Taiwan Ministry of Labor Spurs Digital Shift in Construction with Stricter Safety Rules

Taiwan's Ministry of Labor has launched a three-year "Workplace Accident Prevention Action Plan" aimed at reducing hazards, with a particular focus on the construction industry. Effective January 1, the ministry has drastically increased the maximum fine for construction companies that fail to report or delay reporting occupational injuries from NT$300,000 to NT$3 million. The plan also aims to train 500,000 individuals in "Taiwan Occupational Safety Cards" within three years.

These regulatory changes are compelling the traditionally paper-based construction sector to embrace digital transformation in HR management. Femas HR, a leading cloud-based HR management system provider, reported a 75% year-on-year increase in new construction industry clients in the first quarter of 2026. This surge highlights the urgent need for digitalization as a protective measure against potential penalties.

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Digital transformation is the first step to help the construction industry implement 'everyone's public safety' and enhance market competitiveness.

Femas HR co-founder and CEO Li Jia-hong emphasized that digitalizing the management of contract workers is the first step toward improving construction site safety. Their cloud HR system helps companies build digital license databases, automatically flagging expired safety cards and certifications. The system also allows for real-time tracking of on-site attendance via mobile devices, preventing the "structural black holes" of hidden or delayed reporting that can arise from complex subcontracting chains and lead to hefty fines under the occupational safety law.

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The construction industry needs to flip its safety culture, starting with 'digital management of contracted personnel'.

Despite a general decrease in major occupational fatalities across all industries in the first quarter of 2026, the construction sector remains a high-risk area. Of the 50 major occupational fatalities reported, 27 occurred in construction, accounting for 54% of the total. Falls from height were the leading cause, responsible for 63% of construction-related deaths. In response, the government will now publicly disclose the names of project owners, construction companies, and subcontractors involved in major accidents, along with the causes, impacting corporate reputation and future bidding eligibility.

Femas HR co-founder and COO Du Li-qian added that cloud HR systems have evolved from simple payroll functions to strategic tools for corporate compliance and risk management. For small and medium-sized construction firms, these systems provide essential safety and health management knowledge with limited resources. For larger clients, they enable effective "social supervision" of subcontractors, aligning with international best practices for preventing occupational accidents.

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Cloud HR systems in the construction industry have evolved from simply 'calculating salaries and deducting labor and health insurance' to 'strategic tools for corporate compliance and risk control'.