With the economy growing at a fast pace, Taiwan has been faced with a labor shortage problem. To quench the thirst for a basic labor force, Taiwan's government lifted the ban on employing foreign workers. In July 2014, the population of foreign workers was 521,932, accounting for 4.7% of total employment in Taiwan. To introduce foreign white collar employees, foreign managers and senior executives are recruited to perform professional or technical work or to manage investment made by or businesses established by overseas Chinese. The government laid down Regulations on the Permission and Administration of the Employment of Foreign Workers for purposes of regulating the introduction and employment of foreign labor and to provide them with basic labor rights and protection.
Taiwan has a comprehensive and extensive labor protection system centering on Labor Standards Act, which prescribes minimum standards for working conditions including minimum wages, working hours, holidays, severance pay, etc. The country boasts about its good industrial relations, and industrial disputes are not commonly seen on the island. A labor-management committee has been set up based on Labor Standards Act to foster cooperation between capital and labor and to elevate work efficiency. Representatives who are nominated by both employers and laborers can volunteer to participate in negotiations organized by the labor-management committee. Such negotiations aim to improve working conditions, establish labor welfare schemes, and boost work morale and efficiency in order to promote employer-employee collaboration.
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