Whether the salary is reasonable or even higher than expected is often a major focus for workers when selecting a job. While salary increases are sought after by many, workers often find themselves in a dilemma when employers unilaterally reduce salaries: accept unreasonable treatment silently or choose to leave their current job and seek another path? Due to the generally weaker position of workers in labor relations, the government has therefore formulated the Labor Standards Act (referred to as the Labor Standards Act) to protect the rights and interests of workers. Understanding the relevant content in advance enables workers to make correct responses promptly when facing difficulties. Today, this article will help everyone understand the relevant legal regulations regarding salary adjustments, to avoid workers being flustered and unable to assert their rightful interests when facing unfair salary adjustments.

Legal Basis for Salary Adjustments: Labor Standards Act Article 21, Labor Contract Terms

The legal basis for employers to make salary adjustments mainly consists of two factors: the first is Article 21 of the Labor Standards Act, and the second is the labor contract signed in accordance with the law. Below is a simple explanation:

Article 21 of the Labor Standards Act

Article 21, Paragraph 1of the Labor Standards Act stipulates: "Wages shall be agreed upon by both the employer and employee. However, it shall not be lower than the minimum wage." Generally, in labor relations, the employer usually holds a dominant position and has considerable power in setting work conditions and salary adjustments. However, this does not mean that the employer can arbitrarily adjust the worker's salary. According to the relevant provisions of the Labor Standards Act, the setting and adjustment of wages must be agreed upon by both the employer and employee, and the wage must not be lower than the statutory minimum wage (for example, in 2025, the minimum wage is set at a rate not lower than NT$190 per hour or NT$28,590 per month). Especially in the case of salary reductions, if the employer unilaterally decides to lower the salary without the employee’s consent, this behavior may already violate the law!

Labor Contract Terms Signed by Both Employer and Employee

According to the Civil Code, there are various types of labor contracts, including employment contracts and contracts for commissioned work. If the contract established between the employer and employee at the beginning of the labor relationship contains provisions allowing the employer to adjust wages under specific circumstances, and these terms have been signed by the employee, then the salary adjustment made by the employer according to the contract content is naturally legal. Since the contract terms are usually set by the employer and then reviewed and signed by the employee, it is crucial to carefully evaluate the contract when confirming its content, and not to be careless.

In simple terms, if the contract does not specify special provisions, the legal provisions should apply, meaning salary adjustments should be made through mutual agreement. However, it should be noted that if the employee does not express dissatisfaction or terminate the contract after a unilateral salary reduction by the employer, and continues to accept the reduced salary over time, the court may rule that the employee has "implicitly agreed," which could result in being unable to use legal means to claim their rights in the future.

How to Negotiate Salary?

Salary negotiation is an important way for both employers and employees to resolve salary disputes. When faced with salary adjustment proposals from employers, employees should not only understand the relevant legal regulations but also familiarize themselves with the basic process of salary negotiation. Below is a simple introduction to the key points to be aware of during the salary negotiation process:

1. Request Employers to Explain the Reasons for Salary Reduction and Provide Evidence
   When faced with an employer's proposal, employees can first request the employer to provide specific reasons for the salary reduction, such as whether the company is experiencing poor management or financial difficulties. At the same time, employees can ask the employer to provide reasonable evidence, such as financial statements of the company, as well as their own work performance, to help determine whether the employer's salary reduction request aligns with their work performance and the appropriate salary level.

2. Engage in Thorough Discussion During Negotiation and Maintain a Firm Position
   During the negotiation process, both parties should try to have a thorough discussion about the salary adjustment. Employees can firmly express whether they wish to maintain the original salary or accept a certain degree of salary adjustment. At the same time, employers should consider factors such as the employee's contribution to the company and industry salary standards when deciding on the extent of the salary adjustment. The core of salary negotiation is to find a solution that both parties can accept. Therefore, employees can clearly express their objections to salary reductions, while employers can explain the adjustments based on the actual situation.

3. If Negotiation Fails to Reach Consensus, How Can Employees Protect Their Rights?
   Article 14, Paragraph 1, Subparagraphs 5 and 6 of the Labor Standards Act stipulates: "If the employer fails to pay the work remuneration according to the labor contract, or does not provide sufficient work for workers paid on a piece-rate basis," and "If the employer violates the labor contract or labor laws, causing potential harm to the employee's rights," in such cases, the employee may terminate the contract without prior notice.
   If the employer insists on reducing the salary and the employee still wishes to remain employed, the employee can first apply for labor mediation with the labor bureau. If mediation fails, they can seek legal remedies. If the employee decides to terminate the labor contract according to Article 14, Paragraph 1, Subparagraphs 5 and 6 of the Labor Standards Act, they must remember to request severance pay from the employer and obtain a certificate of involuntary resignation to ensure their legal rights are protected. In practice, sending a registered letter to notify the employer of the contract termination is the most common method. If the employer refuses to provide payment after receiving the registered letter, the employee can still apply for labor mediation through the labor bureau, with legal action being the final resort.

Protection and Maintenance of Workers' Rights

The salary adjustment process should be based on equal negotiation between the employer and employee. In the absence of special agreements, the employer does not have the unilateral right to make decisions. Employees should clearly understand that wages are the legal compensation earned through their own hard work. When facing unreasonable salary reductions, employees should assert their rights in accordance with the law. Therefore, when encountering illegal salary adjustments, workers should bravely speak up for themselves and protect their economic interests through an equal negotiation process and legal channels.

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