The “Labor Occupational Accident Insurance and Protection Act” was implemented on May 1, 2022. The BLI Provides Easy and Convenient Channels for Enrollment

The “Labor Occupational Accident Insurance and Protection Act” (Hereinafter referred to as “Occupational Accident Insurance Act”) was implemented on May 1, 2022. Employers should enroll their employees on this date of implementation or on the date of employment, so as to ensure compliance and avoid penalty. In order to provide easy and convenient channels for enrollment applications, with effect from the implementation date, micro-enterprises may register, through the BLI’s e-service system, as an insured unit for employment insurance and occupational accident insurance, and administer the enrollment procedures thereon. The purpose is to provide immediate protection to the work and life safety of the workers.

According to the Occupational Accident Insurance Act, all workers aged 15 or above shall be compulsorily covered by the occupational accident insurance if they are hired by an employer that holds a practice license, has been lawfully registered, has a tax registration (hereinafter generally referred to as a “Registered Business Unit”) or has been lawfully issued an employment permit by the central competent authority (in other words, the employer of migrant domestic workers), irrespective of the number of employees. The employer is responsible to enroll the worker to the occupational accident insurance and the insurance coverage shall start from the date of employment. The regulations also apply to workers under the age of 15 who are employed to perform work in accordance with the Labor Standards Act.

The aforementioned “Registered Business Units” include companies, firms, factories, corporate persons, institutions and schools, agriculture, forestry, fishery and animal husbandry businesses, civil associations, short-term tutorial schools, clinics, apartment management committees, lawyers, accountants and other business units that have completed taxation registration or been granted a tax identification number. Micro-enterprises with four workers or less should also enroll their employees to the employment insurance and occupational accident insurance and allocate labor pension funds according to relevant regulations, in spite of the fact that they are categorized as voluntary insured units for labor insurance. Furthermore, employees at the age of 65 and above, and who have already received the labor insurance old-age benefits should also be compulsorily covered by the occupational accident insurance. The employers are obliged to enroll these workers according to relevant regulations.

The BLI reiterated that, if an insured unit fails to insure the employee on the day he/she starts work, and such failure is verified following investigations, the BLI shall impose fines respectively according to the Labor Insurance Act and the Employment Insurance Act. Also, with effect from May 1, 2022, an additional penalty of NTD20,000 - NTD100,000 will be imposed in accordance with the Occupational Accident Insurance Act. In addition, the insured unit will be required to complete the improvement actions within a specified period and shall be subject to repeated penalties. According to the regulations, the BLI shall announce the name of the insured unit, the responsible person and the reason of the violation. In the event that the worker suffers from occupational injury or illness, the BLI shall, after approved and paid the relevant benefits, request the employer for reimbursement.

BLI provides easy and convenient channels for enrollments application. With effect from May 1, 2022, business units with four employees or less may, through the BLI’s e-service system, apply for the registration of an insured unit for employment insurance and occupational accident insurance, using the MOEA Certification Authority IC Card and the citizen digital certificate of the responsible person, and administer the enrollments for their employees. On completing such online registration, the business unit will be considered an e-service insured unit. As for those companies which originally applied for the registration of an insured unit of employment insurance on paper, they may also apply for registration as an e-service insured unit and enjoy various online services. BLI urged the insured units to make the best use of such services.

Occupational accident insurance ensures the work safety of the workers, providing basic financial protection in the unfortunate event of an occupational accident. The benefit payment from the insurance program, in the meantime, may be deducted from the compensation requirement under the Labor Standards Act. This helps divert the operational risks of the employers. The BLI reminds all employers to complete the enrollment procedures on the date of employment, so as to ensure proper protection to both the employer and the employees and create a more friendly and safe working environment.