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Wage Arrears Payment Fund Helps Relieve the Financial Burden of Workers Who Can't Receive Timely Wage Payment from Employers Due to Suspension of Business.

The global prevalence of COVID-19 pandemic has impacted the operations of many industries in Taiwan. Some of the business owners are forced to suspend operations, being unable to withstand such hardship. If, unfortunately, a worker is unable to receive the wage or severance pay from his/her employer due to suspension of business, he/she will face heavier financial pressure as well as physical and mental exhaustion in the lengthy process of compulsory enforcement when claiming for repayments from the employer. To ease the worries of the workers, the Bureau of Labor Insurance (BLI) points out that the government has, at a very early stage, established the Wage Arrears Payment Fund to promptly safeguard the interests of the workers who are unable to receive punctual salary or severance payments from their employers.

The Wage Arrears Payment Fund is allocated by and collected from all employers applicable to the Labor Standards Act on a monthly basis, being 0.025 percent of the total insurance salary under the labor insurance program. If, due to suspension of business, liquidation or declaration of bankruptcy by his/her employer, a worker is unable to receive the wage (the wage arrears accumulated within six months prior to such events) on time; or is unable to obtain the pension/severance payment (old system) under the Labor Standards Act or the severance payment (new system) under the Labor Pension Act (the total amount shall not exceed six months of average wage ), the employee may apply to the BLI for repayment of the part which he/she has requested the employer to pay but to no avail. The BLI shall in turn seek arrears payment from the employer. Based on the BLI's statistics, up to the end of May, 2021, the total amount paid by the Fund since its establishment is more than NT$7,170.66 million, and 76,879 workers have been benefited.

The BLI reminds the workers that, in case their employers have delayed or failed to make the salary payment, the workers may immediately seek assistance from the competent authority in charge of labor administration at the location of the business entity to investigate and understand the operational status of the entity. The workers should, in the meantime, request the employers to provide proof confirming their inability to pay. This will facilitate the confirmation of actual suspension and the claim for payments from the Fund in future. If the employers are unable to be located, the workers should request the local competent authority to issue a proof to confirm the business suspension, in the meantime obtain the proof of creditor's rights through the judicial system. When claiming repayment from the BLI, the workers should present the above documents along with the application form and relevant supporting documents such as the payroll slips, payroll details, attendance records and labor contracts. The BLI shall then request the employers to reimburse the amount advanced. The workers, therefore, are not required to individually pay for or go through the lengthy court procedures for compulsory enforcement. They can thereby enjoy a worry-free financial status. For more detailed information, please visit the webpage "Wage Arrears Payment" under the BLI's global website.
PreviousWorkers who are involuntarily dismissed from employment due to the COVID-19 pandemic may apply for unemployment benefits if they meet the eligibility requirements NextFor the insured persons of labor insurance who have been confirmed to have contracted COVID-19 and arranged to stay in the collective quarantine facility or service-enhanced quarantine hotels, they may claim for labor insurance ordinary injury or sickness benefits in accordance with the relevant regulations.
Last Update:2021-08-31