The legal pitfall companies most often hit with dispatched workers: Article 17-1 of Taiwan's Labor Standards Act
Under Article 17-1 of Taiwan's Labor Standards Act, a host company may not interview a dispatched worker, or designate a specific dispatched worker, before the staffing agency and the worker have signed an employment contract. In other words, the common "interview first, transfer to the agency later" practice is illegal. Violations carry fines of NT$90,000 to NT$450,000, and the company's name and the responsible person's name are made public; the company must fix the issue within a deadline or be fined again for each further violation. The dispatched worker can also, within 90 days of starting work, demand in writing that the host company sign an employment contract with them directly.
What is "re-registering" a worker, and why do companies do it by accident?
"Re-routing" (轉掛) means a company finds, interviews and decides to hire someone itself, then asks a staffing agency to put that person on its books. In substance the company has gained the worker, but it has shifted the employer's responsibilities to the staffing agency.
When this happens, it's usually not malicious — the process order just wasn't thought through. A typical scenario looks like this:
- "Let's interview first, and if it works, we'll decide which staffing agency to use"
- "We already know this person; just bring them in through staffing."
- "We'll look through résumés and pick a few first, then you go sign them up."
All three sound perfectly ordinary, yet all of them fall within what Article 17-1 prohibits.
Many people think the worst case is a fine, but the real damage from this provision is "public disclosure of the company name and the responsible person's name." Once published, it stays online for job seekers, customers, and partners to find, and the harm to your employer brand far exceeds the fine itself.
In addition, dispatched workers can claim direct employment: if they request it in writing within 90 days of starting work, the host company must negotiate a contract within 10 days of receiving the request. If it fails to negotiate in time or the negotiation fails, an employment contract is deemed to exist between the two parties from the day after the deadline, with working conditions based on those during their time at the host company. In effect, that person becomes your permanent employee — and it isn't your choice.
So can companies take part in screening candidates at all?
Yes, but the order matters. The key difference is whether you get involved before the staffing agency signs the worker, or only make contact after.
| Approach | Risks | |
|---|---|---|
| ❌ Not allowed | The company interviews the candidate first, then asks the staffing agency to sign them once they pass | Directly violates Article 17-1 |
| ❌ Not allowed | The company names someone ("I want this person") and has the staffing agency sign them | Counts as "designating a specific dispatched worker," which is also illegal |
| ✔ Yes | Provide clear job specs and skill requirements; the staffing agency recruits, screens, and signs the contract itself | The compliant approach |
| ✔ Yes | After the dispatched worker starts, directs and manages day-to-day work on the actual tasks | The client company already has the right to direct and supervise |
In other words, what the company can do is define the specs clearly — what skills, experience, and traits are needed — and let the staffing agency find people who fit, rather than picking individuals itself in advance.
In our actual engagements, this line comes up so often that we now raise it ourselves in the first meeting: "Let us interview first, and once they pass we'll decide which staffing agency they go under" — the moment this is said, the entire process for the engagement has to be redesigned.
And the later you discuss it, the more it costs to adjust. If you discover halfway through interviews that the process needs to change, dealing with candidates you've already contacted becomes very awkward. That's why a responsible staffing provider should make this clear at the quoting stage, not after you've signed.
Other often-overlooked staffing compliance points
Joint liability for occupational injuries
If a dispatched worker suffers an occupational injury, the client company and the staffing agency share joint liability for compensation. In other words, even though the employment contract is with the staffing agency, the client is not relieved of safety responsibility at the worksite: on-site safety management, training, and protective equipment are still things the client company must put in place.
"Long-term staffing is cheaper" is usually an illusion
Staffing service fees show up in the per-person monthly cost, so the long-run total often exceeds direct hiring. The real value of staffing is flexibility: for project-based, seasonal, or peak-period staffing, or as a buffer when long-term needs are uncertain. If a role is certain to exist long term, direct hiring is usually cheaper, and in a tight talent market, "full-time employment" is itself a recruiting weapon.
Job ads cannot include discriminatory requirements
Whether for permanent or temporary staff, job ads are governed by Article 5 of Taiwan's Employment Service Act, which prohibits discrimination based on age, gender, nationality, marital status, and similar factors. The most common real-world case is writing "under 30 only" on a hiring request. Internally the intent may be understood, but once it appears in a published job ad, it's a violation. Conditions like this should be translated into the actual skills or requirements needed before going public.
Company self-check: five questions
- Did we interview the candidate directly before signing with the staffing agency?
- Have we ever named a specific person and asked the staffing agency to “put them on its books” for us?
- Are we actually providing on-site safety training and protective equipment for dispatched workers?
- Is this role truly a flexible need, or is it actually a long-term fixed position?
- Does the requirement sheet we give staffing providers contain any restrictions based on age, gender, or nationality?
If you answered yes to any of these, we recommend reviewing the process with your staffing provider before you start hiring.
FAQ
Is it illegal even if I just "look at a résumé"?
What the law prohibits is "interviewing the dispatched worker or otherwise designating a specific dispatched worker." In practice, if a company picks someone from résumés and names that specific person for the staffing agency to sign, it may count as "designating a specific dispatched worker." The safe approach is for the company to provide the job specifications and for the staffing agency to handle recruiting, screening, and signing. Individual cases depend on the specific facts, so we recommend consulting a professional or the competent authority while you are still designing the process.
Can dispatched workers become permanent employees?
Yes. It's very common in practice and an important draw for candidates. The key is to state the conversion conditions and timeline clearly at the outset (for example, after a set period of service and meeting performance targets, conversion will be considered), and to handle it through normal procedures when the dispatch term ends or both parties agree — not as a workaround to sidestep Article 17-1.
When does staffing make sense, and when doesn't it?
Good fit: project-based staffing, seasonal peaks, a buffer when workload is uncertain, or when you need to fill a gap quickly but long-term needs are unclear. Poor fit: core roles you know will exist long-term, especially professional or technical ones. For these, staffing isn't necessarily cheaper overall, and in a competitive market "permanent employment" is itself a key draw, so using staffing actually lowers candidates' willingness to accept.
How can you confirm a staffing agency is legitimate?
Ask the firm for its Unified Business Number and employment services license number, and use the business number to check its operating status in the Ministry of Economic Affairs (Taiwan) company registration lookup. We also recommend confirming that labor and health insurance enrollment, occupational accident insurance, and the payroll process are clearly documented in writing. For the full evaluation method, see How to Choose a Headhunting Firm in Taiwan: 7 Criteria You Can Actually Verify.
Talk to us once before your process is finalized — it saves trouble
Step1ne (德仁管理顧問有限公司, Unified Business No. 85046127, Taipei City employment services license 北市就服字第 0363 號) provides executive search, permanent recruitment and temporary staffing. If you're weighing staffing against permanent hiring, we can first help you clarify the process and risk points, then talk about working together.
Talk with a consultant on LINEFurther reading: How Do Taiwanese Companies Work with Headhunters? Channels and Fee Models Explained · How to Choose a Headhunting Firm in Taiwan: 7 Criteria
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