Page 24 - 109業務簡介_ENLISH
P. 24
To strengthen the security and stability of employee's change of jobs or employers' going
the employees' lives and economic welfare, out of business, the government is obligated
in July 1984 the Labor Standard Law was to replace the old program with a new one.
enacted; Article 28 stipulates expressively Also, this would make it easier for employers to
that employees who are entitled to claim their estimate their operating costs and reduce labor
arrears of wages under the labor contract within disputes.
six months prior to suspension, liquidation After communication and coordination among
or bankruptcy declaration of the employer's workers, employers, and the government
business from the wage arrears payment fund. for more than a decade, the Labor Pension
To further protect employees' rights and to Act was announced on June 30, 2004 and
reduce labor disputes, on February 4, 2015, went into effect on July 1, 2005. The central
the amendment to Article 28 expanded the competent authority shall entrust the BLI to
scope of payments the fund covers, with the take charge of the revenues, expenditures and
fund now covering retirement pension and safeguard of labor pension, and the imposition
severance pay required by the provisions of of late payment charges. The new labor
Labor Standards Act, and the severance pay pension program is supported by two pillars of
required by the provisions of Labor Pension Act “individual labor pension accounts” and “annuity
(the total amount shall be less than 6 months insurance”; the above-mentioned connotations
of average wage). are explained separately as follows :
The collection of the fund began in November, 1. Individual Labor Pension Accounts
1986, and it shall be collected by 0.05% of total
labor (employment) insurance wage. From July (1) Applications
1996, after a certain amount was accumulated ① Mandatory Contributors
in the fund, the rate was lowered to 0.025% to The eligible subjects of the Labor Pension
reduce the financial burden of employers. This Act pertain to workers eligible under the
system has made significant contribution to the Labor Standards Act (including Taiwanese
protection of workers' lives and stability of our citizens; foreign spouses; spouses from
society. Mainland China, Hong Kong, or Macau;
and permanent resident foreigners).
Labor Pension Program However, mandatory contribution is not
applicable to those who have their pension
The labor pension program refers to payment reserves contributed in accordance with
given by employers when workers retire. the Private School Law.
This is a crucial program for safeguarding ② Voluntary Contributors
employees' retired lives. However, the past According to the paragraph 2 of Article
stipulations pertaining to labor pension 7 of the Labor Pension Act, if workers
claiming under the Labor Standards Act (the who actually engage in labor work, self-
old program) are overly strict, it is hard for most employed operators, commissioned
workers to meet the requirements of applying. workers, and workers not applicable to
To safeguard workers' retired lives, eliminate the Labor Standards Act, may voluntarily
deficiencies of the old program, and avoid the contribute and request to claim pension in
rights of pension claiming being affected by accordance with the Act.
22 │Service‧Convenience‧Efficiency‧Innovation│
