Labor Standards and Human Resource Development

The Company conducts comprehensive human capital risk assessments across all activities in its value chain. These assessments cover labor standards, occupational health and safety, fair labor practices, the protection of employees' personal data, and other personnel-related issues within the organization.

The risk assessment results identified key labor rights issues, including employee injuries and occupational illnesses resulting from unsuitable working conditions, excessive working hours, and discrimination arising from personal relationships or individual biases that may affect workplace decisions and performance.

To address these risks, the Company has implemented concrete mitigation measures, including establishing policies and guidelines that employees are required to comply with, as well as conducting communication and training programs to raise awareness of these risks and promote appropriate preventive practices.

The risk assessment process and the corresponding mitigation measures are reviewed and overseen under the Group's Human Rights Framework. Further details on the assessment results, identified risks, and grievance and remediation mechanisms are available in the "Human Rights" section.

Tanachira Retail Corporation Public Company Limited places importance on a transparent, fair, and equal recruitment and selection process, based on the principles of Diversity, Equity and Inclusion (DE&I). The Company aims to recruit individuals with the knowledge, capabilities, skills, and potential appropriate for each position, as well as values and attitudes aligned with the organizational culture, enabling them to grow and create long-term value for the organization.

Recruitment Principles

The Company is committed to recruitment practices that create equal access to employment opportunities for all candidates. Personnel are selected fairly and transparently based primarily on qualifications, knowledge, capabilities, relevant experience, and potential related to the requirements of the position. The Company does not discriminate on the basis of gender, age, race, nationality, religion, disability, marital status, political opinion, or any other personal factors that are unrelated to job performance, and operates within the applicable legal framework. This approach enables the Company to recruit personnel who possess the required capabilities and whose values are aligned with those of the organization.

The Company conducts recruitment through a variety of channels to increase access to qualified and high-potential candidates, including:

• The Company's website
• The Human Resources candidate database
• Social media platforms
• Leading online job portals
• Other recruitment channels appropriate to the nature and requirements of each position

The use of diverse recruitment channels enables the Company to reach candidates with a broad range of capabilities and experiences, thereby supporting greater diversity and enhancing organizational effectiveness.

Employee Recruitment Process

1. Workforce Planning and Manpower Requisition

   • Budget Planning: Business units submit requests for additional headcount, together with the rationale and business necessity, to management and Human Resources for consideration and inclusion in the annual budget.
   • Alignment with Succession Planning: Recruitment of new employees is considered in conjunction with the Company's Succession Planning to support organizational continuity and sustainability.
   • Defining Qualifications: Business units requesting additional manpower are required to specify the knowledge, capabilities, skills, and potential required for the position, which serve as standardized criteria for the selection process.

2. Internal Employee Consideration

   The Company places importance on employee development and promotes internal career growth before considering recruitment from external sources. The Company's approach includes:

   • Internal Promotion: Providing opportunities for high-potential employees to advance their careers in accordance with established career paths.
   • Development Process: Developing Individual Development Plans (IDPs) to prepare employees for potential transfers or promotions.

3. External Recruitment and Selection

   Recruitment and Selection Principles

   The Company adheres to the following principles throughout the recruitment and selection process:

   • Compliance with applicable labor laws
   • Non-discrimination
   • Respect for human rights
   • Respect for personal data and compliance with the Personal Data Protection Act (PDPA)
   • Equal Opportunity

   Selection Process

   The Company conducts the selection process systematically, transparently, and fairly, with primary consideration given to candidates' capabilities and suitability for the position. The selection process may include:

   • Screening candidates' qualifications and relevant experience based on their applications
   • Interviews conducted by Human Resources and the relevant business unit's management, using consistent interview standards for candidates applying for the same position to ensure fairness
   • Assessment of the knowledge, skills, capabilities, and competencies required for and relevant to the position, duties, and responsibilities through the Company's assessment tools and/or position-specific tests
   • Verification of candidates' information and background to assess their suitability for the position, including other checks that are appropriate and conducted in accordance with applicable legal requirements

   All candidates are assessed based on the same criteria according to the requirements of the position. This ensures that employment decisions are transparent, fair, and based on merit (Merit-based Recruitment).

   Protection of Candidates' Personal Data

   The Company places importance on protecting the personal data of job candidates. Personal data collected from candidates is collected, used, disclosed, and retained for recruitment and selection purposes in accordance with applicable personal data protection laws and the Company's data security measures.

4. Employment Offer and Contract

   • Communication of Employment Details: Clearly communicate the job position, compensation, benefits, and terms and conditions of employment.
   • Documentation: Prepare employment contracts and all relevant documentation accurately and completely.

5. Pre-Employment Preparation

   • System and Equipment Preparation: Prepare the necessary work equipment, IT systems, and other resources before the employee's commencement date.
   • Buddy or Mentor System: Assign a Buddy or Mentor, where appropriate to the position, to support new employees in becoming familiar with the workplace and organizational culture.

Types of Employment

The Company provides employment arrangements that are appropriate to the nature of the work and business requirements. Employment is classified into three types as follows:

1. Permanent Employee

   An employee who has completed the recruitment process, undergone the probationary period, and successfully passed the performance evaluation before being appointed as a permanent employee of the Company.

2. Temporary Employee

   An employee hired to perform work based on specific business needs for a defined period, with the form and conditions of employment in accordance with applicable labor laws and the Company's requirements.

3. Contract Employee

   An employee hired to perform work for a specified period or to carry out a specific project or assignment with a clearly defined end date. A written employment contract is prepared from the commencement of employment.

The Company's Commitment

The Company believes that its people are a key factor in driving organizational success. Therefore, the Company is committed to continuously developing its recruitment and selection processes to ensure that they are standardized, transparent, verifiable, and aligned with the principles of good corporate governance. The Company also promotes diversity, equity, and employee participation, creating an inclusive working environment where everyone has fair opportunities to contribute and grow together with the organization sustainably.

The Company is committed to treating all employees equally, fairly, and transparently, while prioritizing their quality of life throughout every stage of the employee life cycle—from recruitment and development to health and safety, career growth, retirement, or the end of employment. The Company strives to create and deliver a meaningful lifestyle and experience for all employees in line with its sustainability commitment to “creating and delivering meaningful lifestyle,” while fostering strong and lasting engagement between the Company and its employees.

1. Recruitment and Early Employment (Attraction to Probation)

   • Attraction & Recruitment: The Company adheres to the principles of equal opportunity and non-discrimination in its recruitment and selection processes. Candidates are considered primarily based on their knowledge, capabilities, qualifications, and potential in relation to the requirements of the position. The Company also provides employment offers that clearly specify compensation and benefits.
   • Onboarding: The onboarding process focuses on communicating the Company’s vision, mission, and values, as well as its business ethics and anti-bribery and anti-corruption practices, to promote good corporate governance. New employees are also provided with the necessary equipment, systems, and resources to support their readiness for work. After receiving training and communication on relevant policies and practices, employees are required to acknowledge their understanding and acceptance by signing the relevant documents.
   • Probation: The Company establishes clear performance objectives and continuously monitors employees’ performance throughout the probationary period. Employment decisions are made fairly based on the predefined performance standards and evaluation criteria.

2. Development and Career Growth

   • Development Strategy: The Company’s employee development programs cover Hard Skills, Soft Skills, and critical future-ready capabilities, including Digital and AI skills. Employees are supported through both in-house training programs and external training provided by qualified specialists and professional institutions.
   • Talent Management: The Company Implements Talent Management, Leadership Development, and Succession Planning programs to identify, develop, and prepare high-potential employees for critical and key positions within the organization.

3. Performance and Rewards

   The Company operates performance management and reward systems that are linked to business and individual performance, while remaining competitive and aligned with market practices.

   Area	Approach
   Performance Management	Establishing KPIs and Goal Setting, conducting mid-year goal reviews, and providing regular feedback to employees.
   Compensation	Salary, bonuses, commissions, incentives, overtime pay, and provident fund contributions.
   Benefits	Health insurance, life insurance, and accident insurance.

4. Well-being, Safety, and Employee Engagement

   • Health & Well-being: The Company promotes employee well-being by addressing both physical and mental health and supporting a healthy and sustainable working environment.
   • Health and Safety: The Company provides occupational health and safety training, conducts fire evacuation drills, and systematically assesses workplace risks to ensure a safe working environment for employees.
   • Employee Engagement: The Company conducts employee engagement surveys to understand employees’ opinions, expectations, and needs. Two-way communication is encouraged through internal communication channels, including the Company intranet and Town Hall meetings, to communicate key findings and facilitate dialogue with employees.

5. Diversity, Equity, Inclusion and Governance (DEI & Governance)

   • The Company promotes diversity across various dimensions within the organization, including gender, age, working arrangements, and employee benefits, based on respect for human rights. The Company also maintains strict policies to prevent workplace harassment and inappropriate conduct.
   • Benefits Supporting Diversity: The Company provides flexible arrangements that recognize the diverse needs of employees, such as allocating holidays and leave in accordance with the nature of employees’ roles, responsibilities, and working arrangements. The Company also provides employees with freedom of dress, while encouraging appropriate attire in accordance with the occasion and work environment.
   • Speak-Up and Grievance Channels: The Company provides channels for employees to raise concerns, provide feedback, or report grievances, with measures in place to maintain the confidentiality of reporters and protect them from retaliation.

6. Retirement and End of Employment

   • Pre-Retirement: The Company supports employees in preparing for retirement through financial planning, retirement preparation programs, and knowledge transfer initiatives to ensure the effective transfer of knowledge and experience to the next generation of employees.
   • Offboarding: The Company emphasizes a systematic handover process and conducts Exit Interviews to gather employees’ feedback and insights for further organizational improvement. The Company also ensures that all employee entitlements, benefits, and required documentation are properly processed in accordance with applicable laws and regulations.
   • Alumni Relationship: The Company maintains relationships with former employees by inviting them to participate in selected Company activities and events. Where appropriate, former employees may also have opportunities to rejoin the Company as Boomerang Employees, based on business needs and suitability.

• The company monitors changes in the minimum wage annually. The recruitment team conducts industry benchmarking on compensation and compares salary structures with peers to ensure that employee compensation is adequate for living standards.
• The company maintains data on the minimum and maximum salary levels of employees, and adjustments are made if compensation falls below the defined threshold.
• Currently, Tanachira Group's compensation is higher than the legal minimum wage and aligned with industry standards and competitors.

• A welfare committee has been established with representatives from both employees and management. Currently, the committee comprises four management representatives and five employee representatives. The committee holds four meetings per year.

• Employee orientation programs
• Communication via internal mail