS is beyond description, the law is law …

8 、 Questions To ensure that you get an accurate, professional answer, please use the question sheet to describe your questions and we will answer your questions by and a collective Q&A data base will be posted on the webpage so you can also see other questions raised by the audience. Further contacts: Miss Alice