Federation of Industries Calls for at Least 3-Year Adjustment Period and Support for Migrant Worker Employment Law Amendment

The Ministry of Labor reported to the Legislative Yuan on the 9th that, to help enterprises comply with international human rights standards and strengthen supply chain governance, it plans to amend the 'Employment Service Act' regarding document retention. This amendment will comprehensively prohibit employers or brokers from withholding migrant workers' passports, work permits, and other identity documents, as well as collecting security deposits. It will also promote amendments to implement, within three years, the requirement for employers in the manufacturing and fishing industries to pay migrant workers' overseas recruitment fees and related expenses, gradually aligning with international norms. The Federation of Industries (FOI) today issued a press release stating that global human rights governance is moving from corporate self-regulation to legalization, and 'prohibition of forced labor' is closely linked to international trade regulations, including the Taiwan-US Trade Initiative and recent amendment announcements by the Ministry of Labor, all moving in this direction. However, if related regulations are not properly supported, they could impose heavy pressure on millions of small and medium-sized enterprises (SMEs) in Taiwan. Regarding operational impact, FOI stated that the primary impact on enterprises will be increased migrant worker recruitment costs. According to international human rights reports, some migrant workers from source countries need to pay high brokerage fees before coming to Taiwan, for example, Vietnamese workers' fees can reach US$6,000 (approximately NT$190,000). If the new system requires employers to bear the full cost, it will significantly increase enterprises' labor costs, compress profit margins, and may even affect industrial competitiveness. FOI also pointed out that over 90% of Taiwan's manufacturing industry consists of SMEs, which generally rely on brokers to handle migrant worker affairs and lack sufficient understanding of the International Labour Organization (ILO)'s indicators for forced labor, potentially facing international trade sanction risks due to compliance gaps. Although the government promotes a direct hiring system, current overseas offices are mainly concentrated in the Philippines, and the application process is complex, making it difficult for SMEs to bear the related administrative costs. For the implementation of the system, FOI suggests that the government should provide at least a three-year adjustment period before amending the law, along with necessary administrative assistance and subsidies, to give enterprises time to adapt to cost and system changes. In terms of enhancing compliance capabilities, FOI stated that the government should expand the promotion of 'Reference Guidelines for Enterprises to Prevent Forced Labor' and have the Ministry of Labor and the Ministry of Economic Affairs jointly provide on-site guidance to help SMEs establish Human Rights Due Diligence (HRDD) capabilities, avoiding the risk of forced labor due to insufficient understanding of regulations. In addition, FOI suggests that the government expand the overseas presence of the 'Transnational Workforce Recruitment Center.' In addition to the existing office in the Philippines, official offices should be prioritized in Indonesia, Vietnam, and Thailand to strengthen government-to-government (G2G) direct hiring channels and simplify procedures, thereby implementing fair recruitment from the source and reducing the risk of improper exploitation. (Edited by Pan Yi-ching) 1150410