2013-11-04
Two New Decisions from the Taipei High Administrative Court
Taipei City Government requested all movie theaters to lift their bans on outside food last year. Miramar Cinemas (“Miramar”) refused to follow this new rule and was fined a total amount of NT$ 140,000 by Taipei City Government. Miramar appealed the fine and the Taipei High Administrative Court struck down the fine. Mark Chang, Chairman of the Consumers’ Foundation, criticized the judgment as being against public opinion.
Most theaters have gradually allowed outside food to be brought in, so Mr. Chang indicated that the Miramar’s prohibiting cheaper outside food deprives customers of freedom of choice with respect to food.
The Court’s reasoning is based on the following: (1) The theater industry is not a monopoly, so customers are free to choose other theaters that allow outside food; (2) lifting all theaters’ ban on outside food, however, does deprive customers of their freedom of choice of theaters; (3) protecting customers’ freedom of choice of theaters is a greater public interest than protecting their freedom of choice of food; (4) whether outside food is allowed in is a matter of the theaters’ freedom of execution of their occupations, and thus, the administrative order, in accordance with which, the fine was imposed is void as it was in violation of the freedom protected by the Constitution. Hence, the fine of NT$ 140,000 was revoked, but Chi-Chiang Chang, Spokesman for Taipei City Government, indicated that the Government will consider appealing the judgment.
In another recent judgment, the Court determined that payment for unused paid leave is not part of the “wage” but is instead a reimbursement. As such, the court ruled against the National Health Insurance Administration of the Ministry of Health and Welfare (“NHIA”).
In 2012, NHIA determined that payment for unused paid leave made by the Taiwan Business Bank (“Bank”) to its employees is a wage and should be included in the insurance policy premium amount and requested the Bank to rectify its application and adjust its insurance account. However, the Bank appealed and the court indicated that unlike wages, salaries, bonuses, allowances, and any other regular payments which may be computed on an hourly, daily, monthly, and or piecework basis, whether payable in cash or in kind, such payment for unused paid leave is only a reimbursement for employees who do not enjoy paid leave. This type of reimbursement is only a favor given by the company in appreciation of employees’ long-term commitment, but is not a regular wage as set forth in the Labor Standards Act or the National Health Insurance Act. It is expected that NHIA will appeal the judgment.