February 27, 2025
Taiwan's Ministry of Labor Amends The "Enforcement Rules of The Labor Insurance Act" to Safeguard the Rights and Interests of Relevant Parties
On January 6, 2025, Taiwan’s Ministry of Labor amended certain provisions of the "Enforcement Rules of the Labor Insurance Act" (hereinafter referred to as the "Enforcement Rules") to safeguard the rights and interests of insured units and insured persons. The key points of this amendment are summarized as follows.
1. The amended provisions include the situations where an insured unit is dissolved due to "division" or "transfer," the newly established or transferee insured unit shall assume the obligation to settle any outstanding insurance premiums or late payment penalties.
According to Articles 6 and 15 of the Labor Insurance Act (hereinafter referred to as the “Act") and Article 18 of the Enforcement Rules, the employers, as insured units, are responsible for bearing the majority of the insurance premiums. When an insured unit is dissolved, the obligation to settle any outstanding insurance premiums or late payment penalties shall be assumed by the new insured unit. Article 18 of the Enforcement Rules prior to the amendment only listed "merger" as a cause for the dissolution of an insured unit. The amended Article 18 further specifies that when an insured unit is dissolved due to "division" or "transfer", the obligation to settle any outstanding insurance premiums or late payment penalties shall also be assumed by the newly established or transferee insured unit.
2. The amended provisions prohibit insured units from adjusting the insured salary of the insured persons under certain circumstances.
According to Article 13 of the Act, the insurance premium rate is calculated based on the insured person's monthly insured salary. Article 28 of the Enforcement Rules prior to the amendment stipulated that if an insured person continues to join insurance coverage in the event of hospitalization due to injury, illness or situations specified in Subparagraphs 1, 3, and 5 of Article 9, Article 9-1 of the Act, or Paragraph 2 of Article 16 of the Gender Equality in Employment Act, the insured unit may not adjust their insured salary during the period of insurance coverage. The amended Article 28 further specifies that when an insured person takes leave due to injury or illness, or during periods when they are temporarily suspended from duties due to administrative investigations into sexual harassment or bullying as per Paragraph 1 of Article 13-1, Paragraph 2 of Article 32-3 of the Gender Equality in Employment Act and Paragraph 6 of Article 30 of the Gender Equity Education Act, the insured unit is also prohibited from adjusting their insured salary.
3. The amended provisions prohibit unions that adopt the policy of collecting insurance premiums in advance from continuing this practice if there is an accumulation of unpaid insurance premiums for two months.
Paragraph 2 of Article 40 of the Enforcement Rules prior to the amendment stipulated that insured units with which certain types of insured persons are affiliated may collect three- or six-month insurance premiums in advance upon obtaining approvals from the insured persons or the general meeting of members. The amended Paragraph 2 of Article 40 adds a restriction that if an insured unit has accumulated unpaid insurance premiums for two months, it is prohibited from continuing to collect insurance premiums in advance until all outstanding insurance premiums are settled.
4. Enhancing the responsibility of insured units to claim insurance benefit payments on behalf of their affiliated insured persons.
According to Article 42 of the Enforcement Rules, insured units are required to claim insurance benefit payments free of charge on behalf of their affiliated insured persons, beneficiaries or those who have paid funeral expenses. Article 43 of the Enforcement Rules prior to the amendment allowed funeral grants to be claimed directly by the insured persons, beneficiaries, or those who paid funeral expenses. However, to prevent foreign insured persons’ rights from being harmed due to language and cultural barriers when claiming funeral grants, the amended Article 43 stipulates that only insured persons with household registration in Taiwan may claim the funeral grant directly. This means that the responsibility is still imposed on the insured unit to claim the funeral grant on behalf of the foreign insured persons. Additionally, a new provision, Article 54-1, has been added. It states that if an insured person or their family without household registration in Taiwan is required by regulations to submit a copy of their household registration transcript or booklet when claiming various insurance benefit payments, they may substitute it with proof of familial relationship documents.
The labor insurance system is closely related to employers' obligations. We will continue to monitor future amendments and the evolution of judicial precedents concerning related regulations.
1. The amended provisions include the situations where an insured unit is dissolved due to "division" or "transfer," the newly established or transferee insured unit shall assume the obligation to settle any outstanding insurance premiums or late payment penalties.
According to Articles 6 and 15 of the Labor Insurance Act (hereinafter referred to as the “Act") and Article 18 of the Enforcement Rules, the employers, as insured units, are responsible for bearing the majority of the insurance premiums. When an insured unit is dissolved, the obligation to settle any outstanding insurance premiums or late payment penalties shall be assumed by the new insured unit. Article 18 of the Enforcement Rules prior to the amendment only listed "merger" as a cause for the dissolution of an insured unit. The amended Article 18 further specifies that when an insured unit is dissolved due to "division" or "transfer", the obligation to settle any outstanding insurance premiums or late payment penalties shall also be assumed by the newly established or transferee insured unit.
2. The amended provisions prohibit insured units from adjusting the insured salary of the insured persons under certain circumstances.
According to Article 13 of the Act, the insurance premium rate is calculated based on the insured person's monthly insured salary. Article 28 of the Enforcement Rules prior to the amendment stipulated that if an insured person continues to join insurance coverage in the event of hospitalization due to injury, illness or situations specified in Subparagraphs 1, 3, and 5 of Article 9, Article 9-1 of the Act, or Paragraph 2 of Article 16 of the Gender Equality in Employment Act, the insured unit may not adjust their insured salary during the period of insurance coverage. The amended Article 28 further specifies that when an insured person takes leave due to injury or illness, or during periods when they are temporarily suspended from duties due to administrative investigations into sexual harassment or bullying as per Paragraph 1 of Article 13-1, Paragraph 2 of Article 32-3 of the Gender Equality in Employment Act and Paragraph 6 of Article 30 of the Gender Equity Education Act, the insured unit is also prohibited from adjusting their insured salary.
3. The amended provisions prohibit unions that adopt the policy of collecting insurance premiums in advance from continuing this practice if there is an accumulation of unpaid insurance premiums for two months.
Paragraph 2 of Article 40 of the Enforcement Rules prior to the amendment stipulated that insured units with which certain types of insured persons are affiliated may collect three- or six-month insurance premiums in advance upon obtaining approvals from the insured persons or the general meeting of members. The amended Paragraph 2 of Article 40 adds a restriction that if an insured unit has accumulated unpaid insurance premiums for two months, it is prohibited from continuing to collect insurance premiums in advance until all outstanding insurance premiums are settled.
4. Enhancing the responsibility of insured units to claim insurance benefit payments on behalf of their affiliated insured persons.
According to Article 42 of the Enforcement Rules, insured units are required to claim insurance benefit payments free of charge on behalf of their affiliated insured persons, beneficiaries or those who have paid funeral expenses. Article 43 of the Enforcement Rules prior to the amendment allowed funeral grants to be claimed directly by the insured persons, beneficiaries, or those who paid funeral expenses. However, to prevent foreign insured persons’ rights from being harmed due to language and cultural barriers when claiming funeral grants, the amended Article 43 stipulates that only insured persons with household registration in Taiwan may claim the funeral grant directly. This means that the responsibility is still imposed on the insured unit to claim the funeral grant on behalf of the foreign insured persons. Additionally, a new provision, Article 54-1, has been added. It states that if an insured person or their family without household registration in Taiwan is required by regulations to submit a copy of their household registration transcript or booklet when claiming various insurance benefit payments, they may substitute it with proof of familial relationship documents.
The labor insurance system is closely related to employers' obligations. We will continue to monitor future amendments and the evolution of judicial precedents concerning related regulations.
