Trump Policies & Unpaid Leave: A Guide for Employees
14 April 2025 · Uncategorized ·
Source: · https://finance.technews.tw/2025/04/10/reduce-work-hours/
Amidst fluctuating global financial markets following President Trump's abrupt halt to the tariff war, many companies are grappling with adapting or weathering international developments—some resorting to unpaid leave policies. To help workers understand and protect their rights during these uncertain times, 104 Human Resources Bank provides answers to five frequently asked questions (FAQs). Unpaid leave requires employee consent; employees retain wage protections that prevent earnings from falling below the minimum wage and can pursue part-time employment without jeopardizing their original tenure.
“Change is the only constant in today’s world,” stated Huang Yuchen, CEO of 104 Information Technology, at the onset of the tariff war. She assured staff that her company would not implement unpaid leave or reduce salaries and pledged to continue investing in AI, products, research & development, and services while encouraging ongoing employee learning.
Q: Should companies prioritize reducing executive benefits over worker compensation during economic downturns?
Companies facing financial challenges should first consider reductions in benefits for executives, such as CEOs, before implementing cuts to workers’ hours or wages. If further adjustments become necessary after labor-management negotiations, the reduction cannot exceed three months; any extension requires renewed consent from employees. Unilateral wage decreases can result in fines ranging from NT$20,000 to NT$1 million.
Q: How are wages calculated during unpaid leave?
Wage calculations must adhere to two principles: wages should not fall below the monthly minimum wage and only normal working days’ hours are subject to reduction. For example, if Employee A earns a salary of NT$30,000 per month but takes four days of unpaid leave starting in May (with a daily rate of NT$1,000), their reduced earnings would be NT$4,000. However, since the remaining amount must not fall below the minimum monthly basic wage of NT$28,590, Employee A’s salary during this period will remain at NT$28,590.
Q: How does unpaid leave affect labor insurance and other benefits?
Unpaid leave may impact labor insurance but has no effect on health or retirement benefits. Employers are still required to maintain employees' coverage under labor insurance even if salaries decrease; however, they can adjust the premium level based on reduced wages. This adjustment might reduce certain benefit payouts—such as maternity and funeral allowances—for workers applying for them during unpaid leave periods.
Q: Can employees take part-time jobs while on unpaid leave?
Yes, employees may pursue part-time employment provided it does not conflict with their original employment contract or training programs. Employees must also maintain confidentiality regarding company information.
Q: Does unpaid leave affect seniority calculations?
No, according to the Labor Standards Act (LSA), working time includes periods of unpaid leave; therefore, these do not impact an employee’s tenure.
“Change is the only constant in today’s world,” stated Huang Yuchen, CEO of 104 Information Technology, at the onset of the tariff war. She assured staff that her company would not implement unpaid leave or reduce salaries and pledged to continue investing in AI, products, research & development, and services while encouraging ongoing employee learning.
Q: Should companies prioritize reducing executive benefits over worker compensation during economic downturns?
Companies facing financial challenges should first consider reductions in benefits for executives, such as CEOs, before implementing cuts to workers’ hours or wages. If further adjustments become necessary after labor-management negotiations, the reduction cannot exceed three months; any extension requires renewed consent from employees. Unilateral wage decreases can result in fines ranging from NT$20,000 to NT$1 million.
Q: How are wages calculated during unpaid leave?
Wage calculations must adhere to two principles: wages should not fall below the monthly minimum wage and only normal working days’ hours are subject to reduction. For example, if Employee A earns a salary of NT$30,000 per month but takes four days of unpaid leave starting in May (with a daily rate of NT$1,000), their reduced earnings would be NT$4,000. However, since the remaining amount must not fall below the minimum monthly basic wage of NT$28,590, Employee A’s salary during this period will remain at NT$28,590.
Q: How does unpaid leave affect labor insurance and other benefits?
Unpaid leave may impact labor insurance but has no effect on health or retirement benefits. Employers are still required to maintain employees' coverage under labor insurance even if salaries decrease; however, they can adjust the premium level based on reduced wages. This adjustment might reduce certain benefit payouts—such as maternity and funeral allowances—for workers applying for them during unpaid leave periods.
Q: Can employees take part-time jobs while on unpaid leave?
Yes, employees may pursue part-time employment provided it does not conflict with their original employment contract or training programs. Employees must also maintain confidentiality regarding company information.
Q: Does unpaid leave affect seniority calculations?
No, according to the Labor Standards Act (LSA), working time includes periods of unpaid leave; therefore, these do not impact an employee’s tenure.