Taipei, April 23 (CNA) Taiwan's Legislature on Friday passed the Occupational Accident Insurance and Protection Act, touted as a gift for workers around the country ahead of the May 1 Labor Day, because the new law stipulates two months of full salary payout for those suffering from an occupational injury or disease.
The legislation, which covers all employees in Taiwan including foreigners, integrates the prevention of occupational hazard, compensation and rehabilitation into one single law, said Liao Hui-fang, chairperson of Taiwan Occupational Safety and Health Link (TOSHL), one of the civil groups devoted to promoting the birth of the act.
The act lays a "new landmark" in Taiwan's efforts to push for occupational safety, Liao said, praising the legislation as an important gift for workers ahead of Labor Day.
Under the new act, employers are required to sign their workers up for occupational accident insurance on their first day at work, regardless of the size of the company.
Before the legislation, only companies employing five or more workers are required to have labor insurance for their workers, which covers occupational accident insurance and protection, while insurance enrollment is voluntary for companies with fewer than five people.
Thanks to the passage of the Occupational Accident Insurance and Protection Act, no legally hired workers, including interns and domestic helpers, are excluded from occupational accident insurance, while those working without an employer can also opt for such insurance.
The new law also applies to all foreigners hired to work in Taiwan.
However, it was unclear whether the law would require employers to enroll and pay for people who are employed as "contractors," such as foreigners who work as translators, food delivery drivers or part-time workers.
Under current laws, employers, including government agencies, can get around providing workers insurance, pension and health benefits to part-time or even full-time workers, by treating them as "contractors."
For instance, foreigners, including those with Alien Permanent Residency Cards, employed as translators or English consultants for government agencies under such contracts are denied any insurance, workers' compensation, pension, health care, or other benefits.
TOSHL operating executive Huang Yi-ling told CNA that more than 230,000 foreign migrants working as a domestic helper or caregiver in Taiwan will be benefited, so will those doing temporary work at construction sites.
According to the new act, any employer failing to sign their workers up for occupational accident insurance will be faced with a fine of up to NT$100,000 (US$3,562). The fine can be repeated as an offense if not rectified within a given date.
Under the new act, the monthly insured salary, which is used as the basis for determining benefits, is set from the minimum wage of NT$24,000 to NT$72,800. Insurance payouts cover the areas of medical treatment, injury/disease, disability, death and disappearance.
Occupational injury or disease benefits are set at 100 percent of a person's insured salary in the first two months, and 70 percent until the application ends.
Meanwhile, permanent disability benefits will be determined based on the severity of a person's disability.
A person who is completely disabled will receive 70 percent of their insured salary, while a person with severe disabilities will receive 50 percent, and a person who is partially disabled will receive 20 percent, according to the new act.
Before the new legislation, those who are not enrolled in the labor insurance system receive nothing for occupational injury/disease they suffer from.
The date for the new act to become effective will be decided by the Cabinet, which has not given any as of press time.
