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Tracking Employment Applications document sample
Document Sample
FLA Audit Profile
Country China
Factory name 440015464E 440015464EV
IEM A.L.G.I. Independent External Verification (IEV) conducted by Level Works
Date(s) in facility Oct 30-31, 2006 March 27-28, 2008
PC(s) Hennes & Mauritz AB Hennes & Mauritz AB
Number of workers 225 221
Product(s) Hats
Production processes Sampling, sewing, ironing, inspection, packing
IEM Findings Remediation [Status] Updates (28-Aug-2007) Updates (21-Feb-2008) Third-Party Verification Company Verification Follow up
FLA Code/ Compliance issue Country Law/Legal FLA Benchmark Non-compliance Risk of Non- Evidence of If not corroborated, Sources/Documentation Notable PC PC Remediation plan Target Factory Response Company follow Documenta Completed; Pending; Company Follow up Documentation Company Follow up Documentation External Verification (Date) Documentation Company Follow up (Cite date of planned or Documentation
Reference compliance Non- explain why used for corroborating Features Internal Completion (Optional) up (Cite date of tion On-going Independent External Verification was follow up visit, if appropriate)
compliance implemented audit Date follow up) conducted by Level Works on March 27-28,
(uncorroborate by Factory findings 2008
d) Management (Optional)
or Company
1. Code Awareness
Code posting/information FLA Principle of Monitoring, Obligation of H&M Code of Conduct was not posted in the Factory tour Generally we do not require our Code of On-going on-going no update. Besides internal regulations, training (including Training records Not Corrected: It was noted that no H&M Code Factory tour, management interview Since we do not require our Code of Conduct
Companies: Establish and articulate clear, written factory. Conduct to be posted in the factory. In the information in H&M Code of Conduct) was of Conduct was posted in the factory; however, to be posted in the factory and we encourage
workplace standards. Formally convey those standards case a factory produces for different buyers provided for all the new workers. And the latest the factory had posted a "Factory Rule Summary" the factories to develop internal regulations in
to Company factories as well as to licensees, it might be confusing for the workers. training was held on Nov-13-2007. in the production building area, which covered line with our Code of Conduct and local
contractors and suppliers. Instead we encourage the factories to some contents (Freedom of Association, Non- legislation, we will again communicate with the
develop internal regulations in line with our discrimination, Harassment and Abuse, Child Supplier and factory about this and stress the
Code of Conduct and local legislation and to Labor etc. ) of H & M Code of Conduct. importance of setting necessary regulations
clearly communicate these to all workers, for and communicate these to all workers.
example through a handbook for the workers
or on the notice board. Completion date: Nov-2008
Worker/management awareness FLA Principle of Monitoring, Obligation of Participating company (H&M) has not trained Management interview Factory management will receive renewed 12/1/2007 on-going no update. We have communicated our code again with the Corrected: It was noted that the company (H & Management Interview, workers interview and
of Code Companies: Ensure that all Company factories as well management or employees on the Code. training on our Code of Conduct. supplier. more training activity will be held in M) had trained the management on the code. And documents review (Training notification email
as contractors and suppliers inform their employees near future. as per workers interview, auditor noted that and meeting minutes with H & M)
about the workplace standards orally and through the factory management had trained employees on
posting of standards in a prominent place (in the local the code.
languages spoken by employees and managers) and
undertake other efforts to educate employees about the
standards on a regular basis.
Confidential non-compliance FLA Principle of Monitoring, Obligation of Although H&M has provided hotline number to Management interview During our internal audits and discussions On-going; on-going no update. We will keep doing workers interview during our n/a.. Not Corrected: It was noted that no H & M Factory tour, management and workers H&M will keep doing workers interviews and
reporting channel Companies: Develop a secure communications channel, some workers during the last compliance visit, with the factory, H&M primarily encouraged hotline June visit and pass our contact information to the hotline information was posted in the factory for interview distributing contact information among workers
in a manner appropriate to the culture and situation, to this is not posted for the use of all workers. the factory to develop and deepen its own 2007 workers. all workers awareness to report grievance in future visits so as to strengthen the
enable Company employees and employees of confidential non-compliance system. We directly to H & M. confidential reporting channel. Furthermore, we
contractors and suppliers to report to the Company on support the factory in building a dialogue will monitor the running of grievance and
noncompliance with the workplace standards, with system within the factory in order to have a dialogue system in the factory.
security that they shall not be punished or prejudiced for forum for the workers to communicate
doing so. grievances to the management. During our Completion date: On-going; open
audits we regularly check the function of
these systems. At all H&M audits we conduct
worker interviews. During these confidential,
one-to-one interviews, our contact information
is provided to the workers in order for them
to be able to contact with us to put forward
their grievances directly to us. We have
decided to establish a hotline in order to
ensure that the workers can put forward
confidential complaints directly to H&M. It will
be a mobile number that the workers can call
or SMS. The mobile number will be printed on
business cards that will be provided to the
workers during worker interviews.
2. Forced Labor
There will not be any use of forced labor, whether in the form of prison labor, indentured labor, bonded labor or otherwise.
Employment Records Employers will maintain sufficient hiring and employment The factory does not maintain any Documentation review The factory should sign a legal labour At next audit. completed completed Documentation Checked; complete. employment application Corrected: It was noted that the factory had Management interview and documents review
records to demonstrate and verify compliance with this employment applications. contract with all workers individually no later review. forms maintained updated employment applications for (Personnel Files)
Code provision. than 30 days after they have started working each workers.
in the factory. We will follow-up to ensure that
this practice is in function.
Freedom of Movement Art. 96 of PRC Labor Law: Employers are prohibited from practices that restrict a [Employees interviewed] stated that they had Employee interview and During our internal audits and discussions 10/1/2007 completed completed n/a.. completed n/a.. Corrected: It was noted that the factory had Workers interview and documents review
The responsible person of worker’s ability to terminate his or her employment or to pay 50 Yuan as deposit when hired and the management interview with the factory we encourage the factory to cancelled policy and returned the money to (Money Return List with workers signatures)
the employer involved in any freedom of movement, including physical or mental money would be returned to them after two develop internal regulations in line with our workers in early 2007.
one of the following cases coercion, deposits, unreasonable financial penalties or months of work in the facility. Code of Conduct and local legislation and to
shall be taken by a public recruitment fees, and access to and renewal of identity clearly communicate these to all workers.
security department into papers and/or work permits or other legal identification These should include all disciplinary
custody for 15 days, fined, or documents. procedures, including procedures for hiring
given a warning, and criminal and termination in place in the factory. We do
responsibilities shall be fixed not accept monetary penalties but do instead
upon whoever commits a encourage the factory to work with incentive
crime: (1) Use of violence, based systems. Records of disciplinary
threat or illegal deprival of actions should be kept in the factory for
personal freedom to force review. We have initiated a dialogue with the
labor; (2) Humiliation, factory regarding this and it will be
corporal punishment, beating, systematically checked during coming audits
and illegal search or holding and follow up at the factory to ensure that the
of laborers. penalty system is abolished.
3. Child Labor
No person will be employed at an age younger than 15 (or 14 where the law of the country of manufacture allows) or
younger than the age for completing compulsory education in the country of manufacture where such age is higher than 15.
4. Harassment or Abuse
Every employee will be treated with respect and dignity. No employee will be subject to any physical, sexual, psychological
or verbal harassment of abuse.
Disciplinary Practices Art. 4 of PRC Labor Law: Employers will utilize consistent written disciplinary The factory does not have a policy or Documentation review During our internal audits and discussions 10/1/2007 completed completed Documentation Policy posted and worker informed. visual inspection Corrected: It was noted the factory had issued a Workers interview and documents review
The employer shall establish practices that are applied fairly among all workers. procedure for handling discipline. and management with the factory, H&M primarily encouraged review. procedure for handling discipline. And it was (Factory Disciplinary Procedure)
and perfect rules and interview the factory to develop and deepen its own confirmed by workers interview that the factory
regulations in accordance confidential non-compliance system. We had communicated these procedure with workers.
with law and guarantee that support the factory in building a dialogue
laborers enjoy labor right and system within the factory in order to have a
fulfill labor obligations. forum for the workers to communicate
grievances to the management. During our
audits we regularly check the function of
these systems. At all H&M audits we conduct
worker interviews. During these confidential,
one-to-one interviews, our contact information
is provided to the workers in order for them
to be able to contact with us to put forward
their grievances directly to us. We have
decided to establish a hotline in order to
ensure that the workers can put forward
confidential complaints directly to H&M. It will
be a mobile number that the workers can call
or SMS. The mobile number will be printed on
business cards that will be provided to the
workers during worker interviews.
Policy Facility has no Documentation review During our internal audits and discussions 10/1/2007 completed completed Documentation Policy posted and worker informed. visual inspection Corrected: It was noted that policy regarding Factory tour and documents review (Factory
written policy and management with the factory, H&M primarily encouraged review. prohibition of Harassment or Abuse was included Rule Summary)
regarding interview the factory to develop and deepen its own in the "Factory Rule Summary" and posted in the
prohibition of confidential non-compliance system. We production area.
Harassment or support the factory in building a dialogue
Abuse. system within the factory in order to have a
forum for the workers to communicate
grievances to the management. During our
audits we regularly check the function of
these systems. At all H&M audits we conduct
worker interviews. During these confidential,
one-to-one interviews, our contact information
is provided to the workers in order for them
to be able to contact with us to put forward
their grievances directly to us. We have
decided to establish a hotline in order to
ensure that the workers can put forward
confidential complaints directly to H&M. It will
be a mobile number that the workers can call
or SMS. The mobile number will be printed on
business cards that will be provided to the
workers during worker interviews.
Record Maintenance Employers will maintain written records of disciplinary No record of disciplinary proceedings was Documentation review During our internal audits and discussions 10/1/2007 pending no progress. n/a.. Although policy established, no disciplinary management talk Corrected: It was noted that disciplinary records Documents Review (Disciplinary Records)
actions taken. kept by the factory. and management with the factory, H&M primarily encouraged measure has ever taken place, factory explained were maintained by factory and provided for
interview the factory to develop and deepen its own that if the worker didn’t performed well during review in this audit.
confidential non-compliance system. We the year, that would effect the ‘red pocket
support the factory in building a dialogue money’ the boss usually gave to them at the end
system within the factory in order to have a of Chinese year
forum for the workers to communicate
grievances to the management. During our
audits we regularly check the function of
these systems. At all H&M audits we conduct
worker interviews. During these confidential,
one-to-one interviews, our contact information
is provided to the workers in order for them
to be able to contact with us to put forward
their grievances directly to us. We have
decided to establish a hotline in order to
ensure that the workers can put forward
confidential complaints directly to H&M. It will
be a mobile number that the workers can call
or SMS. The mobile number will be printed on
business cards that will be provided to the
workers during worker interviews.
1
IEM Findings Remediation [Status] Updates (28-Aug-2007) Updates (21-Feb-2008) Third-Party Verification Company Verification Follow up
FLA Code/ Compliance issue Country Law/Legal FLA Benchmark Non-compliance Risk of Non- Evidence of If not corroborated, Sources/Documentation Notable PC PC Remediation plan Target Factory Response Company follow Documenta Completed; Pending; Company Follow up Documentation Company Follow up Documentation External Verification (Date) Documentation Company Follow up (Cite date of planned or Documentation
Reference compliance Non- explain why used for corroborating Features Internal Completion (Optional) up (Cite date of tion On-going Independent External Verification was follow up visit, if appropriate)
compliance implemented audit Date follow up) conducted by Level Works on March 27-28,
(uncorroborate by Factory findings 2008
d) Management (Optional)
or Company
5. Nondiscrimination
No person will be subject to any discrimination in employment, including hiring, salary, benefits, advancement, discipline,
termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political
opinion, or social or ethnic origin.
Policy Art. 15 of PRC Labor Law: Facility has no Documentation review During our internal audits and discussions 10/1/2007 completed completed Documentation Policy posted and worker informed. visual inspection Corrected: It was noted that policy regarding Factory tour and documents review (Factory
Laborers shall not be policy or and management with the factory, H&M primarily encouraged review. Non-discrimination was included in the "Factory Rule Summary)
discriminated against in procedures interview the factory to develop and deepen its own Rule Summary" and posted in the production
employment due to their regarding Non- confidential non-compliance system. We area.
nationality, race, gender or discrimination. support the factory in building a dialogue
religious belief. system within the factory in order to have a
forum for the workers to communicate
grievances to the management. During our
audits we regularly check the function of
these systems. At all H&M audits we conduct
worker interviews. During these confidential,
one-to-one interviews, our contact information
is provided to the workers in order for them
to be able to contact with us to put forward
their grievances directly to us. We have
decided to establish a hotline in order to
ensure that the workers can put forward
confidential complaints directly to H&M. It will
be a mobile number that the workers can call
or SMS. The mobile number will be printed on
business cards that will be provided to the
workers during worker interviews.
6. Health and Safety
Employers will provide a safe and healthy working environment to prevent accidents and injury to health arising out of, linked
with, or occurring in the course of work or as a result of the operation of employer facilities.
Evacuation Procedure All applicable legally required or recommended elements Facility has no personnel with first aid The factory should ensure that in each 4/1/2007 Already Fixed Last completed completed Documentation Completed Documentation Corrected: It was noted that about 17 workers Documents review (First Aid Certificates)
of safe evacuation (such as posting of evacuation plans, certificate. workshop there are a sufficient number of year November. review. had been trained and qualified for first aid by local
unblocked aisles/exits, employee education, evacuation staff present during working hours who are hospital.
procedures, etc.) shall be complied with and workers trained in first aid.
shall be trained in proper safety, first aid, and evacuation
procedures.
Evacuation Procedure Art. 14.6 of PRC Fire All applicable legally required or recommended elements Aisles are not marked with red lines or yellow Factory tour H&M requires the factory to maintain safety in 12/1/2006 Already prescribed! pending no progress n/a.. Completed visual inspection Corrected: It was noted that all aisles were Factory Tour
Prevention Law: of safe evacuation (such as posting of evacuation plans, arrows. the work premises according to local law and marked with yellow arrows.
Keep the evacuations unblocked aisles/exits, employee education, evacuation our Code of Conduct. The workers should be
passages and exits clear. procedures, etc.) shall be complied with and workers able to easily evacuate the premises in case
Set up the safety shall be trained in proper safety, first aid, and evacuation of emergency, and the building is to be
demarcation in accordance procedures. considered as safe. The factory premises
with national standards. should be equipped with enough and well
maintained fire extinguishers. The workers
should at regular intervals receive training on
how to use the fire extinguishers.
PPE Art. 37 of PRC Work Safety Workers shall wear appropriate protective equipment Workers in one sewing section did not wear Factory tour The workers should be provided with relevant 12/1/2006 We already Give on-going progress: workers were visual inspection. Completed visual inspection Corrected: It was noted that all workers in the Factory Tour
Law: Production and (such as gloves, eye protection, hearing protection, ear plugs although noise was tested to be personal protective equipment depending on workers PPE for wearing sewing section were provided with ear plugs, all
business units shall provide respiratory protection, etc.) to prevent unsafe exposure above 85dBs. work process, along with education both keeping out the workers were wearing earplugs while working in
their employees with PPE (such as inhalation or contact with solvent vapors, noise, orally and in writing in their native language on Noise, but they the sewing section.
that are up to national dust, etc.) to hazardous elements including medical how to use it. don't want to put
standards or industrial waste. them on. We will
specifications, and they shall educated them to
give instruction to their put it on
employees and see to it that
they wear or use these PPE
in accordance with the rules
for their use.
Machinery Maintenance Art. 32 of Regulation of All production machinery and equipment shall be Five sewing machines were missing pulley Factory tour The machines should be provided with 12/1/2006 Already Fixed last completed completed visual inspection. Completed visual inspection Not Corrected: It was noted that about 5 sewing Factory Tour We will communicate this violation to the
Factory Safety and Sanitary: maintained, properly guarded, and operated in a safe guards and all sewing machines were missing relevant protective equipment depending on year November. machines were missing pulley guards and all factory and require they
Hazardous parts like manner. needle guards. work process, along with education both sewing machines were missing needle guards. 1: Set up a effective system for checking the
mechanical belt, gear, orally and in writing in their native language on use of necessary protective devices and;
grinding wheel, electric saw, how to use it. 2: Strengthen education for workers regarding
belt pulley and flywheel, etc., this issue. HM will follow up this issue in future
shall be equipped with audit.
protective devices.
Completion date: Nov-2008
Sanitation in Facilities Art. 68 of PRC Factory All facilities including factory buildings, toilets, canteens, No toilet paper or soap is available in the Factory tour We require that the restrooms should be kept 12/1/2006 Due to the Limited pending no progress visual inspection. not supplied in time when toilet paper and soap visual inspection Corrected: It was noted that the factory had Factory Tour
Safety and Sanitary kitchens, and clinics, shall be kept clean and safe and be bathrooms. and maintained clean. Soap should be diathesis of used up. provided toilet paper and soap in the bathrooms.
Regulations: The factory in compliance with applicable laws. available. We have suggested the factory to workers, our head
should be equipped with appoint one person to be responsible to officer will pay
bathroom, toilet, dressing ensure that cleanliness is maintained in the attention to this; will
room, retiring room and restrooms on a daily basis. educate them on
female workers’ restroom if during the
needed. meetings.
Restrooms and other
facilities described above
should be maintained clean
and functional.
7. Freedom of Association and Collective Bargaining
Employers will recognize and respect the right of employees to freedom of association and collective bargaining.
Freedom of Association: FLA FLA Comment: The Chinese constitution guarantees The workers should be free to form
Comment Freedom of Association; however, the Trade Union Act associations of their own choosing, and to
prevents the establishment of trade unions independent bargain collectively. We don't accept any
of the sole official trade union – the All China disciplinary actions from the factory against
Federation of Trade Unions (ACFTU). According to the workers who choose to peacefully and lawfully
ILO, many provisions of the Trade Union Act are organize or join an association. In addition,
contrary to the fundamental principles of freedom of during our audits we put effort on building
association, including the non-recognition of the right to effective communication channels between
strike. As a consequence, all factories in China fall workers and management.
short of the ILO standards on the right to organize and
bargain collectively. Recently, however, the
government has introduced new regulations that could
improve the functioning of the labor relations
mechanisms. Trade Union Act of October 2001 does
The Amended
stipulate that union committees have to be
democratically elected at members’ assemblies and
trade unions must be accountable to their members.
The trade union has the responsibility to consult with
management on key issues of importance to their
members and to sign collective agreements. It also
grants the trade union an enhanced role in dispute
resolution. In December 2003,the Collective Contracts
Decree introduced the obligation for representative
trade unions and employers to negotiate collective
agreements, in contrast to the previous system of non-
negotiated administrative agreements.
Policy Facility has no Documentation review The workers should be free to form On-going Already constituted, pending no progress n/a Policy posted and worker informed. visual inspection Corrected: It was noted that policy related to Factory tour and documents review (Factory
written policy and management associations of their own choosing, and to and posted on the Freedom of Association was included in the Rule Summary)
related to interview bargain collectively. We don't accept any workshops wall. "Factory Rule Summary" and posted in the
Freedom of disciplinary actions from the factory against production area.
Association. workers who choose to peacefully and
lawfully organize or join an association.
During our audits and discussions with the
factory, we will encourage the factory to
develop a functioning dialogue system
between the workers and the management in
the factory.
8. Wages and Benefits
Employers recognize that wages are essential to meeting employees’ basic needs. Employers will pay employees, as a
base, at least the minimum wage required by local law or the prevailing industry wage, whichever is higher, and will provide
legally mandated benefits.
Legal Compliance for Art. 51. of PRC Labor Law: Workers will be paid for holidays and leave as required Employees did not receive wages for legal Documentation review Paid national holidays, annual leave, At next audit. Reissued already pending no progress n/a.. Payment for the mentioned three days payrolls Not Corrected: It was noted that the employees Management interview, Workers interview We will communicate this violation with the
holiday/leave The employer shall pay by law. holidays (May 1st to 3rd). and management maternity leave, sick leave and casual leave documented and checked. did not receive wages for official public holidays. and documents review (Payroll & time supplier and the factory and again stress the
wages to laborers in interview should be given to all workers according to Records) importance of correct payment to the workers.
accordance with law when the law without discrimination. We will follow- We will keep monitoring this issue in future
they have legal holiday, take up on this point at next audit. audits.
leaves during periods of
marriage or mourning, and Completion date: Nov-2008
participate in social activities
in accordance with law.
Timely Payment Article 7 of Interim All compensation shall be paid in a timely manner. [Workers interviewed] stated that once they Employee interview and All wages should be paid regularly, no longer At next audit. The adjustment pending no progress n/a.. Salary paid at the end of the month, 25th-30th, if payrolls and management Corrected: It was noted that all workers were Workers Interview and documents review
Regulation for the Payment received the wage 7 to 8 days later than the management interview than 30 days after the work-period ended. between Bank and payment should be delayed, the factory will talk paid on time within 30 days after working period. (Payroll Records)
of Wages (Chapter V: agreed payment day. We will carry out an investigation to find the our Financial Dept communicate with the workers.
Wages): cause of this delay and discuss with the was not Smooth.
Wages shall be paid on the factory how to adopt measures in order to This case will not
date agreed between ensure that future payments can be ensured happen again.
employing units and laborers. to be correct and timely.
If payday falls on a holiday or
rest day, wages shall be paid
in advance on the nearest
workday. Wages shall be
paid at least once per month.
Employing units utilizing
weekly, daily or hourly pay
system may pay wages
weekly, daily, hourly.
2
IEM Findings Remediation [Status] Updates (28-Aug-2007) Updates (21-Feb-2008) Third-Party Verification Company Verification Follow up
FLA Code/ Compliance issue Country Law/Legal FLA Benchmark Non-compliance Risk of Non- Evidence of If not corroborated, Sources/Documentation Notable PC PC Remediation plan Target Factory Response Company follow Documenta Completed; Pending; Company Follow up Documentation Company Follow up Documentation External Verification (Date) Documentation Company Follow up (Cite date of planned or Documentation
Reference compliance Non- explain why used for corroborating Features Internal Completion (Optional) up (Cite date of tion On-going Independent External Verification was follow up visit, if appropriate)
compliance implemented audit Date follow up) conducted by Level Works on March 27-28,
(uncorroborate by Factory findings 2008
d) Management (Optional)
or Company
Wage and Benefits Posting All notices that are legally required to be posted in the Labor related laws or regulations were not Factory tour We will encourage the factory to develop 12/1/2006 Already informed & completed completed documentation completed visual inspection Not Corrected: It was noted that no labor related Factory Tour and management interview As we encourage the factory to set up internal
factory work areas will be posted. All legally required observed posted in the facility internal regulations in line with our Code of definitely on the review. laws or regulations were posted in the facility. policies in line with our code of conduct and
documents, such as copies of legal code or law, will be Conduct and local legislation and to clearly workshops wall. local laws, we will communicate with the
kept at the factory and available for inspection communicate these to all workers, both orally supplier and the factory to make it clear that
and in writing posted on the wall. this information must reach all workers. We will
follow up on this issue in future audits.
Completion date: Nov-2008
3
IEM Findings Remediation [Status] Updates (28-Aug-2007) Updates (21-Feb-2008) Third-Party Verification Company Verification Follow up
FLA Code/ Compliance issue Country Law/Legal FLA Benchmark Non-compliance Risk of Non- Evidence of If not corroborated, Sources/Documentation Notable PC PC Remediation plan Target Factory Response Company follow Documenta Completed; Pending; Company Follow up Documentation Company Follow up Documentation External Verification (Date) Documentation Company Follow up (Cite date of planned or Documentation
Reference compliance Non- explain why used for corroborating Features Internal Completion (Optional) up (Cite date of tion On-going Independent External Verification was follow up visit, if appropriate)
compliance implemented audit Date follow up) conducted by Level Works on March 27-28,
(uncorroborate by Factory findings 2008
d) Management (Optional)
or Company
9. Hours of Work
Except in extraordinary business circumstances, employees will (I) not be required to work more than the lesser of (a) 48
hours per week and 12 hours overtime or (b) the limits on regular and overtime hours allowed by the law of the country of
manufacture or, where the laws of such country will not limit the hours of work, the regular work week in such country plus
12 hours overtime; and (ii) be entitled to at least one day off in every seven day period.
Overtime Limitations Art. 41 of PRC Labor Law: In average, the overtime hours of the factory Time records and worker We require the factory to provide true On-going We will try our best pending no update attendance records further efforts needed attendance records Not Corrected: It was noted that the overtime Documents review (time records from HM will continue to monitor its improvement
Employees should not be are 3.5 to 4 hours per day and 50 hours per interviews documentation on salaries and working hours. to improved, and hours for several sampled workers in the factory February 2007 to March 2008) and require the factory set up a long term plan
allowed to work more than month, both of which exceed the legal The aim is to, through dialogue with the will advise factory was 3 to 7.5 hours per day and 46 to 239 per regarding controlling OT in a sustainable
three overtime hours per day limitations established by PRC labor law. factory, establish a system to reduce the to arrange the work month, both exceeded the PRC labor law manner.
and 36 overtime hours per overtime in a sustainable manner. The long- more smoothly ! requirements.
month. term aim is to, through improved production Completion date: May-2010
planning and efficiency, steadily reduce the
overtime hours in order to meet the legal limit
of overtime hours per month. In the short
term, we require the factory to make sure
that they can ensure that the workers may
have one day off per week, and reduce the
number of overtime hours in the weekdays.
H&M will carry out an unannounced audits in
order to monitor the development.
Overtime Limitations Except in extraordinary business circumstances, From January to August 2006, about 30% of Time records and worker We require the factory to provide true On-going We will try our best pending no update attendance records further efforts needed attendance records Not Corrected: It was noted that the total weekly Documents review (time records from HM will continue to monitor its improvement
employees will (I) not be required to work more than the the weeks' total working hours are over 60 interviews documentation on salaries and working hours. to improved, and working hours for sampled workers were over 60 February 2007 to March 2008) and require the factory set up a long term plan
lesser of (a) 48 hours per week and 12 hours overtime hours per week and the maximum overtime The aim is to, through dialogue with the will advise factory hours (required by FLA benchmarks) and the regarding controlling OT in a sustainable
or (b) the limits on regular and overtime hours allowed by hours per week reached 74 hours in factory, establish a system to reduce the to arrange the work longest one was 94 hours in January 2008 manner.
the law of the country of manufacture or, where the laws February, which is not in compliance FLA overtime in a sustainable manner. The long- more smoothly ! (factory peak months).
of such country will not limit the hours of work, the standards. term aim is to, through improved production Completion date: May-2010
regular work week in such country plus 12 hours planning and efficiency, steadily reduce the
overtime; and (ii) be entitled to at least one day off in overtime hours in order to meet the legal limit
every seven day period. An extraordinary business of overtime hours per month. In the short
circumstance is a temporary period of extra work that term, we require the factory to make sure
could not have been anticipated or alleviated by other that they can ensure that the workers may
reasonable efforts. have one day off per week, and reduce the
number of overtime hours in the weekdays.
H&M will carry out unannounced audits in
order to monitor the development.
Rest Day Art. 38 of PRC Labor Law: Except in extraordinary business circumstances, Production employees worked 20 consecutive Time records and worker We require the factory to provide true On-going We will try our best pending no update attendance records further efforts needed attendance records Not Corrected: It was noted that most sampled Documents review (time records from HM will continue to monitor its improvement
Employer shall guarantee employees will (I) not be required to work more than the days without one day off in July and August interviews documentation on salaries and working hours. to improved, and workers worked 30 consecutive days in February 2007 to March 2008) and require the factory set up a long term plan
that its laborers have at least lesser of (a) 48 hours per week and 12 hours overtime 2006. The aim is to, through dialogue with the will advise factory December 2007 and January 2008. regarding controlling OT in a sustainable
one day off per week. or (b) the limits on regular and overtime hours allowed by factory, establish a system to reduce the to arrange the work manner.
the law of the country of manufacture or, where the laws overtime in a sustainable manner. The long- more smoothly !
of such country will not limit the hours of work, the term aim is to, through improved production Completion date: May-2010
regular work week in such country plus 12 hours planning and efficiency, steadily reduce the
overtime; and (ii) be entitled to at least one day off in overtime hours in order to meet the legal limit
every seven day period. An extraordinary business of overtime hours per month. In the short
circumstance is a temporary period of extra work that term, we require the factory to make sure
could not have been anticipated or alleviated by other that they can ensure that the workers may
reasonable efforts. have one day off per week, and reduce the
number of overtime hours in the weekdays.
H&M will carry out an unannounced audits in
order to monitor the development.
10. Overtime Compensation
In addition to their compensation for regular hours of work, employees will be compensated for overtime hours at such
premium rate as is legally required in the country of manufacture or, in those countries where such laws will not exist, at a
rate at least equal to their regular hourly compensation rate.
OT Compensation Art.13 of Interim Regulation The factory shall comply with applicable law for premium Piece-workers receive 100% of the regular Documentation review When working overtime, the workers should On-going will try to reach the completed completed payrolls. completed payrolls. Not Corrected: It was noted that piece-rated Management interview, workers interview and According to internal follow up audit and payrolls and
on the Payment of Wages: rates for overtime compensation. wage for all OT hours, which violates the PRC and management be compensated according to the legal legal requirement. workers were paid only 100% of normal piece documents review ( Payroll records from communication with the factory, it was found attendance
Piece workers who are Labor laws. interview overtime rates. We will initiate a dialogue with rate for all overtime hours, which violates the PRC February 2007 to January 2008) that some workers were on piece rate, who records
required to work overtime the factory on how to ensure that overtime Labor Law. were paid, firstly, 100% of piece rate for both
after they finished production compensation will be paid to the workers in normal and OT working hours; then if,
quotas must be paid no less the future. compared with hourly rate, workers' piece rate
than 150% (regular work wages were lower than the hourly rate one,
days), 200% (days of rest), balance was paid to compensate all workers
or 300% (on statutory for all working hours (including legal OT rates).
holidays) of the normal piece- In this case, workers were not only paid the
rate during regular working minimum wage but also OT compensation,
hours. which is actually in line with China Labor
Contract Law.
Miscellaneous
4
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