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Medical Centers and Regional Hospitals Heavily Penalized for Violating Labor Standards Law

Medical Centers and Regional Hospitals Heavily Penalized for Violating Labor Standards Law

The Ministry of Labor has amended regulations to hold medical centers and regional hospitals to the same standards as publicly listed companies. Starting in August, violations of labor standards regarding overtime hours, overtime pay, shift intervals, and the 7-on-1-off rule will incur increased fines. Fines will start at NT$50,000 and can go up to NT$1.5 million.

With a severe shortage of medical personnel and frequent reports of nurses working overtime, the Ministry has recognized that these medical institutions should have the capacity to comply with laws similar to that of publicly listed enterprises. The Taiwan Society for Healthcare Management states that this amendment protects labor rights and encourages hospitals to improve the treatment of healthcare workers, thus promoting a more favorable workplace.

Since 2017, the Ministry of Labor has had a common principle for penalties related to labor standard violations to ensure consistency among local government enforcement. There are already increased penalties for violations related to overtime pay, extended hours, the 7-on-1 rule, and shift intervals which include publicly listed and large companies, as well as cooperatives. The Director-General of the Ministry stated that the addition of medical centers and regional hospitals as targets for stricter penalties was previously discussed, and after consultation with the Ministry of Health and Welfare, it was decided that larger institutions should demonstrate stronger compliance capabilities. With 29 medical centers and 83 regional hospitals nationwide, the challenges of ensuring labor compliance are significant.

The Secretary-General of the Taipei Physicians' Union noted that nurses often face disputes with their hospitals over overtime pay, reasonable compensation, and distribution of personnel. However, grievances typically arise after nurses leave their positions, rather than while employed. Past experiences show that reported cases of labor violations are infrequent, and when hospitals are accused, they often pursue administrative litigation, with penalties rarely reaching the maximum amount, thus not greatly increasing the operational burden on hospitals.

While the current state of healthcare working environments makes it difficult to pinpoint the key labor issues, the amendment represents a strong symbolic effort from the Ministry of Labor. The President of the Taiwan Society for Healthcare Management emphasized that while this amendment aims to protect labor rights, the reality of healthcare operations must be considered during inspections, allowing organizations the opportunity to explain and improve rather than facing immediate and strict penalties.