Wage Payments Must Comply with Labor Standards Act: Common Employer Violations Explained

(Central News Agency reporter Wu Hsin-yun, Taipei, June 16) Statistics show that employer violations of the Labor Standards Act occur most frequently in wage and working hour regulations. Today, the Ministry of Labor outlined six common illegal practices in wage payments, including paying below the minimum wage, failing to pay on agreed dates, and not paying overtime wages, urging employers to take note.

During its regular business briefing today, Huang Chi-ya, Director-General of the Department of Labor Conditions and Employment Equality, emphasized that wages are the most critical labor condition for workers. Employers must comply with both the Labor Standards Act and the terms of employment contracts regarding payment amounts and dates. Based on penalty data and appeal cases, the Ministry has compiled six common illegal wage payment practices.

Huang noted that as of January 1, the monthly minimum wage is NT$29,500 and the hourly minimum wage is NT$196. Some employers agree with workers on daily wages—e.g., NT$1,000 for an 8-hour workday—which translates to an hourly rate of only NT$125, below the legal minimum of NT$196. This violates minimum wage regulations. Employers using daily pay arrangements must ensure hourly rates meet or exceed the minimum.

Employers and employees must clearly agree on wage payment methods and dates, with payments made at least once per month. However, Huang pointed out that in practice, employers often delay salary payments upon employee resignation or unilaterally change payment methods—e.g., switching from bank transfers to requiring cash pickup at the office—or delay disbursement.

If payday falls on a holiday or during the Lunar New Year period, employers must clearly agree in advance with employees on the payment date. Without employee consent, wages must be paid no later than the originally agreed date. If an employee resigns and final settlement cannot be made immediately, wages must still be paid by the original scheduled date using the agreed method.

Wages must be paid in full and directly to workers. However, in practice, employers often deduct wages punitively—for example, deducting 10 times the hourly wage for a few minutes of tardiness or for failure to return uniforms. Any unauthorized wage deductions or underpayments violate the Labor Standards Act.

Regulations require employers to maintain payroll records and actively provide workers with detailed breakdowns of wage calculations at the time of payment. Employers cannot wait for workers to request this information. The format can be paper, electronic transmission, or any form accessible and printable by workers. Failure to maintain payroll records or provide wage details constitutes a violation.

Statistics show there were 2,159 violations related to overtime pay last year alone, making it one of the most common illegal practices. Huang stressed that employers must generally pay overtime wages. Workers may choose compensatory time off only if they voluntarily request it and the employer agrees. Employers cannot unilaterally mandate compensatory time off.

All wage components defined in the employment agreement and paid during regular working hours must be included in overtime calculations. Overtime pay must be calculated precisely based on actual overtime minutes. Employers cannot refuse payment for partial hours (e.g., less than 30 or 60 minutes) or round down fractional amounts.

Lastly, failure to legally pay wages for work performed on public holidays is another common violation. Huang emphasized that if employers require workers to work on public holidays, they must obtain worker consent and pay double wages. For monthly-paid workers, 'double pay' means the regular holiday wage is paid plus an additional full day’s wage for the 8-hour workday.

Huang warned that employers violating these rules may face fines of up to NT$1 million, and the business name and responsible person’s name will be publicly disclosed. Workers encountering violations can file complaints with local labor authorities or the Ministry’s 1955 hotline, providing relevant evidence. If verified, penalties will be imposed according to law. (Edited by Lin Shu-hui) 1150616