Regulating Dispatch Labor - Taiwan Business TOPICS

Hiring dispatch workers has become an increasingly common practice in Taiwan. Particularly in the fast-paced ICT sector, companies need to ... Skiptocontent Theaimistoprotectworkers’rightswithoutdisruptingeconomicgrowth. AmendmentstotheLaborStandardsLawpassedinAprilthisyear includedlong-discussedprovisionstofurtherprotectTaiwan’sapproximately 150,000dispatchworkers.Forthemostpart,thechangeswerealsowelcomedby employers,whoseetheneedforastabledispatchlaborsystem.  Hiringdispatchworkershasbecomeanincreasinglycommonpractice inTaiwan.Particularlyinthefast-pacedICTsector,companiesneedtobeable tohirespecializedlaborquicklyandflexiblytocarryoutshort-term projects,meeturgentclientrequests,andcopewithothersituationswhere standardhiringpracticeswouldpreventacompanyfrompursuingbusiness opportunities. Oneofthetwokeyprovisionsinthenewamendmentsistostipulate thatcontractsenteredintobetweendispatchcompaniesanddispatchworkers mustbeforanindefinitedurationratherthanfixed-term.Therationalewas thatfixedtermsmayallowdispatchcompaniestododgebenefitslikeseverance paymentsuponterminationofemploymentservices. Asecondmajorchangespecifiedthatemployeeswhodonotreceive paymentduetothemfromthedispatchcompanymayseekcompensationfromthe clientcompanytheywerecontractedto. InAmChamTaipei’s2019TaiwanWhitePaperpublishedinJune,theHumanResourcesCommitteesuggestedsomeadditionalstepstostrengthenthesystem.Itrecommendedadoptionofaspecialinsurancemechanismfordispatchedemployeesinadditiontothecurrentunemploymentbenefits.Andtoraiseindustrystandards,theCommitteeproposedcreationofalicensingsystemfordispatchagenciestoensurethattheyarequalifiedtomanagedispatchedworkers.  Atthesametime,industryhashadseveralconcernsrelatedto dispatchlabor.Themainworryiswhetherthegovernmentmayimposeaceiling onthenumberofdispatchedworkersthatacompanymaybeallowedtohire.If thecapissettoolow,smallcompanieswithlimitedmanpowerandbudget, includingstartups,willbeunabletotakeadvantageofthebenefitsof dispatchedlabor.Arulethatistoorestrictivewouldalsoencouragelarger companiestoincreasetheuseofautomationinsteadofhiringmoreworkers. TheHRCommitteeproposesthatareasonablecapwouldbeatleast 20%ofacompany’stotalworkforce,reflectingthecurrentrealityofthe businessclimate. Anotherconcerninvolvesthelaw’sstipulationthat theclientcompanymaynotparticipateintheselectionoftheworkerstobe senttothem.Forcompaniesthatrelyondispatchlaborforhelpwithspecific projects,whichmaybeshort-termandspecializedinnature,interviewingthe candidatesisanimportantstepinensuringthattheworkersaretherightfit. AboutAnnaYang AnnaYangisaninternatTaiwanBusinessTOPICSinthesummerof2019.SheiscurrentlyastudentatPrincetonUniversitystudyingEnglishwithacertificateinFrench.Sheenjoystraveling,eating,andwriting. Youmightalsolike Issues AnEyeontheUSTRAgenda Issues TalkingStandardsatthePCC Issues PrioritizingProtectioninLifeInsuranceforanAgingTaiwan Issues EnergyCzarNeededtoImplementEnergyTransformation Postnavigation NextArticle Tainan:BilingualPolicyPioneer StevenCrook/2019-10-162019-10-18 PreviousArticle NewEraforCosmeticsRegulation AnnaYang/2019-10-152019-10-08 English 中文(台灣) LatestStories TheInconvenientTruthAboutTaiwan’sNationalHealthInsurance Taiwan’sLeadershipEssentialtoSecuringCongressionalFTASupport VisasOnlytheStartforRecruitingOverseasTalent DomesticandInternationalBrief–October2022 SpreadingtheWordonWhyTaiwanMatters SuggestedforYou Close DomesticandInternationalBrief–October2022 BYJULIABERGSTRÖMANDHUNG-WEICHENTaiwanPolicyActPassedBySenateCommitteeTheU.S.SenateForeignRelationsCommitteeadvancedtheTaiwanPolicyActof...