The Taiwan High Court held that an employer may deduct amounts already paid to an employee for occupational accidents under the Labor Insurance Act from amounts to be paid as compensation for occupational accidents pursuant to the Labor Standards Act, as both payments aim to compensate the same injury.

On December 24, 2013, the Taiwan High Court held that labor insurance of occupational accidents is a system to pay compensation to employees when occupational accidents occur, with the purpose of protecting employees and relieving employers from economic burdens. Accordingly, compensation in accordance with the Labor Insurance Act and compensation for labor occupational accidents in accordance with the Labor Standards Act share a similar purpose. Article 59 of the Labor Standards Act provides that where, in respect of the same accident, the employer has already paid compensation to the worker concerned in accordance with the provisions of the Labor Insurance Act or other applicable statutes and administrative regulations, the employer may deduct the payment. Further, the employee’s right to claim for compensation from employer in accordance with Article 72 of the Labor Insurance Act is an alternative to the right of labor insurance compensation. So, in respect of the same accident, the employer may also deduct compensation under Article 72 of the Labor Insurance Act from compensation for occupational accidents pursuant to the Labor Standards Act.