Protection of Interests of Employment

To ensure protection of employees’ interest, LITE-ON set up all of the relevant policies in accordance with the regulations and laws:

Lawful hiring practices

LITE-ON complies strictly with employment regulations by prohibiting the use of child labor aged below 15; meanwhile, employees aged below 18 are not allowed to perform dangerous work. All changes to terms of employment have been duly notified as required by law.

Freedom from sexual harassment and discrimination

LITE-ON forbidden the exixtence of sexual harassment, we have set up the regulation and sexual harassment prevention hotline and e-mail providing the appealing channel.The employee shpuld not be discriminate ouwing to the race, religion, skin color, native and gender, and the dispute has never happened in LITE-ON.

Fair performance assessment

LITE-ON designs performance management with the aim to improve performance of individual employees and the organization as a whole. The company has instituted two-way communication and implemented an employee development plan. Performance assessments are fair and reasonable, so that assessment results can provide a basis for promotion, salary increments, remuneration, and employee training. If an employee is not competent to perform his or her work, LITE-ON will provide counseling or transfer the employee to a suitable position or affiliated enterprise. If the employee still fails to fulfill the terms of the employer-employee relationship, the company will give the appropriate notice and terminate the employee's contract with severance pay in accordance with relevant laws and regulations. The company will also provide relevant proof and documents required by law in order to facilitate the application for unemployment benefits or professional training grants for the employee and to protect the employee's employment rights.

Performance Review of Direct Labor:

There is a direct link between performance of direct labor and the company's production performance. Therefore, for those in direct labor, the plants follow a monthly bonus system based on product characteristics. Employees are rewarded according to performance. Employees' overall performance will be scored in the annual performance review at the end of each year.

New Hire Review:

When a new employee reaches the end of his/her trial period, the manager should conduct an interview and assessment regarding the employee's performance during the trial period. For those who fail to pass the review, the company may terminate the employment contract as permitted by law or, by mutual consent, extend the trial period. The extension should not exceed the original trial period.

Guaranteed Salary

Starting salaries offered to direct labor not only have to comply with local regulations, but are also competitive when compared to industry peers. Currently, LITE-ON's starting salary for direct labor is approximately 1.08 times the minimum wage in Taiwan, 1 time in China, and 1 times in Thailand.

LITE-ON places particular emphasis on how employees are compensated for their services. Regardless of where the company operates, it offers competitive compensation packages and conducts salary surveys each year to align salary levels with the current market and with the various economic indicators used in the analysis. As a means of attracting top talents, LITE-ON offers some of the best starting salary packages for new hires. Employees' salaries and compensation are determined by their education, knowledge, skills, seniority, and individual performance. In no way does gender play a part in these decisions. New employees are not given different starting salaries on the basis of their race, religion, political views, gender, marital status, or union association. The company's compensation policy has been drafted on the basis of the following principles:

• ▇ LITE-ON is aware of and complies with relevant local laws and regulations, strives to establish harmonious employer-employee relations within the scope of the law, and thereby promotes sustainable management.
• ▇ In order to maintain competitiveness in the employment market, pay is set and adjusted in reflection of manpower supply and demand and the profitability of product lines.
• ▇ In order to incentivize employees, the company strives to pay appropriate salaries reflecting the market value of professional functions, the contributions of employee, and the results of the performance management system.
• ▇ Starting salaries offered to direct labor not only have to comply with local regulations, but are also competitive when compared to industry peers. Currently, LITE-ON's starting salary for direct labor is approximately 1.08 times the minimum wage in Taiwan, 1 time in China, and 1 times in Thailand.
• ▇  Periodically review salary levels related systems to have better salaries in the market
• ▇ As an added incentive to employees, LITE-ON pays a performance bonus each year depending on how each individual and the company has performed. The amount of bonus granted to employees is determined by their responsibilities, contributions, and performance.

Gender Salary Differences by Job Nature (Taiwan):

According to Taiwan regulations, all employees need to be insured under the Labor Insurance and National Health Insurance schemes from their onboard date, and have contributions made to pension funds. In addition to mandatory coverage, the company provides group insurance policies that offer better medical protection and cover: life, accidental death, hospitalization, cancer, and emergency medical treatment. Employees may choose to include their spouse/children/parents in the coverage at additional cost. Furthermore, the company offers even broader group insurance coverage for out-stationed employees, giving them the peace of mind when working overseas. Compensation for overseas employees has been set at reasonable and competitive levels depending on local market conditions. Meanwhile, long-term and short-term bonuses are also offered as added incentives according to local regulations and industry practices. Overseas employees are covered by social insurance schemes as required by local regulations.

Pension Scheme

LITE-ON makes contributions to employees' pension funds according to local regulations, regardless of where it operates in the world. Today, 100% of its employees have joined a pension plan. In Taiwan, the pension policy complies with the Labor Standards Act where contributions are made regularly to employees' pension accounts; in China, employees are insured according to local regulations in order to secure a comfortable lifestyle after retirement.

In Taiwan, employees' pension schemes are governed either by the Labor Standards Act (the old scheme) or the Labor Pension Act (the new scheme) of the Republic of China. Employees who came onboard on or before June 30, 2005, are entitled to carry forward their years of service from the old scheme to the new scheme. Under the old scheme, the company contributes 2% of employees' monthly salaries into a pension account held with the Central Trust of China. This reserve has accumulated to NT$1.03 billion to date, and is fully funded to provide for employees' retirement needs.

Under the new scheme, the company contributes 6% of employees' monthly salaries into their personal pension accounts. In addition to the monthly 6% contributions made by the employer, employees may also choose to contribute another 0%~6% of their salaries into their pension accounts.

Violation of Labor Standards Act

1. The above violation of Article 30, Subparagraph 5 and 6 were mainly caused by the fact that the company was fined by the Department of Labor for not keeping an employee attendance record. The company had explained to the Department of Labor that the company's office personnel adheres to an honor system based on mutual respect between managers and employees. The company consistently complies with laws and regulations. However, the company operates in various cities across Taiwan, and its employees move around quite frequently. The company has also established overseas offices around the world, therefore to facilitate business activities on a global scale, the company has given consent that managers and employees may work flexible hours as needed. Due to the above reasons, the company is unable to comply with regulatory requirements at the present, but continues to try and find a feasible solution that complies with the regulatory requirements.
2. Operations in China (including major plants in Dongguan, Guangzhou, Changzhou, Beihai, Tianjin) and in Thailand reported no violation of local labor regulations.
   
   

Employment

To build up a harmonious relationship between employee and employer, LITE-ON has set up diverse communication channel to listen up to the crew. By regular department communication meeting and the privacy-protected appealing channel, we found a comprehensive platform to make the communication transparent, boundless and immediate, and to ensure the right of each employee.

LITE-ON Internal Website
In order to make the employee have access to welfare-related information, we set up two website named as HR Portal and EWC LITE-ON. HR Portal provides the entire regulation and announcement of the cooperation, and EWC LITE-ON provides the employees welfare, subsidy and discount related information to acquaintance their rights and interests. Additionally, we have set up the feedback mailbox to collect the feedback and provide inquiry service,and specific person would handle and take care the event.

LITE-ON Internal Announcement
Depend on the classification of information, LITE-ON pass the information through e-mail with different ID,ER Team( welfare and activities ),HRDTeam,( courses,daily English and periodical),HRM Team( remuneration and attendance), LITE-ON Volunteer ( volunteer activities) to provide the immediate information. Meanwhile, we would collect the suggestion and feedback through qustionaires and adjust the following event. Futhermore, we would organize daily news and upload to internal Outlook common file, thus the crew can acknowledge the variation and update of the industry.

LITE-ON Internal Periodical
LITE-ON publish internal periodical to bring up the interaction within the crew. We invite the employee to compose contribution about their feeling, prepare the bulletin of events , and notice the crew of the situation of LITE-ON operation. We have issued 8 periodical domestically and overseas by 2017, and upload to E-learning platform to provided the crew latest information and reduce the usage of paper.

Intercommunication Assembly
LITE-ON units would hold monthly assembly event to provide an intercommunication channel. In 2017, we have held 44 assembly, not only to announce significance and operation goal, but provide the high level manager chances to share the vision ,culture,strategy and make consensus with the employees. All employees are able to submit their opinions and get along with one another in harmony.

Freedom of Association-Labor Union
LITE-ON has found labor union on its sites, the rate of employee participation was 66.9% in year 2017. The delegation represent the employees to reflect the opinion to manager regularly, besides, they help collect information, hold assembly, negotiate the solution and dominate the union activities to consolidate the relation between employers and employees.

Employee Appealing Channel
LITE-ON has set up appealing direct line, email, mailbox and consultant station with respect to the difference of each plant. Once the employee has suggestion or opinion, they can make a response through the former-mentioned channel. In 2017, we have 1 appealing event in Taiwan, and witch is undergoing the investigation. In overseas site, we have 794 appealing events, 792 of them have been wound up, and 2 of them is undergoing the investigation. Among the serviced events, there were no discrimination on race,religion, skin color, native and gender involved.

Employee Assistance Programs,EAPs
LITE-ON have outsourced the consultation service to external consultant company, and provide the employee free, professional, and private service in psychology, manament, law and medicine aspect. The rate of usage is 3%.

Employee Care ▸