An unemployed worker or a worker on unpaid paternal leave who serves concurrently as the legal representative of a non-profit seeking enterprise may still claim unemployment benefits or allowances for unpaid paternal leave(Taiwan)

Jonathan Chao

The Ministry of Labor issued the Lao-Dong-Bao-1-1050140035 Circular of January 21, 2016 (hereinafter, the “Circular”) to communicate that when an insured also serves as the representative of another organization when he or she is unemployed or on unpaid paternal leave, if documents evidencing that such organization is a non-profit seeking enterprise or no longer engages in business operation can be submitted, his/her unemployment benefits or allowances for unpaid paternal leave may still be claimed pursuant to law.

According to the Circular, when an insured serves as the legal representative of another organization pursuant to the Company Act or the Business Entity Accounting Act during the unemployment or unpaid paternal leave of the insured, the insured will be presumed to engage in business operation and shall not be eligible for unemployment benefits or for allowances for unpaid paternal leave under the Employment Insurance Act. However, to reasonably safeguard the right of an insured to receive employment insurance benefits, when application is filed for unemployment determination or for the payment of unemployment benefits, the insured may still claim unemployment benefits or allowances for unpaid paternal leave pursuant to law if relevant documents can be attached to prove: (1) such organization is not a profit-seeking enterprise; or (2) the insured no longer engages in business operation, as indicated by (i) documents evidencing such organization has been suspended or closed down pursuant to law; (ii) documents supporting that amendment registration has been made with the competent authority for specified business or tax authority after the legal representative of such organization has been changed pursuant to law; (iii) documents submitted by such organization to evidence that the delegation relationship with the insured as a director or supervisor has been rescinded or terminated or documents supporting that the insured has rescinded or terminated his/her delegation relationship with such organization as a director or supervisor; or (iv) documents evidencing that a complaint was filed with a prosecution agency since the insured was impersonated by such organization for its legal representative registration.

This Circular also points out that if business operation is conducted and other work income is generated during the unemployment or receipt of unemployment benefits, a public employment service agency shall be informed in accordance with Article 31 of the Employment Insurance Act when application is filed for unemployment determination or re-determination of unemployment. As for the payment of unemployment benefits, Article 17 of the Employment Insurance Act shall be followed.