I. Welfare policy

   Also, the Company has established the Employee Welfare Committee. The Committee holds meetings periodically and handles the employee welfare affairs, e.g. birthday gift, birthday leave, marriage subsidy, funeral subsidy for employees and their family members, consolation money for employee’s hospitalization, festival events, benefits for Labor Day, domestic traveling subsidy and souvenir for employee’s retirement.

II. Continuing education program

   In order to encourage employees to pursue lifelong learning, the Company has established the “Regulations Governing Subsidy to Employees’ On-the-Job Education” since November 1999. The employees who attend the on-the-job master programs in graduate institutes of any domestic/overseas public/private universities and are held qualified may apply for the subsidy for continuing education, i.e. NT$12,000 - NT$36,000 per person per year. One employees applied for the subsidy for continuing education in 2022 and the subsidy amount was NT$ 18,000.

III. Implementation of employees’ educational training

  In order to upgrade the employees’ quality and job performance, facilitate productivity and upgrade the HR quality, enable the employees to exert their specialty in the organization and coordinate, encourage and grow with each other, the Company establishes the “Regulations Governing Employees’ Educational Training” to satisfy the employees’ need and fulfill the Company’s purpose of training talents. The total training hours were 8,558 hours in 2021, and the expenditure was NT$760.54 thousand. Averagely, each person had13 hours of training.

For the purpose of sustainable management and ensuring the implementation of the Company's long-term strategies, we have arranged meetings for the chairman, general manager, and top executives of each business units since 2014. Aside from the 3 regular business and management meetings held each year to discuss the focus of corporate future strategies, we also organize diversified training courses given by outside instructors. In doing this, we hope to inject vitality into the Company’s leaders. Additionally, we have taken a proactive approach to plan and construct a successor development mechanism since 2021, and further established a “talent development program” for the development path of key management-level personnel. Aside from defining key positions, a talent inventory is also regularly carried out. The inventory items include work/professional performance, personality/management traits and performance in the current job. According to the evaluation results and the corresponding maturity level of each successor, we gradually carry out necessary internal and external cultivation programs and implementation to ensure the management of the timeline upon succession. As well as internal cultivation, we also hire external talent for urgent high-risk key positions. Through a dual mechanism of internal and external search, we are able to ensure smooth operations of the Company. The development of key management-level personnel development in 2021:

• (1)  A total of 3 newly-appointed middle and high supervisors were trained (e.g., administrative management training, professional training on each unit, on-site training) via the KNH training system. Their training was completed as scheduled and they perform well in their respective position.

(2) We organize a consensus camp led by the general manager and participated by executives above the department level. The topics of the courses include organizational health, trust building, conflict management, clear commitment, shared consensus and responsibility, and results orientation, with 21 participants.

IV. Retirement system: and Implementation Status

  In November 1986, the Company adopted the “Employee Retirement Management Measures” (referred to as the old pension system) in accordance with the Labor Standards Act, and in July 2005, it adopted the new “Employee Retirement Management Measures” (referred to as the new pension system) in accordance with the Labor Pension Act to be implemented in parallel. Since June 1995, the Company’s managers have set up a retirement plan for managers and proposed a pension fund. The Company established the Business Entity Supervisory Committee of Labor Retirement Reserve to regularly review the pension deposits, pension payments and other auditable matters related to employee’s pension funds. The old and new pension systems are described as follows:

1. The old pension system
   (1)Pension rate: The old pension system deposit pensions of 2.1% of total monthly salary in the Bank of Taiwan,                Trust Division.

   (2)The status of pension deposits: Up to the date of publication of the annual report, the balance of the employees’         pension deposits in the Bank of Taiwan Trust Division is NT$190,423 thousand. From 2021 to April 30, 2022, a           total of 9 employees have retired and received pensions.

   (3)Procedures and conditions for the application of employee retirement:

        A worker may apply for voluntary retirement under any of the following conditions:

•         (a)Where the worker attains the age of 55 years old and has worked for 15 years.
•         (b)Where the worker has worked for more than 25 years.
•         (c)Where the worker attains the age of 60 years old and has worked for 10 years.

        An employer shall not force a worker to retire unless any of the following situations has occurred:

•         (a)Where the worker attains the age of 65 years old.
•         (b)Where the worker is unable to perform his/ her duties due to disability.

        The Company may request the central competent authority to adjust the age prescribed in the preceding                     paragraph if the specific job entails risk, requires substantial physical strength or otherwise of a special nature;           provided, however, that the age shall not be reduced below 55 years old.

  (4)The criteria for payment of worker pensions:

       Two bases are given for each full year of service rendered. But for the rest of the years over 15 years, one base        is given for each full year of service rendered. The total number of bases shall be no more than 45. The length of        service is calculated as half year when it is less than six months and as one year when it is more than six                    months. Where the worker is unable to perform his/ her duties due to disability, an additional 20% on top of the          amount calculated according to the preceding subparagraph shall be given to workers forced to retire due to              disability incurred from the execution of their duties.

2. The new pension system
  The Company appropriates labor pension reserve funds of 6% of the total monthly wages of their employees and deposits such amount in a designated account. If the employees are willing for pension deposit, the Company will withhold pensions from their salary on a monthly basis. The total pension deposits was NT$21,677 thousand in 2022 and up to the date of publication of the annual report. For the application procedure and standards for the retirement of employees related to the new pension system, please refer to the description in “Labor Pension Act”.

V. Measures of labor and management agreement and employees’ rights and interests

  Since the Company was incorporated, the labor and management have thoroughly understood the importance of harmony and valued the communication between both parties. For example, to be in line with the enforcement of the “Act of Gender Equality in Employment”, the Company established its own “Regulations for Prevention, Correction, Complaint and Punishment of Sexual Harassment”. The employees whose interest and right are infringed may file the complaint pursuant to the Regulations, and the employees’ request may be negotiated and settled via the internal communication channels and labor-management meeting. Given this, the various problems may be settled reasonably.

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