Draft Worker Dispatching Law to be finalized; companies expect 20% saving on personnel expenses
E030614Y9 Jul. 2003（E46）
To reduce the personnel expenses incurred by companies, the Council of Labor Affairs has drawn up a draft “Worker Dispatching Law”, which will allow companies to legally hire “atypical” workers on a temporary basis when there is a shortage of manpower or surge of short-term orders, and thus to save 20 percent or so on personnel expenses. The draft is expected to be submitted to the Executive Yuan for discussion by the end of year.
Dispatched work differs from full-time work. It is one of the ways that allows companies to utilize manpower flexibly. Dispatched workers are under the employment of the dispatching agency that pays for their salary, labor/health insurance and retirement pension. A company in need of short-term manpower can sign a contract with the dispatching agency for dispatched workers to work in that company. The employment relationship between the dispatched workers and the company will end when the work is done, and the company does not have to offer severance pay.
The CLA took Japan as an example. It is estimated that in Japan the ratio of regular full-time employees in a company will drop from 84% to 72%, while the ratio of flexible employees such as dispatched workers will rise from 10% to 16% within the next five years.
