Announcement of Taipei High Administrative Court decision on administrative action brought by THSRC regarding its violation of Labor Standards Act
2020/12/23
Parties to the legal matter:
Plaintiff: THSRC
Defendant: Taipei City Government
Name of the court or punishing agency of the legal matter: Taipei High Administrative Court
Reference/Case number of relevant documents of the legal matter: 2019 Su-Geng-Yi-Zi No. 88
Date of occurrence of the event:2020/12/23
Details of occurrence (including the matter under dispute):
(1) The Taipei City Government on March 3, 2015 imposed a fine totaling NTD 300,000 on the Company (i.e. THSRC) after a labor inspection conducted on December 23, 2014, by which it has determined that the Company has not paid the overtime and not given holiday in accordance with the Labor Standards Act.
(2) After being firstly dismissed by the appeals committee of the Ministry of Labor, the Company filed an application with the Taipei High Administrative Court seeking revocation of such administrative ruling. After being rejected by the said Court, the Company appealed again to the Supreme Administrative Court. After determining that some further clarification on the facts and evidence may be needed, the Supreme Administrative Court remanded the case to the Taipei High Administrative Court for retrial.
Handling procedure: Both the decisions of the administrative petition and the original ruling whereby a fine of NTD$150,000 imposed on the Plaintiff due to violation of Article 24 of the Labor Standards Act have been revoked. The Court confirmed that the act of publishing the business name of the Plaintiff and its person in charge by virtue of Article 24 of the Labor Standards Act as established in the original ruling was against the law. All other claims brought by the Plaintiff are dismissed. The Plaintiff shall bear half of the litigation costs for the first instance trial and the administrative appeal trial, while the Defendant shall bear for the remainder of the legal costs.
Impact on the Company’s finance and business and projected amount: The Company has set aside liability reserve for the unpaid overtime pay at issue, and will handle the case in accordance with the judgment and agreement executed with the employees. This case has no material adverse effect on the Company’s financial position.
Countermeasures and improvement status: This judgment is a first instance judgment of an administrative proceeding. The Company will consider follow-up actions after receipt of the same.
