China Airlines (TPE:2610) has been slapped with a NT$ 1 million administrative fine by the Department of Labor of Taoyuan City Government, Taiwan, over a violation of labor laws, according to a Wednesday filing to the Taiwan stock exchange.
The company's shares were down nearly 1% in Thursday's trade.
After its labor inspections on July 1, the department found that the company's arrangement of two-pilot flight crew assignments failed to provide the statutory rest period, which is in violation of the Labor Standards Act.
The airline has refuted the claims, saying all the crew assignments are arranged in compliance with applicable civil aviation regulations and will take legal action against the order.
"As this matter stems from a conflict between the relevant regulatory frameworks, the company respectfully disagrees with the determination and will seek administrative relief through the appropriate legal procedures, including requesting that the administrative penalty be set aside," it said.