Human Rights Protection and Health Care
The President of Kimpo and Compal Group , Rock Hsu, always says: "People are the foundation of an organization; without the people, an organization would cease to function." Compal has always adopted a "people-oriented" philosophy and believes that employees are the Company’s strategic partner. Only when employees grow on a continuous basis may the Company sustain its business. The structural changes that an organization makes in response to global trends also require the support from all levels of employees in order to succeed.
Recruitment and Human Rights Protection
Compal is committed to fostering a work environment that respects human rights and considers it one of our core values. We consistently adhere to local labor laws throughout all our business operations, and we act in accordance with international standards, such as the International Bill of Human Rights, the UN Guiding Principles on Business and Human Right, the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for Multinational Enterprises, and the Ten Principles of the UN Global Compact (UNGC). Our actions are also consistent with the Responsible Business Alliance (RBA) Code of Conduct, treating all persons with dignity and respect.
The Headquarters of Compal Taiwan, overseas production centers have committed themselves to recruit employees solely based on personal character, ability, and match with the duties assigned. Under no circumstances would the Company allow different treatment for race, ethnicity, social status, lineage, religion, disability, gender, sexual preference, family attachment, marital status, political association, age, or any other form of discrimination. The Headquarters and the plants in each area have all established the management process document of “Regulation for No Enforcement, Discrimination, and Harassment".
Compal strictly prohibits any form of visible or invisible sexual harassment in the workplace and has established relevant measures, including:
Regulations for Anti-Discrimination and Harassment Policy, Sexual Harassment Prevention Measures, and Grievance and Penalties Procedure. There is also a complaints mailbox for unlawful infringements in the workplace. Any incidents of sexual harassment will be dealt with severely; Taiwan Headquarters also made training on “prevention of sexual harassment” a compulsory part of in-service seminars for new hires.
Also, Compal's Taiwan Headquarters, overseas production centers all assure employees the right to work free of retaliation, threat, and indebted labor. Employees are entitled to freedom of resigning from their current employment, provided that advance notice and all necessary procedures are completed in accordance with local regulations.
If the employees encounter any threat, abuse, exploitation, or coercive intercourse at work, they can report any illegal matter anonymously through the “Ethical Officer”
complaint mailbox. Employees may file complaints in accordance with "Regulations for Prevention, Correction, Complaint, and Punishment of Sexual Harassment at Workplace" for any sexual harassment, whether in the form of body gesture, verbal, or body contact. Compal provides a sexual harassment complaint mailbox and hotline on the intranet to assure employees that all complaints are properly handled. For child labor and underaged workers, none of our plants has violated pertinent regulations on child labor in 2024. In addition, we have also asked all collaborating suppliers to sign the “Commitment of Compliance to RBA’s Code of Conduct”, which explicitly forbids the employment of child labor or forced labor and protects the rights of underaged workers. Any suppliers found to have violated RBA’s Code of Conduct will be reported to senior management for disciplinary actions to be taken.
- Compal Human Rights Policy:
- Compal Non-Discrimination and Anti-Harassment Policy:
Labor Practices Commitment
We are committed to building a fair, respectful, and resilient working environment by continuously strengthening fundamental labor conditions such as working hours management, fair compensation, and paid leave. In terms of working hours, we comply with local regulations and implement systematic monitoring and internal audit mechanisms to ensure reasonable working hours, timely and full payment of overtime wages, and the prevention of overwork risks. For paid leave, we offer benefits that exceed legal requirements and encourage employees to take leave to maintain a healthy work-life balance. We promote transparency and equity in our pay structure and are gradually introducing gender impact assessments to advance gender equality and equal pay for equal work.
In addition, we are mindful of the transformation challenges brought by industrial and climate change. Through training and upskilling programs, we support our employees in adapting to future challenges.
We also encourage our value chain partners to improve labor conditions together, in alignment with our core values of human rights and sustainability.
- Labor Practices Commitment
Living Wage Commitment
Compal supports United Nations’ Sustainable Development Goals. Compal compensates employees in full compliance with regulations, and supports the concept of paying living wage that can provide decent standards of living for employees and their families. Compal commits to paying living wage to employees by 2030, and continuously explore opportunities to extend the same concept to our contractors and suppliers.
- Compal Living Wage Commitment
Expand Social Protection Coverage
At Compal, we are committed to creating a safe, healthy, and secure work environment. Across all our global locations, we offer employee protections that meet or exceed local legal standards, tailored to each region’s laws and practices.
In Taiwan, for example, we provide a comprehensive and above-standard group insurance program, demonstrating our strong commitment to employee health and well-being. Coverage includes:
- Life Insurance: In the unfortunate event of a fatal accident, this benefit offers financial support to the employee’s family, helping to ease the economic burden and provide peace of mind.
- Accidental Injury Insurance: Offers financial assistance when employees suffer injury or disability due to an accident, supporting recovery and life adjustment.
- Hospitalization Insurance: Covers expenses related to hospitalization caused by illness or accidents—including room charges, surgery fees, and miscellaneous medical costs—significantly reducing the financial impact on employees.
- Cancer Insurance: Provides additional medical coverage and subsidies in the event of a cancer diagnosis, ensuring employees have access to comprehensive treatment resources.
This group insurance plan goes well beyond the basic protections outlined in Taiwan’s Labor Insurance Act and Labor Standards Act. It reflects our genuine dedication to supporting employees with well-rounded protection.
- Moreover, all insurance premiums are fully covered by the company so everyone can enjoy strong, invisible safety net coverage with no added financial burden.
- For employees on overseas assignments or business travel, we also offer international insurance that includes accident coverage, medical protection, and emergency assistance services, ensuring timely and effective care anywhere in the world.
Remuneration Policy for Employees
oCompal has defined work rules and HR management regulations that encompass employee compensation, work hours, leave, pension payments, labor and national health insurance payments, and compensation for occupational injuries in accordance with the provisions of the Labor Standards Act. Compal's employee compensation is based on the principles of equal pay for equal work and performance orientation. In principle, employee compensation includes 12 months of salary and mid-year bonuses. Year-end bonuses and employee remuneration are distributed based on the Company's operating results and individual employee performance. Salaries are adjusted annually based on factors such as industry salary levels and consumer price index fluctuations. In accordance with Compal's Articles of Incorporation, if the Company generates profit each year, not less than 2% of the pre-tax net profit for the current period, after deducting employee and director remuneration, shall be allocated as employee remuneration. The aforementioned salary adjustments, bonuses, and employee remuneration are all submitted to the Remuneration Committee for review and approval by the Board of Directors.
oThe “mean salary” declared by Compal in 2024 for full-time, non-managerial employees (excluding directors and managers) was NT$1,467,000. Median salary was NT$1,348,000. (Taiwan headquarters only).
Long-Term Incentives for Employees
Employees are the most valuable asset of a company. When the deferral period of employee compensation extends beyond one year, it better aligns the long-term interests of employees with those of the company, thereby promoting sustainable corporate development.
Based on this principle, we have established a long-term incentive policy applicable to employees below the senior manager level. This policy covers key departments and technical positions, including R&D and manufacturing, across both Taiwan and overseas locations, representing approximately 22.3% of the total workforce.
The average deferral period for the long-term incentives is three years, aiming to strengthen talent retention. The incentive is primarily performance-based, with evaluation criteria focusing not only on the achievement of individual goals and contributions to company performance, but also on the integration of sustainability-related actions into personal performance indicators. These include areas such as environmental protection, energy conservation and carbon reduction, social engagement, employee well-being enhancement, and sustainable governance supporting the joint development of long-term corporate value and a sustainable vision.
Gender pay gap analysis
Employee compensation at Compal is based on experience, background, professional expertise, and competency. We also conduct salary benchmarking to monitor the gap between men and woman. The starting salary for the employees will not be different due to gender, race, religion, political status, marriage status, or labor union. At Compal, gender pay differences exist at various job grades due to variations in employees’ experience, expertise, skills, contributions, and performance within the same organizational level (male average salary is used as the baseline, set at 1).
Ratio of Male / Female Salary to Remuneration
Employee Benefits and Activities
Employees are an important asset to the Company so taking care of employees in one of our top priorities. Compal not only provides employees with various benefits but also hosts activities that encourage employees to be happy in their work and enjoy the good things in life. In addition to subsidies for marriage, bereavement, childbirth, emergency assistance, and holiday bonuses (gift vouchers), as well as providing retirement fund contributions and group insurance in accordance with the law. Ensure the safety and security of employees in their work and personal lives. Furthermore, we continually promote activities related to sports, well-being, health, arts and culture, education, and social charity to enrich the life experience of our employees.
Overview of the Benefits Offered at Various Compal Sites in 2024:
|
Benefit type
|
Taiwan
|
China
|
Vietnam
|
America
|
Remarks
|
|
Employee Group Insurance
|
v
|
v
|
v
|
v
|
Employee group insurance / social insurance
|
|
Health Benefits
|
v
|
v
|
|
|
Employee health check-up
|
|
Vouchers/Cash Gifts
|
v
|
v
|
v
|
v
|
Dragon Boat Festival, Mid-Autumn Festival,
Lunar New Year gifts, year-end bonus
|
|
Marriage, Childbirth,
Bereavement,
Emergency Assistance
|
v
|
v
|
v
|
v
|
|
|
Additional Paid Leave
|
v
|
v
|
|
|
Taiwan: Happiness companionship leave, volunteer leave
China: Only-child care leave
|
|
Other
|
v
|
v
|
v
|
v
|
Employee activities: dinners, carnivals, family days,
holiday celebrations, etc.
|
Employee Support Programs
Childbirth Incentive
In response to Taiwan's government policy encouraging childbirth, since 2011, Compal has provided a subsidy of NT$66,000 per birth to employees in Taiwan. This incentive also extends to the childbirth of employees' spouses and children. With the Company's full promotion, Compal has paid out NT$239.71 million in subsidies for a total of 3,632 newborn babies between 2011 and 2024. Compal also contracted with child care institutions to provide more child care options at discounted prices and reduce the burden on employees.
Childbirth Subsidy in Past Years
Rewarding Outstanding and Veteran Employees
To reward long-serving employees and acknowledge their outstanding contributions, Compal presents eligible senior employees in Taiwan with a plaque and between NT$3,000 – NT$250,000 in bonuses depending on their years of service; outstanding employees are nominated by each unit then picked by senior executives. Winners receive NT$20,000 in bonuses and an award plaque.
Number of Senior and Outstanding Employees in Past Years
Pension System
- Taiwan: Executed in accordance with Taiwan's relevant retirement regulations. Compal has established labor retirement regulations that clearly define employee retirement conditions, pension payment standards, etc. Monthly contributions to the labor retirement reserve fund are made to a dedicated account at the Bank of Taiwan in accordance with the law, thus safeguarding employee rights. The new pension regulations were introduced in parallel from July 1, 2005 onwards. For employees that qualify under the new law, a contribution equal to 6% of their salary is paid to the employee’s personal pension account each month; if voluntary pension contributions were made and then monthly deductions at the same rate of the voluntary contributions are made by the Company and paid into their personal pension account at Bureau of Labor Insurance.
- China: Executed in accordance with China's relevant retirement regulations. Employees who have contributed to statutory social insurance for 15 years can receive monthly pension payments after retirement. The retirement age for male workers is 60 years, for female supervisors is 55 years, and for female workers is 50 years.
- Other locations: Executed in accordance with relevant local retirement regulations.
Employee Health Management
The Company regularly conducts health check-ups and has a medical room that provides emergency injury and illness treatment, doctor consultations, health tracking, and related health services. Through a health management platform, we monitor employees' health conditions and conduct risk assessments and health management based on examination data. To strengthen preventive medicine, we organize health seminars, health promotion activities, and clubs, to encourage employees to develop good health habits and integrate these into the workplace culture. Through diverse health initiatives, we help employees maintain good health in both work and life. In addition, the Company works with external organizations to conduct health check-ups, doctor consultations, and EAP, to ensure employees receive comprehensive health support during their employment, further enhancing workplace health, safety, and overall well-being.
In Taiwan, health check-ups are regularly conducted based on the work environment of each plant and job characteristics of each role. In addition to meeting legal requirements, additional examination subsidies are provided, covering common disease screenings, to enhance the effectiveness of preventive medicine. To increase employee health awareness and participation, regular awareness-raising events are held to improve the utilization and accessibility of health check-ups.
EAP (Employee Assistant Plan) coaching in TaiwanEmployee Engagement Survey
EAP was introduced by Compal in 2019. Professional external consultants work with Compal to provide free phone and email consultation services (fully confidential). Through these consultants, employees receive support and care for various issues, including work, family, interpersonal relations, physical and mental wellbeing, mental illness, finance, legal studies and management. Employees are provided with a wide range of support that safeguards their physical and mental wellbeing, to further improve work performance and productivity and reduce human-caused work accidents due to emotional factors. In 2024, a total of 224 individuals sought EAP assistance, for 229 hours. The goal is to help employees and supervisors reduce communication barriers in their work and management roles, making organizational operations smoother.
Employee Engagement Survey
Compal aims to provide employees with sound and health development in their careers, understand their physiological and psychological impressions, and realize true improvements to employee happiness in the workplace. Starting in 2022, we conducted an employee well-being survey with coverage rates of 11.9%, followed by 69% in the subsequent survey in 2023. However, the survey results primarily focused on aspects like employee care, benefits, and mental health. To increase employee survey coverage to 100% and enhance the practical utility of the survey results for actual management strategies, in 2024, we transitioned from the original employee well-being survey to an employee engagement survey. This new survey includes more dimensions (such as working conditions, work relationships, and organizational factors) to enable more precise management strategy formulation, boost employee performance, and enhance the Company's overall competitiveness.
|
Survey Year
|
2022
|
2023
|
2024
|
|
Questionnaire Content
|
Employee Well-Being
|
Employee Engagement
|
|
Participants
|
Indirect employees
in Taiwan
|
Direct/ Indirect employees
in Taiwan and China
|
Global Direct/
Indirect Employees
|
|
Number of Surveys
Distributed
|
7,254
|
32,536
|
32,753
|
|
Number Recovered
|
2,832
|
23,386
|
17,022
|
|
Recovery Rate
|
39.04%
|
71.88%
|
51.97%
|
|
Questionnaire
Survey Coverage
|
11.5%
|
69.0%
|
100%
|
|
Average Score
|
69.64
|
72.92
|
73.9
|
|
The Proportion of Highly
Engaged Employees
|
68.29%
|
74.44%
|
78.03%
|
◆Calculation method for the proportion of highly engaged employees: Number of employees with a valid engagement score of 65 or above/ Total number of valid survey responses.
In 2024, we continued and optimized the previous employee well-being survey by transforming it into an employee engagement survey, covering 70 questions across six dimensions and twelve facets (as shown in the diagram below). This year's questionnaire was provided in 8 languages, covering our global operations. We collected 17,022 questionnaires, with 13,404 valid responses and an effective response rate of 78.6%. Through the survey analysis, the Company can learn about employees' perceptions of the Company and set improvement targets for the following year (the 2025 target is set at 74 score). Based on the 2024 engagement survey results, the Company will propose individualized improvement plans, tailored to the specific needs of different plants. We will also conduct regular reviews and follow-ups through cross-departmental/plant project meetings, to demonstrate the Company's commitment to valuing employee opinions and its determination to create a high-quality work environment.
