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Taiwan Law

Outline of Taiwanese law covering structure and workings of Taiwan’s legal system and review of major laws and regulations

Commutation of Sentences to Fines in Taiwan

As the owners of intellectual property are well aware, convictions for lesser crimes in Taiwan rarely result in the offender actually serving jail time. If a court sentences an offender to a custodial sentence of up to six months for an offense that carries a maximum of five years, the sentence can be commuted to to a fine (yike fajin ) at a daily rate of NT$1,000 (c. US$33) to $3,000 (c. US$100). Criminal Code § 41.

IP conviction commuted to fine

For example, criminal trademark infringement carries a maximum sentence of three years. Trademark Act § 95.  Consequently, sentences for criminal trademark infringement are almost always commuted fines. This is illustrated by a 2011 case in which the Shilin District Court sentenced an offender surnamed Liu to a custodial sentence of 40 days for selling counterfeit computer accessories bearing the Hello Kitty and Audio-Technica marks. The sentence was suspended for two years and commutable to a fine of NT$1,000 per day. Shilin District Court, ShenZhijian 18 (2011).

Commutation is discretionary

While most such sentences are in fact commuted, commutation is not automatic but at the discretion of the prosecutor. Taiwan’s Code of Criminal Procedure provides that the sentences are carried out by the prosecutor at the court that handed down the sentence. § 457. This is construed to mean that the power to commute a sentence is at the discretion of the prosecutor.

Keelung City policy against commutation

The Keelung District Prosecutor’s Office has issued a new policy against drunk driving that illustrates this discretion well. Since June of this year,  Keelung prosecutors have been declining to commute sentences of less than six months for drunk driving to fines where the offender has been convicted of driving under the influence twice in the past five years . The Chinese language media Liberty Times reports that 33 drivers in Keelung have not had their sentences commuted to fine as almost certainly would have been the case in other cities or counties and instead have had to serve time for drunk driving. This had led some members of Taiwan’s legal community to argue that drivers in Keelung are being singled out unfairly because this is a purely local policy with no basis in the national policies of the Ministry of Justice (which administers the procurate) or the law. According to this view, the policy of not commuting sentences for these repeat offenders would justified only if the procurate adopts a uniform national policy against commutation of sentences for repeated drunk driving offenses.

Judicial review

Nonetheless, prosecutorial discretion in carrying out sentences is subject to judicial review. The Code of Criminal Procedure provides that a person who has received a sentence may petition the court to review the prosecutor’s carrying out of the sentence for abuse of discretion (budang).  § 484.  Three offenders have petitioned the Keelung District Court since June for reviews of decisions by the Keelung District Prosecutor’s Office not to commute sentences for drunk driving into fines.  One of the petitioners had his petition granted by the court on grounds that his imprisonment would cause undue hardship since he was the sole source of support for his extended family which included his 80 year old mother, young children, and his disabled younger brother. He also promised to reform and not to offend again.

Draft Amendments to Collective Bargaining Agreement Act Penalize Refusal to Negotiate

New amendments to the Collective Bargaining Agreement Act would place new obligations on both labor and management in the collective bargaining process. These amendments were approved by the government in early 2008, and could be enacted and promulgated as early as May 1, 2011.

In addition to the Collective Bargaining Agreement Act, the Council of Labor Affairs has also revised the Labor Union and Settlement of Labor Disputes Acts.

Under the draft revisions to Article 6 of the Collective Bargaining Agreement Act, employers and labor representatives must collectively bargain in good faith. Neither side may refuse to negotiate without a legitimate reason. The new amendments expressly list the following reasons as prohibited refusals:

  • refusing to proceed with negotiations if the proposed agreements have been presented in a reasonable manner and/or time frame;
  • not answering any written notices within 60 days of receipt; and
  • rejecting to offer any information that would otherwise facilitate negotiations;

Any of these acts of non-cooperation can be the basis for the Council of Labor Affairs to determine that either labor or management is refusing to negotiate. The amendments now allow the CLA to fine a party NTD 100,000-500,000 (US$3,195-15,975) if it refuses to negotiate, according to article 32 of the Act. These fines can be imposed repeatedly when labor or management refuses to negotiate on multiple occasions.

Article 6 of the act also clarifies as to who can represent labor in negotiations. Under the new law, a party must have contractual privity in the employment relation to represent. The practical effect is that only management and government-recognized unions will be able to sit at the bargaining table.

For legal guidance on employment law in Taiwan, please contact Christine Chen.

Online Sources of English Translations of Taiwanese Law

The first two databases listed are public and bilingual. Both have English pages with links to translations of many of Taiwan’s statutes, regulations, and judgments. The third, Lawbank, is a commercial service but deserves special mention because it also includes a searchable collection of administrative letters of interpretation (Chinese only) and English translations of varying quality unavailable elsewhere.

  1. Ministry of Justice law database
  2. Judicial Yuan law database
  3. Lawbank law database

Some other web pages providing translations of Taiwanese laws in specific areas are listed below. It should be noted the home pages of most Taiwan’s government agencies provide English translations of selected key laws and regulations in the agency’s jurisdiction. The new National Immigration Agency and the Council of Labor Affairs are important examples.

  1. Capital markets law
  2. Intellectual property law
  3. Competition law
  4. Environmental law
  5. Business and industrial law
  6. Banking law
  7. Tax law
  8. Insurance law

The primary and centralized source for new laws, regulations, and administrative acts and decrees is the Executive Yuan Gazette Online. While the full announcements are only available in Chinese, their abstracts are expertly translated and updated every weekday.
Paul Cox leads the Winkler Partners Translation Department.

Civil Code

Taiwan’s Civil Code is divided into five Books: General Principles, Obligations, Rights Over Things, Family, and Succession. A high quality English translation of the Code as amended in 1982 has been published in Major Laws of the Republic of China on Taiwan (Magnificent, 1991). A more current (2003) translation is available behind a paywall on Lawbank. The quality of this translation is uneven.

 

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