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Act Governing the Prevention, Bailout and Revitalization Packages in Response to COVID-19 Outbreak



 Act Governing the Prevention, Bailout and Revitalization Packages in response to COVID-19 Outbreak

 

In order to mitigate the impact that the outbreak of COVID-19 has on the Taiwan economy, the Act Governing the Prevention, Bailout and Revitalization Packages in response to COVID-19 Outbreak (the “Bailout Act”) was proposed by the Executive Yuan (i.e., the Cabinet) on February 20, 2020, swiftly cleared the legislative floor on February 25, 2020 and was signed into law by the President on the same day. Under the Bailout Act, up to NT$60 billion have been earmarked to provide assistance with respect to the prevention of COVID-19. The Bailout Act sets forth the rules on subsidies to be provided to the medical industry, the people who are quarantined due to COVID-19, and others who have been affected due to this epidemic, employers granting leaves relating to COVID-19, government expropriating relevant materials and supplies and providing compensation therefor, offering bailout and revitalization packages to businesses affected by the outbreak, implementing epidemic-prevention measures and imposing penalties on the violators thereof. Except for the penalty provisions take effect upon the promulgation, the Bailout Act becomes effective retrospectively on January 15, 2020 and will expire on June 30, 2021. We summarize below the key issues of the Bailout Act for your reference.

 

 

Key Issues

Explanation

Subsidy and compensation for medical professionals and those involved in fighting the epidemic

The competent authorities should provide subsidies and compensation to the medical professionals and other who are involved in fighting the epidemic and treating and caring for those affected by COVID-19.  Where a person involved in fighting the COVID-19 outbreak has consequently contracted COVID-19 and fallen ill, become disabled or passed away, the government should provide such person with appropriate compensation and/or subsidize his or her children’s education expenses.

Wages, compensation and leave for those under quarantine

Employers should grant “epidemic-prevention leave” to employees who are subject to quarantine at home or in designated facilities as well as those who need to care for their quarantined family members who are unable to take care of themselves; such employees shall not be deemed absent from work, or be forced to take their personal leave or other types of leave instead, should still be eligible for the full attendance award, and shall not be subject to termination or other disadvantages for taking epidemic-prevention leave. Employers who violate those rules will be subject to a fine between NT$50,000 and NT$1 million.

 

While employers are not required to provide full pay to employees on epidemic-prevention leave, employers that provide full-pay epidemic-prevention leave to their employers will enjoy an income tax deduction equivalent to 200% of the salary paid to those employees on epidemic-prevention leave. On the other hand, employees who receive no pay or subsidy during epidemic-prevention leave (either for being quarantined or having to care for a quarantined family member who is unable to take care of themselves) may apply for “epidemic-prevention compensation” with the government; provided that the applicants are in full compliance with the quarantine rules.

Expropriation of raw materials, supplies and production equipment required during the epidemic

To address the shortage of raw materials and supplies during the outbreak, the government may expropriate the raw materials, supplies and production equipment required during the epidemic and provide appropriate compensation therefor; those who refuse to cooperate with the expropriation request or circumvent or interfere with the expropriation will be subject to a fine between NT$50,000 and NT$1 million.

 

A person who deliberately increases the prices or hoards the inventory of any devices, equipment, medicine, medical devices or other supplies that are on the list of items under control by the government during the epidemic (including those that attempted but failed) will be subject to an imprisonment sentence of up to five years or, in addition thereto, a fine of up to NT$5 million.

The scope of authority of the Central Epidemic Command Center and the Chief Commander thereof and other epidemic-prevention rules

The Central Epidemic Command Center (CECC) may require broadcasting businesses to broadcast epidemic-prevention information and/or programs without being subject to the regulatory restrictions on advertising time.

 

The Chief Commander of the CECC may issue orders and implement measures in response to the outbreak of COVID-19; violators of such orders or measures will be subject to a fine of between NT$50,000 and NT$1 million.

 

To curb any further spread of COVID-19, for those who have violated (or may be in violation of) the quarantine rules, the Chief Commander of the CECC may order video and/or photograph surveillance on them, publicly disclose their personal data and/or implement other necessary epidemic-prevention measures.

Bailout and revitalization packages for affected businesses

To mitigate the losses and overcome the operational difficulties faced by businesses due to COVID-19, competent authorities may offer bailout, subsidies and revitalization packages to different industries and enterprises depending on the nature and demand of their business activities (e.g., offering loans for employee payroll or tax credits). Where a medical institution has suspended its operation per the CECC’s direction as a part of the epidemic-prevention measures, the government must provide it with appropriate compensation.

Penalties

Where a person who has been or is suspected to have been infected with COVID-19 fails to comply with the instructions of any local or central health authority, and may consequently have infected others with COVID-19, such person will be subject to an imprisonment sentence of up to two years, criminal detention (as prescribed under Taiwan’s Criminal Code), or a fine of between NT$200,000 and NT$2 million.

 

A person who spreads rumors or untrue information relating to COVID-19, to the extent of causing loss or damage to the public or individual citizens, will be subject to an imprisonment sentence of up to three years or criminal detention, or in lieu thereof or in addition thereto, a fine of up to NT$3 million.

 

A person who violates the quarantine rules will be subject to a fine of between NT$100,000 and NT$1 million.

 

 

Compared to the original draft proposed by the Executive Yuan, the version that was cleared by the Legislative Yuan provides even more comprehensive protection for citizens and corporations and offer more favorable compensation and benefits. As the Bailout Act is relevant to almost every aspect of a company’s operation, corporations should establish response measures as soon as possible in order to fully enjoy the benefits provided under the Bailout Act and to avoid the relevant legal risks and penalties that could arise from unintentional violation of the Bailout Act. If your company would like to learn more about this Act and other relevant issues, please do not hesitate to contact us.

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