History

The Rules are drawn up in accordance with Article 28 of the Labor Standards Act (hereinafter referred to as the Act)

The Arrear Wage payment Fund (hereinafter referred to as the Fund) shall be under the administration of the Management Committee of the Arrear Wage payment Fund (hereinafter referred to as the Management Committee) established by the Central Competent Authority. The collection, repayment and management affairs shall be entrusted to the Labor Insurance Bureau (hereinafter referred to as the Bureau). If necessary, its management may be entrusted to financial institutions to handle.
Related matters concerning the management entrusted to the financial institutions referred in the preceding paragraph shall be drawn up by the Bureau and submitted to the Management Committee for approval, and then submitted to the Central Competent Authority for registration and approval.

The Fund shall be collected and allocated by an employerto the Labor Insurance Agency at the rate of 0.05 percent of total labor insurance wage per month.

The Bureau shall calculate the amount of collections and allocations to the Fund for each business entity every month, and send the same to the employer before the end of following month, demanding him (or her) to remit the same together with the premium for (his or her) labor insurance for the same month.
In case the employer has not yet received the demand for payment mentioned in the preceding paragraph at the end of the following month, he (or she) shall make a temporary payment at the equivalent amount as last month, and balance during the next payment.

In case an employer disagrees with the amount mentioned in the demand for allocation payment, he (or she) shall pay the indicated amount first, and then send a request to the Bureau for alteration by stating the reasons. In case the Bureau agrees with the request, adjustments shall be made when allocation payment is made in the following month.

In making payment to the Fund, an employer may, according to the related statutes, list the payment as expenses for the current year.

The scope of repayment of the Fund shall be limited to the allocated amount of the Fund paid by the employer of the worker applying for repayment.
When the Bureau discovers, while the worker are applying for the arrear wage debt referred to in the preceding paragraph, that the employer has not allocated or is in arrear of the Fund, it shall process the application after the completion of the requirements of the allocation.

In case a worker has requested the repayment of arrear wage debt due to the fact that his (or her) business operation and has not received payment, when he (or she) applied for the repayment of the arrear wage debt through the Fund, he (or she) shall submit and attach documentary evidence issued by the local competent authority stating that the registration of factory, business or for-profit business has been cancelled, withdrawn or revoked, or the business has ceased production, operation, has closed or liquidated, and has been admitted as fulfilling the requirements of the termination of business operation.
In case a branch organization of a business entity's registration of factory has been cancelled, withdrawn or revoked, or has ceased production, or its operation has been admitted by the local competent authority as fulfilling the requirements of the termination of business operation, the worker may also apply for repayment of arrear wage debt.

In case a workers demands repayment of arrear wage debt when his (or her) employer liquidates or proclaims bankruptcy, he (or she) shall submit and attach related documentary evidence concerning he (or she) has applied and reported debt right to the liquidator or supervisory personnel of the bankrupted property, or has requested but has not received payment from his (or her) employer.

When workers of the same employer request repayment for arrear wage debt, they shall submit application forms and the following documents to the Bureau:
1. The amount of arrear wage debts and the name list of workers;
2. Documentary evidences prescribed in Article 8 or 9;
3. Receipts of repayment of arrear wage debt.
The application forms referred to in the preceding paragraph shall be signed by the employer and applied jointly once. However, if the circumstances are special, the above mentioned limitation shall not apply.

In case a worker intentionally hides facts, or refuses or interferes with investigations, or presents unsubstantiated facts, his (or her) request for repayment shall be rejected.

When a worker applies for repayment of arrear wage debt, the Bureau shall make a decision within thirty days after the receipt of the application. In case of necessity when the Bureau has to investigate the account books, authorization documents and other documents together with other personnel from the local competent authority or the labor inspection authority before the final decision is made, the response may be delayed for another fifteen days.

In case a worker disagrees with the decision of the Bureau, he (or she) may present his (or her) disagreement to the Management Committee within thirty days after the receipt of the decision.

After the Bureau makes repayment of arrear wage debt according to the stipulation of Article 28 of the Act, it may in its own name exercise the right for top-priority compensation (hereinafter referred to as wage debt rights). It may according to law, request the employer, liquidator, or the supervisory personnel for bankrupted property for repayment within the time limit. If the payment is made after the time limit, an interest rate at the 1-year-time-deposit rate shall be charged.
In case the employer is in arrears in making allocation payments to the Fund, he (or she) shall pay administrative fines according to the stipulation of Article 79 of the Act, and also interests since the day of repayment.

Repayments for arrear wage debt from the funds shall be paid directly to the worker. In case of the death of the worker, they shall be paid to the survivors of the worker in accordance with the order referred to in Item 4 of Article 59 of the Act. In case there are no survivors, the payment shall be revoked.

The Bureau and the employer shall not charge any fee for processing procedures for workers in claiming their repayments of arrear wage debt.

The interest incomes of the Fund shall be exempt from income tax in accordance with the related stipulations of the Income Tax Act.
The Bureau shall be exempt from taxes in its exercise of matters concerning the related business of the Fund in accordance with the related stipulations of the tax statutes.
The receipts for repayment of arrear wage debts of the workers shall be exempt from stamp tax in accordance with the related stipulation of the Stamp Tax Act.
The Bureau shall deduct the income tax from the repayments of arrear wage debts in accordance with the related stipulations of the laws. When the employer, liquidator, or supervisory personnel of the bankrupted property repay the arrear wage debts, they shall not deduct tax repeatedly.

The administrative expenses incurable by the Bureau each year in the exercise of the task entrusted to it by the Fund shall be prepared by the Bureau and listed as a budget. It shall be examined and approved by the Management Committee and submitted to the Central Competent Authority for approval and registration, and payable from the interest incomes of the Fund.

The scopes of the utilization of the Fund are as follows:
1. Deposited in financial institutions.
2. As loans to all levels of governments for the purposes of economic development or investment outlays; reimbursements may come either in the form of profits or through annual budgetary repayments.
3. Purchase stocks issued by the listed companies or receipts of profits of the securities investment trust funds.
4. Purchase of bonds or debt bonds to adjust the regular incomes and outlays of the Fund.
The amount of the Fund invested for in the purpose specified in Item 3 of the preceding paragraph shall not exceed twenty percent of the Fund's net amount.
Except for the payment of administrative expenses referred to in the preceding Article, the incomes and benefits of the Fund shall be incorporated in the Fund for operation purposes.

The Bureau shall prepare a general report at the end of every year and submit the following reports every month through the Management Committee to the Central Competent Authority for approval and registration:
1. Statistical figures on business entities which make allocations and the number of workers involved.
2. Accounting reports on the collection, allocation and repayment of the Fund.
3. Figures of general situations of the Fund.

After the Bureau has obtained the wage debt rights, it may write off as bad debts in case any one of the following circumstances occurs, and with examination and agreement of the Management Committee and the approval of the Central Competent Authority have been obtained:
1. When the debtor is in hiding or cannot be located for the repayment of the debt.
2. When documentary evidence or court authorization of debt rights is obtained to show that the debtor is truly unable to repay the debt.
3. When a settlement has been reached with the debtor without the repayment of the debt and the proof of settlement has been obtained.
4. When the repayment is inadequate to cover the expenses of seeking repayment.
5. When the employer may be exempt from the obligation to pay the debt in accordance with the stipulations of related statutes and administrative regulations.

The different forms to be used in accordance with the stipulations of the Rules shall be designated by the Bureau.

The opening day for the allocation and payment of the fund shall be decided by an administrative order of the Central Competent Authority.

The Rules shall become effective on the day of promulgation.