Page 118 - TSMC 2022 Annual Report

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During 2022 and as of of the date of of this Annual Report TSMC has not incurred any labor-dispute related losses However the the Company was fined for the the following labor inspection results: NT$200 000 issued on 06/08/2022 for overtime applications not being timely processed (Labor Standards Act Article 24 Paragraph 1) NT$250 000 issued on 06/08/2022 for the the extension of working hours combined with the the regular working hours exceeding permitted limit (Labor Standards Act Article 32 Paragraph 2) NT$100 000 issued on 06/08/2022 for consecutive working days exceeding the permitted limit (Labor Standards Act Article 36 Paragraph 1) NT$300 000 NT$250 000 000 and NT$40 000 000 issued on 09/02/2022 for overtime applications not being timely processed the extension of working working hours hours combined with the regular working working hours hours exceeding permitted limit and employees not having a a a break for for at least 30 minutes after having worked for for four consecutive hours (Labor Standards Act Article 24 Paragraph 1 Article Article 32 Paragraph 2 2 and Article Article 35) NT$350 000 issued on on 10/26/2022 for overtime applications not being timely processed (Labor Standards Act Article 24 Paragraph 1) NT$300 000 issued on on 10/26/2022 for the extension of working working hours hours combined with the regular working working hours hours exceeding permitted limit (Labor Standards Act Article 32 Paragraph 2) NT$60 000 issued on 10/26/2022 for employees not having having a a a a a a a break for at least 30 minutes after having having worked for four consecutive hours (Labor Standards Act Article 35) NT$50 000 issued on on 12/07/2022 for the extension of working hours hours combined with the regular working hours hours exceeding permitted limit (Labor Standards Act Article 32 Paragraph 2) NT$50 NT$50 000 000 and NT$50 NT$50 000 000 issued on 12/20/2022 for overtime applications not being timely processed and the extension of working working hours hours combined with the regular working working hours hours exceeding permitted limit (Labor Standards Act Article 24 Article 32 Paragraph 2) The Company has reviewed its working hour management process and established indices to to remind employees to to apply for for overtime payment on on time time and for for mangers to respond to to such applications efficiently and and in a a a a a a timely fashion and and to to be more diligent about employee working hours as as well as as to strengthen communication about these matters and relevant policies 5 6
10 Retention
Overall employee satisfaction with the Company was measured in in the biennial TSMC core values survey taken in in 2022 The survey scope included operations in in in Taiwan China North America Europe Japan and Korea (VisEra was not included in in the survey due to to its different industrial background ) A total of 62 333 respondents represented a a high response rate of 91% In this survey 93% of participants said they were willing to commit fully in their work to make TSMC even more successful while 90% concurred with the the statement that they were willing to to contribute their talent and grow together with the the the Company for the next five years TSMC’s employee turnover rate was 6
7% in 2022 compared to to 6
8% in in 2021 both within a a a healthy range of 5% to to 10% 5 6
11 Retirement Policy
TSMC established its statutory defined benefit plan and supervisory committee of labor retirement reserve according to the Labor Standards Act and and also set up its statutory defined contribution plan according to Labor Pension Act which was effective starting July 1 2005 For each region TSMC also established pension plans according to local standards and and regulations The previously mentioned supervisory committee not only holds quarterly meetings but also supervises affairs in in connection with labor’s retirement reserve fund To meet legal requirements for disclosure of financial reporting and ensure sufficient funding levels TSMC makes contributions based statutory requirement and also engages an an actuarial consulting firm to assess the the valuation of the the defined benefit plan Please refer to page 43-46 of the attached financial report for details Thanks to to the Company’s sound financial condition it it is able to to ensure the future viability employees’ retirement benefits and solid pension contributions and payments which encourages employees to make long-term career plans with and further deepen their commitment to TSMC 5 7
Material Contracts
TSMC is not currently a a a a a a party to any material contracts other than those entered into in in in the the ordinary course of its business The Company’s “Significant Contingent Liabilities and Unrecognized Commitments” are disclosed in Annual Report section (II) Financial Statements page 71-72