Human Right and Diversity

The growth of an enterprise depends on the continuous contribution of employees. In order to strengthen growth momentum, Novatek actively hires outstanding professionals, abides by international human rights standards, implements the “Responsible Business Alliance (RBA) Code of Conduct”, treats the current employees, contracted and temporary personnel, interns, etc. with dignity and respect. Novatek treats applicants of different races, genders, ages, religions, nationalities or political stances equally, and recruits employees through an open and fair selection process. In addition, Novatek protects the personal data of applicants and avoids employment discrimination in accordance with the required laws and regulations.

Novatek has established the "Novatek Human Rights Policy", and made commitment to ensuring a safe working environment for its employees, treating employees with respect and dignity, promoting environmental protection in its operations, and adhering to ethical practices.

Human rights concerns and practices

Novatek Human Rights Policy

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Training for promoting human rights protection

Novatek is committed to protecting human rights and promoting human rights education and advocacy, providing a safe and healthy working environment, and advocating on issues such as employee integrity, information security, business secrets, personal information protection, integrity management, workplace violence and sexual harassment prevention, etc., to create a friendly working environment with respect and tolerance.

Training on human rights protection for new and all employees in 2022

Employed 15 people with disabilities in accordance with relevant laws and regulations

Novatek employed 15 disabled individuals(including 4 extremely severe, 6 severe, 4 moderate and the 1 mild), providing them with fair employment opportunities and guaranteeing their employment rights in line with the law and regulations.

Achieving gender equality

Novatek is committed to implementing equality in recruitment, remuneration, training and development, and promotion opportunities. Novatek treats and cares all types of employees equally. We ensure that employees are not subject to discrimination, harassment, and unfair treatment regardless of their gender, age, ethnicity, religion, political affiliation.

Promoting gender equality policy：

Encouraging and promoting female employment：
Adhering to the Novatek Human Rights Policy, Novatek abides by local laws and regulations and prohibits all discriminatory behaviors based on gender in hiring and employment process. Owing to the characteristics of the technology industry and the fact that most of the talents are in the field of electronics, electrical engineering, computer science and information engineering, Novatek’s employees are mainly male. In 2022, the number of female employees was 15.89%, which is higher than the average percentage of female graduates (10.65%) in the Departments of Electronics, Electronic Engineering, Computer Science and Information Engineering in Taiwan (statistics on the number of graduates from the Information Disclosure Platform for universities and colleges).
Salary based on gender equality：
Novatek’s employee compensation system is designed on the basis of job category and job performance, and there is no difference in treatment due to gender and work location. Therefore, in terms of starting salary for inexperienced employees, the same standards are applied to employees of both sexes in all job categories. Afterwards, salary adjustments will be carried out based on work performance and years of work experience.
Equal and diverse education and training：
According to Novatek's "Education and Training Regulations," a series of professional training courses based on the competencies were planned to not only enrich employees' professional knowledge and skills but also to achieve the goals and tasks assigned by the Company. This also helped employees to explore and develop themselves, accept challenges, strengthen their professional skills, and enhance their competitiveness.
Comprehensive performance management and promotion system on gender equality：
Novatek has formulated the “Regulations for Performance Management and Development”, “Regulations for Occupation Level, Position and Title”, and the “Regulations for Promotion”. To review the status of employee development within the Company, as well las their performance and achievements at work, Novatek implements an employee performance management system. Every employee is required to participate in performance evaluation for the current year, regardless of their gender, age, and job category.
Based on employees’ performance, achievements and years of experience, submissions can be made by department heads. After they have received the approval of the President, promotions are made.
Comprehensive performance management and promotion system on gender equality：
Novatek has formulated the “Regulations for Performance Management and Development”, “Regulations for Occupation Level, Position and Title”, and the “Regulations for Promotion”. To review the status of employee development within the Company, as well las their performance and achievements at work, Novatek implements an employee performance management system. Every employee is required to participate in performance evaluation for the current year, regardless of their gender, age, and job category.
Based on employees’ performance, achievements and years of experience, submissions can be made by department heads. After they have received the approval of the President, promotions are made.
Prevention of workplace violence and sexual harassment：
To avoid and prevent workplace violence and sexual harassment, Novatek has formulated the “Workplace Violence and Sexual Harassment Prevention and Handling Regulations” to explain relevant prevention measures, allowing the employees to understand the importance of respecting human rights, implementing gender equality, and emphasizing respect for differences and tolerance multiculturalism to provide a working environment without discrimination (including the discrimination of race, color, age, religion, nationality, ancestry, disability status, medical status, marital status, gender, sexual orientation, gender identity, military service status, or political stance) and harassment.

Gender equality item	Gender equality item
Encouraging and promoting female employment	In 2022, female new hires account for 20.16% of all new hires, higher than the ratio of female in all employees. It illustrates that Novatek encourages and strives to achieve the goal of recruiting more female employees.
Equal and diverse education and training	The average training hours per employee was 32.9 hours, whereas average training hours per male employee was 32.2 hours and average training hours per female employee was 36.6 hours. Novatek protects women employees’ career advancement opportunities and rights.
Prevention of workplace violence and sexual harassment	There have been zero complaints filed due to workplace violence and sexual harassment issues.

Item		All Employees		Male		Female
Item		Number of people	Percentage	Number of people	Percentage	Number of people	Percentage
Age distribution	30 years old or under	673	24.03%	543	80.68%	130	19.32%
	31~50 years old	2,005	71.58%	1,701	84.84%	304	15.16%
	51 years old or above	123	4.39%	112	91.06%	11	8.94%
	Total	2,801	100%	2,356	84.11%	445	15.89%

Gender salary ratio by job category in 2022：

Employee communication

Novatek has high-quality manpower, complete employee benefits and harmonious employee-employer relationship. In addition to informal communication channels, Novatek has also established a variety of formal communication mechanisms, allowing its employees to fully express their opinions. The opinions of the employees are then responded quickly by the responsible units, creating a good and unimpeded communication culture and an open-minded working atmosphere. There were four reported cases of violating business ethics in 2022, all of which were found to be related to the same incident. However, there was no content stated in the case description, and there were no potential business risks or internal control deficiencies found.

Human Right and Diversity Spotlight

Human rights protection program-Management and tracking of abnormal working hours

To help employees balance their work and life, Novatek has formulated the “Working Hours and Flexible Work Regulations” and the “Regulations on Overtime Pay and Compensatory Leave” in accordance with the Labor Standards Act and related regulations. Through new employee training, regular announcements to promote statutory working hours, and the developed “attendance analysis system”, supervisors can effectively manage the working hours of the employees. If the supervisors need to work overtime due to business needs, they need to obtain the consent from the employees. When the overtime is completed, overtime pay or compensatory leave will be provided. For employees who have consistent long working hours, regular notifications are sent to remind their supervisors to understand the employees’ working conditions, working load and emotional status, and take the initiative to care for the employees’ physical and mental health as well as the conditions of their families, ensuring the employees of Novatek to achieve work-life balance through appropriate work arrangements.

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