Taiwan passes delivery worker law setting pay and platform rules

Taipei, Jan. 6 (CNA) The Legislative Yuan passed a new law Tuesday that will for the first time in Taiwan set minimum pay standards and rules governing food delivery platforms focused on protecting the rights of food delivery workers.

The new law, called the "delivery worker rights protection and delivery platform management act," requires delivery workers to be paid at least NT$45 (US$1.43) per order, and no less than 1.25 times the statutory hourly minimum wage calculated based on the delivery time of each order.

The guaranteed amount is to be adjusted annually in line with minimum wage increases, according to the new law. The current hourly minimum wage rate is NT$196.

Taiwan Delivery Industry Union Alliance spokesperson Su Po-hao (蘇柏豪) said the passage of the law marks "a hard-won and important milestone."

Efforts to secure delivery worker protections have lasted more than six and a half years and spanned three administrations and legislative terms, Su said.

National Delivery Industrial Union Chairman Chen Yu-an (陳昱安) said the bill's passage in the Legislative Yuan "is not the end point, but the real starting point" of delivery industry reform.

Chen said whether conditions improve for delivery workers will depend on how enforcement rules are written and how the law is implemented in practice.

The new law designates Taiwan's Ministry of Labor (MOL) as the central governing authority responsible for regulating delivery platforms.

It requires the MOL to draft and announce standardized contract provisions covering rights and obligations between platforms and delivery workers, including pay calculation, suspensions, contract termination, complaint mechanisms and insurance.

Any contract that violates those requirements will be deemed invalid.

The legislation also mandates the establishment of a complaint system to handle disputes over remuneration, suspensions and working time, and prohibits platforms from taking unfavorable actions against delivery workers for filing complaints or assisting others with complaints.

Also, delivery platforms will now be required to provide group accident insurance and liability insurance for contracted delivery workers before allowing them to provide services.

Insurance coverage may be temporarily suspended, however, if a delivery worker has not provided services for more than three consecutive days.

The law includes penalty provisions, stating that platforms that fail to report an occupational accident within eight hours may be fined between NT$30,000 and NT$300,000, while violations of pay regulations may result in fines of up to NT$100,000.

While labor groups responded somewhat positively to the measure, delivery platforms were more circumspect.

Uber Eats said it "respects the legislative process" and hopes enforcement rules will "carefully consider market operations and industry needs, and balance the interests of all parties."

Foodpanda also said it respected the content of the law passed in the third reading and will "gradually initiate various operational simulations" to respond to possible industry changes and market impacts.

The law will take effect six months after promulgation, with enforcement rules to be drafted by the MOL in consultation with other relevant authorities.