Claiming on employer's groundless and illegal dismissal litigation (hereinafter referred to as the "Illegal Dismissal Litigation") is an important type of labor litigations in the Republic of China (Taiwan). However, as the statutory court fee is so heavy that an employee cannot afford when he/she initiates a lawsuit against the employer, the employee may, as a result, abandon the said suit even though he/she has good opportunity to win. In response to such heavy court fee, laborers rather demand monthly salaries instead of confirming the existence of relationship of the employment in order to save the statutory court fee in practice. Nevertheless, the R. O.C. Courts still consider the amount of the salaries which a laborer require from the day of Illegal Dismissal to the day of reinstatement in the former office, an action for performance of future obligation, to be indefinite and is not allowed. Therefore, the R.O.C. Courts usually instruct a laborer to reduce his/her claim of adjudication from day of reinstatement to the day of conc1usion of the oral proceeding, or to a particular day before conclusion of the oral proceeding. Under these circumstances, a laborer has to institute circular legal proceedings until the capital—labor dispute has been settled. Secondly, the Illegal Dismissal Litigation involves the issues of whether there is a limitation to the discipline power of an employer, and whether there is a principle of last—means of dismissal under the Article of 11 and Article of 12 of R.O.C. Labor Standards Law. Thirdly, whether the scope of damages of the Illegal Dismissal Litigation merely includes salaries, or also includes the loss of citizen healthy insurance, labor insurance, retirement pay, severance pay or reputation injury. This essay focuses on the judgement of NO.20 of labor litigation of Taiwan Shih–lin District Court (1998),and discusses the said three problems. It also compares the wrongful dismissal litigation of the United States, Japan and Germany with Taiwan counterpart. The author expects the academic and courts will pay more attention to the problems of Illegal Dismissal Litigation.