TCFA calls for phased access to foreign workers and looser graduate work restrictions in Taiwan

Staffing pressures in Taiwan’s franchise sector are prompting employer groups to propose changes to foreign labour policy. At a retail and distribution industry summit in October, the Taiwan Chain Stores and Franchise Association (TCFA) released a workforce survey and urged the government to ease restrictions on overseas Chinese and international students staying in Taiwan to work after graduation. It also called for the gradual opening of the service sector to foreign migrant workers. For franchise operators preparing to open or expand their outlets, the key is to understand the proposals rather than treat them as recruitment options already available.

Association proposes starting with a 5% quota

According to a report dated 2 November, TCFA chairman Tsai Te-chung, who is also general manager of MedFirst Healthcare Services, proposed allowing general chain and franchise businesses to recruit foreign migrant workers gradually, starting with a 5% share of their workforce, to help ease persistent recruitment difficulties.

Comparing this with arrangements in manufacturing, he noted that manufacturers currently receive foreign migrant worker quotas of 10% to 20%, depending on their category, while general chain and franchise businesses do not yet have access to such arrangements. The proposal is intended to create an additional recruitment channel for operators currently excluded from them.

The 5% figure is the association’s proposed starting point, not a government-approved quota. For franchisors and franchisees, this distinction matters: the proposal signals the policy change the sector would like to see, but it cannot yet underpin staffing budgets or start dates for new outlets.

Keeping overseas graduates in Taiwan is another priority

Alongside access to foreign migrant workers, Tsai called for fewer restrictions on overseas Chinese and international students remaining in Taiwan to work after graduation, and for limits on how long they can work there to be relaxed. These are separate proposals and should not be presented as a single recruitment measure already in force.

The graduate proposal focuses on people who have already studied in Taiwan, while the migrant worker proposal concerns whether general chain and franchise businesses can recruit workers from abroad. By pursuing both, the association is seeking not just another source of labour, but also greater opportunities for overseas graduates to remain in Taiwan for employment.

For now, however, these should be understood as the association’s policy positions, not changes to the rules. When discussing recruitment support with prospective franchisees, brands should clearly distinguish between arrangements available today and ideas still awaiting a government response.

Survey highlights persistent recruitment pressures

The proposals follow the 2026 Workforce and Labour Shortage Survey, jointly released by TCFA and the Institute for Information Industry’s Digital Transformation Research Institute. It found that 98.8% of surveyed chain businesses faced staff shortages, 82.5% reported shortages of at least moderate severity, and 57% had experienced shortages for more than a year.

More than 80% of respondents also said the situation had not improved compared with the previous year. The survey identified staffing shortages as a significant challenge to outlet expansion and day-to-day operations. Recruitment gaps covered customer-facing outlet staff, cashiers, store managers, outlet supervisors and specialist technical staff.

These figures explain the urgency behind the association’s proposals. They cannot, however, be used to estimate vacancies at any individual franchise outlet, nor do they suggest that one recruitment channel could meet every staffing need. Each outlet still needs to assess its requirements according to job responsibilities, service hours and management needs.

Opening plans should not assume policy benefits in advance

For the franchise sector, the proposals raise a policy issue worth monitoring. If recruitment channels change, practical questions will include how franchisors help franchisees understand eligibility requirements, organise training and manage outlet staffing. These matters still require assessment and should not be presented as confirmed outcomes of a policy change.

Entrepreneurs currently choosing a franchise brand can start by asking its head office about existing recruitment channels, pre-opening staffing preparations and operating arrangements when vacancies remain unfilled. When assessing the pace of expansion, they should also distinguish between staff already in place and those still to be recruited, rather than count policy expectations as available resources.

Practical reminder: base opening plans on current rules and confirmed staffing. Keep the proposals on foreign migrant workers and overseas graduates on your watchlist, but do not count them towards the number of staff available to start work.