Groups call for uniform penalties for wage violations

Labor groups yesterday called on the government to adopt uniform penalties for employers that contravene minimum wage laws, saying that wide disparities among local authorities weaken the enforcement of the law.

Taiwan Labour Front Secretary-General Yang Shu-wei (楊書瑋) said some local governments still rely on penalty guidelines under the Labor Standards Act (勞動基準法) rather than the Minimum Wage Act (最低工資法), while others have no standards for minimum wage contraventions.

Yang described the current system as effectively “23 systems in one country,” referring to Taiwan’s 22 local governments and the Ministry of Economic Affairs.

Members of labor groups speak at a news event in Taipei yesterday.

Photo: CNA

Thresholds for imposing the statutory maximum fine of NT$1 million (US$31,360) range from six to 17 violations across jurisdictions, but rise to 50 or more in ministry-administered industrial parks, which Yang called “absurd and shameful.”

He warned that such disparities could undermine the effectiveness of minimum wage legislation and give noncompliant employers an unfair advantage over those that follow the law.

Yang called on the Ministry of Labor to establish a nationwide standard, under which employers that contravene the law five or more times would face a statutory maximum fine of NT$1 million, regardless of company size.

“Five violations are already a lot, which suggests the employer is deliberately breaking the law,” he said.

Labor authorities last year imposed penalties in 153 cases involving wages below the statutory minimum, with fines totaling NT$3.3 million, labor ministry figures showed.

The six special municipalities accounted for 62.1 percent of the cases, while the support services sector accounted for the largest share by industry, at 33.33 percent.

Yang said the fines averaged only slightly more than NT$20,000 per case.

An employer might think: “If I get caught once, I would be fined NT$20,000, but will they come catch me a second time?” Yang said, adding that such low penalties weaken the deterrent effect of the Minimum Wage Act.

The labor ministry said it is already moving toward a uniform approach to penalties for minimum wage contravention.

The ministry said it recently proposed incorporating Minimum Wage Act contraventions into common principles governing fines for Labor Standards Act violations, and that “all local labor authorities have agreed to cooperate.”

Once the amendment is completed, minimum wage contravention cases nationwide “will be handled according to a uniform set of principles,” it said, adding that it would complete the legal procedures as soon as possible.

Meanwhile, Yang said the monthly minimum wage, currently NT$29,500, should rise beyond NT$30,000 next year and move toward NT$32,000 to NT$33,000, citing Taiwan’s strong economic performance and continued price increases.

The Minimum Wage Review Committee is scheduled to meet on Thursday next week to discuss next year’s minimum wage.

Premier Cho Jung-tai (卓榮泰) has said the monthly minimum wage is expected to exceed NT$30,000 next year.