2010-08-30

Government Responsible for Overtime Payments of Outsourced Employees

Taiwan’s Government has recently employed more than 10,000 outsourced employees which led to arguments regarding labor disputes. Following the negotiations between the Public Construction Commission and the Council of Labor Affairs, it has been decided that the employees outsourced to Government Institutions shall be defined as “Outsourced Labor”. In the future, these types of employees will be able to request overtime payments. However, as neither Government Institutions nor the Outsourcing Companies want to be responsible for the payments, there may be some difficulty in enforcing the new regulations.

Based on the new draft of the Labor Procurement Contract, the Government is expected to ensure that the Outsourcing Companies follow the Labor Standards Act, Gender Equality in Employment Act and provide labor insurance and retirement payments to the employees. Where an Outsourcing Company does not pay the overtime to an employee, the Government Institutions shall be found liable as long as the overtime was not resulted from any cause attributable to the Government Institutions.
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