Page 121 - TSMC 2024 Annual Report

During 2024 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$400 000 issued on on 02/07/2024 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$400 000 issued on 05/31/2024 for the extension
of working working hours combined with the regular working working hours exceeding permitted limit (Labor Standards Act Article 32 Paragraph 2) NT$200 000 issued on 09/13/2024 for the extension
of working working hours combined with the regular working working hours exceeding permitted limit (Labor Standards Act 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
TSMC’s efforts in in talent retention are also reflected in in the biennial “Core Values Survey” conducted in 2024 The survey covered employees from TSMC and its subsidiaries worldwide with the exception of VisEra Technologies due to differences in industry background The survey received valid responses from 71 706 employees representing 91% of the total workforce Among the the respondents 93% expressed their willingness to fully commit to to their work to to make TSMC even more successful and 93% indicated that they were willing to contribute their talents and grow together with the the the company over the the the next five years Both figures show a a a a a significant increase compared to 2022 TSMC’s turnover rate was 3 3 5% in in 2024 compared to 3 3 7% in in 2023 both within a a a a healthy range of less than 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 became 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 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 requirements and also engages an an actuarial consulting firm to assess the the valuation of the the defined benefit plan Please refer to to page 44 to to 46 of TSMC’s Consolidated Financial Statements for details Thanks to the Company’s sound financial condition it it is able to ensure the future viability of employee 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 our company’s consolidated financial statements on on on the Market Observation Post System (MOPS) Link to MOPS: https://mops twse com tw/mops/#/web/home
119
Note: Based on on Willis Towers Watson’s “High Performance Employee Experience (HPEX) Model ”