The Workers Rights 
In a 2026 investigation by Transparentem, migrant workers in Taiwan’s electronics, automotive and pump manufacturing sectors still suffer from high recruitment fees and debt. Researchers interviewed 24 migrant workers from Vietnam, Thailand and the Philippines who worked for seven manufacturers. Evidence suggests workers often borrowed money to get jobs. The investigation found debt bondage to be a possible risk of forced labour under international labour standards.
High Recruitment Fees Pose Long-Term Debt Risks
In most cases, workers at the seven manufacturers reported paying recruitment fees between US1,000-6.3000, according to Transparentem’s latest investigation. At Garmin and Compal, workers interviewed said fees and associated costs ranged from US2,050toUS6,400. Workers at five other factories told they paid between $50 and $60 a month for Taiwanese labour brokers.
These costs can be a major financial burden for workers moving from low-income countries. Where borrowing is used to fund recruitment costs, a large proportion of wages may have to be used to repay debt, especially in the early stages of employment when workers are also meeting housing and living costs.
Electronics Manufacturing Recruitment Special Issues
One sector where there has been closer scrutiny of migrant recruitment practices has been the electronics sector. The Transparentem investigation covered manufacturers Compal, Garmin and Digital Generation International, and workers reported large recruitment payments and, in some cases, additional broker fees after they arrived in Taiwan.
Such concerns may also trickle down international supply chains as manufacturers may be producing goods for or have commercial relationships with major global brands. Transparentem reached out to 18 buyers associated with the manufacturers in its most recent report, an opportunity for companies further up the supply chain to scrutinise recruitment practices and remediation.
The Automotive And Industrial Suppliers Also Require Protection
Taiwan’s recruitment problems aren’t confined to electronics, but also affect the automotive and industrial manufacturing sectors. The latest study by Transparentem looked into China Motor Corporation and other manufacturers in the automotive and pump sectors, and found that recruitment risks can be present in different parts of Taiwan’s industrial economy.
Automotive supply chains may have multiple tiers of suppliers and subcontractors, so visibility over recruitment practices is especially important. Through intermediaries, workers could be recruited from their home countries and then linked up with Taiwanese labour brokers, opening up several avenues for overcharging.
Fair Recruitment Is An International Labour Rights Standard
The issues in Taiwan are part of a broader international debate about the rights of migrant workers. If workers enter the labour force carrying substantial debt, the financial pressure may hinder their ability to challenge unfair conditions, change jobs, or seek remedies. The ILO has identified debt incurred for recruitment as one possible indicator of forced labour.
In this way, fair recruitment is a support for several linked rights including the right not to be in forced labour, the right not to be discriminated against and the right of access to decent employment. This requires cooperation between governments, employers, recruiters, worker organisations and international supply-chain partners to be effective.
Companies Have Started To Move Toward Remediation
The investigations also found examples of companies responding to recruitment issues. According to Transparentem, four of the seven manufacturers studied in its 2026 survey, and several buyers, took steps after being informed of alleged abuses. Measures included provisions for repayment of recruitment fees and associated costs, with two manufacturers having paid back current staff by the end of June 2026.
Transparentem’s previous research also showed improvements in Taiwan’s manufacturing sector. Following an investigation in 2024, manufacturers and buyers said they planned to reimburse, and one buyer had already reimbursed an estimated $1.5 million US to workers.
Employer-Pays Model Could Help Stem Recruitment Exploitation
The employer-pays principle could be a potential framework to address recruitment debt. This shifts the burden of legitimate recruitment and placement costs from migrant workers to employers, before they start work.
The ILO’s international guidance recognises the principle that workers should not be charged, directly or indirectly, recruitment fees and related costs. The framework also includes the requirement for clear employment contracts, accurate information, freedom from coercion and accessible grievance mechanisms.
Worker Protections Could Boost Responsible Supply Chains
Better protection for migrant workers can also bolster the resilience and credibility of Taiwan’s manufacturing supply chains. Companies that are transparent about their hiring practices are better able to identify labour risks earlier, and reduce the likelihood of taking on workers for jobs that involve unsustainable financial obligations.
International buyers matter because purchasing relationships can affect supplier behaviour. Contractual requirements on recruitment fees, freedom of workers, grievance systems and reimbursement can encourage suppliers to meet stronger labour standards across their operations.
Stronger Monitoring Can Promote Human And Labour Rights
The latest evidence points to recruitment not being a one-off administrative process, but should be subject to stronger monitoring. Fee records, recruitment contracts and interviews with workers can usefully provide information on whether workers are charged, directly or indirectly, to obtain employment.
Workers who have already paid excessive fees should also have access to remediation mechanisms. The ILO states that victims of forced labour should be offered adequate and effective remedies, including, where appropriate, compensation.
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