Is It Lawful for Work Exchange Programs to Not Provide a Salary?

【Legal English Series 9：Is It Lawful for Work Exchange Programs to Not Provide a Salary?】

Good day everyone! Welcome back to the Legal English Series!

Building upon the foundation of the employment relationship we discussed last week regarding work exchange, this week we will further explore other disputes that commonly arise with work exchange:

💡Is It Lawful for Work Exchange Programs to Not Provide a Salary?

According to Article 22 of the Labor Standards Act: "The payment of wages shall be made in the legal currency commonly used. However, based on custom or the nature of the business, a portion of the wages may be stipulated to be paid in kind in the labor contract. When a portion of the wages is paid in kind, the valuation of the items shall be fair and reasonable and suitable for the needs of the workers and their families."

From a legal perspective, it seems permissible for employers to use accommodation in place of wages,  as long as both parties agree and the worker considers the employer's compensation "reasonable" and meeting their needs. Therefore, it is not unlawful for employers to pay wages through means other than money (such as accommodation, transportation, or valuable recreational activities like snorkeling, stand-up paddleboarding (SUP), etc.) as long as these conditions are met.

However, as stated in the legislative intent of Article 22 of the Labor Standards Act, if part of the wages is paid in kind, it should not harm the interests of the workers, and it should be agreed upon in the labor contract. The price and purpose of the items should also be fair and reasonable. For example, if a company insists on using its own issued vouchers or meal tickets to replace part of the salary paid to workers, but these items are not actually what the workers need, there may still be concerns about not fully paying the wages directly, which could be a violation of the law.

Finally, it's important to note that although the exchange of consideration between both parties is not in cash, the calculated value of the conditions provided by the employer must not be lower than the minimum wage, or else there could be concerns about violating the Labor Standards Act!