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How Collective Bargaining Works in Taiwan

Taiwan’s Collective Agreement Act sets who may bargain, requires good-faith negotiations, and lays out approval, filing, disclosure, and conditional deadlock procedures.
From TheFinanceBase Team4 min to read
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In Taiwan, collective bargaining is a legally structured negotiation between an employer (or a qualifying employer organization) and a union entitled to bargain under the Labor Union Act. The parties negotiate a written collective agreement, act in good faith, obtain the required approvals, then file and disclose the agreement. The main rules are in Taiwan’s Collective Agreement Act.

Who can bargain collectively in Taiwan?

The law determines which unions may bargain; union status alone does not automatically establish a right to negotiate with every employer. An enterprise union may qualify, as may specified industry or occupational unions that meet statutory membership requirements. The Act also recognizes a union found eligible through the labor-dispute decision process. An employer-side party may be the employer or a qualifying employer organization with legal-person status. See the Ministry of Labor’s English text of the Collective Agreement Act.

When more than one union or employer-side organization is involved, representatives can be selected. If the sides cannot agree on how to select them, the statute provides for representation in proportion to membership. The Ministry’s collective bargaining guidance includes material on eligibility and multiple-union bargaining.

How does the bargaining process work?

1. Confirm eligibility and choose representatives

Identify the employer-side party, the eligible union or unions, and the people authorized to represent each side. Where several organizations seek to bargain, settle representation before substantive negotiations begin or follow the statutory selection route if agreement is not possible.

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2. Prepare proposals and exchange necessary information

Preparation is a practical step, not a rule requiring either side to produce every document or financial record. The Ministry’s guidance treats preparation and meeting arrangements as distinct parts of the process. The Act permits a party to require confidentiality for information provided for bargaining and to seek necessary expenses. It also identifies refusal to provide information needed for bargaining as a potential unjustified refusal. The obligation concerns information necessary to negotiate; it is not a blanket disclosure requirement.

3. Negotiate in good faith

The Act states: “The labor and management sides shall bargain a collective agreement in good faith; neither party may refuse to bargain without justifiable reasons.” It gives examples of conduct that may amount to unjustified refusal, including rejecting reasonable bargaining content or meeting arrangements, not responding to a written bargaining notice and bargaining within 60 days, and withholding necessary bargaining information. Whether a particular action violates the duty depends on the facts and the applicable labor-dispute decision process.

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4. Agree on the subjects and wording

Parties can negotiate terms on many aspects of work and their relationship. Topics identified by the Ministry include:

  • Wages, work 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 welfare
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A Ministry publication on newly signed agreements gives examples such as overtime-pay calculations, scheduled negotiations over salary-increase rates, rights related to mergers or transfers, preferential layoff or retirement schemes, job guarantees, occupational-accident compensation, and insurance for union members. These are examples of possible negotiated terms, not a measure of how common they are.

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5. Approve, sign, file, and make the agreement available

Internal approval is part of whether an agreement takes effect. The Ministry’s FAQ, updated September 3, 2026, says that when a union or employer organization signs in its collective name, its charter generally governs approval. Otherwise, the Act’s alternatives are generally:

  • A meeting attended by more than half of the members or representatives, with approval from at least two-thirds of those attending; or
  • Written approval from at least three-quarters of all members.

If the required approval has not been obtained, the agreement does not take effect until the approval process is completed and it is ratified. Certain public-sector agreements also require prior approval by a specified authority. The applicable authority depends on the public-sector party; consult the Ministry’s current guidance and the current Chinese statutory text for the exact requirement.

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After signature, the labor-side party submits the agreement to the competent authority for record. Both parties must display it publicly and keep a copy available for interested parties to inspect. The Ministry’s collective bargaining materials cover the practical stages, while its FAQ addresses current approval and filing formalities.

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What happens once the agreement takes effect?

The agreement governs the labor relationship covered by its terms. The Ministry says applicable agreement terms bind the relevant employer and union unless the agreement provides otherwise. Its guidance treats performance and effect as a distinct topic, so the parties should use the signed text to determine which conditions, procedures, and people it covers.

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What happens if bargaining reaches a deadlock?

Six months of bargaining does not automatically send a dispute to arbitration. Under the Act, a local competent authority may refer the matter to arbitration only after bargaining has lasted more than six months and a decision under the labor-dispute settlement law finds a specified unjustified refusal. The authority must also consider the parties’ interests and the likelihood of reaching an agreement, and the parties may agree otherwise. This is a conditional statutory route, not an automatic deadline or guaranteed outcome.

Where to check the rules

The Ministry of Labor provides a collective bargaining reference and practical guidance on eligibility, preparation, negotiations, deadlock, implementation, and drafting. For a live negotiation or dispute, verify the current consolidated Chinese law and the applicable Ministry guidance: eligibility and public-sector approval can depend on the parties and circumstances.

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