Novatech upholds a talent-oriented spirit, providing employees with a safe and comfortable workplace, and ensures employee salaries and benefits through comprehensive internal organizational and personnel systems.
Labor-Management Relations ┃ Management Approach
Significance and Meaning to the Company
- Employees are the foundation of the Company's sustainable operations. We firmly believe that satisfied employees are essential to continuously achieving higher performance. Therefore, fostering a happy workplace is our commitment.
Management Strategies
- Establish relevant management measures to standardize recruitment and salary assessment procedures for consistent implementation.
- Submit work rules to competent authorities for approval and reference.
Actual and potential, negative and positive impacts
Positive:
- Talent is the key to sustainable corporate growth and a source of continuous innovation. Continuously recruiting top talent and retaining key personnel maintains the Company's competitiveness in the industry.
Negative:
- Failure to attract talent and maintain employee retention can lead to a loss of workforce cohesion and organizational identification, hinder talent development, and negatively affect the employer brand.
Action Plans/Resources
- Provide reasonable remuneration.
- Plan diverse benefits to improve employee satisfaction.
- Provide tailored development plans and performance management systems that match the right talent with the right position, coupled with highly competitive compensation packages.
- Create a newcomer-friendly workplace, offer benefits exceeding legal requirements, coupled with employee relations programs.
- Establish effective labor-management communication channels.
Policy/Commitment
- Novatech's Human Rights Policy.
- Regulations Governing Employee Compensation.
- Regulations Governing Employee Recruitment and Appointment.
* This material topic has no actual activities or business relationships involving negative impacts in the current year.
Employee salary
In accordance with relevant government regulations, Novatech has established Regulations Governing Employee Compensation, Employee Assessment Management
Regulations, and Employee Reward and Punishment Regulations. Through transparent,open, and clear management regulations, bonuses are calculated based on annual budget achievement rates and individual performance. Additionally, we regularly review market salary levels annually to provide reasonable compensation to our employee partners.
In 2024, Novatech’s average employee salary expense was NT$1,721,000, representing an increase of approximately 13.67% compared to 2023. In 2024, the total salary for full-time employees not in supervisory positions was NT$261,544,000, and the average salary for full-time employees not in supervisory positions was NT$1,469,000, with a median salary of NT$1,238,000; compared to 2023, the average salary for full-time employees not in supervisory positions increased by 10.7% from NT$1,327,000, and the median salary for full-time employees increased by 9.85% from NT$1,127,000.
Senior Executive Remuneration Policy
Director Remuneration
Novatech’s director remuneration is based on the Regulations Governing the Payment of Directors’ and Functional Committees’Compensation, which includes transportation allowances and attendance fees for participating in board meetings. Directors must listen to feedback reports on corporate governance performance and social responsibility implementation during board meetings to implement the company’s integrity governance spirit and fulfill its commitment to sustainable development.
Pursuant to Article 19-1 of the Company’s Articles of Incorporation, directors’remuneration is calculated at a maximum of 5% of the pre-tax net profit―excluding
employee and director compensation―after deducting accumulated losses from the company’s annual pre-tax profit, prior to the distribution of employee and director compensation. The exact amount is determined based on the company’s operating performance and requires approval from both the Compensation Committee and the Board of Directors. Independent directors are not eligible to receive directors’remuneration.
Independent directors receive fixed monthly compensation, transportation allowances,and attendance fees for participating in board meetings based on the Regulations Governing the Payment of Directors’ and Functional Committees’ Compensation. If independent directors are appointed by the Board of Directors as members of functional committees, they will receive additional committee compensation, transportation allowances, and business execution fees.
Salary information for full-time employees not in supervisory positions
Novatech provides remuneration based on factors such as education and experience relative to employees’ positions, and there is no difference in basic remuneration between entry-level male and female employees.
Multiples of statutory minimum wage (Note 1) for different employee categories in 2024
Multiples of statutory minimum wage (Note 1) for different job grades in 2024
- Note 1: Calculated based on the statutory minimum wage of NT$27,470.
- Note 2: Personnel with no work experience and hired at the lowest job grade.
- Note 3: Calculated based on the basic monthly salary for engineering personnel with no experience. The definition of this type of employee is engineering personnel.
- Note 4: Calculated based on the basic monthly salary for administrative personnel with no experience. The definition of this type of employee is non-engineering personnel.
- Note 5: Supervisor at or above the Deputy Supervisor level.
- Note 6: Section-level supervisors.
Board Performance Evaluation
To implement corporate governance and enhance board functions, the Company has established the Rules for Performance Evaluation of Board of Directors, which stipulates that the procedures of each functional committee should include regulations for conducting internal committee performance evaluations at least once a year.
The Nomination Committee is responsible for conducting internal board performance evaluations at the Company. The scope of evaluation includes performance assessments of the overall board, individual board members, and functional committees. The evaluation incorporates corporate sustainability indicators such as Corporate Governance,Risk Management,Legal Compliance,and Corporate Sustainability Responsibility to implement corporate governance and enhance the operational effectiveness of the Company’s Board of Directors.
The Company’s Board performance evaluation should be conducted by an external professional independent institution or a team of external experts and scholars at least once every three years. On December 27, 2023, the Company appointed the Taiwan Corporate Governance Association to conduct the performance evaluation, with the next external evaluation planned for 2026.
Executive Remuneration and Performance
The salary and bonuses of executives are based on the Senior Manager Performance Evaluation Method.Performance evaluation covers both company-wide indicators―such as sales target achievement, net profit target achievement, and return on equity―and individual indicators, including annual targets set with
supervisors, tangible achievements in talent recruitment and development, technical exchanges, and new industry initiatives. Evaluations are conducted based on employees’ positions, responsibilities, and contributions to the company, with reference to industry standards, and are reviewed by the Compensation Committee and the Board of Directors. The compensation system is regularly assessed in accordance with actual operating conditions and relevant regulations to maintain a balance between sustainable business operations and risk management.
The remuneration for the President and Vice Presidents includes salary, bonuses, employee compensation,and remuneration received for serving as directors or supervisors of subsidiaries. The annual remuneration for executives primarily consists of salary, performance bonuses, and employee profit-sharing. Employee profitsharing is allocated according to the Company's Articles of Incorporation (stipulating that no less than 3% of annual profits shall be distributed after deducting 10% for legal reserve). To support the Company’s sustainable development, technical exchanges and innovative development related to environmental protection equipment and materials have been incorporated into senior executives’ individual performance indicators, accounting for 10% of the overall evaluation. This performance component is tied to the principles of annual executive compensation, incentivizing continuous improvement in ESG-related business outcomes.
- Note 1: The ratio and amount of employee remuneration to be distributed are reported at the Annual Shareholders' Meeting regarding the relevant distribution
status.
- Note 2: The Company did not engage any remuneration consultants in 2024.
- Note 3: In 2024, stakeholders did not participate in voting on remuneration policies or proposals.
Remuneration Information Disclosure
The ratio of annual total remuneration for Novatech’s highestpaid individual to the median annual total remuneration of all other employees (excluding the highest-paid individual) is 11.95:1. The ratio between the percentage increase in annual total remuneration for the highest-paid individual in 2024 and the median percentage increase in average annual total remuneration for all other employees (excluding the highestpaid individual) is 1.12:1.
Employee Benefits
Employee benefits serve as incentives to motivate employees to pursue excellence. In addition to complying with government regulations, Novatech provides diverse insurance benefits and pension contributions, along with group insurance coverage that exceeds legal requirements, thereby enhancing employees’ security in both work and life.We support employees through important life events by offering benefits such as pregnancy checkup leave, paternity leave, family care leave, marriage leave, as well as wedding and childbirth cash gifts.
The total employee benefits expenditure in 2024 was NT$15,624,560, an increase of 4.81% compared to the total employee benefits expenditure of NT$14,908,217 in 2023. The average employee benefits expense in 2024 was NT$1,895,000, compared to the average employee benefits expense of NT$1,771,000 in 2023, representing an increase of 7%, demonstrating Novatech’s commitment to caring for employees and sustainable operation.
Parental Leave
Novatech considers employees as important partners and actively protects their rights and freedoms. For employees during parental leave periods, in addition to
providing parental leave in accordance with the Labor Standards Act, employees who have worked for more than one year can apply for unpaid parental leave before their children turn three years old, for a maximum period of 2 years, in accordance with the Gender Equality in Employment Act and Regulations for Implementing Unpaid Parental Leave for Raising Children. After the unpaid parental leave period, employees are reinstated based on job vacancies and their preferences, with an emphasis on supporting their career development.
- (Note 1) Calculation Method = Total Number of Employees Who Actually Took Parental Leave in 2024 / Total Number of Employees Eligible for Parental
Leave in 2024.
- (Note 2) Calculation Method = Total Number of Employees Who Returned to Work After Parental Leave in 2024 / Total Number of Employees Who Were
Expected to Return to Work After Parental Leave in 2024.
- (Note 3) Calculation Method = Total Number of Employees Who Remained Employed 12 Months After Returning from Parental Leave in 2023 / Total Number of Employees Who Returned to Work After Parental Leave in 2023.
Employee Communication Channels
Novatech values two-way communication with employees and has established the Communication Management Procedure to create an active, positive, and transparent communication environment. This ensures that suggestions and feedback from every employee are properly addressed in a timely and appropriate manner.Employees can submit feedback through the Internal/External Opinion Form and Employee Dedicated Mailbox. The Administrative Department and relevant departments collect and respond to internal opinions, ensuring that stakeholders can provide feedback, communicate, and seek consultation with minimal concerns and worries, maintaining a smooth communication model. In 2024, no abnormal internal/external communication feedback or employee mailbox opinions were received.
In addition, Novatech has established Regulations Governing Prevention of Sexual Harassment to protect employees’ rights. If employees feel they have been subjected to related misconduct or if related incidents occur, they can report through the complaint hotline (6676868 ext. 1301) or complaint mailbox (nova885@novatech.com.tw). The relevant departments will take appropriate action after receiving the report. Under these regulations and multiple channels, no sexual harassment complaints were filed in the Company in 2024.
Flowchart of Internal and External Opinion Communication,Participation, and Consultation Process:
Labor-Management Communication
Novatech values employee rights and is committed to providing a safe and comfortable working environment. To ensure timely communication, we engage with employees through multiple channels and internal meetings. An employee suggestion box,grievance channels, and related management measures have been established to gather feedback and address concerns. By fostering open communication and care,we strengthen employees’ sense of belonging, promote labor-management harmony,discuss working conditions and benefits, and explore ways to improve efficiency. These efforts help employees and the company reach consensus on labor-management issues.
In 2024, through labor-management meetings, management meetings, and annual all-hands meetings, we strengthened the promotion of work-life balance importance,requiring supervisors and employees to jointly maintain a healthy workplace. Compared to 2023, overall overtime hours decreased by 10,326.5 hours, and overtime expenses dropped by 41%.
Employee Satisfaction Survey: Value talent assets and implement people-oriented care
Through feedback and issue reporting from new employees, Novatech can promptly identify and address problems, support new employees in adapting to the workplace, and gather insights into their actual needs and perspectives.This enables continuous improvement of existing systems and enhances competitiveness in the talent market.
In 2024, we conducted a stability questionnaire survey for employees who have completed one year of service, primarily focusing on their adaptation to job responsibilities, whether the company provides a stable work environment, and whether their needs are addressed in a timely manner. The overall score received
was 84.56.
This questionnaire was divided into three main aspects: personal career development, job competency, and care support assistance. The HR support aspect
received the highest score of 96.3, followed by the work adaptation aspect with 85.33 points, and finally, the stability satisfaction received 80.11 points.
Among employees who have completed one year of service, most reported being partially familiar with their work but still occasionally requiring assistance or
guidance. Such feedback will be communicated to supervisors to support new employees in becoming more independent in their roles.
Human Rights Protection
In 2018, Novatech established and implemented Novatech's Human Rights Policy with reference to international standards: International Bill of Human Rights, OECD
Guidelines for Multinational Enterprises on Responsible Business Conduct, UN Guiding Principles on Business and Human Rights (UNGPs), UN Global Compact Responsible Business Alliance Code of Conduct (RBA). The Company is committed to equal opportunity principles regardless of race, class, language, thought, religion, political affiliation, gender, marriage, physical or mental disability, nationality, and party affiliation, treating everyone equally and fairly. Furthermore, the Company strictly prohibits the employment of child labor and forced labor or any other human rights violations, creating a friendly and diverse workplace.
The Company is committed to implementing workplace diversity, ensuring employees are free from discrimination, harassment, or unfair treatment. We comply with relevant regulations and establish standards to ensure that employee recruitment, promotion,work performance, salary system, and other aspects are not differentiated based on gender, race, age, marital status, religion, political stance, or other factors. In addition,the Company has established Guidelines for Sexual Harassment Prevention and Prevention Plan for Workplace Violence to prevent sexual harassment, maintain gender equality at work, and provide employees with a workplace environment free from sexual harassment.
To implement this policy, the Chairman signs and approves the Novatech's Human Rights Policy and commits to all employees that the company supports and recognizes the spirit of internationally recognized human rights conventions. The Company will never tolerate any disregard for human rights,will strengthen human rights awareness among internal colleagues and stakeholders, and reduce human rights risks. The President approves the Company’s Human Rights Policy Management Program and ensures the promotion of Novatech’s Human Rights and Integrity Management policies to all employees.
The scope of our company's human rights policy includes Novatech and its affiliated enterprises. We expect suppliers, business partners, and customers to follow the same standards and comply with the spirit and basic principles of this policy.Additionally,suppliers are required to sign the Agreement of Subcontractor Commitment before cooperation,which regulates suppliers to comply with corporate social responsibility guidelines related to labor rights, conflict minerals management, and environmental protection.
Novatech Human Rights Implementation Items
We have identified important human rights issues in our industry and have planned and arranged corresponding approaches for each issue in advance.
Human Rights Due Diligence and Remedial Measures
To implement human rights policies, we have established a human rights due diligence process that enables Novatech to comprehensively assess potential human rights risks associated with company activities. By identifying and assessing human rights risks, planning and implementing mitigation measures, and conducting ongoing monitoring and evaluation,Novatech effectively reduces the impact of human rights risks and safeguards the rights and interests of employees and stakeholders.
Below are the risk issues and mitigation/compensation measures for each stakeholder:
Human Rights Due Diligence and Process
Human rights issue grievance channels
To promote a better workplace and protect employee rights, the Company has establ ished multiple stakeholder communication channels. Through quarterly meetings, labor-management meetings,Employee Welfare Committee meetings, and employee satisfaction surveys, employees can freely submit their opinions while ensuring confidentiality. Additionally, the Company has established an internal audit mechanism that comprehensively reviews the implementation of human rights policies through on-site audits, document reviews, and employee interviews to protect personal information and enhance labor rights. If there are any human rights violations, colleagues can report them through the Company’s internal grievance channels.Novatech had no discrimination or human rights incidents in 2024.
Novatech Human Rights Education and Training Status
Since 2018, Novatech has continuously conducted educational training on human rights-related policy communication and has listed human rights-related issues as mandatory E-learning courses for all employees. Course information is regularly published to promote employees’ understanding of the importance of human rights. In 2024, during regular quarterly meetings and all-hands meetings, Novatech’s President communicated and explained the Company’s human rights policy to implement the management philosophy of human rights protection. In 2024, in response to the commitment to responsible business conduct policies, Novatech incorporated the Human Rights Policy Management System into the Company’s E-learning platform for online educational training, while tracking completion rates. All employees participated in human rights policy education and training, with a total of 74 training hours and a 100% training participation rate.
