Newsletter
The Ministry of Labor Issues the "Reference Guidelines for Enterprises to Prevent Forced Labor"
The Ministry of Labor Issues the "Reference Guidelines for Enterprises to Prevent Forced Labor"
Susan Lo/Gloria Chu
The Ministry of Labor has issued the "Reference Guidelines for Enterprises to Prevent Forced Labor" (the "Guidelines") on February 13, 2026, in response to the increasing global emphasis on preventing forced labor and conducting human rights due diligence within supply chains. These Guidelines are designed to assist Taiwanese enterprises in mitigating international trade restrictions and operational risks. Their primary objective is to enable enterprises to identify forced labor risks and to establish a practical, implementable management framework. The Guidelines provide direction for companies to develop preventive mechanisms that internalize the protection of workers’ human rights within corporate governance and supply chain management.
Key points of the Guidelines include:
1. Establishing Core Indicators and Frameworks for Preventing Forced Labor
(1) Translation of International Labour Organization (ILO) Indicators:
The Guidelines convert the ILO’s 11 indicators of forced labor (such as debt bondage, withholding of identity documents, and wage withholding) into clear, practical explanations to serve as a foundational reference for enterprises to identify risks of labor exploitation.
(2) The Concentric Circles Concept of Forced Labor Indicators:
Centered on “debt bondage,” the Guidelines analyze forced labor through concentric layers, i.e. core (debt bondage), inner (control methods), middle (exploitation phenomena), and outer (intimidation tactics). This framework assists enterprises in understanding the principal indicators of each method, their interrelations, and the systemic nature of exploitation.
2. Promoting Enterprise Action Plans
To assist enterprises in progressively achieving fair recruitment practices from internal operations to the broader supply chain, the Guidelines propose concrete action plans:
To assist enterprises in progressively achieving fair recruitment practices from internal operations to the broader supply chain, the Guidelines propose concrete action plans:
(1) Governance Commitment and Policy Pledges:
Enterprises are advised to formulate a “zero tolerance for forced labor” policy and incorporate related provisions into work rules and employee handbooks.
(2) Risk Inspection and Monitoring:
Enterprises should conduct regular, comprehensive inspections of employee recruitment, hiring, and working hour patterns, and establish periodic evaluation mechanisms for cooperating recruitment agencies.
(3) Extended Supply Chain Management:
Depending on management capacity, enterprises should gradually extend human rights protection requirements from internal operations to the entire supply chain and key suppliers.
(4) Response and Remedy Measures:
Upon identifying risks, enterprises must immediately cease improper practices, establish concrete corrective plans, and provide appropriate remediation procedures for workers whose rights have been violated.
3. Providing Practical Tools to Assist Enterprises in Legal Compliance and Aligning with International Supply Chain Human Rights Standards
(1) Self-Assessment and Legal Alignment:
The Guidelines provide a “Forced Labor Risk Self-Assessment Form” to guide enterprises in conducting internal compliance reviews in accordance with domestic laws such as the Labor Standards Act and the Employment Service Act.
(2) Analysis of International Audit Standards:
The Guidelines also compile key areas and verification processes from common international codes of conduct (such as RBA, SA8000, SMETA), assisting enterprises in meeting audit requirements from multinational corporations and international organizations.
The issuance of the Guidelines reflects the government’s proactive leadership in guiding enterprises toward fair recruitment practices. This initiative not only helps prevent enterprises from inadvertently triggering trade sanctions, supply chain disruptions, and reputational harm but also further safeguards the fundamental dignity of workers. Moreover, it constitutes a critical factor for enterprises to maintain international competitiveness and sustainable operations. Lee and Li’s Labor Practice Group has long been attentive to developments in labor law and assists enterprises with internal assessments and implementation. Should you require assistance, please feel free to contact our team of experts at any time.