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Corporate Service - Taiwan

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Regulations for Additional Labor Insurance for Responsible Person in Taiwan

Answer
Q:
How is the funeral allowance for a deceased family member of an insured person in Taiwan calculated if the death has been officially declared by a court?
A:
  1. If both the date of death and the date of the court’s declaration fall within the insured period, the allowance is calculated based on the average monthly insured salary for the 6 months preceding the month of the court’s declaration.
  2. If the date of death falls within the insured period but the insured had withdrawn from insurance at the time of the declaration, the allowance is based on the average monthly insured salary for the six months preceding the month of withdrawal from insurance.

Q:
How should a company in Taiwan handle additional labor insurance if it currently has no employees?
A:
If a new company has only the responsible person and does not employ any staff, regulations prohibit the establishment of an insurance unit solely for the responsible person to participate in labor insurance.

Q:
How should the labor insurance of employees be handled if a company in Taiwan has ceased operations, and the owner has established a new company?
A:
The original company should process the withdrawal of labor insurance for its employees, and then the new company should handle the procedures for new insurance coverage.

Q:
Can labor insurance be withdrawn for a company in Taiwan that is about to close, with only the responsible person remaining to handle final affairs?
A: If a company is about to cease operations and no longer employs staff, it is required to fill out a withdrawal form on the day the employees leave and send it to the Labor Insurance Bureau to process the withdrawal. Once all employed staff have left and withdrawn their insurance, and only the responsible person remains to handle final affairs, this person no longer qualifies as an employer and can apply for insurance withdrawal.

Q:
In Taiwan, Companies A and B, each with their own employees insured under separate policy numbers, merge to form a new company. How should labor insurance be handled?
A: The labor insurance for the merged company can be handled in one of the following ways:
  1. Process the withdrawal of insurance for employees from both companies, and then have a surviving company after the merger arrange new insurance procedures to add coverage for its employees.
  2. Retain the insurance certificate number of either Company A or Company B, change the insured unit’s name to that of the merged company with the relevant bureau, process the withdrawal for the employees of the other company (B or A), and then transfer them to the retained company’s insurance.

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