The Company recruits talent regardless of race, gender, age, religion, nationality, or political party. As of 2023, the total number of employees of DEPO was 3,022, showing no significant change from 2021 and 2022. The total number of non-employee workers was six, and all of them were dispatched personnel. For many years, DEPO has been hiring mental and physical disabled individuals. The total number of mental and physical disabled employees was 59 in 2023, accounting for 1.95%, meeting the statutory standard, and the company has received the "Outstanding Supplier Award for Excessive Hiring by Changhua County." In 2023, a total of 797 foreign migrant workers were hired, accounting for 26.37%.

 

The employee turnover rate of DEPO in 2023 was 14.66%, and the average monthly turnover rate was 1.22%. The main reason for this is changes in orders and production capacity jointly affecting the overall manpower deployment plan, resulting in the recruitment and turnover of direct employees in large numbers from time to time; in addition, the low retention rate of new recruits results in the changes in the overall turnover rate affected by direct employee retention.

In 2023, the employees were recruited through diverse channels, mainly online platforms. DEPO also participates in job fairs organized by the county government. In addition, we maintain industry-academia collaboration with schools and participate in campus talent recruitment held by various schools. The company's colleagues also take the initiative to refer their relatives and friends.

DEPO plans career development paths and training courses for its employees and establishes a talent cultivation system by combining incentives and promotion measures with performance and contribution appraisals every year and adjusts their salaries or gives out bonuses and rewards when deserved. DEPO expects every employee to unleash his/her strengths.

The performance appraisal of talent is mainly based on employees who have been onboard for at least three months. The unit supervisors conduct regular monthly evaluations on their work performance (work attitude, attendance rate, among other things) and work achievements, as the basis for promotion, salary increase, and distribution of bonuses. In 2023, 100% of employees completed the performance appraisals in DEPO.

DEPO encourages its employees to actively engage in various promotion policies, and attend training to improve their professional competencies or obtain professional licenses or even multiple licenses. These not only strengthen their personal occupational skills, but they are also the driving force for helping the Company's growth. We have always supported and encouraged employee training, and identified the functional gaps of each department through the annual competency inventory, and then arranged for colleagues to participate in internal and external training courses.

The education and training survey is issued in November every year, and the education and training plans are prepared based on the needs of each unit. Employees can apply for external training according to their work needs. If they participate in training during working hours, they will be granted full-paid leave. To encourage employees to pursue studies in their spare time, a scholarship system is also provided.

• Orientation: including basic training and onboard guidance, to help new employees adapt to the Company's culture and the jobs as soon as possible.
• General knowledge training: including governmental regulations, company policy requirements, and company-wide or department specific training, such as environmental and safety training courses, quality training courses, fire safety training, and emergency response training courses.
• Professional/functional training: including the technical and professional training required by each functional unit. Personnel with specific duties must have relevant licenses, which must be updated regularly.
• Officer training: Including planning management development training activities based on the management skills and management responsibilities of executives at each level. The courses include junior officer core courses, intermediate officer core courses, and senior executive core courses.

• Identify internal key and management talents.
• Plan career development paths and cultivation courses, and establish the talent training system.
• Establish the mentor system.
• Provide challenging tasks with incentives.
• Transparent career path.
• Evaluate and update regularly.

The Remuneration Committee holds meetings twice a year to improve the performance targets and remuneration structure for directors and managerial officers, assist the Board of Directors in evaluating and supervising the company's overall remuneration policy and the remuneration levels of directors and senior executives, while submitting recommendations to the Board of Directors. Currently, no advice from external remuneration consultants is referred to, and there is no signing bonus, recruitment bonus, or reclamation mechanism. In 2023, the median ratio of the highest paid employees to the total annual remuneration of general employees was 6.02; the change ratio of total annual remuneration in 2023 was -0.43.

DEPO is committed to providing comprehensive human resources support solutions to ensure that employees receive appropriate support at all stages of their careers. First, severance-related matters are handled in strict accordance with the Labor Standards Act to ensure that employees' rights and interests are protected; professional retirement consultation is provided for employees reaching the statutory retirement age; a comprehensive orientation counseling program is designed for new employees; a career development consultation is provided to the in-service employees; for employees in the process of resignation, their reasons for resignation are to be understood, and their intentions are considered, to provide appropriate counseling and support during the transition period.

Pension System

DEPO makes pension appropriation (under the old scheme) or contributions (under the new scheme) for each full-time employee, in compliance with the relevant local retirement laws and systems.

In the old pension system, the pension system implemented in accordance with the "Labor Standards Act" in was a government-managed defined benefit pension plan. The payment of employee pension is calculated based on the seniority of service and the average salary of the six months before the approved retirement date. When employees eligible for the old system retire, they are entitled to the benefits in accordance with the Act. The dedicated pension account with Bank of Taiwan managed by the Labor Retirement Fund Supervisory Committee has contributed 10% to October 2023 with full amount and approval currently; when maturing, the contribution will make up the difference. As of December 31, 2023, the balance of the dedicated account of pension with Bank of Taiwan was NT$41,510 thousand. Under the new pension system, 6% of an employees' monthly salary is contributed to the employee's personal pension account, and employees can also voluntarily contribute 0-6% of the monthly salary more to the individual pension account if they wish.

To create a happy workplace, DEPO has established the Employee Welfare Committee to provide each employee with a good working environment and the following benefits:

• Rewards for achieving operating targets, bonuses, year-end bonuses, among other incentives.
• Scholarships for employees and their dependents.
• Free parking lot and friendly parking spaces.
• Organization of annual domestic and international trips, new year parties, birthday parties, and diversified activities.
• Subsidies for lunch expenses and free overtime dinner.
• Subsidies for marriage, funeral, childbirth, and hospitalization.
• Regular free health examinations.
• Birthday cash gifts; cash gifts, or gifts for three major festivals.
• Conduct competency inventory, and personalize competency training, to assist colleagues in career planning.
• Ceremony to celebrate model colleagues and senior colleagues.

Birthday Speech

DEPO holds the birthday speech on the first Friday of each month. It was suspended in 2020 due to the COVID-19 pandemic and resumed in mid-2023 when the pandemic subsided. After the pandemic, speeches focused on health promotion to communicate the physical and mental health information with the employees.

DEPO Residence

Seeing employees as family members, DEPO promotes the employee residences, "DEPO Residence." By purchasing lands near the operation sites to build comfortable and safe residences, employees with good work performance are provided with prices below the market price, improving work-life balance so that they can work at DEPO without worries.

Parental Leave

In order to support employees to spend enough time with their families after giving birth, DEPO provides ample parental leave to ensure they have enough time to take care of their newborns and young children. During the parental leave period, employees can focus on taking care of their families. In 2023, a total of 31 people applied for parental leave without pay.

 

Occupational Safety and Health Committee

The Occupational Safety and Health Committee actively proposes safety and health policy recommendations. It holds meetings on a quarterly basis, including management plans, education and training, health management, among other things. All units shall regularly check and update environmental inspections according to the content of the plan, and strengthen the promotion of traffic safety. Meanwhile, DEPO pays extra attention to the problem of excessive noise, and requires employees to wear earplugs or earmuffs to protect their health. In addition, for the health of employees, health examinations and vaccinations are provided. The management shall pay attention to safety and health records, and consider corresponding penalties for failure to replace wear mandated protective equipment. Overall, the Occupational Safety and Health Committee is committed to maintaining workplace safety and employee health through comprehensive planning and execution. In 2023, a total of four meetings were held.

In order to ensure that employees are not accidentally injured by production tools during the production process, and to prevent industrial accidents in a preemptive manner, DEPO makes the following commitments regarding the occupational safety and health management:

• Compliance with laws and regulations: compliance with laws and regulations and other requirements.
• Implement the risk management: provide appropriate protective measures, equipment or operational control to prevent the occurrence of occupational injuries and diseases.
• Continuous equipment improvement: strengthen equipment maintenance with continuous improvement to eliminate or reduce equipment hazards.
• Education, training and promotion: promote and communicate environment, safety and health information to employees, customers, contractors, and visitors, and improve independent capabilities of occupational safety and health management through the awareness of workplace hazards.
• Continuous improvement of performance: provide the necessary resources to maintain the effective operation of the occupational safety and health management system, and continue to improve occupational safety and health management and performance.
• Employee health enhancement: actively participate in health management activities to enhance health and prevent work-related injuries.

In accordance with ISO/CNS 45001 and the requirements of the "Occupational Safety and Health Act," the "Regulations of Occupational Safety and Health Management," and the "Regulations Governing the Labor Health Protection," DEPO has established an occupational safety and health management system and appointed two Class A sales officers, four Class A occupational safety and health managers, four Class B occupational safety and health administrators, and four plant nurses. The Lukang Plant and the Xinying Plant have obtained external assurance certificates, and the remaining operating locations follow the Occupational Safety and Health Management Procedures formulated by DEPO.

The Occupational Safety and Health Committee actively proposes safety and health policy recommendations. It holds meetings on a quarterly basis, including management plans, education and training, health management, among other things. All units shall regularly check and update environmental inspections according to the content of the plan, and strengthen the promotion of traffic safety. Meanwhile, DEPO pays extra attention to the problem of excessive noise, and requires employees to wear earplugs or earmuffs to protect their health. In addition, for the health of employees, health examinations and vaccinations are provided. The management shall pay attention to safety and health records, and consider corresponding penalties for failure to replace wear mandated protective equipment. Overall, the Occupational Safety and Health Committee is committed to maintaining workplace safety and employee health through comprehensive planning and execution. In 2023, a total of four meetings were held.

DEPO encourages the employees to actively participate in health management activities to achieve health promotion and prevention of work-related injuries. In December 2023, DEPO provided general employee health examination service for a total of 1,259 employees, including 973 in Lukang Plant and 286 in Changbin Plant. We provide healthy meals on working days to safeguard the health of employees.

We have established a risk assessment process for occupational safety and health-related hazards. In addition to referring to the existing process, we also grasp the updated information from relevant units, including the safety and health authorities, labor inspection agencies, safety and health service agencies, and other service agencies.

 

To protect the basic human rights of our employees and value chain partners, and to promote sustainable development practices, DEPO supports the United Nations Universal Declaration of Human Rights and the United Nations Global Compact, and observes the laws and regulations of the countries where our operations are located to ensure implementation of the human rights protection.

DEPO provides a friendly workplace, work assistance and care. Regarding gender equality, DEPO has formulated the "Guidelines for the Prevention and Handling of Complaints of Sexual Harassment and Gender Discrimination," and invited the gender equality commissioner from the county government to conduct gender education and promotion. No incident of discrimination occurred in 2023. Regarding the issue of child labor, DEPO has complied with laws and regulations and never employed child labor under the age of 16 or forced labor. There has also been no incident of infringement the human rights of indigenous people. All employees of the Company are treated fairly, regardless of their region, gender, religions, races nationality or political parties; there is no human trafficking or slavery in our business practices, and we strive for equality. In terms of overtime work, DEPO continues to recruit new employees and introduce foreign migrant workers to increase production capacity while reducing overtime.
Note 1: “United Nations Universal Declaration of Human Rights" https://www.ohchr.org/en/universal-declaration-of-human-rights
Note 2: “United Nations Global Compact” https://unglobalcompact.org/

No labor union or collective bargaining agreement is in place at DEPO, but there are transparent communication channels. The quarterly labor-management meetings are held, including four in 2023, to discuss the company's calendar and working days in 2023, explain the benefit program implementations, and listen to employee feedback.

All operating activities of DEPO comply with local laws and regulations. For the regulations on major work changes of employees, the Labor Standards Act is referred to, and based on the minimum notice period of employees' seniority: "For these working for three months but less than one year, the 10-day prior notice is given; for these working for more than one year to three years but less than three years, the 20-day prior notice is given; for these working for three years or more, the 30-day prior notice is given."