MOL warns foodpanda over docking couriers' pay for late deliveries

Taipei, Sept. 9 (CNA) Delivery platform foodpanda could face fines up to NT$100,000 (US$3,178) per affected worker for illegally docking couriers' pay for late deliveries based on unilaterally imposed time limits, the Ministry of Labor (MOL) said Wednesday.

At multiple recent meetings with local labor officials, the ministry declared that such practices by foodpanda violate the Delivery Workers' Rights Protection and Delivery Platform Management Act, according to a statement issued by the ministry.

Local labor bureaus can impose fines ranging from NT$20,000 to NT$100,000 per affected courier once they determine the validity of the complaints filed by workers, MOL Department of Labor Relations Director-General Wang Hou-wei (王厚偉) told CNA.

Wang did not disclose how many complaints had been filed with local authorities, citing a lack of complete data, but said all reported cases involved foodpanda.

According to Wang, delivery couriers reported facing pay deductions for exceeding estimated delivery times by as little as one to five minutes, calling the policy "unfair" due to "numerous unforeseen and uncontrollable factors on the road."

When delivery delays occur, platforms should look into the causes and handle them via proper mechanisms instead of making unilateral pay deductions, the ministry said.

"Unlawful practices will absolutely not be tolerated," it added.

Under the law, which came into force on July 21, platforms must pay riders based on the exact time a delivery takes, using a rate of 1.25 times the minimum wage, and no order can pay less than NT$45.

Unions voicing support

Earlier Wednesday, the National Delivery Industrial Union and two other unions issued a joint statement accusing foodpanda of "maliciously scapegoating delivery workers for order delays" as a pretext to unlawfully dock their pay.

Separately, the Preparatory Committee for the Taiwan Federation of Delivery Industrial Unions said couriers frequently encounter delays caused by factors beyond their control.

Such situations include understaffed retail stores, long peak-hour restaurant waits, GPS and system glitches, unreachable customers or faulty delivery addresses, as well as traffic congestion, road closures, and severe weather, it said.

The union coalition called on couriers to submit formal complaints to local labor departments if they experience illegal pay deductions.

foodpanda's response

In response, Emma Kuo (郭昕宜), foodpanda's director of public affairs and public relations, told reporters that the platform has never refused to disburse rider pay due to delivery delays.

Kuo said the company only asked delivery couriers to clarify unusually long trips, adding that full pay will be disbursed as long as a valid explanation is provided.

Kuo made the remarks Wednesday afternoon at a press conference announcing a new commercial partner, according to reports by local media.