Major Internal Policies

Updated on : 2016-10-21 14:51:53

Major Internal Policies

Articles of Incorporation

Performance of Corporate Social Responsibility


Ethical corporate management and measures adopted


Labor Relations

A. Employee benefits measures:

(a) Leave system: For employees hired after privatization, seven days per year for over one year and up to (and not including) three years of service; Ten days per year for over three years and up to (and not including) five years of service; Fourteen days per year for over five years and up to (and not including) ten years of service; For ten or more years of service, one extra day per year, up to a maximum of thirty days, is granted.

(b) Distribution of performance bonuses, annual bonuses and dividends.

(c) The Employee Welfare Committee is responsible for administering various employee welfare-related matters, including periodic domestic or overseas travel, self-improvement activities, distribution of birthday cash gifts, sickness/injury benefits, cash gifts for the three traditional holidays/festivals and subsidies for social clubs.

B. Continuing education: The Company encourages employees to participate in continuing education and training outside of regular working hours and provides employees with an open and diverse learning environment. Employees will be able to improve themselves continuously through internal and external training, knowledge management and guidance from supervisors and peers. The Company has also planned a job training system to allow employees to bring together their personal life and career for a better future.

C. Training: Each year the Company allocates a budget for education and training and establishes training programs. Based on job functions and professional requirements, appropriate training courses are organized to improve employees’ knowledge and enhance their overall quality in the hope that they will be able to develop professional know-how with enthusiasm and innovative ideas. Meanwhile, elites equipped with both professional expertise and practical management experience will be cultivated through the career-training program. In addition to actively arranging for employees to participate in external training courses, the Company also organizes internal seminars and workshops at appropriate times. This year 43 instances of continuing education and training programs were held, with a total cost of about NT$60,000.

The Company strongly encourages employees to acquire job-related certificates and licenses. The Company’s accounting managers have obtained the license for accountant of higher examination, and construction managers have obtained the license for architect of higher examination.

D. Retirement system: Pursuant to the provisions of the “Retirement, pension and severance guidelines for employees of state-owned financial and insurance enterprises operated by the Ministry of Finance,” the Company allocates a fixed percentage of the monthly salary, depending on the salary scale of each employee, into company- and self-contributed funds and pension funds for the benefit of employees in their retirement. The Company was officially privatized on January 8, 1999, at which time the provisions of the Labor Standards Act became applicable. The date was also designated the basis date for the re-evaluation of employee pension liabilities and expenses in accordance with SFAS Bulletin 18, “Principles of Pension Accounting.”Since the 1999 special fiscal year, when labor retirement regulations were adopted, each month the Company has been allocating 8% of monthly payroll as employee pension reserve, which is deposited in a Central Trust of China account. In addition, due to the fact that the Company’s Trust Department was sold to JihSun Bank on August 6, 2005, following the approval from the Labor Bureau of Taipei City government, the Company settled the seniority in the old retirement system with employees in accordance with the pension calculation formulas stipulated in the Labor Standards Act in order to safeguard the interests of employees. Therefore, the retirement seniority of Company employees now follows the rules of the new

retirement system, making it unnecessary for the Company to allocate funds into the Central Trust of China pension account. And according to the Labor Pension Act, 6% is allocated, depending on the insurance coverage scale, as pension funds and deposited with the Labor Insurance Bureau.

E. In order to spell out the rights and obligations between the employer and employees clearly, as well as to maintain order in the workplace, the “Code of Practice” has been established and filed with the competent authority before being announced publicly. In addition, in order to impose certain requirements and ethical standards on employee conduct, a “Service Commitment Statement,” applicable to all employees, has also been established.

F. Work environment safety: Employees of the Company shall comply with applicable occupational safety and health laws as well as with the Company regulations so that safety in the workplace and a healthy environment can be maintained. In addition, to prevent theft, fire or other man-made disasters from occurring, the following labor safety and health regulations have been implemented:

(a) Regular medical check-ups will be conducted for employees on a regular basis (once every three years.)

(b) Occupational safety and health-related training will be conducted for employees.

(c) The Company's contractors are required to obtain comprehensive insurance coverage and to enhance the awareness of construction site safety and health management as well as to adopt appropriate measures.

G. Other important agreements: None.

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