Taiwan Gender Equality Employment Act

Overview and Background

The Act of Gender Equality in Employment (AGEE) in Taiwan, originally enacted in 2002, is a fundamental piece of legislation designed to protect gender equality in the workplace, eliminate gender discrimination, and promote a working environment founded on substantial gender equality. It covers various aspects, including the prohibition of gender discrimination in employment, provisions for equal pay, prevention of workplace sexual harassment, protection against pregnancy discrimination, and measures for maternity and parental leave.

In response to the global "MeToo" movement and numerous accounts of sexual harassment in Taiwan, significant amendments to the AGEE were passed by the Legislative Yuan on July 31, 2023. These amendments, largely taking effect on March 8, 2024 (International Women's Day), primarily focus on strengthening mechanisms for preventing and addressing workplace sexual harassment, enhancing victim protection, and imposing more stringent penalties on perpetrators and employers for non-compliance. The Act was also officially renamed in Chinese to "Gender Equality in Employment Act" on August 18, 2023, reflecting its broader scope of ensuring gender equality in the workplace.

Key Provisions and Requirements (Pay Equity and Transparency)

Pay Equity

The AGEE explicitly stipulates that employers must not discriminate against employees based on their gender or sexual orientation when determining wages.
Employees are entitled to receive equal pay for equal work or work of equal value.
Wage differentials are permissible only if they result from objective and justifiable reasons unrelated to gender or sexual orientation, such as seniority systems, award and discipline systems, or merit systems.
Employers are prohibited from circumventing these provisions by reducing the wages of other employees.

Pay Transparency

While the 2023 AGEE amendments focused primarily on sexual harassment, another key regulation impacting pay transparency in Taiwan is Article 5 of the Employment Service Act. This article requires employers to publicly display or inform the range of regular pay when recruiting or employing employees if the monthly salary is less than NT$40,000 [cite: 8 (previous search), 11].
For job advertisements offering salaries above NT$40,000, it remains common practice for companies to list the salary as "negotiable" or "open for discussion" [cite: 17 (previous search)].

Key Provisions (2023 Sexual Harassment Amendments)

The 2023 amendments significantly bolster the sexual harassment provisions within the AGEE:

**Expanded Scope:** The Act now covers sexual harassment occurring during non-working hours, including incidents involving individuals from the same company, business associates, or the highest-ranking official/employer. It also introduces a definition for "sexual harassment by a position of power".
**Employer Responsibilities:** Employers are now required to take immediate and effective corrective and remedial measures upon becoming aware of a sexual harassment incident, regardless of whether a formal complaint has been filed.
**Complaint Mechanisms:** Employers with 10 or more but fewer than 30 employees must establish and publicly display a sexual harassment complaint channel. Employers with 30 or more employees must establish comprehensive prevention measures, complaint procedures, and disciplinary policies.
**External Oversight:** Employers are obliged to notify local authorities of complaints received and the investigation outcomes. New external complaint channels have been established, allowing employees to file complaints directly with local labor authorities.
**Victim Protection:** The amendments codify additional legal measures for victim protection and assistance, including confidentiality regulations and an extension of the statute of limitations for filing claims, particularly for individuals who resigned or were in unequal power relationships.

Scope (Who must comply, thresholds)

The Act of Gender Equality in Employment generally applies to all employers and employees in Taiwan, including civil servants, educational personnel, and military personnel, with some specific exclusions for certain articles.

Specific compliance thresholds exist for sexual harassment prevention measures:

Employers with 10 or more but fewer than 30 employees are required to establish a complaint channel and publicly display it.
Employers with 30 or more employees must establish comprehensive sexual harassment prevention measures, complaint procedures, and disciplinary policies, which must also be publicly displayed.

Employer Obligations

Regarding Pay Equity and Discrimination:

Prohibit gender or sexual orientation discrimination in recruitment, hiring, placement, assignment, evaluation, promotion, education, training, and welfare measures.
Ensure equal pay for equal work or work of equal value, without reducing other employees' wages to achieve compliance.

Regarding Sexual Harassment (2023 Amendments):

Take immediate and effective corrective and remedial measures upon knowing of sexual harassment, even without a formal complaint.
Establish and publicize sexual harassment complaint channels and prevention measures based on employee headcount.
Notify local authorities upon receiving sexual harassment complaints and provide investigation results for substantiated cases.
Implement temporary measures during investigations, such as job adjustments or suspensions, especially when the accused holds a position of power.
Provide necessary medical or counseling assistance to complainants.
Conduct employee education and training on sexual harassment prevention.

Employee Rights

Regarding Pay Equity and Non-Discrimination:

The right to not be discriminated against based on gender or sexual orientation in employment terms, including wages.
The right to equal pay for equal work or work of equal value.

Regarding Sexual Harassment (2023 Amendments):

The right to file a complaint with the employer or directly with local competent authorities.
The right to protection of confidentiality during the complaint and investigation process.
The right to receive necessary medical or psychological counseling and support.
Extended statute of limitations for filing sexual harassment claims, particularly for those in unequal power relationships or after resignation.
Protection against retaliation for filing a complaint or assisting in an investigation.

Penalties for Non-Compliance

Penalties for violations of the AGEE can include administrative fines and civil damages:

**Gender Discrimination (including pay discrimination):** Employers who violate provisions on gender discrimination, including equal pay, may face administrative fines. Additionally, the discriminated party may seek civil damages from the employer.
**Sexual Harassment (2023 Amendments):**

Failure to establish prevention measures, adequately investigate, or take effective remedial actions can result in fines ranging from NT$20,000 to NT$1,000,000.
For sexual harassment by those in a position of power, the court may impose punitive damages ranging from one to three times the amount of damages, potentially increasing to three to five times if the perpetrator is the person in charge and the employer.
Criminal sentences for power-based sexual harassment may be increased by up to 50%.
Employers found to have committed severe sexual harassment may face termination of their labor contract without prior notice.

**Pay Transparency (Employment Service Act):** Employers failing to display salary ranges for jobs under NT$40,000 can be fined TWD 60,000–TWD 300,000 (approx. USD $1,940–$9,715) [cite: 11 (previous search)].

Implementation Timeline

The Act of Gender Equality in Employment was originally promulgated on January 16, 2002, and became effective on March 8, 2002 [cite: 5 (previous search)].

The most recent amendments were passed by the Legislative Yuan on July 31, 2023. The President announced the amendments on August 16, 2023, and the Act's Chinese name was revised on August 18, 2023. Most of the provisions from the 2023 amendments came into force on March 8, 2024, aligning with International Women's Day. Some specific provisions, such as the change in the Act's Chinese name, and increased punitive damages, took effect immediately upon promulgation on August 18, 2023.

Compliance Recommendations

**Review and Update Policies:** Employers should thoroughly review and update their internal policies and employment contracts to ensure full compliance with the updated AGEE, particularly regarding sexual harassment prevention and response.
**Conduct Pay Equity Audits:** Regularly assess compensation practices to ensure equal pay for equal work or work of equal value, identifying and rectifying any unjustified gender or sexual orientation-based wage gaps.
**Enhance Transparency in Recruitment:** Ensure all job advertisements comply with the Employment Service Act by clearly stating salary ranges for positions with monthly wages below NT$40,000. Consider greater transparency for higher-paying roles to attract talent and foster trust.
**Strengthen Sexual Harassment Prevention:** Implement robust sexual harassment prevention measures, including clear reporting channels, prompt investigation procedures, and effective remedial actions. Provide regular training to all employees and management on these policies.
**Training and Awareness:** Educate employees and management on their rights and obligations under the AGEE, emphasizing zero tolerance for discrimination and sexual harassment.
**Document Everything:** Maintain meticulous records of policies, training, complaints, investigations, and remedial actions taken to demonstrate compliance.
**Seek Legal Counsel:** Given the complexities of the law and recent amendments, employers are advised to consult with legal experts to ensure comprehensive compliance.