On January 20, 2015, the Legislative Yuan adopted during the 18th Meeting of the 6th Session of the 8th Term Articles 17, 28, 55, 58, 78, 79, 80-1 and 86 of the amendment proposal of Labor Standards Law (hereinafter, the "Law"), which were promulgated by the President on February 4, 2015 and came into effect on the day of their promulgation, except for Article 28, Paragraph 1, which will come into force eight months after the promulgation. The amendments are highlighted as follows:

  1. Article 28, Paragraphs 1 and 3 and Articles 55 and 58 were amended:

To elevate workers' priority to satisfaction of claims and properly expand the scope of advances for outstanding wages so that the priority to the satisfaction of claims over a worker's six months' unpaid wages, pension under the old system and severance pay under the old and new systems is elevated and equal to the priority to the claims secured by the first mortgage, pledge or lien where the claims should be satisfied on a pro rata basis; and unsatisfied claims shall have the highest satisfaction priority. In addition, the scope of advances for outstanding wages includes pension under the old system and severance pay under the old and new systems, and up to six months' wages may be advanced. The statutory contribution rate is also increased from 0.1% to 0.15%.

  1. Articles 78 and 79 of the Law as amended provide as follows:

An employer is required to review the contribution status of the dedicated labor pension account and, if it is insufficient to satisfy the needs of workers who will be qualified for retirement in a year, to meet the shortfall within the required period. In case of failure to meet the shortfall, a fine of NT$90,000 to nt$450,000 will be imposed under Article 79, Paragraph 1, Subparagraph 1 as amended. Article 78 and Article 79, Paragraph 1, Subparagraph 1 as amended enhance the penalties on employers who fail to pay severance pay or pensions pursuant to applicable requirements from a fine of NT$90,000 to NT$450,000 to NT$300,000 to NT$1,500,000 and the payment shall be made within a stated period. Failure to do so may cause such fine to be imposed for each instance. Article 80-1 as amended provides that if a fine is imposed by the competent authority for any violation of this Law, the competent authority shall announce the name of the business organization or business owner and demand correction within a specified period. If no correction is made, such fine shall be imposed for each instance. When imposing a fine, the competent authority may consider the number of workers involved in a violation, cumulative number of violations and the amount not paid pursuant to law as the standard to determine the severity of the fine.

  1. Under Article 86 of the Law:

Except for Article 28, Paragraph 1 as amended, which relates to elevating the priority to the satisfaction of workers' claims so that it is the same as the priority to the first mortgage (which has the highest repayment priority), and which will go into effect eight months after the promulgation, the other amendments went into effect on the day of promulgation.