History

This Law is established to improve the ability of workers to find employment, promote employment, and guarantee worker job training and basic living requirements for workers for a certain period of unemployment. Matters not provided for herein shall be governed by regulations of other laws.

The competent authorities of Employment Insurance are: the Council of Labor Affairs, Executive Yuan Taiwan, ROC at the central government level, the municipal government at the centrally administered municipality level, and the county city) government at the county (city) level.

Employment Insurance affairs are supervised by the Supervisory Commission of Labor Insurance.
If the insured person and the insured establishment dispute a case approved by the insurer, an application for review should be first made to the Supervisory Commission of Labor Insurance; if the result of the review is unsatisfactory, a legal appeal and administrative action may be filed.

The Bureau of Labor Insurance is commissioned by the central competent authority to administer Employment Insurance, and to be the insurer.

An employed worker and Taiwanese citizen, of 15 years of age and over, and under 60 years of age, should join the employment insurance program as an insured person through his employer or the establishment to which he belongs. However, the following people need not participate in the employment insurance program:
1.A person who should legally participate in the insurance program for civil servants and teachers, or the insurance program for members of the armed forces .
2.A person who is already covered by labor insurance payments for the elderly, or old age pension insurance for civil servants and teachers.
3.An employee who is legally exempt from registration and tax, or is legally exempt from registration and works for an employer or institution which does not have uniform invoice proof of purchase receipts.
An employee with two or more employers must select one employer through which to participate in the employment insurance program.

After this Law is enforced, a worker who should participate in the employment insurance program as an insured person pursuant to regulations of the preceding Article, upon the day the insured establishment declares his participation in the labor insurance program is effective, becomes an insured person in the employment insurance program . Upon the day the insured establishment declares his withdrawal from labor insurance coverage, insurance coverage immediately ceases.
A worker who already participates in the labor insurance program before this Law is enforced will become an insured person from when the Law is enforced. Pursuant to the Labor Insurance Act and regulations on labor insurance unemployment benefit implementation procedures, annual coverage of unemployment benefit insurance premium payments shall be cumulatively calculated with annual employment insurance coverage.
If a worker, who should participate in the employment insurance program as an insured person pursuant to regulations of the preceding Article, is not declared as participating in the labor insurance program by his employer, or group or institution to which he belongs, the insured establishment should declare the worker as participating in the labor insurance program, either on the day Employment Insurance is enforced, or on the day the worker starts work . On the day a worker leaves work, the employer must inform the insurer in writing. The beginning or end of insurance coverage is calculated from the day of declaration or when the insurer is informed that the worker has left work.However, if the insured establishment does not, on the day this Law is enforced or on the day the worker starts work, declare his participation in the labor insurance program, apart from being fined pursuant to Article 28 regulations herein, insurance coverage will begin on the day after the declaration or notification.

In order for the competent authority, the insured person and the Public Employment Service Institution to investigate the workers' working conditions, salary, or reasons for leaving work at the insured establishment, when necessary, the employee roster, record of work attendance, annual salary bookkeeping, and other related information may be investigated, which the insured establishment has no right to evade, obstruct or refuse .

The central competent authority will set employment insurance premium rates at one to two percent of the insured person's current monthly insurance salary, and report the situation to the Executive Yuan for approval.

Employment insurance premium rates are to be recalculated at least once every three years by the insurer, and the central competent authority is to appoint actuaries, insurance finance experts, relevant academics, and impartial observers to form an actuary review team of 9-15 people.
Under one of the following circumstances, the central competent authority shall adjust the employment insurance premium rate within the limits defined in the regulations of the preceding Article:
1.There is a difference of more than a five percent margin of error between the average value of the recalculated insurance premium rate over the previous three years and the current year's insurance premium rate.
2.The deposited insurance fund surplus is less than six times the average monthly sum of insurance benefit payments over the previous year, or higher than the nine times the average monthly sum of insurance benefit payments over the previous year.
3.The financial situation of the employment insurance program is influenced by items of benefit increases and cuts, benefit contents, benefit standards or benefit limits.

There are four kinds of employment insurance benefits:
1.Unemployment benefit
2.Early reemployment awards
3.Vocational training living allowance
4.Subsidy on National Health Insurance premium support for unemployed insured persons and dependants enrolled with the insured person
Rules on the recipients of support, conditions for support, standards of support, and duration of support referred to in item 4 of the preceding paragraph, will be determined by the central competent authority.

Conditions on application to claim the various employment insurance benefits are given below:
1.Conditions for unemployment benefit: The insured person has involuntarily left work within three years since the day of withdrawal from the labor insurance program, has accumulated a total of at least one full year in the insurance program, has the capacity to work and the desire to continue to work, has registered at a Public Employment Service Institution to seek employment but has not been offered a job placement or vocational training within 14 days of registration .
2.Conditions for early reemployment awards: The insured person meets the conditions to claim unemployment benefit, but has found work before the appointed time for claiming unemployment benefit has expired, and has participated in the employment insurance program for at least three months.
3.Vocational training living allowance: The insured person has involuntarily left work, has registered at a Public Employment Service Institution for reemployment, and has participated in full-time vocational training organized by the Public Employment Service Institution.
An insured person who leaves work at the termination of his contract, cannot find employment after one month, and within a year before resigning had been under contract for a total of at least 6 months, is regarded as having left work involuntarily and qualifies for provisions in the preceding paragraph .
A person who has 'involuntarily left work' herein refers to an insured person who is laid off by an insured establishment which closes down, relocates, stops work, restructures, or goes bankrupt; or he resigns under any of the conditions pursuant to regulations in Article 11, the proviso of Article 13, Article 14 and Article 20 of Labor Standards Law .

In order to promote reemployment of unemployed insured persons, Public Employment Service Institutions must offer career counseling, and organize job placement or participation in vocational training.
Affairs referred to in the preceding paragraph must be administered by the competent authority, or contracted or outsourced by the Public Employment Service Institution to another organization or institution, such as a school, group or foundation.
The central competent authority must allocate a budget of up to ten percent of the projected annual income from employment insurance premiums, to administer on-job training and vocational training for unemployed insured persons, and give incentives to employers to hire unemployed Taiwanese nationals.
In the preceding paragraph, rules for recipients of vocational training, the types of vocations, fund management and use, incentives for employers to hire Taiwanese unemployed workers, benefit conditions, benefit standards, and benefit limits shall be defined by the central competent authority.
'Career counseling' herein refers to information and services offered on choices of employment, career change or vocational training, career advancement workshop activities or specialist services to assist job orientation.

An applicant who does not accept a job placement from a Public Employment Service Institution for any one of the following reasons may still claim unemployment benefit:
1.The salary is less than 60% of his average monthly insurance salary over the six-month period prior to leaving work and withdrawing from the labor insurance program.
2.The workplace is over 30 kilometers away from the applicant's usual place of residence.

An applicant who does not accept career counseling or vocational training from a Public Employment Service Institution for any one of the following reasons may still claim unemployment benefit:
1.He is receiving medical treatment for injury or illness, and can prove he is unfit to attend.
2.He satisfies the Public Employment Service Institution that in order to participate in vocational training, he must move from his current abode.
Pursuant to regulations in any of the items of the preceding paragraph, if the applicant is unable to attend career counseling or vocational training organized by the Public Employment Service Institution, when he applies for unemployment benefit, the Public Employment Service Institution must still arrange a time for payment.

If an insured person commits any of the following, the Public Employment Service Institution shall refuse to accept application for unemployment benefit:
1.He refuses a job placement organized by the Public Employment Service Institution, in violation of regulations in Article 13.
2.He refuses to participate in Public Employment Service Institution arranged career counseling or vocational training, in violation of the regulations in the preceding Article.

Payment of unemployment benefit is administered according to the below regulations:
1.The applicant is paid a monthly unemployment benefit of 60% of his average monthly insurance salary over the six-month period prior to leaving work and withdrawing from the labor insurance program, for a maximum of six months. A person who claims unemployment benefit for the maximum six months shall have his cumulated years of insurance cover recalculated from zero.
2.A person who has not claimed unemployment benefit for six months before rejoining the labor insurance program, and then involuntarily leaves work, must conform to the regulations to claim unemployment benefit. However, the combination of already claimed unemployment benefit and early reemployment award being claimed pursuant to Article 18 regulations may be claimed for a maximum of six months. A person who has claimed a cumulative total of 6 months unemployment benefit shall have his cumulated years of insurance cover recalculated from zero.
Pursuant to regulations of the preceding paragraph, a person who has claimed unemployment benefit for 6 months, and reclaims unemployment benefit within two years after the claim limit was reached, may claim unemployment benefit for a maximum of three months. A person who claims unemployment benefit for the maximum three months shall have his cumulated years of insurance cover recalculated from zero.

An insured person who while unemployed has other work, which provides a monthly income exceeding the minimum wage, is ineligible for unemployment benefit. If the monthly income does not exceed the minimum wage, he may claim unemployment benefit in addition to the monthly income. If the combined total exceeds 80% of the average monthly insurance salary, the additional amount will be deducted from unemployment benefit. But if the combined amount is less than the minimum wage, no deduction will be made.
A person claiming labor insurance injury and illness benefit, vocational training living allowance, temporary work allowance, or other related employment development awards, may not claim unemployment benefit while receiving the related award.

A person eligible to claim unemployment benefit who finds work before the maximum unemployment benefit claim period has expired, and according to the regulations has participated in the employment insurance program as an insured person for at least three months, should apply to the insurer to claim 50% of unpaid unemployment benefit as a lump sum early reemployment award .

An insured person who involuntarily leaves work, registers at a Public Employment Service Institution to seek employment, and participates in full-time vocational training arranged by the Public Employment Service Institution, may during the training period receive a monthly vocational training living allowance of 60% of the applicant's average monthly salary over the six-month period prior to leaving work and withdrawing from the labor insurance program, for a maximum of six months .
When the applicant receives training, the vocational training establishment should instruct the insurer to pay his vocational training living allowance.

Unemployment benefit is calculated from the 15th day after registering to seek employment at a Public Employment Service Institution. Vocational training living allowance is calculated from the first day of training.

If the insured establishment deliberately carries out procedures for an ineligible person to join the labor insurance program, the recipient of insurance benefit shall be informed by the insurer to return the amount within a prescribed period of time. If the amount is not returned before the appointed time, the case may be referred to court for compulsory execution.

An insured person who claims any insurance benefit must not cede his rights to someone else, rescind, seize, or offer security.

If there is a labor-management dispute between the applicant and former employer due to the applicant leaving work, unemployment benefit may still be claimed.
If the ruling on the preceding paragraph finds the applicant ineligible to claim unemployment benefit, then the applicant must return already claimed unemployment benefit within 15 days of the judgment. If the amount has not been returned by the appointed time, the case may be referred to court for compulsory execution.

A person loses the right to claim an insurance benefit if no action has been taken two years after the day the claim is available.

After an insured person leaves work, he should bring documentation to prove he has left work or his contract has expired, and his national identity card or other documented proof of identity, in person to a Public Employment Service Institution to register to seek employment, apply for an unemployment certificate and receive career guidance . He must also fill out unemployment certificate and unemployment benefit application forms and claims procedures.
After the Public Employment Service Institution processes registration to seek employment, career guidance should be arranged. Job placement or vocational training should be arranged within 14 days of registration to seek employment.
Documented proof of having left work referred to in paragraph 1 is issued by the insured establishment, or the competent authority of the centrally administered municipality or the county (city) . If it is difficult to obtain such documentation, a clearly written explanation may be used as a substitute, with permission from the Public Employment Service Institution.
The above document or letter must include the name of the applicant, the title of the insured establishment, and reasons for leaving work.
An applicant, who cannot produce all the documents required by regulations of the preceding paragraph, must produce complete and correct documents within seven days. If documents are not properly revised by the appointed time, the application is considered null and void.

In order to meet the requirements of organizing job placement and vocational training, the Public Employment Service Institution requires the applicant to produce the following documentation:
1.Copies of the highest attainted educational diploma and documented work experience.
2.Copies of specialist vocational or technical skill certificates.
3.Copies of certificates from previously completed vocational training programs.

Within seven days of the day the Public Employment Service Institution organizes a job placement, the applicant should submit the employment and non-return cards to the Public Employment Service Institution.
If an applicant does not administer the above, the Public Employment Service Institution shall stop processing the current unemployment certificate. If the certificate has already been processed, it shall be cancelled.

If a person is not allocated a job placement after the period of vocational training is completed, the vocational training establishment shall ask the Public Employment Service Institution to complete the unemployment certificate. If he has not claimed unemployment benefit before, or has not yet claimed unemployment benefit for the maximum allowed period, the insurer shall take over payment of unemployment benefit, which combined with any unemployment benefit that has already been claimed, shall be paid for the same six month limited period.

A person who continues to claim unemployment benefit should go in person every month to the Public Employment Service Institution to reconfirm his unemployment certificate. However, if he is currently receiving medical treatment for injury or illness and is unable to attend in person, he must submit relevant documented proof from a medical establishment, and a written representation to entrust another person to process the certificate.
A person who does not apply at the Public Employment Service Institution for unemployment re-certification shall have his unemployment payments stopped.

When a person claiming unemployment benefit applies for unemployment re-certification, he must produce at least two records of seeking work before he can continue to claim. A person who cannot produce a record of seeking employment must produce complete and correct documents within seven days. If the documents are not properly revised before the prescribed period, his unemployment benefit will be stopped.

If a person has other additional income while he is unemployed or claiming unemployment benefit, he should inform the Public Employment Service Institution when applying for an unemployment certificate or processing unemployment re-certification.

A person claiming unemployment benefit should inform the Public Employment Service Institution within three days of becoming reemployed.

The Employment Insurance Fund derives from the following sources:
1.Funds credited to the Labor Insurance Fund by the central competent authority when Employment Insurance was established
2.Insurance premiums and earnings from interest, and the surplus balance of insurance payments .
3.Penalties on overdue insurance premiums
4.Income from Fund use
5.Other related income
The funds referred to in item 1 of the preceding paragraph, according to budget procedures from January 1, 1999, when Labor Unemployment Benefit was enforced, until the day before the Employment Insurance Law is put into effect, the surplus balance from unemployment benefit premiums is appropriated in one lump sum, and is exempt from Article 67 restrictions of the Labor Insurance Act .

With the approval of the Supervisory Commission of Labor Insurance, the Employment Insurance Fund may be used in the following ways:
1.Investment in government bonds, treasury bills and corporate bonds.
2.Deposited with government run banks, or with financial institutions and short-term stock trading investments recommended by the central competent authority.
The Employment Insurance Fund may not be used or transferred for purposes other than those described in the preceding paragraph, insurance benefit payments and expenditure, and appropriations pursuant to paragraph 3 of Article 12 regulations. The insurer shall submit an annual status report to the central competent authority on Fund balance and use, and accumulated amount.

The insurer shall calculate a budget for the employment insurance program administrative costs of no more than 3.5% of expected income from insurance premiums in the current budget year.

A person making fraudulent or other improper insurance benefit claims, or making false certification, reports, and representations, other than being fined a sum of double the claimed insurance benefits, will also be liable to the insurer for compensation and damages. If criminally liable, the case may be referred to court for compulsory execution.

A worker in contravention of the provisions herein, who does not participate in the employment insurance program and administer employment insurance procedures, will be fined between NT$1,500 to NT$7,500.

An insured establishment in contravention of the provisions herein which does not carrying out procedures to join the employment insurance program, will be fined the equivalent of ten times the amount of overdue insurance premium from the day the employment insurance program should have been joined until the day it was actually joined . Any resulting loses suffered by an employee should be compensated by the insured establishment pursuant to the regulations for standard benefit payments herein.
An insured establishment, in contravention of the provisions herein, which under-declares or over-declares an insured person's insurance salary, shall be fined the equivalent of four times the amount of under-declared or over-declared insurance premium calculated from the day the offense took place; and shall return any excess insurance payments within the time limit prescribed by the insurer . If the amount has not been repaid within the prescribed period of time, the case may be referred to court for compulsory execution, and payment of the amount of excess benefits nay be pursued .A worker who suffers any losses as a result shall be compensated by the insured establishment.
An insured unit in contravention of Article 7 provisions, will be fined between NT$10,000 and NT$50,000.
An insured establishment which has been fined the equivalent of the amount owed on overdue premiums pursuant to the regulations, and still does not pay the employment insurance premiums owed to the insurer, shall be fined six times the amount of overdue premiums owed.

If a fine imposed herein is not paid within the appointed time announced by the insurer, the case may be referred to court for compulsory execution.

Matters not provided herein regarding the beginning and end of insurance coverage, monthly insurance salary, insurance salary adjustment, the burden of responsibility for insurance premium, insurance premium payment, administering the extension of time limits and collection of penalties on insurance premiums, and investing and managing the fund, may be governed by the Labor Insurance Act and other relevant provisions .

Article 2 Part 1 of the Labor Insurance Act regarding ordinary incident insurance unemployment benefit, and provisions in Article 74 are repealed from the day this Law is enforced.
From the day this Law is enforced, the ordinary incident insurance premium rates of an insured person herein shall reduced by one percent of his monthly insurance payment of that month, exempt from the regulation in Article 13, paragraph 1.

All account books, receipts and administrative balance herein are exempt from taxes and duties.

The enforcement rules hereof shall be determined by the central competent authority.

The Executive Yuan will decide the date on which this Law shall be enforced.