The Executive Yuan approved a NT$15.97-billion (US$483.93 million) plan to assist a growing number of workers on unpaid leave. The plan was proposed by the CLA and will be financed by the employment stabilization fund.
The six-month program will take effect in February and benefit 168,000 workers as well as 600 large-scale enterprises--employing over 200 people--and 5,000 small to medium firms, according to the CLA. It will allow workers to brush up on their skills and help them make ends meet while preventing businesses from reducing their staff.
"In view of the limited resources, how to use the money where it is the most needed is not an easy task. The plan may not be perfect and may have a few flaws, but it will make businesses refrain from laying off their staff while increasing employees' skills," Wang said.
According to the Labor Standards Act, employers cannot pay full-time employees less than the minimum wage of NT$17,280 a month, even if they are on unpaid leave. In addition to this minimum salary, workers will receive an NT$100 subsidy for every hour of training they attend. Eligible workers should take at least 24 hours of training per month and will receive government subsidies up to NT$10,000 per month for a maximum period of six months.
Under the project, private companies in the program are required to organize retraining programs for their workers on unpaid leave. Employers can apply for full subsidy to cover their costs up to a total of NT$950,000 for small and medium enterprises and NT$1.9 million for large ones. In addition, companies must also pledge not to dismiss employees during the whole duration of the training.
The CLA expects the number of workers on mandatory unpaid leave to reach 200,000 after the Chinese New Year, which falls at the end of January. Wang believes that the program will help enhance workers' competitiveness and help stabilize the employment market.
Write to Eric Chao at clchao@mail.gio.gov.tw