Newsletter
WORKER RETIREMENT FUNDS MAY BE TRANSFERRED WHEN COMPANIES MERGE
The Corporate Mergers and Acquisitions Law (CMAL) includes a provision that when a com-pany merges with or is acquired by another company, its worker retirement fund may be transferred to the surviving or acquiring com-pany. Accordingly, the CLA has drafted amendments to the relevant provisions of the Worker Retirement Reserve Fund Allocation and Management Regulations. The amendments can be expected to take effect once they have been reviewed and approved by the Executive Yuan.
The draft amendments provide that when a merged or acquired business entity transfers its worker retirement fund to the account of the acquiring entity as provided by the CMAL, it should transfer funds pro rata to the number, seniority and wages of the workers who are transferred with the acquired business or assets. However, prior to such transfer, the amounts paid into the worker retirement fund of the ac-quired entity must have reached the statutory level at which payments can be temporarily sus-pended.