Clarification of whether a licensed professional engineer may be hired as a honorary advisor of a non-profit association on a part-time basis and whether transportation allowances may be received(Taiwan)

2016.10.11
Teresa Huang

The Public Construction Commission issued the Gong-Cheng-Ji-10500306620 Circular of October 11, 2016 (hereinafter, the “Circular”) to clarify issues concerning whether a licensed professional engineer may be hired as a honorary advisor of a non-profit association on a part-time basis and whether transportation allowances may be received.

According to the Circular, Article 13 of the Act Governing the Administration of Professional Engineering Consulting Firms (hereinafter, the “Act”) provides that licensed professional engineers employed by a professional engineering consulting firm or who organize a professional engineering consulting firm shall perform their duties on a full-time and continual basis and may only execute business within the firm only. In addition, Article 10 of the Enforcement Rules of the Act provides that the so-called “full-time basis” under Article 13 of the Act shall refer to the receipt of compensation for services within the employing professional engineering consulting firm or outside of the firm under the control of the employing professional engineering consulting firm during the entire business hours of the firm without concurrent holding of any position outside of the firm during the term of employment and during the entire business hours of the firm. However, this restriction shall not apply to concurrent teaching, research, disaster survey, examination or other concurrent business or positions recognized by the competent authority. The legislative objective is to ensure the quality of professional engineering services by compelling licensed professional engineers of professional engineering consulting firms to stay focused on the business of their employing professional engineering consulting firms. As for the part-time work engaged by a licensed professional engineer of a professional engineering consulting firm “outside of the business hours” of the firm, this does not fall within the scope of Article 13 of the Act.

This Circular further points out that the practice of a licensed professional engineer of a professional engineering consulting firm under Article 7, Paragraph 1, Subparagraph 2 of the Professional Engineers Act (hereinafter, the “PEA”), i.e., organizing a professional engineering consulting firm or being employed by a professional engineering consulting firm, shall comply with Article 13 of the Act, which requires personnel to be employed on a “full-time and continual basis.” As for licensed professional engineers who practice under Article 7, Paragraph 1, Subparagraph 1 of the PEA (concerning the establishment of an engineering office on a sole proprietary basis or in conjunction with other professional engineers) or under Subparagraph 3 (concerning the employment by a profit-seeking enterprise or organization other than a professional engineering consulting firm which is required by law to hire a licensed professional engineer), Article 13 of the Act does not apply. However, under Article 7, Paragraph 2 of the PEA, a licensed professional engineer may only perform services within the same entity, regardless of the manners mentioned above in which services are performed.

This Circular further holds that if a licensed professional engineer of a professional engineering consulting firm seeks to serve as an honorary advisor or an unpaid advisor of a non-profit and public-interest civic organization concurrently (with such concurrently advisory position not filled on a “full-time” basis) during the “business hours” of the firm, such engineer shall provide supporting materials to indicate the nature of such position before the concurrent holding of relevant positions and apply to the Public Construction Commission for approval pursuant to the proviso of Article 10 of the Enforcement Rules of the above Act. As for whether transportation allowances may be received, the Act contains no relevant requirement.