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Business Topic

Items and Scope of Repayment Application

(I) Wages:
  1. Claims are limited to wage arrears within six months prior to the suspension of business, liquidation or declaration of bankruptcy by the employer.
  2. Payment shall be made based on the actual amount of wages. Claims for items not meeting the definition of "Wages" shall not be compensated.
Definition of "Wages": According to Article 2, Subparagraph 3 of the Labor Standards Act, "wages” means the remuneration which a worker receives for his/her services rendered, including wages, salaries and bonuses, allowances and any other regular payments regardless of the name which may be computed on an hourly, daily, monthly and piecework basis, whether payable in cash or in kind. Bonuses for Chinese New Year, Dragon-boat Festival, Mid-autumn Festival, year-end, and travel expenses listed in Article 10 of the "Enforcement Rules for the Labor Standards Act" shall not be considered wages.

(II) Pension and Severance Pay: 
  1. This shall include pension and severance pay under the Labor Standards Act or severance pay under the Labor Pension Act, which have not yet been paid by the employer. The total amount, however, shall not exceed six times of the average monthly wage.
  2. Workers who have accumulated seniority under the pension system of the Labor Standards Act may apply for pension payment thereunder, subject to fulfillment of the following conditions required by the Labor Standards Act while working with the business entity: (1) having worked for fifteen years or more with an age of 55 or above, (2) having worked for twenty-five years or more, (3) having worked for ten years or more and attained the age of 60 (4) having attained the age of 65, or, (5) is physically or mentally disabled and no longer competent for the work. Workers not fulfilling any of the aforementioned criteria for retirement shall apply for severance pay under the Labor Standards Act for that specific period of work.
  3. If a worker only possesses seniority applicable under the Labor Pension Act, he/she shall apply for severance pay under the Labor Pension Act.
Last Update:2018-12-06