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Employment Insurance Act Last Modified:2015-03-25


 

 
Promulgated on May 15, 2002
Amended on January 29, 2007
Amended on April 22, 2009
Amended on May 13, 2009
 Amended on April 27, 2011
Amended on December 4, 2012
The amended Article 44 and the newly-added Article 22-1 were promulgated on
December 19, 2012 by the President’s Order No. Hua-Zong-1-Yi-Zi-10100279781
Article 22 was amended and promulgated by the President on June 4, 2014
through Order No. Hua-Zong-1-Yi-Zi-10300085181,
and it was enforced as of July 1, 2014 as decided by the Executive Yuan
on June 27, 2014 through Order No. Yuan-Tai-Lao-Zi-1030036676
Article 2 and 19-2 was amended and promulgated by the President on February 4, 2015
through Order No. Hua-Zong-1-Yi-Zi-10400012561,
and it was enforced as of March 20, 2015 as decided by the Executive Yuan
on March 13, 2015 through Order No. Yuan-Tai-Lao-Zi-1040011436

Chapter 1 General Provisions
Article 1 This Law is established to improve the ability of workers to find employment, promote employment, and guarantee worker job training and basic living requirements for workers for a certain period of unemployment. Matters not provided for herein shall be governed by regulations of other laws.
   
Article 2 The competent authorities of Employment Insurance are: the Ministry of Labor at the central government level, the municipal government at the centrally administered municipality level, and the county city) government at the county (city) level.
   
Article 3 Employment Insurance affairs are supervised by the Supervisory Commission of Labor Insurance.
If the insured person and the insured establishment dispute a case approved by the insurer, an application for review should be first made to the Supervisory Commission of Labor Insurance
   


Chapter 2 The Insurer, the Insured Party and the Insured Establishment
Article 4 The Bureau of Labor Insurance is commissioned by the central competent authority to administer Employment Insurance, and to be the insurer.
   
Article 5 For workers who are above 15 years old and below 65 years old and meet the following criteria should participate in this employment insurance with their employers or the organizations or institutions for which they belonged to as the insured units:
 
  1. Hold the nationality of the Republic of China.
  2. Foreigners, people in Mainland China area, and resident of Hong Kong or Macau who get married with nationals whose household are registered in the territory of the Republic of China and have obtained residence to work and stay in Taiwan region.
 

Should the people listed above have one of the following conditions, they shall not participate in this labor insurance:

 
  1. People who have already participated in civil servant and teacher insurance or military personnel insurance according to the laws.
  2. People who have received old age benefit of the labor insurance or pension payment of the civil servant and teacher insurance.
  3. People who are hired by employers or organizations which do not need to register with competent authority and do not need to pay tax or do not have a purchasing certificate for Uniform Invoice.
 

For workers who are hired by more than two employers at the same time could choose any one of the employers to take out this insurance.

   
Article 6 After this Law is enforced, a worker who should participate in the employment insurance program as an insured person pursuant to regulations of the preceding Article, upon the day the insured establishment declares his participation in the labor insurance program is effective, becomes an insured person in the employment insurance program . Upon the day the insured establishment declares his withdrawal from labor insurance coverage, insurance coverage immediately ceases.
A worker who already participates in the labor insurance program before this Law is enforced will become an insured person from when the Law is enforced. Pursuant to the Labor Insurance Act and regulations on labor insurance unemployment benefit implementation procedures, annual coverage of unemployment benefit insurance premium payments shall be cumulatively calculated with annual employment insurance coverage.
If a worker, who should participate in the employment insurance program as an insured person pursuant to regulations of the preceding Article, is not declared as participating in the labor insurance program by his employer, or group or institution to which he belongs, the insured establishment should declare the worker as participating in the labor insurance program, either on the day Employment Insurance is enforced, or on the day the worker starts work . On the day a worker leaves work, the employer must inform the insurer in writing. The beginning or end of insurance coverage is calculated from the day of declaration or when the insurer is informed that the worker has left work.However, if the insured establishment does not, on the day this Law is enforced or on the day the worker starts work, declare his participation in the labor insurance program, apart from being fined pursuant to Article 28 regulations herein, insurance coverage will begin on the day after the declaration or notification.
   
Article 7 In order for the competent authority, the insured person and the Public Employment Service Institution to investigate the workers’ working conditions, salary, or reasons for leaving work at the insured establishment, when necessary, the employee roster, record of work attendance, annual salary bookkeeping, and other related information may be investigated, which the insured establishment has no right to evade, obstruct or refuse .
   


Chapter 3 Insurance Financial Affairs
Article 8 The central competent authority will set employment insurance premium rates at one to two percent of the insured person’s current monthly insurance salary, and report the situation to the Executive Yuan for approval.
   
Article 9 Employment insurance premium rates are to be recalculated at least once every three years by the insurer, and the central competent authority is to appoint actuaries, insurance finance experts, relevant academics, and impartial observers to form an actuary review team of 9-15 people.
Under one of the following circumstances, the central competent authority shall adjust the employment insurance premium rate within the limits defined in the regulations of the preceding Article:
 
  1. There is a difference of more than a five percent margin of error between the average value of the recalculated insurance premium rate over the previous three years and the current year’s insurance premium rate.
  2. The deposited insurance fund surplus is less than six times the average monthly sum of insurance benefit payments over the previous year, or higher than the nine times the average monthly sum of insurance benefit payments over the previous year.
  3. The financial situation of the employment insurance program is influenced by items of benefit increases and cuts, benefit contents, benefit standards or benefit limits.


Chapter 4 Insurance Benefits
Article 10 This employment insurance has the following five benefits:
 
  1. Unemployment benefit.
  2. Early Reemployment Allowance.
  3. Vocational Training Living Allowance
  4. Parental Leave Allowance
  5. National Health Insurance Premium Subsidy for the Unemployed Insured Person and his/her Dependants
 

The target, qualification, standard and period for the above five benefits are to be defined by central competent authority.

   
Article 11 The qualification for claiming the benefits of this insurance are as follows:
 
  1. Unemployment benefit: The insured person should have a total of more than one year of insurance coverage within three years before the insured person non-voluntarily leave his/her job and withdraw from the Insurance, and the insured person is able and willing to work and has registered with the public employment service institution for seeking a job and is still unable to get a job or take vocational training within 14 days after the job seeking registration date.
  2. Early Reemployment Allowance: The insured person should meet the qualification for Unemployment benefit and be hired to a job before the expiration of the unemployment benefit claiming period and has joined the Insurance for more than 3 months.
  3. Vocational Training Living Allowance: The insured person non-voluntarily leaves his/her job and has registered with the public employment service institution for job seeking and is arranged by the public employment service institution to participate in fully time vocational training.
  4. Parental Leave Allowance: The insured person has more than one year of insurance coverage and before his/her children reaches 3 years old, he/she has applied for parental leave without payment according to the regulation in Gender Equality Act.
 

The insured person leaves his/her job due to the expiration of fixed term contract, is not able to be employed within one month after leaving the job, and the total contract period is more than six months within one year before leaving the job are treated as non-voluntary leaving the job and the above provisions could apply mutatis.

  Non-Voluntary Leaving the job in this Act includes the insured person leaves the job because his/her insured unit shut down, moved, closed, disbanded or declare bankruptcy; or the insured person leaves the job due to the reasons prescribed in the provisions of Article 11, proviso of Article 13, Article 14 and Article 20.
Article 12

In order to encourage the unemployed insured person to obtain employment, the Public Employment Service could offer employment consulting, job matching or vocational training.
The above services could be offered by other institutions (organization), schools, groups or legal persons which are authorized by competent authorities or public employment service institutions.
Central competent authorities could appropriate fund within 10% of the total employment insurance premium receivable and the execution residual amount from previous years to conduct the following items:

 
  1. On-job training for the insured persons.
  2. Services for the insured persons after unemployment such as vocational training, enterprise startup assistance and other measures for promoting employment.
  3. Employment stabilization measures for the insured persons.
  4. Rewards for the employers who hire unemployed labors.
 

The target, job types, criteria, items, methods, period, payment standard, payment limits, fund management and utilization and other regulations and rules that should be followed when offering the above services are to be defined by the central competent authority.

The employment consoling called in paragraph 1 means offering information and services on job selecting, job switching and vocational training and the professional services such as employment promotion seminars or job accommodation assistance.

Article 13 Applicants who do not accept the jobs recommended and matched by public employment service institution could still claim unemployment benefit if one of the following condition exists:
 
  1. The salary offered is lower than the amount of unemployment benefit claimed by the insured person every month.
  2. The work place is 30 KM or further away from the residential place of the applicants.
Article 14 An applicant who does not accept career counseling or vocational training from a Public Employment Service Institution for any one of the following reasons may still claim unemployment benefit:
 
  1. He is receiving medical treatment for injury or illness, and can prove he is unfit to attend.
  2. He satisfies the Public Employment Service Institution that in order to participate in vocational training, he must move from his current abode.
  Pursuant to regulations in any of the items of the preceding paragraph, if the applicant is unable to attend career counseling or vocational training organized by the Public Employment Service Institution, when he applies for unemployment benefit, the Public Employment Service Institution must still arrange a time for payment.
   
Article 15 If an insured person commits any of the following, the Public Employment Service Institution shall refuse to accept application for unemployment benefit:
 
  1. He refuses a job placement organized by the Public Employment Service Institution, in violation of regulations in Article 13.
  2. He refuses to participate in Public Employment Service Institution arranged career counseling or vocational training, in violation of the regulations in the preceding Article.
Article 16

Unemployment benefit is issued based on 60% of the average monthly salary for the six months before the month the applicants leave their posts and withdraw from this insurance, and the longest period the qualified insured person could claim for the unemployment benefit is 6 months. If the applicant who withdraw from this insurance is already 45 years old or holds a physical and mental disability certificate issued by competent authority of social welfare. The longest period for the unemployment benefit is then 9 months.
Should there is a large amount of unemployment due to economic recession or other emergencies, central competent authority could, after examining the unemployment rates and other conditions, extend the payment period to as long as 9 months and could extend further when necessary, however, the longest period shouldn't exceed 12 months. During the extended payment period, the provisions in Article 13 and Article 18 shall not apply.
The standard for determination, payment target, payment criteria, period and other related regulations for the above extended unemployment benefits shall be drafted and defined by the central competent authority and submitted and approved by the Executive Yuan.
For those who have claimed unemployment benefits but has not reached the payment period limits in the previous three paragraphs and non-voluntary leave their jobs after rejoin this insurance could still claim unemployment benefit according to the related provisions. However, the combined number of month of unemployment benefits and the early reemployment allowance claimed according to Article 18 shall also follow the period limits in the previous three paragraphs.
For those who have claimed the unemployment benefits to the period according to previous four paragraphs and reclaimed unemployment benefits again within 2 years after the date they had claimed the full period of the benefit, the period limit then becomes 1/2 of the original payment period.
For those who have claimed the unemployment benefit to the full period limit according to the previous five paragraphs, the insurance coverage year should be counted afresh.

   
Article 17 An insured person who while unemployed has other work, which provides a monthly income exceeding the minimum wage, is ineligible for unemployment benefit. If the monthly income does not exceed the minimum wage, he may claim unemployment benefit in addition to the monthly income. If the combined total exceeds 80% of the average monthly insurance salary, the additional amount will be deducted from unemployment benefit. But if the combined amount is less than the minimum wage, no deduction will be made.
A person claiming labor insurance injury and illness benefit, vocational training living allowance, temporary work allowance, or other related employment development awards, may not claim unemployment benefit while receiving the related award.
   
Article 18 A person eligible to claim unemployment benefit who finds work before the maximum unemployment benefit claim period has expired, and according to the regulations has participated in the employment insurance program as an insured person for at least three months, should apply to the insurer to claim 50% of unpaid unemployment benefit as a lump sum early reemployment award .
   
Article 19 An insured person who involuntarily leaves work, registers at a Public Employment Service Institution to seek employment, and participates in full-time vocational training arranged by the Public Employment Service Institution, may during the training period receive a monthly vocational training living allowance of 60% of the applicant’s average monthly salary over the six-month period prior to leaving work and withdrawing from the labor insurance program, for a maximum of six months .
  When the applicant receives training, the vocational training establishment should instruct the insurer to pay his vocational training living allowance.
Article 19-1

After the insured person non-voluntary leave his/her job and withdraw from the insurance and during the period of receiving unemployment benefit or vocational training living allowance, if the insured person has any dependents, an extra 10% of benefit or allowance counted based of the average monthly insurance salary for the 6 months period before the month the insured person withdraws from the insurance would be issued to every dependent, however, the maximum extra benefit and allowance is 20% of the base stated above.
The dependent defined in previous paragraph means the insured person's no income spouse, under aged children or children with physical or mental disability.

Article 19-2

Parental Leave allowance is counted as 60% of the average monthly insurance salary for the 6 months period before the month the insured person withdraws from the insurance. During the insured person's parental leave with payment period, the allowance is granted every month and the maximum allowance period for each child is 6 months.
For above allowance, if the insured person rears more than two children at the same time, the allowance is only granted to the condition of one child.
If the parents are both insured by this insurance, they should claim parental leave allowance separately and shall not claim the benefit at the same time.
In accordance with regulations stipulated in the Family Proceedings Act and The Protection of Children and Youths Welfare and Rights Act, insured persons who undergo joint household living with adopted children prior to official adoptions may apply for Parental Leave Allowance according to Subparagraph 4, Paragraph 1, Article 11 in conjunction with the three preceding paragraphs. However, for reasons which are attributable to the insured person and result in court rulings that deny official adoption, the insured person shall be informed by the insurer to return the amount within a prescribed period of time. If the amount is not returned before the appointed time, the case may be referred to court for compulsory execution.

Article 20 Unemployment benefit is calculated from the 15th day after registering to seek employment at a Public Employment Service Institution. Vocational training living allowance is calculated from the first day of training.
   
Article 21 If the insured establishment deliberately carries out procedures for an ineligible person to join the labor insurance program, the recipient of insurance benefit shall be informed by the insurer to return the amount within a prescribed period of time. If the amount is not returned before the appointed time, the case may be referred to court for compulsory execution.
   
Article 22 The rights of an insured person to claim any kind of insurance benefit must not be assigned to anyone else, used as an offset, distrained, or offered as a security.
By submitting a certificate issued by the insurer, an insured person claiming any insurance benefits pursuant to this Act may open a special account with a designated financial institution for the sole purpose of depositing the insurance benefits.
The funds in the aforementioned special account shall not be used as the target of any mortgage, distrainment, offering of security, or enforcement.
   
Article 22-1 Benefits under this insurance scheme are payable within 15 days after confirmation by the Insurer.
Delayed benefit payments shall accrue interest if such delay is attributable to the Insurer.
   
Article 23 If there is a labor-management dispute between the applicant and former employer due to the applicant leaving work, unemployment benefit may still be claimed.
If the ruling on the preceding paragraph finds the applicant ineligible to claim unemployment benefit, then the applicant must return already claimed unemployment benefit within 15 days of the judgment. If the amount has not been returned by the appointed time, the case may be referred to court for compulsory execution.
   
Article 24 A person loses the right to claim an insurance benefit if no action has been taken two years after the day the claim is available.


 
 
Chapter 5 Application and Assessment
Article 25

Within 2 years after the insured person leaves his/her job and withdraws from the insurance, he/she should bring job withdrawal or fixed term contract documents and national identity card or other document that could prove the insured person's identity and conduct job seeking registration and apply for unemployment status examination with public employment service institution personally, accept employment consoling and fill out unemployment status examination application form, unemployment benefit application form and benefit receipts.
After public employment service institution entertain job seeking registration, it should conduct employment consoling and match employment opportunities or arrange vocational training for the applicants within 14 days starting from the job seeking registration date. If the public employment service institution is unable to match employment opportunity or arrange vocational training for the applicants within 14 days from the job seeking registration date, it should complete the unemployment status examination on the next day after the 14 day period and ask the insurer to issue unemployment benefit.
The job withdrawal document referred to in paragraph one means the proof document issued by the insured unit or the competent authority in the municipality directly under the jurisdiction of the Central Government and county (city) governments; Should there is any difficulties in obtaining such document, a written explanation stating the reasons could replace the document with the approval from the public employment service institution.
In the above document or written explanation, the applicant's name, name of the insured unit and reason for leaving the job should be clearly written.
Applicants who do not provide the documents defined in paragraph one should resupply the documents within 7 days; if the documents are not resupplied within the period of 7 days, the application is treated as void.

   
Article 26 In order to meet the requirements of organizing job placement and vocational training, the Public Employment Service Institution requires the applicant to produce the following documentation:
 
  1. Copies of the highest attainted educational diploma and documented work experience.
  2. Copies of specialist vocational or technical skill certificates.
  3. Copies of certificates from previously completed vocational training programs.
  The amended article of the Enforcement Rules hereof shall come into force as of the day of promulgation.
   
Article 27 Within seven days of the day the Public Employment Service Institution organizes a job placement, the applicant should submit the employment and non-return cards to the Public Employment Service Institution.
If an applicant does not administer the above, the Public Employment Service Institution shall stop processing the current unemployment certificate. If the certificate has already been processed, it shall be cancelled.
   
Article 28 If the insured person could not be matched with a job after the vocational training period is completed, the vocational training unit should ask the public employment service institution to complete the unemployment status examination for the insured person; if the insured person has not claimed or has not claimed to the full period limit of the unemployment benefit, the public employment service institution shall ask the insurer to issue unemployment benefit. The amount of months for the unemployment benefit that could be claimed combined with the month already claimed shall not exceed the limit in Article 16.
   
Article 29

For those who continue claiming unemployment benefit, within 2 years after the last day for the previous unemployment benefit claiming period, they should go to the public employment service institution to apply for unemployment status reexamination every month personally. If they are not able to go personally because of injuries or other medical conditions, they could submit related proof document issued by medical treatment institution and a written explanation with reasons and authorize other people to apply the reexamination for them.
If the unemployment status of the people who are claiming unemployment benefit is not reexamined and reconfirmed by public employment service institution, the unemployment benefit will be terminated.

   
Article 30 When a person claiming unemployment benefit applies for unemployment re-certification, he must produce at least two records of seeking work before he can continue to claim. A person who cannot produce a record of seeking employment must produce complete and correct documents within seven days. If the documents are not properly revised before the prescribed period, his unemployment benefit will be stopped.
   
Article 31 If a person has other additional income while he is unemployed or claiming unemployment benefit, he should inform the Public Employment Service Institution when applying for an unemployment certificate or processing unemployment re-certification.
   
Article 32 A person claiming unemployment benefit should inform the Public Employment Service Institution within three days of becoming reemployed.


 
 
Chapter 6 Fund and Administrative Budget
Article 33 The sources of financing for Employment Insurance Fund are as follows:
 
  1. When the insurance is launched, the special fund appropriated from the Labor Insurance Fund by Central Competent Authority.
  2. Insurance Premium and its interests and the residual balance from the insurance payment expenses budget.
  3. Penalty for Late premium payment
  4. Benefit and revenue from utilizing the Fund.
  5. Other related income.
 

The special fund appropriated from Labor Insurance Fund mentioned in item one shall be returned to Labor Insurance Fund in one lump sum payment.

   
Article 34 Employment Insurance Fund, with the approval from the Labor Insurance Supervisory Commission, could be utilized as follows:
 
  1. Investment to Government bond, Treasury bond and corporate bond.
  2. Deposit in Publicly-owned banks or financial institutions appointed by central competent authority or trading short term bills.
  3. Other investments approved by the central competent authority which could be beneficial to the profit of the Fund.
 

The other investments which could be beneficial to the profit of the Fund mentioned in item 3 above shall not be investment on equity securities or derivative financial products.
Except the utilization as described in item 1, insurance benefit payment, and the appropriation according to item 3 of Article12, Employment Insurance Fund could not be used for other functions and sold. The income, expenses, utilization condition and accumulated amount of the Fund shall be submitted by the insurer to the central competent authority and publicly announced every year.

   
Article 35 The fund needed for conducting this Insurance will be allocated by the insurer using 3.5% of the total amount of the budget for the year's insurance premium revenue as the upper limit and the budget is to be allocated and appropriated by the central competent authority.
   


Chapter 7 Penal Provisions
Article 36 A person making fraudulent or other improper insurance benefit claims, or making false certification, reports, and representations, other than being fined a sum of double the claimed insurance benefits, will also be liable to the insurer for compensation and damages. If criminally liable, the case may be referred to court for compulsory execution.
   
Article 37 A worker in contravention of the provisions herein, who does not participate in the employment insurance program and administer employment insurance procedures, will be fined between NT$1,500 to NT$7,500.
   
Article 38

If an insured unit violates the rules of this Act and fails to enroll its employees for employment insurance in accordance with the regulations of this Act, a fine amounting to ten times the total premium from the date of hire to the day before enrollment in the said insurance or the date of employment termination shall be levied on the said insured unit.
If an insured unit fails to pay premium for the insured as specified in this Act, and where the insured makes the payment, a fine amounting to twice the total premium payable shall be levied on the insured unit. The insured unit shall return the said premium to the insured.
If the insured unit violates the regulation in this law and doesn't accurately report (use higher amount when it actually lower or use lower amount when it is actually higher) the amount of insurance salary, the insured unit will be imposed a four-fold fine based on the shortage or excess in insurance premium from the date the violation occurs. The excess benefit received due to the above violation should be returned to the insurer within the defined time limit by an administrative order. If the insured does not pay within the time limit, it shall be transferred to compulsory execution proceedings and the excess amount claimed will be asked to be reimbursed. For the loss suffered by the labor, it is to be compensated by the insured unit.
A fine of NT$ 10,000 to NT$50,000 will be imposed to insured units which violate the provision in Article 7.
Before the amendment to this Article becomes effective on March 31, 2009, in case the insured unit who still doesn't pay the insurance premium payable to the insurer and the insurer has not penalize the insured unit or the penalty is not executed after the overdue penalty reaches the upper limit of the premium amount payable pursuant to related regulations, the penalty would not be imposed or executed.
 

   
Article 39 If a fine imposed herein is not paid within the appointed time announced by the insurer, the case may be referred to court for compulsory execution.
   


Chapter 8 Supplementary Provisions
Article 40 Matters not provided herein regarding the beginning and end of insurance coverage, monthly insurance salary, insurance salary adjustment, the burden of responsibility for insurance premium, insurance premium payment, administering the extension of time limits and collection of penalties on insurance premiums, and investing and managing the fund, may be governed by the Labor Insurance Act and other relevant provisions .
   
Article 41

Paragraph 1 of Article 2 regarding to ordinary accident insurance unemployment benefit and Article 74 of the Labor Insurance Act will no longer be applicable from the implementation date of this Act.
From the implementation date of this Act, the Labor Insurance Ordinary Accident Insurance Premium for insured people of this Act will be reduced by 1% of the insured's monthly insured salary of the month and will not be bounded by the provision in Paragraph 2 of Article 13 of the Labor Insurance Act.

   
Article 42 All account books, receipts and administrative balance herein are exempt from taxes and duties.
   
Article 43 The enforcement rules hereof shall be determined by the central competent authority.
   
Article 44

The implementation date of this Act is to be decided by the Executive Yuan.
Article 35 amended on April 21 of 2009 is to be implemented on January 1, 2010.
Revisions dated 4 December 2012 shall become effective from their date of announcement.

   
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