Taiwan's Well-Known Chain Pharmacy Faces Collapse! 42 Stores Lay Off Staff, Withhold Wages, and Demand Employees Pay Taxes Upfront

Tai-An Pharmacy, a well-known chain operating 42 stores across Taiwan, is facing a severe operational crisis. The company has been penalized by local labor bureaus for failing to provide advance notification of mass layoffs, withholding salaries over long periods, and violating multiple labor regulations. The operational halt has also triggered secondary disputes, including consumers being unable to receive prepaid medications and suppliers facing delayed payments. Local governments have formally intervened to assist in resolving these issues.

Heavy fines totaling NT$520,000 imposed for failure to report mass layoffs and labor inspection violations

According to regulatory investigations, Tai-An Medical Co., Ltd.—the parent company of Tai-An Pharmacy—conducted two waves of layoffs between late March and early April this year, dismissing a total of 88 employees across Taiwan. However, the company failed to file advance notification of the layoff plan as required by the Mass Redundancy Protection Act, resulting in a fine of NT$100,000.

Additionally, labor inspection authorities received multiple complaints between 2024 and 2026, alleging underpayment of wages, failure to grant paid leave, and inaccurate attendance records. After conducting eight labor inspections, authorities confirmed violations and imposed cumulative fines of NT$420,000 under the Labor Standards Act. Combined, the total fines amount to NT$520,000.

Employees protest unpaid wages and reveal underreporting of salaries and tax advances

Dozens of affected employees gathered collectively at the Tainan City Council to protest, stating that wage delays began as early as September last year and that salaries have been completely suspended since April this year. Although some employees previously reached agreements through labor-management mediation, the company’s accounts lack sufficient funds for seizure, making it difficult to recover unpaid wages and severance payments.

The protesting employees further accused management of underreporting salaries for labor insurance purposes (a practice known as 'high salary, low declaration') and failing to pay insurance premiums since September last year, affecting employees' eligibility for unemployment benefits and other non-voluntary termination subsidies. A pharmacist also revealed on social media that they were required to personally advance payments of tens of thousands to hundreds of thousands of NT dollars for store taxes during their employment. Meanwhile, supplier payments and consumer prepaid medication benefits have also been affected.

Company considers liquidation; local government explores asset preservation through provisional seizure

Regulatory data indicates that during the operational crisis, Tai-An transferred 12 of its stores to other companies. The total number of affected employees is estimated to be between 100 and 200. Currently, confirmed wage and severance claims from just 25 employees exceed NT$3.3 million. Family representatives of the company’s management have informed labor authorities that the company is considering entering liquidation proceedings.

To prevent asset transfers and protect employee rights, Tainan Mayor Huang Wei-Che stated that the city government will provide administrative support and, if necessary, assist employees in filing applications for provisional seizure of company-owned real estate or other assets through the courts. The labor bureau has also begun guiding affected workers through the process of obtaining official recognition of business cessation, enabling them to apply for the Wage Arrears Compensation Fund.

Store closures trigger consumer disputes; consumer protection officers offer three self-help recommendations

In addition to labor disputes, the sudden closure of stores has sparked numerous consumer complaints, primarily concerning the inability to collect prepaid goods, difficulties in obtaining refunds, and some consumers having signed financing loan agreements for medication purchases. As the business operator failed to attend mediation meetings, regulatory authorities have already issued public warnings.

In response, consumer protection officers recommend the following actions for affected individuals:

- Preserve evidence: Safely retain purchase contracts, payment invoices, and transaction records. - File credit card chargeback: If payment was made via credit card, file a chargeback request with the card-issuing bank. - Seek government assistance: Submit relevant loan and consumer documents and call the '1950' consumer service hotline to file a complaint.