Comparison of Decision-Making Analysis of Labor Rights Protection under Mergers and Acquisitions of Enterprises in Taiwan, Japan and Korea

Abstract

When enterprises conduct mergers and acquisitions, both the employers and the employees will face different problems. If the government is capable of overall coordination and planning, properly guides the enterprises and ensures the most basic rights for laborers, it will greatly boost the labor rights status in Taiwan. This study applies the integrated inductive method to explore the decision-making on labor rights protection of Taiwan, Japan and Korea during mergers and acquisitions of enterprises. It is found that after the mergers, acquisitions or reorganization of enterprises, the retaining and working conditions of the original employees are determined by the employers in Taiwan. However, in Japan and Korea, all the employees are retained while the working experience and conditions of the employees in the original enterprises are recognized. When employees agree to stay after the mergers and acquisitions but decide to leave in the future, they cannot request severance fees from the new employers in Taiwan. However, in Japan and Korea, it is stipulated that the new employers shall pay the severance fees. The above findings may serve as the reference for the Ministry of Labor of Taiwan in promoting the decision-making of the labor rights protection system.