Illustration of notification process, deadlines, fines for violations of mass dismissals

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According to the Law on the Protection of Mass Dismissal of Laborers, if a public institution needs to lay off a large number of workers due to reasons such as closure of business, suspension of business, loss, business change or merger and reorganization, it should submit a plan within the time limit to notify the competent authority, and announce it. This is the correct mass dismissal process, otherwise fines may be imposed.

The definition of mass layoffs

Dismissal of many workers at one time is not the same as mass dismissal. Mass dismissal is clearly defined in the Mass Dismissal Workers Protection Act (the "Big Solution" for short).

(one)Prerequisites for mass dismissals

Mass dismissal as referred to in the Great Resolution Act is limited to the following reasons:

  • When the business unit loses money or the business is contracted.
  • When the institution is forced to suspend work for more than one month.
  • When the business nature of the institution changes, it is necessary to reduce the labor force, and there is no suitable job available for placement.
  • When the worker is truly incompetent for the job he is doing.
  • Mergers and acquisitions of business units.
  • Business unit reorganization.

(two)How many people does it take to fire a mass fire?

The criteria for mass layoffs vary depending on the size of the business unit.

(three)Didn't get a dismissal notice? Vicious bankruptcy is also considered a large number of dismissals!

Many workers are curious that most companies do not formally issue dismissal notices to workers when they close down viciously. Since there is no formal dismissal, can companies and their responsible persons be held accountable in accordance with the Mass Dismissal of Labor Protection Law?

In fact, in addition to the unilateral dismissal of workers by the employer, if the employer causes the worker to voluntarily terminate the labor contract in accordance with Article 14 of the Labor Standards Act due to "non-payment of work remuneration" or "violation of labor laws", as long as the number of affected persons meets the conditions, the "Large Number of Works" can also be applied. Dismissal Labor Protection Act.

2. Mass dismissal process

The process of mass dismissal is divided into three stages: notification to the competent authority >> labor-employment negotiation >> dispute resolution.

(1) Notify the competent authority at least 60 days in advance

The notification process is as follows:

  • Submit a dismissal proposal
  • Notify the local labor authority and relevant units or personnel
  • announcement reveal

1.How to write a dismissal plan?

A termination proposal must contain the following:

  • grounds for dismissal
  • fire department
  • date of dismissal
  • Number of dismissals
  • Selection Criteria for Dismissals
  • Calculation method of severance pay and counseling plan for career change, etc.

2.Who is to be notified when a termination plan is written?

The order of notification of the dismissal proposal is as follows:

  • A labor union belonging to a large number of employees who have been dismissed from the department is involved in the business unit.
  • The labor representative of the labor-management meeting of the institution.
  • A large number of workers in the department are involved in the dismissal of the business unit. However, it does not include fixed-term contract labor as stipulated in Article 46 of the Employment Services Act.

3. 60What is the date limit?

Based on the day of mass dismissal, the "one day before" is pushed back 60 days to become the notification deadline.

  • If the deadline falls on a holiday, it will be pushed forward to the previous working day.
  • If workers are to be dismissed in batches, it shall be counted from the date of the first dismissal.
  • In case of natural disasters, incidents or emergencies, there is no 60-day limit

4. Additional information: What is a mass dismissal "warning notice"?

The mass dismissal warning notice is different from the general mass dismissal notice. When the public institution has not decided to mass dismissal, but there is a sign of "may be mass dismissal", it is necessary to warn the competent authority or relevant unit personnel to know it, so as to facilitate the early warning. strain.

(two)10 after notificationConduct labor consultation and vocational training consultation within days

Within 10 days from the date of submitting the dismissal plan, both employers and employees must negotiate on their own. If the labor and employer refuse to negotiate on their own or cannot reach an agreement, the local labor administration authority shall convene the two parties to form a consultation committee within 10 days, start a mandatory consultation, and arrange labor employment services and vocational training consultation.

1. How is the Consultative Committee composed?

The number of people is 5-11, including 1 representative of the competent authority, and the same number of representatives of both employers and employees.

 Employer representativeLabor representative
Priority order of candidatesEmployer assignment. Designated by the competent authority.Union push. Labor elections at the labor-management meeting. Affected sector labor elections. Designated by the competent authority

2.Responsibilities of the Consultative Committee

  • Meetings are convened by the chairperson, at least every two weeks.
  • If an agreement is reached, the effect of the agreement extends to individual workers.

(three)Dispute resolution

If a consensus is reached through negotiation, the next stage is to formally implement the results of the agreement. If no consensus is reached, it does not matter. Both employers and employees can still file for mediation or litigation to resolve disputes through the judicial system.

1.labor-employer negotiation

After the labor-employment compulsory negotiation reaches an agreement, the agreement must be submitted to the court for approval within 7 days of the establishment of the agreement. The agreement approved by the court can be used as the name of execution and directly used to apply for compulsory execution.

2.Labour-employer negotiation failed to reach an agreement

In the event that no agreement is reached, both parties can still follow the provisions of the Labor Dispute Settlement Law and resolve disputes through judicial proceedings.

3. What you need to know about legal mass dismissal

In addition to complying with legal procedures, public institutions should pay attention to the following precautions when conducting mass dismissals.

(one)Need to cooperate with arranging labor service and vocational training consultation

During the mandatory consultation period, the competent authority will assign employment service personnel to enter the institution to provide employment services and vocational training related consultation.

(two)Arbitrary transfer and dismissal shall not be allowed during the negotiation period

After workers are dismissed with notice, employers may not dismiss or transfer these workers during the negotiation period.

However, if the worker has found another job on his own during the negotiation period, the employer still needs to pay severance pay and pension according to the law, and the "best-in-class payment" is adopted. Payment will be made according to the negotiation results.

(three)Discrimination against dismissal

When an employer fires a large number of workers, it shall not screen the fired workers on the basis of race, language, class, ideology, religion, party affiliation, nationality, gender, appearance, physical and mental disability, age, and union position, otherwise the termination of the labor contract will not be effective.

(Four)Priority rehiring

If a business unit resumes work after mass layoffs, reorganizes other companies with similar business nature, or recruits workers with similar job nature for other employee needs, priority should be given to hiring workers who have been mass fired before.

4. Liability for illegal mass dismissal

If the mass dismissal process is not followed, in addition to the institution itself being fined, the person in charge may also be restricted from leaving the country.

(one)Responsibilities of Business Unit Leaders

Institutions and their responsible persons (representatives) are legally two different subjects. Generally speaking, since the workers are employed by the company, the responsibility for arrears of wages should also be borne by the company, and has nothing to do with the person in charge.

However, if there is a situation of "arrears of pensions, severance pay and wages" in the case of large-scale dismissal of the business unit, the Ministry of Labor may request the immigration management agency to prohibit the person in charge of the business from leaving the country.

Further reading:There is only one formula for calculating severance pay! 4 steps to appeal arrears of wages and apply for salary advance

1.How much owed wages can restrict the person in charge from leaving the country?

When a business causes a large number of dismissals of unpaid wages, the amount of unpaid wages needs to meet a certain standard before it is serious enough to activate the “restricted exit” defense mechanism that restricts the personal freedom of movement of the person in charge.

total workforceTotal amount of unpaid wages of all dismissed workers
10-29 people3 million yuan
30-99 people5 million yuan
100-199 people10 million yuan
>200 people20 million yuan

Case Studies:

A well-known display and panel manufacturing company in Taoyuan laid off a large number of about 1,900 employees due to bankruptcy in 2019, with a total back pay of about 90 million yuan. Although the company followed a large number of dismissal procedures, put forward a plan in advance and launched a labor consultation mechanism, the person in charge was eventually restricted from leaving the country because the issue of wage arrears was not resolved.

2.Who are the persons in charge who will be restricted from leaving the country?

The following persons may be restricted from leaving the country in accordance with the law when the company is massively dismissed and owed wages.

  • Chairman of the Company Limited.
  • A limited company shall be the chairman specified in the articles of association; if there is no chairman, it shall be the director who executes the business.
  • The executive shareholders of the unlimited company and the KKK; those without executive shareholders are the shareholders representing the company.
  • A partner is a partner who executes the business.
  • A sole proprietor is the investor or its legal representative.
  • Other legal entities shall be their representatives.
  • An unincorporated body shall be its representative or manager.
  • The competent authority investigates and discovers that there is another person who is actually in charge.

3. Supplementary explanation: The company owes labor health insurance and pensions, and the person in charge may need to pay it off in person

Regardless of whether the company has a large number of dismissals, as long as the employer owes the following fees and the assets in the employer’s name are not enough to pay off the outstanding amount, the person in charge or the representative will be responsible for the compensation and compensation, and it needs to pay out of their own pockets with private property.

  • Labor insurance premium and late fee (only if the person in charge is at fault)
  • Health Insurance Premiums and Late Payment Fees
  • Pensions and Late Payment Fees

These responsibilities are directly imposed on the person in charge, not the person in charge to make advances on behalf of the company. Therefore, after the person in charge has paid the arrears, he can no longer ask the company to return the money for other reasons such as commissioned expenses and unjust enrichment. However, the current practical judgment points out that the person in charge who needs to bear the aforementioned obligation of repayment and compensation is limited to the person in charge at the time of the incident, not the person who succeeds after the incident.

(two)Penalties for companies not following mass termination procedures

If a company fires a large number of workers without following the legal process, it may face the following penalties.

1.Competent authorities not notified: 1010,000~5010,000, can be punished continuously.

If the dismissal plan is not notified to the competent authority and relevant units or personnel before the deadline, and the announcement is made, a fine of not less than NT$100,000 but not more than NT$500,000 shall be imposed, and the notification or announcement shall be made within a time limit. Punishment shall be imposed on consecutive days until the notice or announcement is disclosed.

2.Not cooperating with mandatory negotiation: 10~50Ten thousand.

If the company has the following matters, it can be fined between NT$100,000 and NT$500,000

  • There was no negotiation on the content of the dismissal proposal.
  • Refusing to appoint a negotiating representative or failing to notify the labor selection of a labor representative in a department involving a large number of dismissals in the business unit.
  • Deny employment service personnel to enter.
  • Arbitrarily reassign or dismiss workers who have been dismissed without notice during the negotiation period.

3.Refused to explain or provide financial statements: 3-1510,000, can be punished continuously.

Those who refuse to provide explanations or fail to provide financial statements shall be fined between NT$30,000 and NT$150,000; they shall be ordered to provide within a time limit, and those who fail to provide within the time limit shall be punished continuously until they are provided.

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