Taiwan’s New Employment Protections for Temporary Workers Take Effect

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Temporary (or dispatched) workers in Taiwan have enhanced employment protections now that changes (Chinese) to the Labor Standards Act have taken effect.

Highlights

Indefinite employment contract term. Employment contracts for temporary, short-term seasonal or specific work aren’t defined as fixed-term contracts, so rules relating to severances and retirement payments apply.

Unpaid and overdue wages. A contract worker owed unpaid and overdue wages may ask the contracting employer to make payments on behalf of the staffing agency. The employer should pay the worker within 30 days of receiving such a request and can recoup the expense by withholding outstanding payments to the staffing agency.

Employment relationship. Employers can’t transfer ownership of the employment relationship to staffing agency, interview candidates before the staffing agency and worker have signed a contract, or request a specific contract worker. If employers violate these requirements, the temporary worker can request conversion of their employment status to a full-time contract and the employer must comply. A non-compliant staffing agency will remain liable for severance and/or retirement payments even after the worker becomes a full-time employee.

Occupational injuries. If a temporary worker is injured in the workplace, the employer and staffing agency are jointly liable for compensating the worker.

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