The Labor Standards Law is amended to safeguard the rights and interests of dispatched workers (Taiwan)

Tiffany Hsiao

The President promulgated the amendments to Articles 2 and 9 of the Labor Standards Law (hereinafter, the “Law”) and the addition of Article 22-1 via the President Hua-Zhong-One-Yi-10800049091 Decree of May 15, 2019 to safeguard the rights and interests of dispatched workers.

First, Article 2 of the Law as amended contains additional definitions concerning dispatched labor.  In particular, a “dispatch business organization” refers to a business organization that engages in the business of labor dispatch; a “requesting organization” refers to an organization that actually directs and supervises the management of dispatched workers to engage in work; a “dispatched worker” refers to a person hired by a dispatch business organization and provides services to a demanding organization; and a “dispatch contract” refers to a contract executed between a demanding organization and a dispatch business organization on labor dispatch matters.

Secondly, Article 9 of the Law as amended specifically provides that the labor contract between a dispatch business organization and a dispatched worker shall be indefinite contract.

Third, Article 22-1 of the Law is added to stipulate that if a dispatch business organization owes wages to dispatched workers and is penalized by the competent authority or still fails to pay the wages within the period ordered by the competent authority in accordance with Article 27, the dispatched worker may request the demanding organization to pay.  The demanding organization shall make the payment within 30 days upon the request of the dispatched worker.  The demanding organization making the payment pursuant to this article may claim compensation from the dispatch business organization or offset the payment against the fees payable under the dispatch contract.