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142 Taipei companies closed in 2020, setting new high

Workers laid off without compensation advised to seek wage dispute mediation through local labor departments

142 Taipei companies closed in 2020, setting new high

(Taiwan News photo)

TAIPEI (Taiwan News) — Up to 142 companies registered in Taipei shut down their businesses in 2020, setting a new record, with many closures attributed to the pandemic, according to a city government official.

Among the high-profile permanent closures were Far Eastern Air Transport Corp. in April, major gym chain Light Fitness in February, Fu-Le M.E.M. Co. in August, and How Yu Construction Co. in August.

Taipei Department of Labor Commissioner Chen Hsin-yu (陳信瑜) said the agency's labor insurance unit can pay sacked employees six months of wages, severance packages, or pensions in advance as temporary relief measures, though the employers will later have to repay the agency.

Chen said the number of business closures has increased over the years. It was 53 in 2015, 92 in 2016, 126 in 2017, 133 in 2018, 139 in 2019, and 142 in 2020. Pandemic-induced spending cuts and lost sales, bad management, and poor turnover have been cited as reasons.

Chen advised laborers illegally laid off without compensation to go to their local labor department and file for wage dispute mediation. The commissioner also encouraged them to file for confirmation of their termination so as to get paid before the dispute with their employer is settled.

Updated : 2022-01-25 20:28 GMT+08:00