萬國法律事務所

Taiwan’s Council for Economic Planning and Development (CEPD) has proposed revisions to the Labor Standards Act that would relax some of the restrictions therein. CEPD suggests that the limitation on the term in fixed-term labor contracts be extended from the current one year to three. In addition, there should be chapters regulating the dispatch of laborers.

The CEPD suggestions that as most of the employees of foreign companies or new companies and professional athletes are under fixed term contracts, thus, relaxing the term limitation will facilitate development of new companies and appeal to foreign companies. Moreover, CEPD believes that each industry may need a labor force dispatch service.

Under the current Enforcement Rules of the Labor Standards Act, the term of fixed-term contracts cannot exceed one year. If an employer needs to extend the term, it must first obtain permission from the local authority, and in most cases, such permission is not granted. In comparison, the limitation on the term of the fixed-term contract is three or five years in Japan and two years in Korea. In an effort to enhance Taiwan’s competitiveness in this regard, CEPD suggests extending the current limitation from one to three years. However, Taiwan’s Council of Labor Affairs only wants to extend the term to two years for specified work and to three years for substitute work.