In an effort to prevent the spread of severe pneumonia with novel pathogens that started from Wuhan City of China in late 2019 and now spread all over the world (commonly known as the “Wuhan pneumonia,” or, as the W.H.O. named it, “COVID-19”) and to maintain the health of the people of Taiwan and cope with its severe impact to Taiwan’s economy and society, the Taiwan government, in addition to a corresponding press release by the Ministry of Labor on January 22, 2020, announced the promulgation of the “Special Act for Prevention, Relief and Revitalization Measures for Severe Pneumonia with Novel Pathogens” (hereinafter the “Act”) on February 25, 2020 and expressly provided that the Act would be retroactive from January 15, 2020 with a temporary termination date of June 30, 2021. The Act provides leaves and wages under the circumstances where employees are ordered by the government to quarantine or needed to take care of relatives in quarantine who are not capable of self-care. This article will also discuss the leaves and wages during the period of an employee who is ordered to follow self-health management measures , which is not covered by the Act.

I. Types of disease prevention leaves

According to the current regulations and the explanations by the Ministry of Labor, disease prevention leaves are divided into the following:

(I) Disease prevention leave isolation: the type of leave, pursuant to the first part of Paragraph 3 of Article 3 of the Act, granted by an employer to its employee during the period when the employee is required to undergo home isolation, home quarantine, group isolation, or group quarantine.

(II) Disease prevention leave for care-taking: the type of leave, pursuant to the last part of Paragraph 3 of Article 3 of the Act, granted by an employer to its employee during the period when the employee needs to take care of his/her family member who is required to undergo home isolation, home quarantine, group isolation, or group quarantine and cannot take care of themselves otherwise.

(III) Disease prevention leave for self-health management: the type of leave, pursuant to the explanations given by the Ministry of Labor, granted by an employer to its employee during the period when the employee is required to undergo self-health management.

II. May the employer treat disease prevention leave as other leaves? Will it affect attendance record?

(I) Disease prevention leave for isolation: The first part of Paragraph 3 of Article 3 of the Act provides that disease prevention leave for isolation shall not be substituted by other leaves (such as unspecified casual leave or sick leave), treated as absence without a reason, and cannot be used as a basis to unfavorably affect performance evaluation or attendance records such as for deduction of attendance bonuses.

(II) Disease prevention leave for care-taking: The last part of Paragraph 3 of Article 3 of the Act provides that, the same as the provisions for disease prevention leave for isolation, disease prevention leave for care-taking shall not be substituted by other leaves (such as unspecified casual leave or sick leave), and shall not be treated as absence without any reason. Moreover, it cannot be used as a basis to unfavorably affect performance evaluation or attendance records such as for deduction of attendance bonuses.

(III) Disease prevention leave for self-health management: According to the current explanations by the Ministry of Labor, employers may negotiate with their workers how the disease prevention leave for self-health management may be granted. That is, if the worker consents, such leave may be substituted by ordinary sick leave, unspecified casual leave, annual paid leave, make-up leave, or otherwise lawfully adjusted or rescheduled to change the worker’s attendance record.

III. Whether the employer shall pay the employees’ wages for disease prevention leave?

(I) Disease prevention leave for isolation: Although Paragraph 1 of Article 4 of the Act does not contain the text of “shall pay the wages,” when the employer pays the wages, the employer may deduct 200% of the wages from its income filed for the year, which is favorable to the employer. This provision provides a strong motivation for employers to pay their employees.

(II) Disease prevention leave for care-taking: Please refer to the aforementioned explanations of disease prevention leave for isolation.

(III) Disease prevention leave for self-health management:

Since the employer may negotiate with the worker the ways to attend work and the type of leaves, then whether additional pay will be given, such as in the case where the worker voluntarily complies with government policy to not go to the worksite, shall differ with respect to the type of leaves based on the “Regulations of Leave-Taking of Workers” (hereinafter the “Regulations”):  

1. Ordinary sick leave: Pursuant to Paragraph 3 of Article 4 of the Regulations, half wage shall be paid.

2. Unspecified casual leave: Pursuant to Paragraph 2 of Article 7 of the Regulations, the employer may choose to not pay any wage.

3. Annual paid leave: Daily wages shall be paid

4. Make-up leave for overtime: Daily wages shall be paid.

5. Adjust work schedule: Wages shall be paid according to rescheduled work time, including overtime pay if incurred hereof.

However, if the worker desires to work on-site but the employer has doubts about the worker’s showing up at work hence asks the worker not to report to work, according to the explanations given by the Ministry of Labor, since such circumstances pertain to the employer delaying the receiving of labor service, the employer shall still pay the worker during the period of the worker’s disease prevention leave for self-health management in accordance with the law.

Relevant Laws and Regulations

Special Act for Prevention, Relief and Revitalization Measures for Severe Pneumonia with Novel Pathogens

Article 3

Individuals assigned by a competent health authority of any level to home isolation, home quarantine, group isolation, or group quarantine, and family members who take leave or cannot work due to caring for isolated or quarantined individuals may apply for disease prevention compensation from the starting date to the ending date of the isolation or quarantine once the competent health authority deems that the isolated or quarantined individual has not violated related isolation or quarantine regulations. However, individuals with paid salaries or subsidies similar in nature prescribed by other laws or regulations may not claim for repeated collection of the compensation.

The application for the disease prevention compensation in the preceding paragraph shall be extinguished if not exercised within two years from the day the isolation or when quarantine ends.

For individuals assigned to home isolation, home quarantine, group isolation, or group quarantine, the authorities (agencies), enterprises, schools, legal entities, and organizations shall provide disease prevention isolation leave during the isolation or quarantine period and may not treat them as absent without reason, force them to take personal leave or other leaves, deduct attendance bonuses, dismiss them, or impose other unfavorable penalties. The same shall apply to family members who take leave to care for isolated or quarantined individuals.

The central competent health authority shall establish regulations on the recipients of disease prevention compensation, eligibility, qualifications, methods, amount, procedures, and other related matters specified in Paragraph 1 after consulting relevant authorities.

Individuals who take leave or cannot work due to response measures conducted in accordance with Paragraph 1 or orders issued by the Commander of the Central Epidemic Command Center, the competent authority shall provide assistance in accordance with the Public Assistance Act and related regulations if their livelihood is affected.

Article 4

Authorities (agencies), enterprises, schools, legal entities, and organizations that pay employees salary during their leave period in accordance with Paragraph 3 of the preceding article may deduct 200% of their salary payment from the taxable income tax in the current year. The same shall apply to salaries for employees who take leave due to response measures conducted in accordance with orders issued by the Commander of the Central Epidemic Command Center during their leave period.

Where the salary paid to employees is already eligible for tax incentives prescribed in other laws, the provisions in the preceding paragraph shall not apply.

Regulations on the leave period, employees, scope of salary payment, scope of income, deduction method, application deadline, application procedures, required certification documents, and other related matters specified in Paragraph 1 shall be established by the central competent health authority and the Ministry of Finance after consulting related authorities.

Regulations of Leave-Taking of Workers

Article 4

When a worker must receive medical service or rest on account of ordinary injury, sickness, or physical reasons, he/she shall be entitled to ordinary sickness leave according to the following provisions:

1. For the non-hospitalized, a total of fewer than thirty days in one year;

2. For the hospitalized, not exceeding one year;

3. The total of hospitalized and non-hospitalized sick leave shall not exceed one year within a total of two years period;

when a worker, by a physician, is diagnosed with cancer（including carcinoma in situ）or pregnancy with threatened abortion, such an out-patient treatment period shall be included in hospitalized sick leave.

Where accounted ordinary sick leave does not exceed thirty days in one year, fifty percent of salary shall be paid. In cases where Labor Insurance payments do not reach fifty percent of salary, the employer shall make up the difference.

Article 7

In the event of matters which a worker must personally deal with, he shall be entitled to normal leave without pay, not exceeding fourteen days in one year.

The Ministry of Labor gave explanations on January 22, 2020 with respect to leaves and wages related to disease prevention of the “Wuhan pneumonia” (part of which has been replaced by the promulgation of the Act and are no longer applicable).

Cases of “Wuhan pneumonia” (officially named “COVID-19” by the W.H.O.) have appeared in Taiwan. To answer questions regarding leave-taking and wage payment related to workers’ compliance with disease prevention requirements, the Ministry of Labor issued the following statements:

I. If a worker “contracted the Wuhan virus” and is required to undergo isolation treatment:

(I) If the worker contracted the virus at work:

If the worker is confirmed to have contracted the Wuhan virus at work, the employer should grant the worker occupational sickness leave and pay him/her compensation equivalent to the original wages. If death, disability, injury, or disease of the worker results from such contraction, the employer shall compensate the worker in accordance with the provisions in the Labor Standards Act on occupational injury.

(II) If the worker contracted the virus outside of work:

If the worker contracted the Wuhan virus outside of work, the worker is entitled to ordinary sick leave, annual paid leave, or unspecified casual leave during his/her isolation treatment period.

II. If the worker “did not contract the Wuhan virus” but is suspected of having been in contact with the virus and is ordered by the disease prevention authority to undergo self-health management:

(I) If the worker is required by the competent health authority to stay home for self-health management: For workers who are required to rest (isolate) at home, such workers are entitled to ordinary sick leave, unspecified casual leave, or annual paid leave, or may negotiate to change their work schedule.

(II) If the employer believes the worker has received the notice to undergo self-health management, doubts that the worker is able to attend work, and hence asks the worker not to report to work. Under such circumstances pertain to the employer delaying the receiving of labor service, the employer shall still pay the worker as usual.

III. If the worker needs to personally take care of a family member who is sick or is required to undergo self-health management:

In addition to being entitled to family care leave in accordance with the “Act of Gender Equality in Employment,” the worker may also request unspecified casual leave in accordance with the “Regulations of Leave-Taking of Workers,” or negotiate with the employer to arrange for annual paid leave. For workers taking family care leaves, the number of days of such leave is combined with those of unspecified casual leave not to exceed seven (7) days. Either parent may take such leave. In addition, if a worker requests to take such leave, the employer shall not refuse and shall not regard it as an unexcused absence and allow it to affect the worker’s full attendance bonus or performance evaluation, or allow it to otherwise unfavorably penalized the worker.

‍