Eligibility for the Wage Payment Fund
Q: | Do employees need to contribute to the wage payment fund? |
A: |
The wage payment fund is entirely funded by employers, and employees are not required to make any contributions. |
Q: | Can the wage payment fund contributed by a company be refunded if the company ceases operations without any unpaid wages, pensions, or severance payments? |
A: |
The monthly contributions to the wage payment fund made by employers are intended to serve as compensation in cases of unpaid wages, pensions, or severance payments when a company ceases operations, undergoes liquidation, or declares bankruptcy. As the fund is collective in nature, it cannot be refunded. |
Q: | Will employees be affected if an employer fails to pay the wage payment fund on time? |
A: |
If the employer delays payment of the wage payment fund but later completes the payment, employees can still apply for compensation. |
Q: | Does enrollment in labor insurance mean automatic eligibility for the wage payment fund system? |
A: |
Enrollment in labor insurance does not automatically make one eligible for the wage payment fund system. Eligibility is limited to individuals who qualify as “employees” under the Labor Standards Act. |
Q: | Are employees enrolled only in employment insurance or occupational accident insurance required to have contributions made to the wage payment fund? |
A: |
If the employees are covered by the Labor Standards Act, they are subject to the wage payment fund contributions. Therefore, employers are still required to make contributions to the wage payment fund for employees who are enrolled only in employment insurance or occupational accident insurance, in accordance with the regulations. |