Editing Economy of Taiwan (section)

===Employment protection===
Taiwan's labor rights and [[employment protection legislation|employment protections]] increased with its democratization progress in the 1980s, and it still has a relatively high level of employment protection compared to other East Asia countries.<ref>{{Cite journal|last=Caraway|first=Teri|date=2009|title=Labor Rights in East Asia: Progress or Regress?|journal=Journal of East Asian Studies|volume=9|issue=2|pages=153–186|doi=10.1017/s1598240800002976|doi-access=free}}</ref> Implemented in August 1984, Labor Standards Law was the first comprehensive employment protection law for Taiwan workers.<ref name=":3">{{Cite journal|last=Lin|first=Yen-Ling|date=2013|title=Wage Effects of Employment Protection Legislation in Taiwan|journal=Asian Economic Journal|volume=27|issue=2|pages=145–161|doi=10.1111/asej.12007|url=http://tkuir.lib.tku.edu.tw:8080/dspace/bitstream/987654321/80045/2/AEJ2190Dfinalversion.pdf}}</ref> Prior to its implementation, the Factory Act was the primary law governing labor affairs, but was ineffective in practice because of its narrow coverage of businesses and issues and absence of penalties for violation.<ref name=":3" /> In contrast, Labor Standards Law covered a broader range of businesses and labor affairs and detailed penalties for its violation. It regulated a period of notice before firing employees and also required a higher level of [[Severance package|severance payment]].<ref name=":3" /> Other labor issues were also regulated by the law, including contract, wage, overtime payment, compensations for occupational accidents, etc.<ref name=":4">{{Cite journal|last=Camhon|first=Kan|date=2011|title=The Effects of Employment Protection on Labor Turnover: Empirical Evidence from Taiwan|journal=Economic Inquiry|volume=49|issue=2|pages=398–433|doi=10.1111/j.1465-7295.2009.00278.x|citeseerx=10.1.1.362.6008|s2cid=154825637}}</ref> Penalties for employer violation were also clear in the law, stating fines and criminal liabilities.<ref name=":3" /> [[Ministry of Labor (Taiwan)|Council of Labor Affairs]] (CLA) was set up on 1 August 1987 to help with labor inspection and the enforcement of the Labor Standards Law.<ref name=":4" />

In Taiwan, companies with at least a single employee have the compulsion to contribute to the insurer's employment service insurance premium. The share of labor insurance is divided into a 7:2:1 ratio between employer, employee, and state.<ref>{{Cite web|title=Bureau of Labor Insurance Website-Employer-Labors Insurance and Employment Insurance Premium-Premium Sharing Ratio|url=https://www.bli.gov.tw/en/0010791.html|access-date=2021-03-13|website=www.bli.gov.tw}}</ref> As far as a contribution towards social security, companies should pay at least 6% of the wages of its employees towards the social security.<ref>{{Cite web|title=Bureau of Labor Insurance Website-Employment Insurance-Introduction|url=https://www.bli.gov.tw/en/0007480.html|access-date=2021-03-13|website=www.bli.gov.tw}}</ref><ref>{{Cite web|date=2020-03-09|title=Hiring Employees in Taiwan: Benefits, Time-Off, & Termination|url=https://nnroad.com/blog/general/how-to-hire-employees-in-taiwan-benefits-time-off-termination/|access-date=2021-03-13|website=NNRoad}}</ref><ref>{{Cite book|last=Aspalter|first=Christian |url=https://books.google.com/books?id=OiAlDwAAQBAJ|title=The Routledge International Handbook to Welfare State Systems|date=2017-01-12|publisher=Taylor & Francis|isbn=978-1-317-04108-5}}</ref>