Microcosm Technology Human Rights Policy

Microcosm Technology Co., Ltd. is committed to fulfilling its corporate social responsibility by safeguarding the fundamental human rights of all employees. The company upholds high ethical standards as guiding principles for business operations and employee conduct, strictly complies with domestic laws, and supports and adheres to international human rights frameworks, including the United Nations Universal Declaration of Human Rights, the UN Global Compact, the International Labour Organization (ILO) Conventions, and the Responsible Business Alliance (RBA) Code of Conduct.

These principles encompass:

  • Non-discrimination
  • Respect for employees’ freedom of expression and association
  • Prohibition of child labor
  • Care for vulnerable groups

Microcosm strictly prevents any acts that violate human rights, treats all employees with dignity and respect, and extends this commitment to its business partners.

Implementation Guidelines for Human Rights Policy

Eliminate Unlawful Discrimination and Ensure Equal Employment Opportunities

Prohibition of Child Labor

Provide a Safe and Healthy Working Environment

Prohibit Forced and Compulsory Labor

Support and Care for Vulnerable Groups

Provide Grievance Mechanisms and Channels

Regularly Review and Assess Relevant Policies and Practices

Implementation of RBA Version 7.0 Standards and Human Rights Risk Mitigation Measures:

 

Human Rights Focus Implementation of Risk Mitigation Measures
Diversity, Inclusion, and Equal Opportunity
  • Complies with domestic laws, international human rights conventions, and the principles of the Microcosm Technology Human Rights Policy.
  • Prevents unlawful discrimination and ensures equal employment opportunities. The company maintains an open and fair principle, prohibiting discrimination or harassment in recruitment and employment based on race, skin color, age, gender, sexual orientation, gender identity and expression, ethnicity, disability, pregnancy, religion, political stance, group affiliation, veteran status, protected genetic information, or marital status. This includes protections in wages, promotions, rewards, and access to training.
  • As of December 2022, no discrimination complaints were received.
Prohibition of Child Labor
  • Employee age is verified during recruitment.
  • Employment eligibility is confirmed to comply with legal requirements.
  • Remedial Measures in Case of Child Labor: 1. Immediately remove any identified child labor from the workplace. 2. Conduct a medical examination to ensure no health impacts; if impacts exist, the company covers all medical and living expenses. 3. Return the child to their family, covering associated transportation costs.
  • As of December 2022, the number of child labor cases was 0.
Fair Compensation and Working Conditions
  • Provides employees with legally compliant wages and social insurance.
  • Offers various benefits to stabilize employee life and enhance work performance.
Safe and Healthy Work Environment
  • Aims for “zero accidents” in management objectives.
  • Regularly reviews employee health and workplace safety risks, and implements improvement plans based on risk identification. Uses health check results and work-related data to track specific employee groups and prevent potential health risks.
Prohibition of Forced Labor
  • No use of forced, bonded (including debt), non-voluntary, exploitative prison, enslaved, or trafficked labor. Prohibits intimidation, threats, abduction, or fraud to recruit, transport, harbor, or receive labor.
  • Employees’ identification documents are not retained at onboarding, and no fees are required. Respect for employee consent is ensured, and grievance mechanisms are in place.
Support for Vulnerable Groups
  • Employs persons with disabilities and indigenous peoples in accordance with law. Provides group insurance, benefits, hospitalization coverage, and disaster relief.
  • The Microcosm Foundation annually sponsors funds for elementary and junior high school programs, promoting activities such as moral education, reading programs, and ecological initiatives.

Employee Benefits and Retirement Programs

  • Microcosm Technology Co., Ltd. complies with the Labor Standards Act and related regulations to establish employee leave, salary, and welfare measures. The company also implements a reward and disciplinary system, linking monthly performance evaluations to bonus distributions. Rewards and disciplinary actions are announced monthly to employees as a means of encouragement and recognition.

  • Microcosm Technology Co., Ltd. complies with relevant labor laws and internal regulations, including the Work Rules, Emergency Assistance Procedures, and Workplace Sexual Harassment Prevention and Grievance Handling Procedures, to safeguard employees’ rights. These measures also aim to promote harmonious labor–management relations and foster a mutually beneficial and collaborative work environment.

  • The company conducts annual health examinations for employees and provides relevant occupational safety training, as well as organizing various in-house training programs on an ad hoc basis. Luxshare arranges pre-employment training, on-the-job training, and off-site training to develop employees’ skills and enhance their career capabilities.

Employee Welfare

Basic Employee Benefits

Labor Insurance, National Health Insurance, Retirement Pension Contributions, and Group Employee Insurance

Bonuses / Incentives

Year-End Bonus, Performance Bonus, Employee Stock Dividend Rewards, Patent Bonus, Proposal Bonus, and R&D Bonus

Gifts and Relief Payments

Bonuses and Gifts for Holidays, Birthday Cake, Maternity, Marriage, and Bereavement Allowances, Hospitalization Support, and Domestic Family Day Events

Other Benefits

Meal Subsidies, Periodic Employee Gatherings, Friday Happy Hour Snacks, Office Beverages and Snacks, Annual Year-End Celebration, Annual Health Examinations

Workplace Diversity and Gender Equality:

Microcosm Technology places great importance on workplace diversity and gender equality, striving to create a harassment-free and discrimination-free work environment.

The company explicitly opposes any unequal treatment based on gender and implements proactive measures to ensure fair treatment for all employees, particularly regarding compensation and career development opportunities. In addition to the minimum wage requirements announced under the Labor Standards Act and the Minimum Wage Review Act, salaries are determined based on job category, education and experience, professional knowledge and skills, years of experience, and individual performance, with no gender-based pay differences.

Currently, 34.8% of Microcosm’s employees are women, and 55.5% of managerial positions are held by women. The company believes that a diverse and balanced workplace fosters innovation, enhances teamwork, and ultimately drives overall corporate success.

Furthermore, Microcosm has established a gender equality grievance mechanism for sexual harassment and conducts at least one annual internal training session on friendly workplace and gender equality topics. In September 2023, the company held an internal training session titled “Prevention of Workplace Harassment and Illegal Conduct.

Retirement System:

The company has established a defined-benefit retirement plan in accordance with the Labor Standards Act. This plan applies to:

  1. All regular employees whose service predates the implementation of the Labor Pension Act on July 1, 2005, and

  2. Employees who, after the implementation of the Labor Pension Act, choose to continue under the Labor Standards Act retirement plan for subsequent service years.

For eligible employees, retirement benefits are calculated based on years of service and the average salary of the six months prior to retirement:

  • For service of 15 years or less, each year is credited with 2 units;

  • For service beyond 15 years, each additional year is credited with 1 unit;

  • The maximum accumulation is 45 units.

The company contributes 6% of total monthly payroll to employees’ individual retirement accounts with the Bureau of Labor Insurance. At the same time, the company continues to maintain retirement reserves for employees under the old retirement system as well as for those choosing to retain service under the new system.

Retirement reserves are calculated according to the original retirement plan standards and are deposited in a dedicated account at the Bank of Taiwan under the name of the Labor Pension Supervisory Committee.