Taiwan Enacts Landmark Law to Protect Rights of Delivery Workers

Taipei: The Legislative Yuan has passed a groundbreaking law establishing minimum pay standards and regulatory rules for food delivery platforms, aimed at safeguarding the rights of delivery workers.

According to Focus Taiwan, the newly enacted "delivery worker rights protection and delivery platform management act" mandates a minimum payment of NT$45 (US$1.43) per order for delivery workers. Furthermore, it stipulates that workers must earn no less than 1.25 times the statutory hourly minimum wage, based on the delivery time of each order. The guaranteed amount will be adjusted annually in conjunction with minimum wage increases, with the current hourly minimum wage set at NT$196.

Su Po-hao, spokesperson for the Taiwan Delivery Industry Union Alliance, hailed the law's passage as "a hard-won and important milestone." He noted that efforts to secure these protections took over six and a half years and spanned three different administrations and legislative terms.

Chen Yu-an, Chairman of the National Delivery Industrial Union, remarked that the passage of the bill is "not the end point, but the real starting point" for reforming the delivery industry. He emphasized that improvements in conditions for delivery workers will depend on the enforcement rules and practical implementation of the law.

The Ministry of Labor (MOL) is designated as the central governing authority responsible for regulating delivery platforms under the new law. The MOL is tasked with drafting standardized contract provisions that address the rights and obligations between platforms and delivery workers, covering areas such as pay calculation, suspensions, contract termination, complaint mechanisms, and insurance. Any contract that fails to meet these requirements will be deemed invalid.

The legislation also requires the establishment of a complaint system to address disputes over remuneration, suspensions, and working time. It prohibits platforms from taking unfavorable actions against delivery workers who file complaints or assist others in doing so. Additionally, delivery platforms must now provide group accident insurance and liability insurance for their contracted delivery workers, with temporary suspensions allowed if a worker has not provided services for over three consecutive days.

The law includes penalty provisions for platforms that fail to report occupational accidents within eight hours, with fines ranging from NT$30,000 to NT$300,000. Violations of pay regulations may incur fines of up to NT$100,000.

While labor groups have responded positively to the new measure, delivery platforms have been more cautious. Uber Eats expressed respect for the legislative process, hoping that enforcement rules will balance market operations and industry needs. Foodpanda also acknowledged the law's content and plans to "gradually initiate various operational simulations" to address potential industry changes.

The law will be implemented six months after promulgation, with enforcement rules to be developed by the MOL in collaboration with other relevant authorities.