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Conditions for Wage Arrears Payment Application

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Q: Can employees apply for wage arrears payment if the company owes them wages?
A: If the company is still in operation or suspended but has the potential to resume operations, it does not fall under the categories of closure, liquidation, or bankruptcy. In such cases, employees are not eligible to apply for wage arrears payment. However, employees may seek assistance from the local labor bureau to mediate and request the employer to pay the outstanding wages, retirement benefits, or severance pay.

Q: Can individuals who are covered by labor insurance apply for wage arrears payment?
A: Only workers who are employed by an employer to perform work and receive wages, as defined under the Labor Standards Act, are eligible to apply for wage arrears payment. If the individual is a company representative or someone in a principal-agent relationship with the company, even if they are covered by labor insurance, they are not considered workers under the Labor Standards Act and therefore cannot apply for wage arrears payment.

Q: Is the application amount calculated based on actual wages or the insured salary under labor insurance?
A: The wage arrears payment amount is calculated based on the actual wages.

Q: Is income tax deducted from wage arrears payment?
A: When the Bureau of Labor Insurance makes wage arrears payments to employees, it is required by law to withhold income tax. However, when the employer, liquidator, or bankruptcy administrator repays the advanced amount, no additional tax withholding will be applied.

Q: Does the employer need to repay the wage arrears advanced by the Bureau of Labor Insurance?
A: After the Bureau of Labor Insurance makes wage arrears payments to employees, the employer, liquidator, or bankruptcy administrator is required to repay the advanced amount to the Wage Arrears Payment Fund within the specified timeframe.

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