Yesin Law Firm × Pasona × MGR Search & Selection: Joining Forces Once Again!

Invited by Pasona, MGR Search & Selection, the Hsinchu Human Resources Association, and the Hsinchu Science Park Human Resources Association, Attorney Chen Yexin delivered a keynote address titled "Major Labor Law Reforms in 2026: HR Response Strategies."

The session was divided into four core areas:

1. Workplace Bullying Prevention

   
   

2. Practical Implementation of Ethical Corporate Management Codes

   
   

3. The Impact of Six Years under the Labor Incident Act on Corporate HR Management & Corporate Governance

   
   

4. Audit Priorities for Labor Rights under ESG and RBA 8.0

   
   

Attorney Chen reminded HR executives in the Hsinchu Science Park that corporate HR management systems must undergo a complete "reboot" to navigate these changes effectively.

In 2026, Taiwan's labor legal framework faces its most significant transformation in recent years. If chairmen, general managers, and HR executives still view labor law as merely "the HR department's business," they are already falling behind.

From the official enforcement of dedicated workplace bullying provisions and the shifting burden of proof under the Labor Incident Act, to ethical corporate management, whistleblowing systems, ESG, RBA 8.0, and corporate governance evaluations—labor compliance is no longer just about avoiding fines. It has become a vital indicator of corporate governance capability, brand trust, and international supply chain competitiveness.

For labor law compliance training, board member continuing education certification, external committee members for workplace bullying and sexual harassment, and litigation or mediation representation, please contact Yesin Law Firm (Phone: 02-25156822; Official Website: https://www.yesinlaw.com).

This underscores the core thesis of the presentation: Labor law compliance has upgraded from a "legal issue" into a "management issue."

First: Codification of workplace bullying rules requires a comprehensive upgrade in managerial approach.

Keywords: Workplace bullying, PIP, LINE digital group management

The biggest shift is not just the addition of new laws, but the imperative for management mindsets to evolve. In the past, companies often viewed workplace bullying as an internal administrative matter; today, prevention is a statutory obligation. If a company fails to establish formal mechanisms, intake procedures, and thorough documentation, it is no longer merely poor management—it may constitute a direct violation of the law.

Notably, the legal definition emphasizes that using one's position or authority beyond a reasonable managerial scope to cause physical or mental harm constitutes workplace bullying. In severe cases, repetition is not required—a single instance of egregious humiliation can substantiate a claim.

Consequently, every manager must relearn how to distinguish between "rigorous management" and "malicious, illegal workplace bullying." The true purpose of management should be improving performance, not humiliating an individual; a Performance Improvement Plan (PIP) should assist employee growth, not force a resignation; and work group messaging apps (such as LINE) should serve as coordination tools, not platforms for public shaming.

Second: Process matters more than outcome; managers must act as the first line of defense.

Keywords: Procedural justice, investigation procedures, burden of proof

The greatest legal risk for many enterprises stems not from the bullying incident itself, but from a complete lack of knowledge on how to handle it after it occurs. Under the new rules, once a manager becomes aware of suspected bullying, they must immediately initiate a comprehensive SOP that includes: immediate reporting, protective measures, strict confidentiality, complete documentation, and anti-retaliation protections.

Furthermore, the law mandates strict deadlines for case intake, reporting, investigation, and notification. Missing any statutory deadline can render the entire process illegal.

Managers must remember: What truly protects a company is not a manager claiming "I handled it," but emails, meeting minutes, and complete documentation proving that the matter was handled strictly according to the law. In court or before regulatory agencies, the focus will not be on verbal assertions, but on documentary evidence proving mandatory statutory actions were taken.

Third: The Labor Incident Act fundamentally alters the "rules of evidence."

Keywords: Labor Incident Act, wage definition, working hour management, dismissal procedures

Many corporate leaders still underestimate the impact of the Labor Incident Act. The most significant shift is the substantial transfer of the burden of proof onto the employer. When disputes over wages or working hours arise, if the company fails to produce the records required by law, courts may directly adopt the employee's claims.

For example:

• In wage disputes, enterprises must produce clear salary structures, employment contracts, and itemized pay stubs.

  
  

• In overtime disputes, enterprises must provide complete attendance records.

  
  

Practices such as asking employees not to clock in, designing ambiguous compensation systems, or allowing employees to arrive early and leave late without clear tracking can lead directly to lost lawsuits. Crucially, under injunction procedures, employees can petition the court before a final judgment to order the company to continue employment, maintain pay, or reinstate them—exerting immense operational pressure on the business.

Fourth: Ethical management cannot remain a board resolution; it must be enforced through contracts.

Keywords: Ethical management, whistleblowers

While many publicly listed companies pass ethical management codes at the board level, the real challenge is whether these policies are executed effectively on the ground. Cases exist where employees were convicted criminally for taking kickbacks, yet the company could not seek civil damages because it failed to prove the exact scope of financial damage—primarily because the ethical policy was never integrated into labor contracts, work rules, or daily operations.

To mitigate this risk, enterprises must establish a comprehensive anti-corruption management mechanism covering ethical policies, fraud prevention systems, training, whistleblowing mechanisms, disciplinary measures, performance evaluations, and contract management, ensuring that directors, executives, employees, and suppliers adhere to the same standard.

Fifth: Labor compliance is now the shared language of Corporate Governance, ESG, and RBA.

Keywords: ESG, Corporate Governance, RBA 8.0

Businesses today face far more than just labor inspections or labor-management disputes. Corporate governance evaluations, ESG ratings, RBA 8.0 audits, and global supply chain reviews all require enterprises to demonstrate concrete adherence to labor rights, ethical management, workplace safety, internal training, and grievance mechanisms.

In short, labor compliance has evolved from "avoiding fines" to "earning market trust." The most competitive companies of tomorrow will not necessarily be those with the largest legal departments, but those capable of internalizing legal requirements into management systems and transforming those systems into corporate culture. As systems mature, legal risks decline; as corporate culture matures, top talent stays.

Attorney Chen Yexin’s Advice:

An enterprise's greatest legal cost is rarely attorney fees—it is the failure of HR management that could have been prevented.

The 2026 labor law reforms do not merely test legal expertise; they test whether board members are willing to elevate labor compliance to the level of corporate governance. It requires investing in manager training, building complete procedural workflows, preserving management records, and integrating ethical management, workplace bullying prevention, Labor Incident Act readiness, and ESG governance into an actionable, auditable, and continuously improvable HR management framework.

Ultimately, what determines a company's competitiveness is no longer just product quality, but whether it can prove itself to be an institution worthy of trust from talent, clients, investors, and global supply chains. Is your enterprise truly prepared for this new era where labor compliance forms the foundation of corporate governance?