Taiwan
Summary
Taiwan's Labor Standards Act and Dispatched Worker Protection Act provide comprehensive regulations for contingent workers, with strict rules on dispatch worker duration and equal treatment.
Key Considerations
Monitoring Strategy
To stay updated on changes to Taiwan's contingent workforce regulations, regularly monitor the Ministry of Labor website for new laws, regulations, and administrative orders. Subscribe to alerts from industry associations such as the Chinese National Federation of Industries and chambers of commerce. Legal updates from major Taiwanese law firms specializing in employment law are also valuable sources of information on regulatory changes and court decisions that impact contingent workforce management.
Can a company in Taiwan select a worker and have an agency hire them for dispatch?
No. Taiwan's Labor Standards Act amendments prohibit the hire-then-dispatch practice, where a user entity interviews and selects a person and then routes them through a dispatch agency. A worker engaged this way can demand direct employment with the user entity.
Can dispatch agencies in Taiwan use fixed-term contracts for dispatched workers?
No. Dispatch agencies must engage dispatched workers on indefinite-term contracts, preventing agencies from mirroring assignment lengths with back-to-back fixed terms. The employment relationship risk sits with the agency between assignments.
Is the user company liable if a dispatch agency fails to pay wages in Taiwan?
Yes, subsidiarily. If the agency fails to pay wages, the dispatched worker can demand payment from the user entity, which must pay and may then recover from the agency. Occupational accident compensation carries joint liability between agency and user.
When are fixed-term contracts allowed in Taiwan?
Only for genuinely non-continuous work. The Labor Standards Act restricts fixed terms to temporary, short-term, seasonal, or specific project work; work of a continuous nature must be on indefinite contracts. Mislabeled fixed-term contracts for ongoing roles are treated as indefinite.
How does Taiwan distinguish employees from independent contractors?
By subordination. Courts weigh personal, economic, and organisational subordination: whether the person works under direction, bears business risk, and is integrated into the organisation. Highly directed contractors invoicing through service agreements remain exposed to reclassification with labour insurance and pension consequences.