In order to protect the rights of student workers, the Council Of Labor Affairs (CLA) of the Executive Yuan targeted the applications for additional Labor Insurance coverage by enterprises with a higher percentage of student workers and has been making an active effort to randomly select businesses for inspection. As a result, the percentage of businesses penalized for violating the Labor Insurance Act has fallen over the last three years from 18% in 2009 to 8% in 2011. It is clear that the employers have accepted the practice of applying for coverage for student workers on their first day of work.
According to the Bureau of Labor Insurance, the CLA starts the Student Worker Work Conditions Inspection Project in August every summer with the labor inspection department and the Bureau of Labor Insurance conducting random inspections. The results show that when the Student Worker Work Conditions Inspection Project was conducted, 12out of the 65 companies (18%) inspected were penalized for violating the Labor Insurance Act in 2009, 3 out of 52 (6%) in 2010, and 4 out of 50(8%) in 2011. The percentage of violations has dropped dramatically. Consequently, the Student Worker Work Conditions Inspection Project will continue this year in collaboration with the labor inspection department to protect the rights of student workers.
Students working at summer jobs are subject to the same work conditions as the regular labor force. However, the lack of familiarity with the processes and machinery operations makes the work more dangerous. Therefore, the Bureau of Labor Insurance of the CLA is reminding students working summer jobs to confirm on the first day of work whether the employer has applied for Labor Insurance (or Employment Insurance) coverage and contributed to the Labor Pension Fund for them. The purpose is to ensure eligibility for Labor Insurance (or Employment Insurance) payout and accumulation of tenure and benefits in the Labor Pension Plan.
In addition, for a student working two or more jobs at the same time, all employers with five or more employees are required to apply for Labor Insurance coverage for the student, and may not opt to have the student covered by only one of the employers. The calculation of Labor Insurance (or Employment Insurance) benefits is based on insurance seniority and salary. Don't wait until you need to file a claim to find out if you are not fully covered.
The Bureau of Labor Insurance also urges enterprises to be aware that employers with one or more employees are required to be covered by Employment Insurance, and enterprises with five or more employees (including student workers and temporary employees) are required to be covered by Labor Insurance and Employment Insurance. Enterprises should apply for additional coverage for their employees on their first day of work. Companies failing to do so will face a fine of four times the amount of Labor Insurance or ten times the amount of Employment Insurance when discovered and proven guilty. The coverage becomes effective on the day following the application date. If an enterprise delays application or fails to make an application and one or more of its employees loses the insurance payout as a result, the enterprise will be liable for compensation.
ROC nationals who are subject the Labor Standards Act are also eligible for the Labor Pension Plan. Hence, summer student workers who are ROC nationals employed by enterprises subject to the Labor Standards Act are eligible for the Labor Pension Plan. Employers should make contributions equal to at least 6% of a student worker's total monthly salary to the Labor Pension Plan for the student worker from the student worker's first day of work to their last day of work. Employers who fail to comply with the rules and make contributions to the pension plan will face the applicable penalties. In case of any resulting loss incurred by a student worker, the employer shall be liable for compensation.