Safe Workplace｜Employee Relations and Communication

Nuvoton regards talent as the key capital for the company's sustainable development, emphasizing cultivation and development to create a friendly workplace and provide employees with a safe and healthy working environment. The company follows the Labor Standards Act and other relevant labor regulations, and supports the protection spirit and basic principles of various international human rights conventions, including the "Universal Declaration of Human Rights" by the United Nations, the "United Nations Guiding Principles on Business and Human Rights," and the "Declaration on Fundamental Principles and Rights at Work" by the international labour organization.

SDGS

200

Points

The RBA VAP risk assessment on labor rights, environmental safety and health, ethics, and compliance dimensions received a full score of

1953

Ten thousand NTD

The total amount of childcare subsidies disbursed from 2021 to 2023 is as follows.

The incidence rate per thousand people has decreased from the baseline average of 1.81.

Employee Relations and Communication

Salary and Welfare

Human Rights and Gender Equality

Occupational Safety and Health

Employee Care and Communication

Labor-Management Communication

While Nuvoton Japan has established a labor union and signed a collective agreement with it, 75% of the total workforce are members of the union. The remaining employees who are not part of the union have their working conditions and employment terms determined according to the company's personnel system standards. Although Nuvoton Taiwan has not established a labor union or a collective agreement, it regularly holds labor-management meetings and provides diverse and transparent communication channels to allow employees opportunities to voice their opinions, ensuring effective interaction between the company and its employees.

Communication Category	Explanation	Communication Effectiveness
Labor-Management Meetings	Nuvoton holds regular labor-management meetings to facilitate communication between both parties.	In 2023, a total of 4 labor-management meetings were convened. During these meetings, updates on quarterly company revenue status and relevant labor-related information were provided to the labor representatives. Discussions were also held on topics such as the annual employee calendar (including holiday schedules) and adjustments to the rotating shift schedules, such as the 2-week shift rotation. Nuvoton ensures that in cases of significant operational changes requiring the termination of employment relationships with certain employees, advance notice will be provided in accordance with legal regulations at each operational location.
Employee Feedback Forms	Nuvoton values the expression of opinions from its technical staff, providing physical (anonymous) suggestion boxes in each factory area, as well as diverse online channels for feedback. These channels include general feedback, ESG (Environmental, Social, and Governance) integrity reporting, and a dedicated mailbox for reporting harassment cases. These channels are managed directly by Human Resources supervisors and representatives from the Sustainable Development Committee. To promote friendly communication in the workplace, orientation sessions are organized for new hires, where HR supervisors address their queries firsthand. This demonstrates the company's commitment to valuing employee feedback. Additionally, continuous efforts are made during all-staff training sessions to promote these feedback channels, encouraging employees to voice their suggestions and concerns.	In 2023, a total of 7 pieces of feedback were received from employees, with a response rate of 100%. There were no reported cases of harassment in 2023. To foster camaraderie among new hires and facilitate better working relationships, exchange sessions are organized for each intake of new employees. These sessions include self-introductions, interactive games, and refreshments, creating a relaxed atmosphere for horizontal relationship-building. Moreover, high-level executives participate in discussions, allowing new hires to provide direct feedback and gain a deeper understanding of company policies, thus facilitating their integration into the company culture. In 2023, a total of 5 orientation sessions were held, with 164 participants in attendance.
Communication Category	Explanation	Communication Effectiveness
Labor-Management Meetings	Nuvoton holds regular labor-management meetings to facilitate communication between both parties.	In 2023, a total of 4 labor-management meetings were convened. During these meetings, updates on quarterly company revenue status and relevant labor-related information were provided to the labor representatives. Discussions were also held on topics such as the annual employee calendar (including holiday schedules) and adjustments to the rotating shift schedules, such as the 2-week shift rotation. Nuvoton ensures that in cases of significant operational changes requiring the termination of employment relationships with certain employees, advance notice will be provided in accordance with legal regulations at each operational location.

Employee Care

Nuvoton is committed to creating a work environment where employees can thrive physically, mentally, and spiritually. In addition to taking care of employees' physical well-being, Nuvoton plans diverse activities to demonstrate genuine care and concern for its employees, aiming to build a friendly and happy workplace environment and promote a culture of work-life balance.

Category	Description	Achievements
New Employee Care	NTC Taiwan: In 2023, a one-on-one care visit program was implemented for new employees, in conjunction with the New Employee Buddy System. This program aimed to support and check on the onboarding progress of new employees, promote Employee Assistance Programs (EAPs) and various company benefits, and assist colleagues in quickly adapting to the new work environment. NTC Japan: New full-time employees are assigned mentors who are experienced employees. For new employees who have previous work experience, they are paired with colleagues and senior employees as buddies. All new employees receive one-on-one support and guidance. These measures are implemented to facilitate a smooth integration of new employees into the workplace.	NTC Taiwan: In 2023, the number of new hire care interviews reached 50% of the total number of new employees (39 individuals). The average satisfaction rate was 87%. NTC Japan: In 2023, a total of approximately 100 new hires benefited from these initiatives.
Workplace Unlawful Acts Prevention Seminar Series	Inviting external professional speakers to share their expertise and assist supervisors in understanding the characteristics and differences of employees from different generations in the workplace. This aims to enhance supervisors' sensitivity and communication skills, reduce workplace conflicts, effectively eliminate workplace bullying, and promote self-protection and the well-being of others.	NTC Taiwan: In 2023, a total of 3 sessions of the Workplace Unlawful Acts Prevention Seminar Series were conducted. The supervisor training had 149 participants with an average satisfaction rating of 4.5 out of 5. The seminar had 242 participants with an average satisfaction rating of 4.8 out of 5. NTC Japan: A total of 1,776 individuals received training, with a 100% pass rate In 2023.
Long-Service Employee Recognition	Annual Service Awards are presented to long-serving colleagues as a token of appreciation from the company.	In 2023, during the company's 15th-anniversary Family Day event, a recognition ceremony was held to publicly acknowledge and express gratitude for the contributions of both local and foreign employees. Additionally, senior executives were invited to record congratulatory videos, showcasing the company's diverse and inclusive workplace culture.
Post-retirement benefits plan	NTC Taiwan Defined Contribution Plan: The retirement pension system, governed by the "Labor Retirement Pension Act," is a government-managed defined contribution retirement plan. Employees contribute 6% of their monthly salary towards their retirement pension, which is allocated to their individual account with the Labor Insurance Bureau. Defined Benefit Plan: The retirement pension system, operated in accordance with the "Labor Standards Act," is a government-managed defined benefit retirement plan. The payment of employee retirement benefits is calculated based on years of service and the average salary for the six months prior to the approved retirement date. Nuvoton contributes 2% of each employee's monthly salary to the Employee Retirement Fund in both 2022 and 2023. These contributions are entrusted to the Labor Retirement Reserve Supervisory Commission, which deposits them into an account with the Bank of Taiwan in the name of the commission. Before the end of each fiscal year, if the estimated balance in the account is insufficient to cover the projected retirement benefits for eligible employees within the following year, the shortfall will be fully allocated by the end of March of the subsequent year. In addition to the aforementioned retirement pension systems, the company also offers an early retirement plan to employees who wish to retire early. Eligible employees who meet the conditions set forth in the company's retirement regulations may apply for early retirement with the approval of their respective supervisors. NTC Japan The Fixed Contribution Retirement Pension Plan (DC system) is currently in operation.
Employee Transition Program	NTC Taiwan In response to the societal trends of aging population and declining birth rates, and in line with the advocacy of the Ministry of Labor in our country, Nuvoton Taiwan is committed to creating an age-friendly employment environment. In accordance with the Elderly and Senior Employment Promotion Act, we provide a retirement transition program. We will consult with outstanding employees who are approaching retirement age to see if they are willing to continue their service. If both parties agree, we will rehire these employees, allowing them to mitigate the immediate impact of retirement and engage in knowledge transfer, enabling them to retire without fully withdrawing from the workforce.