Monitoring Guidance &

Compliance Benchmarks





















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TABLE OF CONTENTS

Introduction and General Guidance 1
Monitoring Guidance 2
Gathering Information from Knowledgeable Local Sources 2
Introduction 2
Specific Information Gathering Steps 3
General Guidance 3
Issue-Specific Guidance 5
Worker Interviews 8
General Monitoring Techniques and Practices 8
Specific Issues 12
Management Interviews 17
General Guidelines 17
Opening Meeting with Management 18
Process Interviews 18
Specific Issues 18
Exit Interviews 22
Capacity Review 23
Records Review 25
Introduction 25
Records Availability 25
Records Review (Hours of Work; Wages, Benefits, and Overtime Compensation) 26
Specific Records Review 27
Visual Inspection 32
Analysis and Reporting 35
Compliance Benchmarks 36
Forced Labor 36
Child Labor 38
Harassment or Abuse 40
Non-Discrimination 42
Health And Safety 43
Freedom Of Association And Collective Bargaining 46
Hours of Work 50
Wages, Benefits and Overtime Compensation 52
Appendix Principles of Monitoring 56
Obligations of Companies 56
Obligations of Accredited External Monitors 58

INTRODUCTION AND GENERAL GUIDANCE

The purpose of this Monitoring Guidance document is to provide information to participating companies
and licensees (these two groups will hereinafter be referred to as Companies), as well as to independent
external monitors (hereinafter referred to as Monitors) that will enable them to monitor applicable
facilities in accordance with the Workplace Code of Conduct and the Principles of Monitoring adopted by
the Fair Labor Association (FLA).

The Principles of Monitoring, a part of the Charter of the Fair Labor Association, provide the framework
within which monitoring is to be conducted. Both Companies and Monitors have accepted certain
obligations for the way those principles are to be implemented. These Principles of Monitoring are
included, in full, in the appendix at the end of this document and are also available on the Fair Labor
Association website at www.fairlabor.org.

The Code of Conduct and Principles of Monitoring are, broadly speaking, statements of principle. This
document deals with the real-world implementation of those principles.

This document contains two sections. The first section offers guidance to Monitors and Companies on
how to conduct monitoring. While the information provided is extensive, it is not intended to be
exhaustive. Neither is the information provided prescriptive, inasmuch as Monitors may use their own
monitoring procedures in accordance with these guidelines. The components of monitoring are:
gathering external information; worker interviews; management interviews; capacity review; records
review; visual inspection; and analysis and reporting. Each of these components is dealt with in the
Monitoring Guidance section below.

The second section, Compliance Benchmarks, offers guidance to Monitors and Companies to use to make
reasoned judgments about compliance with the Workplace Code of Conduct and the Principles of
Monitoring. The provisions of the Workplace Code are: forced labor; child labor; harassment or abuse;
non-discrimination; health and safety; freedom of association and collective bargaining; hours of work;
and wages, benefits and overtime compensation.
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MONITORING GUIDANCE

Gathering Information from Knowledgeable Local Sources

I. Introduction

The monitoring process under the FLA requires that information gathered from knowledgeable local
sources be included. The FLA Principles of Monitoring state that:

In those instances where accredited external monitors themselves are not leading local
human rights, labor rights, religious or other similar institutions, (they shall) consult
regularly with human rights, labor, religious or other leading local institutions that are
likely to have the trust of workers and knowledge of local conditions.

In practice in these cases, Monitors conducting factory visits for Companies must gather and incorporate
into the monitoring process information from the types of organizations described in the Charter.

The purposes of this element of the monitoring process include: gathering local information about
general and, if available, site-specific working conditions from reliable sources; and gathering
information about the most effective and appropriate means of communicating with workers locally. This
information will be used to prioritize and focus monitoring of compliance with the FLA Workplace Code
in applicable factories.

While the process through which such information is gathered may vary depending on the location, there
are several steps that will likely be implemented in most locations. These include the following:

Identify Local Organizations:

This will be done by identifying organizations consistent with the guidance in the Charter. Care should
be taken to consult with a range of organizations that accurately reflect the range of perspectives present
in the area. At a minimum, Monitors should contact 2 local organizations.

Once these organizations are identified, they should be interviewed to help:

o Identify issues of general local importance. Interviewing representatives of these
organizations can help to identify issues of particular importance in the country and/or
region. All organizations should be given the opportunity to address all issues in the
Workplace Code.

o Identify issues of particular importance in specific locations where monitoring will
be conducted.

o Identify culturally appropriate interview techniques to be used in monitoring.

o Facilitate communication with Company employees and employees of contractors
and suppliers, both in the context of employee interviews and in the reporting of
noncompliance.

In interviewing such organizations, it is important to understand the basis for the organizations
information (e.g., first-hand observation, meetings with workers, local media accounts), the time at which
the information was gathered, as well as affiliations that might provide insight into the organizations
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perspective. Once information is gathered from a range of sources, it should be placed in context by
analyzing it with regard to the frequency with which certain issues are raised, the basis on which the
opinions are formed, and the source of the opinions. Then, the Monitor should adjust the approach to
monitoring accordingly. This accomplishes one of the primary goals of this information gathering to
conduct monitoring in a locally appropriate manner that addresses issues of local importance.

Guidance on meeting with knowledgeable local organizations is provided both in terms of general
guidance and issue-specific guidance. Not all organizations will have an equal amount of information and
perspective on all issues. Some may be experts on womens issues, some will have useful perspectives on
freedom of association, and some may be knowledgeable about several issues. Similarly, it will be
important to be aware of regional differences. Some institutions will reflect countrywide concerns, and
others knowledge will be more site-specific.

II. Specific Information Gathering Steps

A. General Guidance

The following suggests the general steps that should be taken in conducting outreach to local
organizations to provide information and perspective that can help to ensure the effectiveness and
credibility of the FLA monitoring process.

The FLA Charter requires that accredited monitoring organizations be familiar with local laws and
practices. The individual(s) representing these organizations also should be sufficiently knowledgeable to
be able to engage effectively in the consultation process with local organizations. While not explicitly
mandated in the FLA Charter, it is also necessary that the individual(s) representing the monitoring
organization in this outreach have sufficient language skill to conduct the dialogue effectively. In some
circumstances, it may be appropriate to engage interpreters for discrete tasks.

Identification of Organizations

Identify local organizations that are capable of providing useful information. Make all efforts to
ensure that a range of perspectives is included in the externally sourced information that is
incorporated into the information gathering process.

Sources through which local organizations can be identified include the FLA staff, FLA Board,
Advisory Committee, University and Corporate members, NGOs with whom the Monitor might
have contact elsewhere, public officials, and other civil society organizations.

An initial list of organizations should be reviewed to determine whether it is appropriately
comprehensive in terms of both numbers and range of perspectives. Some locations may have
many knowledgeable groups, and others may not. Similarly, some locations may have an active
set of unions, others may not. These factors should be taken into account in determining the
sufficiency of the outreach. Monitors should seek to gather sufficient information to make
informed judgments in conducting the monitoring, taking into account the level and nature of
local organizations present.

Care should be taken not to conduct these consultations in a manner that will compromise the
local organizations ability to operate safely in its local community. All elements of the contact
should be conducted with this in mind, from the moment of initial contact. For example, it may
be useful to conduct the meeting in a location chosen by the organization, which may have the
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need to ensure that it is not being compromised by contact with organizations from outside its
community.

In the initial contact with the local organization, the Monitor shall take care to explain the
relationship between the monitoring organization and the FLA. The Monitor shall present the
local organization with a welcome letter (provided by the FLA) to help facilitate this
communication.

Identification of General Issues

Initial questions should be general and open-ended, allowing the persons being interviewed to
point out specific issues, both positive and negative. The overall approach should focus on
asking the organization to provide guidance on the issues that are of greatest importance in the
area in which it is knowledgeable. The conversation can focus both on Code issues where levels
of compliance are low, as well as those issues that the local organization does not view as a
particular problem.

Based on the direction of the conversation and the need to follow-up on issues raised in the
factory inspection, questions could become more direct as the conversation progresses.

Identification of Factory-Specific Issues

Ask the organization if it is aware of any factories in the region that are believed to have
particularly good practices or particularly poor practices. If so, ask them to explain, to the degree
possible, and without placing individuals at risk, the information on which their opinion is based.
This information can be gathered by asking the open-ended question of whether there are
factories in the local area that are known to have particularly good or particularly bad practices.

Any information gathered about specific factories should be used to heighten or lower the level of
attention paid by the Monitor. It should not be used to provide an outside-the-factory answer to
the question of what is going on in the factory.

Identify Locally Appropriate Information Gathering Techniques

Ask the organization to make recommendations about the ways that workers can be approached,
or other information gathered, in ways that are particularly appropriate to the location where the
monitoring is taking place. This part of the process is designed to ensure that information is
gathered thoroughly and in a way that does not place workers at risk.

Such information may take a variety of forms. The most obvious issue is to identify culturally
sensitive ways to interview workers. This might include information about how to ask questions,
who is best suited to interview the local workforce, and non-verbal clues that will be useful in
interpreting the interview process. It may also take more prosaic forms, such as finding out
whether workers immediately board buses for home after work, to determine when it might be
most fruitful to speak with them. Finally, local groups are often networked and may be able to
offer suggestions of other knowledgeable groups with which the Monitor can meet.

Are there particular cultural issues or methods of communication that should be considered in
assessing local factories compliance with harassment or abuse provisions? Where does the
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workforce come from (e.g., rural, urban, internal migration, etc.), and how should that be factored
into effective ways to deter harassment or abuse?

Compile and Analyze Information

Once a range of interviews is completed, the Monitor should compile all the information
gathered.

Factors that may be useful in synthesizing the information gathered include: the frequency with
which certain issues are raised; the reliability of the information on which the opinions are
formed; the freshness of information provided; the degree to which the organizations
perspective may inform the information provided, etc.

It is important that the nature of the NGOs relationships should be identified as clearly as
possible. If, for example, a local group is an advocate of worker rights and is engaged in
supporting a strike or some sort of protest activity directed at the factory in question, or
conversely, if the NGO is the recipient of grants or project support from the management or the
contracting Company, the nature of the relationship has to be taken into account. While not
possible in all cases, gathering information from a range of sources will facilitate the Monitors
ability to draw accurate conclusions.

Incorporate Information into Monitoring Process

From the information gathered, a checklist may be created that can be used to augment the
monitoring guidance.

B. Issue-Specific Guidance

On all issues, the meeting should provide an opportunity for the local organization to address the
following:

Significant levels of non-compliance with the Code provision or local law on Code issues and the
basis for such conclusions.

Locations (cities, free trade zones, regions, factories, etc.) where this non-compliance is
particularly significant.

Recent changes in patterns of non-compliance.

Awareness of problems relating to local government and, if problems are present, any actions to
address them.

Identification of particularly good practices on Code issues or legal compliance and the basis for
such conclusions.

Recommended monitoring techniques that will be particularly effective in the local context.

Elements of the local labor law and enforcement practices that contribute to high levels of non-
compliance with codes and/or local law.

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Forced Labor

Inquire into whether there are known or suspected instances of forced or prison labor in factories
in the area.

Determine whether the government is known or suspected to provide forced or prison labor to
export facilities.

If migrant labor is used locally, ask whether there are contract terms that place limits on workers
ability to leave their jobs before their contract expires.

If recruitment agencies are used, ask whether they place limits on workers freedom to leave their
jobs before their contracts have expired, or whether they are forced to pay substantial fees to
these agents.

Inquire about restrictions on freedom of movement of workers in any local factories that may
suggest problems of forced labor.

Child Labor

Identification of methods for verifying workers ages that are either particularly useful or futile in
the local area.

Determination of whether there are local organizations that can offer assistance in verifying
workers ages locally, should the need arise.

Commonly used techniques in the region or country for presenting false proof of age.

Interview techniques or questions that may be particularly useful in verifying workers ages.

Harassment or Abuse

Identification of particular groups of workers (women, migrant laborers, young workers) that
might be subject to harassment or abuse.

Discussion of the degree to which sexual harassment is an issue in this area.

Evidence that workers are afraid to complain due to reprisals.

Identification of particular forms of harassment or abuse that occur locally.

Non-Discrimination

Determine which groups, if any, are most likely to be subject to discrimination in local apparel
and/or footwear factories.

Determine in particular whether women are subjected to discriminatory practices and, if so, of
what type.

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Identification of limits on reproductive rights (e.g., forced pregnancy testing, dismissal, or
reassignment of women who become pregnant).

Ask whether there are any locally appropriate indicators of discrimination that should be
considered in the monitoring process.

Health and Safety

Determine if there are certain frequent patterns of injuries or illnesses that may result from work
or the factorys operation. If such patterns are thought to be present, further examination of
causes may be needed.

Freedom of Association

In locations where several trade unions and trade union confederations exist, the local
organizations can provide helpful information concerning the positions taken by various groups.

Identification of recent conflicts or problems regarding freedom of association in local apparel
and footwear facilities, and responses to and results of these efforts.

Identification of any local factories with registered unions.

Identification of any such factories with collective bargaining agreements.

Description of the local governments approach to the activities of local trade unions.

Hours of Work

Likelihood that dishonest recordkeeping practices are used.

Whether hours of work exceed overtime regulations.

The extent of any excessive hours being worked (how many people and for how long).

Whether there are any incidences of forced overtime.

Wages, Benefits and Overtime Compensation

Actual provision and receipt of legally required benefits by apparel and footwear workers locally.

Likelihood that dishonest recordkeeping practices are used.

If such practices are likely, ask about suggested monitoring techniques to gather information
about such practices.

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Worker Interviews

I. General Monitoring Techniques and Practices

Worker interviews are a critical part of the monitoring process, as they allow for the direct gathering of
information from the very people the Workplace Code is designed to protect. They require great care and
sensitivity to local conditions, and must always be conducted in a manner that ensures that workers will
not face retaliation or other negative consequences as a result of their participation in interviews.

The following presents guidance on general interviewing techniques and practices that provide a
framework for the Monitor to implement the worker interviews. On most of these topics, the guidance
provides a principle that must be applied in all cases and yet may be implemented differently in different
locations. For example, the location of an interview must in all cases safeguard the worker from
retaliation; however, the location itself may vary.

Safeguard Worker Confidentiality and Security:

All reasonable steps should be taken to ensure that the interview process does not compromise the
safety or job security of the worker. At a minimum, Monitors must ensure that the interview
process is conducted in a confidential manner.

As stated in the Charter, Monitors shall conduct confidential interviews in a manner that ensures
that workers will suffer no adverse consequences as the result of the interviews by
communicating the confidential nature of the interview, communicating that retaliation as the
result of the interview is not permitted, and using interviewers who are most likely to gain the
trust of workers.

Monitors should inform workers that the interviews are confidential and that the information will
neither be attributed to them, nor provided to management without their permission. In the case
of informal conversations between Monitors and workers on the production line, Monitors shall
take precautions that will safeguard the worker.

In addition, Monitors should provide no information which could lead to the identification of
specific workers as the source of information that could cause retaliation against the workers
interviewed. In the event that the Monitor needs to gather additional information to corroborate
or disprove information received in the interview process, the Monitor shall gather this additional
information in a manner that protects the identity of the worker interviewed.

Location of Interviews:

Interviews should be conducted in a location that makes the worker comfortable and which does
not raise the possibility that the employer will subject the worker to retaliation.

Monitors should consult with local organizations trusted by workers to determine where
interviews will take place.

Monitors must have access to employees on a confidential basis on or off factory premises.

Interviews should be conducted outside the presence of factory managers. This does not, and is
not intended to preclude asking routine questions of workers on the factory floor. It is intended to
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ensure that workers are protected from retaliation for statements made during interviews with
Monitors. Interviews conducted off site should be conducted so that factory managers do not
gain information about which workers have been interviewed.

A range of locations can be used to ensure that workers speak freely. Common sense should be
used to determine specific sites that afford the greatest opportunity for productive, confidential
discussions. On-site locations include informal conversations in the production area of the
factory floor, the cafeteria/dining area at meal and rest breaks, the area just outside the factory as
shifts end, other common areas, and locations on site that allow for workers to be interviewed
without observation by factory management.

In some circumstances, especially piece-rate situations, workers may lose compensation if they
are required to participate in extensive interviews during work hours. Monitors should take all
reasonable precautions to ensure that the interview process does not result in lost wages.

The Monitor may determine that off-site interviews are needed. The Monitor should use
discretion in selecting where such interviews should take place. Care should be taken in such
circumstances to maintain a representative sample of workers appropriate to the information-
gathering objectives.

Issues raised during worker interviews should be cross-referenced with other interviews and
factory records.

Selection of Workers to Interview:

Monitors should interview an appropriate and representative sample of workers. In developing
this sample, Monitors should consider, among other factors: the overall number of workers
interviewed, the section of the factory from which interviewees are selected, and the demographic
distribution of workers to be interviewed.

The selection of workers to interview also should be considered carefully. Monitors should have
discretion in choosing which workers are interviewed. Under no circumstances should
management play any role in the selection of workers to be interviewed.

Monitors should make a determination of what constitutes a representative sampling in a given
factory. For example, it does not make sense to interview only workers on a particular production
line, only female workers, or only sewing machine operators. In determining what constitutes a
representative cross-section, the Monitor should consider a variety of factors, including: a cross-
section of functions or sections of the factory; risk presented in certain operations/functions; need
to validate/disprove information gathered through other monitoring activities; and issues
identified by outreach to external information sources.

In addition, other monitoring activities may lead Monitors to select particular workers, or
categories of workers, for interviews. In making this determination, Monitors may consider
indicators, including: (1) workers who appear to be particularly young; (2) workers in an ethnic,
racial, national origin or other group that is often disadvantaged in the workplace locally; (3)
migrant workers employed under labor contracts; (4) members of a trade union; and (5) workers
engaged in particularly hazardous manufacturing processes. If Monitors focus attention on
particular workers, they should identify the purpose for this selection and describe the community
of workers they may represent (migrant workers, contract workers, cutters, female workers and so
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forth). However, Monitors should not interview only those workers who may raise concerns
about non-compliance; a cross-section should be interviewed to provide a full picture of
workplace practices.

Monitors should interview a sufficient number of workers to provide confidence that an accurate
picture of workplace practices is obtained. The Monitor should begin with a sample based on the
following framework, and should adjust the number based on information received from local
organizations, information gathered through other techniques in the factory, and the need to
corroborate or disprove findings from other sources. For example, if conflicting information
arises about pay practices, it may be necessary to speak with more workers. And if there are three
different trade unions seeking to organize a factory, it may be necessary to speak with members
of each, as well as workers not affiliated with any of them.

Interview Techniques:

Monitors should use broadly accepted interview techniques. This includes avoidance of practices
that may undermine the interview process by compromising the workers trust in the interviewer.
Several techniques, such as asking open-ended questions, are generally considered to contribute
to effective interviews. These should be applied to the maximum degree possible.

Ask open-ended questions that do not provide any clues to workers of how they should
respond. Monitors should allow workers to respond to neutral questions that do not lead to one
answer or another.

However, if workers raise issues that may indicate non-compliance, it will be useful to focus their
answers so that allegations are sufficient to permit either corroboration or disproving.

Monitors should take care to use language that is easily understandable to workers, rather than
words that may confuse. For example, freedom of association may be unfamiliar to people,
while asking workers if they are free to support or consider joining a union may be more
understandable. Similarly, asking workers if they are harassed may confuse, while asking if
workers are treated fairly may elicit more and better information.

Ask workers to describe situations that they have encountered, as well as issues related to
compliance with the Code that they may have observed elsewhere in the factory. In some
circumstances, workers may be more willing to describe non-compliance affecting others than
they will be to address issues they themselves face.

Monitors should be sensitive to non-verbal clues such as workers looking away from the
Monitor, workers who do not answer particular questions, or workers who laugh nervously when
certain topics arise. Monitors should determine in advance whether there are certain non-verbal
clues they are more likely to encounter in a specific location.

If workers appear to be focusing on specific topics, it is useful to follow that lead and seek more
detailed information. If there are issues that are identified by external sources that are of
particular concern, these might be worth focusing on, although they may have such sensitivity
that alternative means of information gathering (e.g., off-site interviews) may be useful.



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Culturally Appropriate Interview Techniques:

Interviewers must have sufficient language skills to conduct effective interviews, and shall be
sufficiently knowledgeable about local cultural characteristics and factory conditions to analyze
information gathered through the interview.

Monitors shall ensure that they conduct interviews in a manner sensitive to the cultural
characteristics present in the workforce. Workers in different parts of the world may respond to
different approaches to the interview. Based on monitoring experience and input from
knowledgeable organizations, the Monitor should ensure that questions are asked in a culturally
appropriate manner.

A determination of what these techniques are will necessarily vary from location to location. In
making this determination, Monitors should rely on their own experience, information gathered
through consultation with knowledgeable organizations, and other sources to determine, in
advance of the monitoring visit, the best ways to conduct worker interviews.

Focus on Issues of Particular Importance:

While workers should be given the opportunity to raise issues of particular importance, it is also
necessary for Monitors to use the interview process to focus on issues of particular importance in
the local area, as well as to gather information that corroborates or disproves possible findings
resulting from other information gathering techniques. These issues may be identified through
other factory findings, meetings with knowledgeable local institutions, or relevant experience in
the location of the factory.

Monitors should determine, in advance of the factory visit, which issues should receive particular
attention in the location where the visit will take place. For example, if in the Monitors
experience, the issue of freedom of association or child labor has arisen in a particular free trade
zone, these issues should receive particular attention.

This determination will necessarily vary from location to location. Sources of information for
this focus will include knowledgeable local organizations, Monitors experience, information
received from media reports and other public sources, etc.

Analysis and Synthesis of Information/Follow-up:

The Monitor shall take the information gathered from the interviews with the full sampling of
workers and analyze it in light of information gathered from the other monitoring techniques.
Based on the information gathered through worker interviews, it may be necessary to gather
additional information, either through further interviews, additional concentration on other
monitoring techniques, or by seeking information to corroborate or disprove the information
gathered.

Interviews should be conducted with an eye to discovering issues or to corroborating findings
from other monitoring activities. If interview results confirm findings of other monitoring
practices, there is a good evidentiary basis for conclusions.

Workers involved in interviews also should be part of the other information gathering processes.
For example, it will be valuable to check the payroll records or personnel file for a worker
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involved in an interview. This will permit the cross-checking of information to determine
inconsistencies that may indicate non-compliance.

In those cases where interview results raise questions or conflict with monitoring results, a larger
audit sample should be used and further investigation launched.

Specific assertions or allegations should be investigated carefully; broad and unfocused
allegations are less useful and can be very difficult to confirm or deny.

Check whether workers describe similar situations consistently. If not, this could indicate either
non-compliance, confusion or, in some circumstances, pressure from the employer to provide a
certain answer.

II. Specific Issues

In addition to the general guidance on process provided above, the following guidance is designed to help
ensure that Monitors address specific issues of non-compliance that may arise.

Note: The items listed below are not intended to be a script that a Monitor must follow word for word.
Rather, Monitors should use these points as a framework for questions that they will frame in a locally
appropriate manner, in language that workers can understand.

The Code of Conduct requires that employees are informed of the workplace standards orally and through
the posting of standards in a prominent place. In order to determine if this is the case, Monitors should
determine if workers:

Are informed about the Code and, if so, how and when;

Are aware that they can speak of any concerns regarding Code compliance issues with Monitors,
both internal and external, without negative repercussions; and,

Have a mechanism and can make suggestions regarding compliance with the Code.

Forced Labor

Ask how workers arranged for terms of employment, and whether they were aware of their right
to decide whether or not to accept employment under these terms.

Determine whether any side agreements exist requiring payments that violate these provisions.

If you have suspicions about the presence of forced labor, interview workers to determine how
the hiring process works.

Inquire into the system through which workers arrange for housing.

Ask workers what steps, if any, they must take to terminate their employment. Ask if they know
of workers who have terminated their employment contracts before the term ended.

Ask workers if they are required to turn over their identity papers to management, and if so, how,
if at all, they are able to access their papers.
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Child Labor

Use indirect methods to verify workers ages. Techniques may include asking workers the year
in which they are born and, in appropriate regions, what year they were born in (e.g., Year of
the Cat, etc). Some of these efforts may bring accurate information from workers coached to
state their age.

Ask workers what documentation they were asked to show concerning their age. This may
provide a useful check against managements statement that it seeks reliable verification of age.

Ask whether there are efforts to restrict the nature and volume of work performed by employees
under 18 years old.

Ask young workers under 18 years of age if there are restrictions on the nature and volume of
work they are allowed to do.

Harassment or Abuse

Ask workers whether they are aware of factory policy on discipline and ask them to articulate
how discipline works in the factory by using an example or two, if possible.

Ask workers if they have ever had a monetary fine as penalty for poor performance.

Ask workers what they do if they have a complaint about how they are treated.

Ask workers what they do if they have a complaint about how their direct supervisor treats them.

If there is a grievance procedure, ask if they know how it is used.

Ask if they have ever used any of these mechanisms.

If so, ask how the process worked (procedurally, rather than substantively).

Ask what they like best and least about their work (hopefully leading to how they are treated)

Are they aware of any examples of prohibited forms of discipline?

What happens if a worker has to use the bathroom during a workshift? Do they take lunch break
at a regular time or do they have flexibility about when to take a lunch break?

Do women experience any particular problems in this workplace? If so, what kind of problems?

As a rule, how are women treated in this factory?

Non-Discrimination

Ask workers how hiring, assignment, promotion, and compensation decisions are made, and
whether there are any practices that might contribute to discrimination, such as forced pregnancy
testing or questions about marital or menstrual status.

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Ask workers how new employees are hired and, if relevant, what kind of job announcements they
replied to. This may indicate whether a neutral system is in place or one that utilizes
inappropriate personal characteristics in the selection process.

Ask what processes are in place to address the needs of pregnant women. If workers are not able
to name any, it may indicate bias based on pregnancy status.

Ask what practices the factory has regarding maternity leave. Confirm whether these comply
with applicable laws.

Health and Safety

Determine if there are certain frequent patterns of injuries or illnesses that may result from work
or the factorys operation. If such patterns are thought to be present, further examination of
causes may be needed.

Determine whether safety equipment (e.g., masks, gloves, ear plugs, harnesses, etc.) is provided
to workers doing hazardous work and, if so, who pays for such equipment.

Determine whether workers have been given any information concerning health and safety, either
in terms of good practices or workplace hazards.

Ask how often the factory has fire drills or other emergency evacuation drills.

Ask whether there are health and safety committees or whether there are managers responsible for
health and safety within the facility.

Ask if workers know how to conduct basic health and safety activities, such as use of fire
extinguishers, personal protective equipment (PPE), first aid equipment, and emergency
evacuation, etc.

Ask what workers do when they need medical attention. Ask also whether the worker has ever
had to seek time off for illness or to receive health care. Seek specific examples of what occurred
in response to such requests.

Where employer owned or operated residential housing or dining facilities are present on or
adjacent to the production facilities, make sure to ask workers parallel questions about health,
safety and sanitation in these facilities.

Ask whether workers have received any information on the safe operation of machinery. These
questions should be focused on workers operating particularly hazardous machinery.

Ask workers who come in contact with hazardous chemicals whether they are aware of safe
handling, storage, or disposal techniques.

Ask if there is a clinic or first-aid station. Does it have necessary medicine or supplies? Is there a
doctor or nurse on duty or readily available?

Ask if they know of any employee who has been fired following an injury, and, if so, what were
the circumstances?
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Freedom of Association and Collective Bargaining

Inquire into any history of conflict or problems regarding workers rights of association,
including incidents related to organizing efforts, union membership drives, union representative
access to workers, and any management practices to counter unionization. Ask open-ended
questions about what has happened in such circumstances, with an eye towards determining
whether the employer has interfered with such activities. Be careful in such questions not to
compromise any current organizing efforts. If there is any evidence that workers have suffered
adverse consequences as the result of union activities or other efforts to exercise freedom of
association, ask workers what has occurred.

In those cases where workers are represented by a union, union representatives/leaders should be
interviewed. If the union is not recognized or if there is no collective bargaining agreement,
conversations with union leaders should be conducted off site and informally, assuming such
individuals can be identified. Monitors should be clear in all interviews that their role is to
examine workplace conditions in an impartial and fair manner, and that they are not advocates for
particular workers or organizations.

Monitors should interview officials of the most representative union at the facility as well as
representatives of all other worker organizations that have members at the facility.

Ask if there is a collective bargaining agreement and, if so, determine whether workers are
familiar with its terms, as well as any processes for raising grievances under the agreement, or in
identifying how to raise concerns with their representatives.

If there is no union, ask workers to describe any complaint or grievance system in the factory and
whether they know how to use it, whether they have done so, and if so, what the results have
been.

Ask whether workers have had an opportunity to meet with union representatives.

In a factory where two or more unions have been seeking to organize workers, and where
management is alleged to have interfered in those efforts unlawfully, it may be necessary to
expand the interview sample to ensure that a representative sample of workers and management
are included.

Hours of Work

Determine whether workers can identify normal work hours and the frequency and amount of
deviation.

Ask workers to describe how they record their work hours, or how management records work
hours.

Ask whether their work hours include all the time they are required to be in the factory. Do they
ever work before signing in or after signing out?

Ask workers to describe the shortest and longest weekly work hours.

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Determine whether workers have the opportunity to decline overtime work and, if so, under what
circumstances.

Ask if they are given explanations for required overtime in excess of the Workplace Code
provisions.

Ask workers if they have reasonable breaks for meals and easy access to bathrooms and water.

Wages, Benefits and Overtime Compensation

Determine whether workers are familiar with the basis for compensation, and the way that their
pay is calculated. Interviews may reveal whether workers are aware of their base compensation
rate, piece-rate (if used), overtime premium rates, and the application of these formulas.

Ask workers if they are aware of any deductions or withholding that reduces their gross pay. If
any of these are for employer-provided benefits (meals, housing, etc.), ask if the expense is
reasonable.

Ask workers if they have ever been underpaid or if the factory has missed a payday.

Ask workers what their benefits are, including any meals provided, and whether they are provided
regularly.

Ask workers if they can clarify or challenge incomplete or inconsistent wage information from
other aspects of the monitoring process.

Ask workers if they always receive the legally required premium pay for overtime work, and after
how many hours per day or week.

Ask workers on a piece-rate if there is a premium piece-rate for overtime work.

Ask workers if they are or have been paid a training wage and, if so, for what period(s) of time.

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Management Interviews

Management interviews offer the Monitor necessary information which, together with information from a
variety of other monitoring sources, gives the Monitor the ability to make informed assessments of
factory compliance with the Workplace Code of Conduct. Management interviews also provide the
Monitor with an understanding of the policies and practices guiding the operations of the factory related
to the Workplace Code of Conduct. Like other aspects of monitoring, interviews with management alone
do not give the Monitor sufficient information or objectivity to conclude that the factory is in compliance
with the Workplace Code of Conduct.

I. General Guidelines

As a Monitor investigates each Code provision, the Monitor will need to consult with management in
much the same way as the Monitor may conduct repeated worker interviews or observations. The
guidance provided in this section is substantially the same as stated in the Workers Interviews section,
repeated here for ease of reference.

Several issues related to management interviews must be addressed, including:

Monitors Skills: Interviewers must have sufficient language skills to conduct an effective
interview and shall be sufficiently knowledgeable about local cultural characteristics and factory
conditions to analyze information gathered through the interview.

Generally Accepted Interview Techniques: There are several techniques that are generally
considered to contribute to effective interviews, such as asking open-ended questions. These
should be applied to the maximum degree possible.

Culturally Appropriate Interview Techniques: Managers in different parts of the world and
with different national, cultural or linguistic backgrounds may respond to different approaches to
the interview. Based on monitoring experience and input from knowledgeable organizations, the
Monitor should ensure that questions are asked in a culturally appropriate manner.

Focus on Issues of Particular Importance: While management should be given the opportunity
to explain policies and practices of particular importance, it is also necessary for Monitors to use
the interview process to focus on issues of particular importance in the local area, as well as to
gather information that corroborates or disproves possible findings resulting from other
information gathering techniques. These issues may be identified through other factory findings;
meetings with knowledgeable local institutions, or relevant experience in the location of the
factory. Factory owners must identify to Monitors all satellite facilities, sub-contractors,
homework situations, or any other locations where the goods are manufactured, processed,
finished, laundered, dyed, or stored, so that the compliance with the Workplace Code of Conduct
may be verified in all locations.

Analysis and Synthesis of Information/Follow-up: The Monitor shall take the information
gathered and analyze it in light of information gathered from the other monitoring techniques, as
well as in comparison to information gathered from worker interviews, records and capacity
review, visual observation and other monitoring exercises. If the Monitor is aware that the
turnover rate is unusually high in this factory, in comparison to similar facilities in the local area,
this may be an indicator of broader problems in the factory. Based on the information gathered
through management interviews, it may be necessary to gather additional information, additional
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work on other monitoring techniques, or by seeking information to corroborate or disprove the
information gathered.

II. Opening Meeting with Management

There is always a need for an initial management interview for a number of purposes, including:

To observe business courtesy;

To introduce the participants of the monitoring team;

To establish the requirements of the monitoring team, including full access to all relevant
documents, production facilities, dormitories and kitchens and to workers for the duration of the
site visit;

To review factory policies and procedures related to implementation of the Workplace Code of
Conduct;

To receive an orientation of the physical plant; and

To obtain assurances from factory management that no retaliatory steps will be taken against
workers who speak to Monitors.

Initial contact with factory management may begin before the monitoring site visit commences to
communicate the purposes of the monitoring inspection and the expectations Monitors will have of
factory management about the monitoring process. Care should be taken, however, to insure that this
contact does not compromise the Monitors ability to conduct confidential worker interviews.

III. Process Interviews

Subsequent management interviews will occur in the context of the monitoring exercise. For example,
interviews with production managers are required in order to access production facilities, dormitories,
kitchens and workers and possibility gain clarification of conditions affecting workers. Interviews with
health and safety officers, if any, may provide useful information about issues raised during visual
observation exercises or worker interviews.

IV. Specific Issues

In addition to the general guidance on process provided above, the following guidance is designed to help
ensure that Monitors address specific issues of non-compliance that may arise.

The items listed below are not intended to be a script that a Monitor must follow word for word.
Rather, Monitors should use these points as a framework for questions that they will ask in a locally
appropriate manner, in language that management can understand.

Code Awareness

Factories are required by FLA member companies to provide certification committing to uphold the Code
standards, inform employees about the standards, and submit to periodic inspections and audits, including
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by accredited external monitors, for compliance with the Workplace Code of Conduct. With respect to
code awareness, in particular, Monitors should do the following:

Ask management if they are familiar with the Code.

Ask how and when workers are informed about the Code

Ask if workers are aware that they can speak of any concerns regarding Code compliance issues
with Monitors, both internal and external, without negative repercussions.

Ask if workers have a confidential mechanism to make suggestions regarding compliance with
the Code.

Forced Labor

Ask how workers arranged for terms of employment.

Determine if there are any side agreements requiring payments that violate these provisions.

Determine how the hiring process works, and if there are any agreements with hiring or
recruitment agents.

Ask what steps, if any, workers must take to terminate their employment contract before its term.
Ask to see any records of workers who have done so, to verify the practice.

Ask managers and line supervisors how hiring, assignment, promotion, and compensation
decisions are made. The greater the objectivity of such decision-making, the less likely
discrimination is present. If managers and supervisors cannot answer fully, subjective decision-
making that can lead to discrimination (but does not in itself constitute such practices) may be
present.

Inquire into the system through which workers obtain housing.

Ask management what steps, if any, workers must take to terminate their employment. Ask
management if any workers have terminated their employment contracts before the term ended.

Ask management how, if at all, workers are able to access their identification papers, if
management retains them.

Child Labor

Check to ensure that management is familiar with and understands child labor regulations,
particularly restrictions on young workers.

Ask relevant management to explain factory procedures for verifying the age of workers.

Ask whether there are efforts to restrict the nature and volume of work performed by employees
under 18 years of age.


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Harassment or Abuse

Determine who is responsible for managing workers and line supervisors, and who is chiefly
responsible for ensuring that harassment and abuse do not occur.

Review disciplinary practices, processes and policies.

Ask management to explain factory policy on discipline and ask them to articulate how discipline
works in the factory by using an example of two, if possible.

Monitors should talk to line supervisors in particular to gain understanding of how they address
disciplinary practices. Ask them to provide specific examples and follow up by reviewing any
available documentation of such cases to verify supervisors accounts. Give them some typical
examples of actions that might invite discipline, ask them how they would respond, ask them if
they have had to respond to such situations and check to see if written records exist that
corroborate such examples.

Ask supervisors about their understanding of factory disciplinary policies. Ask them to explain
the policy in their own words. If factory provides any training on this, ask them to describe the
training, and what they learned from it. Ask them how it has affected their actions.

In regions where certain practices are understood to be potentially problematic (e.g., sexual
harassment in Latin America), ask managers and supervisors to explain what constitutes
appropriate and inappropriate behavior.

Determine how security personnel are trained and whether policies exist concerning their
activities. Verify by asking to see records of training as well as written guidelines for the proper
conduct of security forces jobs.

Ask management of any examples of prohibited forms of discipline.

Ask management what happens if a worker has to use the bathroom during a workshift.

Ask management what the policy is regarding presence of police or military authorities inside
factory premises.

Non-Discrimination

Ask management how hiring, assignment, promotion, and compensation decisions are made.

Ask how new employees are hired and, if relevant, what kind of job announcements are
circulated. This may indicate whether a neutral system is in place, or one that utilizes
inappropriate personal characteristics in the selection process.

Ask what processes are in place to address the needs of pregnant women.

Ask if pregnancy tests are used for any purpose, and, if so, for what reason?



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Health and Safety

Ask management whether workers have been given any information concerning health and
safety, either in terms of good practices or workplace hazards.

Ask whether there are health and safety committees, and who among managers is responsible for
health and safety within the facility.

Ask if workers know how to conduct basic health and safety activities, such as use of fire
extinguishers, personal protective equipment (PPE), emergency evacuation, use of first aid
equipment, etc.

Ask what workers do when they need medical attention. Ask management to provide specific
examples of what occurred in response to the medical needs of workers.

Where employer owned or operated residential housing or dining facilities are present on or
adjacent to the production facilities, ask management to explain policies and procedures related to
health, safety and sanitation in these facilities.

Ask whether workers have received any information on the safe operation of machinery.

Ask management if they have communicated with workers who come in contact with hazardous
chemicals whether those workers are aware of safe handling, storage, or disposal techniques.

Ask for the location of the Material Safety Data Sheets (MSDS). Determine who has access to
them and whether they are available in the local language.

Review findings gathered from other sources with management and ask them to clarify, challenge
or explain issues regarding the monitoring findings. This is a basic principle that must be applied
on all issues.

Freedom of Association and Collective Bargaining

Ask management if they understand the freedom of association provision, as well as applicable
local laws.

Inquire into any history of conflict or problems regarding workers rights of association,
organizing efforts, union membership drives, union representative access to workers, and any
management practices to counter unionization. Ask open-ended questions about what has
happened in such circumstances, with an eye towards determining whether management has
interfered with such activities.

If there is a collective bargaining agreement, ask for a copy and briefly review its terms with
management and what processes exist for raising grievances under the agreement, or in
identifying how workers representatives raise concerns with management.

If there is no union, ask management whether there is a grievance system in the factory, and to
explain how this process works. Factory management should be required to produce information
demonstrating examples of grievances raised, if any.

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Determine which management staff, if any, interact with union representatives or other workers
representatives, and determine what the process for doing so has been.

Management should be asked to describe any written policies protecting freedom of association,
as well as any non-retaliation policies.

Management should be asked about any training provided to managers and supervisors
concerning freedom of association, and steps that managers and supervisors can take to ensure
compliance with the standard.

Hours of Work

Review factory policies, records, systems and processes with management and key staff
responsible for implementing the Workplace Code of Conduct.

Ask management how they record their work hours.

Wages, Benefits and Overtime Compensation

Determine the compensation system. Ensure that it is checked against other monitoring
exercises.

Ask management to articulate policies and explain practices with regard to wages and benefits.

Ask about new hire training and training wage rates, if any.

Ask management to explain their payroll system, including how wages are calculated and how to
access all information regarding wages, hours, and benefits.

Ask management if workers have the opportunity to decline overtime work, and under what
circumstances.

Ask managers how they inform workers of required overtime and how they recruit voluntary
overtime work.

V. Exit Interviews

On completion of the site visit, Monitors shall extend basic courtesies to management by scheduling a
final meeting with factory management. In this meeting, Monitors have a final opportunity to gain clarity
on factory policies and practices, particularly when there have been instances in which monitoring
activities have uncovered conflicting information or evidence. As well, the exit interview is the
opportunity for Monitors:

To acknowledge the cooperation of the factory management in providing relevant information
and access to facilities and workers;

To reiterate the purpose of the site visit and provide a summary of findings.

To explain that, in accordance with the FLA Charter, the Monitor will provide the Company with
an initial standardized report on the factorys compliance with the Code of Conduct.
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Capacity Review

A capacity review requirement, much like a records-keeping requirement, does not directly speak to an
aspect of the Code of Conduct. Rather, it provides information that either supports or calls into question
the results and validity of a monitoring exercise. The fundamental questions posed in a capacity review
are: Does the factory possess the resources to produce final (completely constructed) product in
quantities booked or scheduled?
1
Has the factory performed all operations for work shipped in the period
under review?

While sub-contracting operations are feasible, if conducted legally, it is important that the Monitor knows
which aspects of production and what quantities of production are sub-contracted by a factory.

The Monitor, through Capacity Review, must be able to determine if:

The factory is engaged in illegal or unauthorized home sewing.

The factory is using un-acknowledged sub-contracting as a means to:

Engage in child labor.
Engage in forced labor.
Use illegal or undocumented laborers.
Violate labor laws and wage and hour requirements of the Code.
Use unsafe production facilities.

Capacity Review also provides information that can be used by the Monitor to confirm or question
information or conclusions regarding wages and hours in a factory.
2
For example, a review of schedules
and shipments might show that productivity increased significantly over a period in which time cards
show no overtime or addition of workers. Such a finding would suggest that there is a strong possibility
of overtime violation under the Code.

For these reasons, it is necessary that the Monitor validate that the factory has the capacity to meet
scheduled demand and that labor requirements match payroll. Monitors must observe work centers and
work-in-process (and compare to schedules). Are there indications that some of the work or some of the
operations are not conducted in the plant? Is work-in-progress excessive or lean? Are all work centers
staffed to do all the work?

Capacity Review, for the purposes of monitoring, does not have to be a complex industrial engineering
exercise, using complex mathematical calculations, incorporating all production variables in all
production lines. The object of Capacity Review should be an estimate or judgment of reasonableness
within some margin of error. It does require a degree of familiarity with manufacturing operations and an
understanding of the basic constraints in production lines.





1
The FLA Charter defines a supplier (factory) to mean any contractor or supplier engaged in a manufacturing
process, including cutting, sewing, assembling and packaging, which results in a finished product for the consumer.
2
It may also be possible to determine if a factory is engaged in illegal trans-shipment of goods or is involved in
creating illegal country of origin declarations.

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Specific Steps

Talk to workers at key work centers to obtain information that can assist in determining whether
work is being performed inside the factory or whether product is moving to a location where
workplace conditions may be substandard. Key work centers may include set collar in an
apparel factory or lasting in a footwear factory. Ask these workers how many pieces they can
complete in an hour or a day. Ask workers when the busiest time of production was in the last 6
to 12 months. Determine a current average number of pieces completed per hour or day, based
on the number of styles and the speed of the operator. Determine an average number of pieces
completed per hour or day during the peak period. Count how many people are working in this
work center. Based on the above, estimate how many pieces are produced by the key work center
in an average hour or day.

Talk to line management to assess information provided by workers. Ask line managers to
demonstrate all operations and which machines do which jobs. Ask which workers are
performing what jobs. Ask how many pieces are currently being produced per hour or day. Ask
how many pieces were produced at the busiest time of production in the last 6 to 12 months.
Determine if the average number of pieces produced in an hour or a day according to workers is
reasonable based on information provided by line management (in any given period).

Visually observe how many pieces are being produced at key work centers. Count piece-rate
tickets to determine if they correspond to number of pieces produced or scheduled over a fixed
time period. Determine whether product is entering the line partially completed or leaving the
lines partially complete.

Examine records to assess whether payroll, piece work volumes, production schedules and goods
completed reasonably correspond. Compare production schedules at a recent peak period
together with piece work volumes and staffing levels in the corresponding time period. Compare
purchase orders to production schedules for the same time period. Examine receiving and
shipping records to identify receipt or shipments of partially completed garments from or to
subcontractors.
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Records Review

I. Introduction

The monitoring process under the FLA requires that information gathered from an evaluation of factory
records be included. The FLA Charter states that independent external monitors:

Be given independent access to all production records and practices and wage, hour,
payroll and other employee records and practices of company factories and contractors
and suppliers.

Conduct independent audits, on a confidential basis, of an appropriate sampling of
production records and practices and wage, hour, payroll and other employee records and
practices of company factories and contractors and suppliers.

Records Review is conducted for a number of purposes, which include gathering information regarding
wages and benefits, discrimination, harassment or abuse, safety, and freedom of association. Monitors
must be able to determine that record keeping meets legal standards and is sufficiently complete to
support monitoring activities.

II. Records Availability

General Guidance

It is necessary that employers make available a variety of documents for review by Monitors. The
presence, sophistication and extent of available documentation will vary tremendously, given the size,
location and resources of the factories. Monitors will have to make judgments concerning the adequacy
and availability of records. To the extent they are appropriate, employers must make available all
requested records and documents.

Records Availability (Forced Labor, Child Labor, Harassment or Abuse, Non-Discrimination,
Health and Safety, Freedom of Association and Collective Bargaining):

Common required records include but are not limited to:

Employment contracts
Proof of age documentation
Permits for young workers
Collective bargaining agreements
Grievance files
Disciplinary notices
Personnel files
Employee manuals
Policy manuals
Injury and accident reports
Contracts between management and recruiting agencies




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Records Availability (Hours of Work; Wages, Benefits, and Overtime Compensation):

In order to determine Code compliance (regardless of national legal requirements) it is necessary that
factories have available, complete, accurate and up-to-date records of the following items on-site at all
times and for a period extending back a minimum of one year:

Time cards for all employees;

Payroll journals showing base wages, incentive or bonus earnings, hours, deductions, net pay and
gross pay;

All piecework rates and piecework calculations (or other incentive system rates and calculations
base plus, attendance bonuses, quality incentives, etc.);

Payroll deposit slips, payroll checking account ledgers and deposit receipts for tax and benefit
deductions;

Payroll tax calculations, records and reports;

Personnel files that might indicate job grades, payroll rates, job classifications, etc.

It is important to note that factories vary tremendously in size, resources (including system availability),
management capability, and record keeping. A small sew shop, led by a single supervisor, for example, is
not likely to keep a large body of personnel files or execute a formal grievance policy. Monitors will
have to take these variations into account in their Record Review.

It is also necessary that all legally required payroll documents, journals, and reports (to the extent they
differ in quantity or type from the above requirements) must be available, complete, accurate and up-to-
date. (In United States terms this would include W-4s, I-9s, Green cards, 941s and supporting materials).
Monitors must have the discretion to select records for any individual, group or department for any or
several periods of time. In other words, the factory management cannot make selections or limit which
records the Monitors may review. Naturally, negative findings from record review activity should result
in an increase in the sample size. Some of the determination of increase must be left to the discretion of
the Monitor, but, generally, it would not be unusual to conduct another 10 checks to corroborate findings
or allay concerns.
3


III. Records Review (Hours of Work; Wages, Benefits, and Overtime Compensation)

Introduction:

The goal of Record Review analysis in these areas should be to answer the following questions:

Are all deductions legal?

Are all hours recorded?

Is each worker paid the minimum wage?

3
The records availability and selection requirements described above should be made clear to management in the
initial interview and preferably before the monitoring visits are made.
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Is each worker receiving the correct premium pay for overtime?

Is incentive pay fairly calculated and correctly (and fairly) applied?

Are recorded hours of work in compliance with Code provisions for total hours of work?

Familiarization:

Prior to reviewing records, Monitors must familiarize themselves with the procedures and systems that
generate the records. Once that has been done, the Monitor should determine the sample size for various
types of records. The usefulness of monitoring for wages and benefits will be partially or largely defeated
if factory management engages in illegal or unauthorized homework, sub-contracting and trans-shipping.
While Monitors cannot always determine that such activity occurs, there must be an attempt to determine
that goods produced and shipped by the factory are made in the factory. This subject is dealt with in the
Capacity Review section above. In that section Monitors will be asked to validate that a factory has the
capacity to meet scheduled demand and that labor requirements for scheduled deliveries match payroll.

Preliminary Activities:

In reviewing or analyzing records, Monitors must:

Determine type and frequency of payroll activities. Note: If cash payments are made to workers,
increase the interview sample size significantly to validate payments.

Determine if time clocks are locked and if employees punch cards. Compare number and names
of employees working to those on time cards. Is all necessary information on time cards?
4


Compare and evaluate information on time cards, payroll sheets, computer records (if any), pay
stubs, piece-work tickets or records and any other sources of payroll activity or journal entries.
5

Is all appropriate information on stubs and other documents?

Review pay period records for the most recent three months. If payment (e.g. overtime
compensation, wages, benefits) was not properly paid for any of that time, then the Monitor shall
list the exact pay periods where pay was not in compliance. If payment was not properly paid for
the entirety of the most recent three month period then the Monitor shall state such on the Audit
& Tracking Instrument and shall further investigate payroll records for ongoing payment
noncompliances.

IV. Specific Records Review

The following suggests the steps that should be taken in conducting Records Review to provide
information and perspective that can help to ensure the effectiveness and credibility of the FLA
monitoring process.



4
All comments about time cards apply to electronic systems such as swipe cards as well. Information on computer-
generated systems must be reviewed.
5
If outside the US: Are all required documents indicating workers status current, complete, on file and available?
If in the US: Are all W-4s and I-9s current, complete, on-file and available?
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Forced Labor:

All of the documentation sources and monitoring practices in the Wages and Benefits section of
this document are also relevant to determination of forced labor because non-payment or under-
payment of wages and benefits is evidence of possible forced labor.

Review all labor contracts to ensure compliance with these provisions.

Review payroll to ensure no advances beyond this standard are paid or withheld.

Ask to see identification papers. If migrant laborers or guest workers are present, ensure that they
are present voluntarily and have free access to the originals of their identification papers.

Review records of workers who have terminated their employment contract prematurely to verify
that no inappropriate restrictions are placed on such actions.

Child Labor:

Review records to verify that, if law requires government permits or permission from parents as a
condition of employment, the employers keep all such documentation on-site for inspection at all
times.

Verify that personnel records of all workers contain the most reliable proof of age documentation,
such as a birth certificate, which verifies date of birth. If the factory is located in a region or
country where government documentation is not readily available or reliable, other means of
determination, such as medical or religious records, could be used.

In those cases where reliable, public proof of age documentation is not readily available,
determine whether other forms of verifying age are present. This could include letters from
parents, teachers or other known community members attesting to the age of the individual.

Review documentation of any apprenticeship or job training programs to ensure that participants
are not below the appropriate age.

Review documents and systems used to track work performed by workers under the age of 18. If no
system exists to track these workers, it is possible that the factory is not in compliance with standards
regulating such activities.

Harassment or Abuse:

Identify and review any factory policies prohibiting harassment or abuse. Are these
communicated to all workers? How? Do these policies have sufficient detail to inform all
factory employees of the practices that are prohibited?

Identify and review any work rules that affect harassment or abuse.

Identify and review any policies that affect the nature of disciplinary practices and which deter
harassment or abuse including: non-retaliation policy; grievance process; availability of someone
other than direct supervisor to whom grievances can be raised; factory disciplinary policy, etc.

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Review a sample of records of grievances raised and addressed by management. Determine
whether the outcome was communicated in an appropriate and confidential manner to all who
were directly affected by the outcome.

If grievance forms or secure communication channel forms are used, review the format.

Determine whether personnel files maintain records of disciplinary practices.

Determine whether managers or supervisors who have engaged in inappropriate disciplinary
practices have themselves been disciplined, and if so, whether records of this discipline are in
their personnel files.

Review a sample of personnel files, to see whether there are any records of disciplinary actions
taken, and check to see whether there appears to be an appropriate level of documentation or
explanation. Check to see if disciplinary actions are consistent in substance and process, to assess
whether such practices are applied fairly.

Discrimination:

Review personnel records and determine whether there are individuals or groups who are defined
or classed differently or placed in different wage categories (especially low wage). Any findings
should be followed-up by employee interviews and management interviews.

Review job announcements to see whether any inappropriate criteria are applied in the hiring
process.

In cases where discrimination is suspected, compare records of similarly situated workers to
determine whether employment decisions are made on the basis of job-related considerations or
discriminatory basis.

Review any written policies or guidelines to verify objectivity.

Health and Safety

Review factory documentation including: accident and illness reports, insurance reports,
personnel files (medical leave and accident information), material safety data sheets, fire drill
records, and evacuation plans.

In cases where the Monitor finds through this records review or through worker interviews, visual
observation, or any other monitoring function that there is a pattern of overexposure to unsafe conditions
(such as hazardous chemicals) or any individual incident of serious overexposure to hazardous conditions
or patterns of occupational illness or injuries, the Monitor shall report this in the report to the Company
by way of the Audit & Tracking Instrument.

In such cases, testing or other steps shall be undertaken to respond to the Monitors findings and
recommendations. Any investigation undertaken and/or remediation carried out shall comply with
applicable health and safety laws. In the absence of local laws or regulations, reference shall be made to
widely accepted industry guidelines.

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The Monitor will also be guided by instructions that the FLA may provide from time to time with respect
to chemicals that are typically found in apparel and footwear factories and their handling, storage and
disposal requirements.

Freedom of Association:

Review any collective bargaining agreements to frame the discussions with the above groups and
to determine compliance.

Examine all corporate policy documents and several personnel files (based on Record Review
guidelines) for evidence to determine level of compliance with the Freedom of Association
standard.

While respecting the confidentiality of employees, review records of grievances raised by
workers to gain evidence that the grievance process is used and that it functions fairly.

If there are allegations that any workers have been disciplined or terminated as a result of efforts
to join or promote the establishment of workers associations, review employment records to
determine the cause of such employment action. If management states that the disciplined or
fired workers were terminated for reasons other than organizing efforts, the files of other workers
who were alleged to have committed similar workplace infractions (e.g. for poor performance or
poor attendance) should be reviewed to determine whether they received similar punishments. A
record showing that these workers were treated differently than other workers for similar
infractions provides an indication that the workers may have been fired of reasons of anti-union
bias. A Monitor should seek to establish a clear record of the employers actual steps in
disciplining the workers in order to balance the written record against the oral record.

Personnel records may also be compared and examined to determine whether management has
discriminated against union members or used severance payments to terminate a union organizer
or supporter. In such cases, severance payments may reflect an unexplained additional payment
beyond that provided in law.

Inquire if the factory periodically receives from anyone outside the factory or from manufacturing
associations lists of persons who should not be hired. Inquire of management why those persons
should not be hired.

Determine whether there are any recent or current legal actions filed regarding freedom of association
issues in this factory, and if so, examine all available documents.

Hours of Work:

Perform multiple checks for hours and days worked per week at various times of the year.

Cross-verify different documents (leave registers, production records, time-keeping records and
so forth) to identify discrepancies in hours of work records.

Review hours of work policies and procedures and verify whether they are in compliance with
local laws or the FLA Workplace Code of Conduct.

Examine any waivers permitting hours of work beyond normal overtime hours.
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Wages, Benefits and Overtime Compensation:

Perform multiple checks for correct computation of minimum wage.

Perform multiple checks for correct computation of overtime wage.

Perform multiple checks for accuracy of weekly gross wage.

Perform multiple checks for accuracy of incentive (piece-work or quota) compensation.

Review documentation of tax and social insurance deposits.

Check deductions for accuracy; cross match with employee interviews and bank or agency
deposit records.

Cross match data from all information sources IDs, names, payroll journals, piece-work tickets,
time cards, attendance sheets, personnel records, payroll journals, pay stubs, and checking
account records.

Compare plant practices to local and code.




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Visual Inspection

Visual observation of the physical structure of the factory complex, including production rooms,
dormitories, canteens and cafeterias (if applicable), provides another basis for the Monitor to make
informed judgments about compliance with the Code provisions. Visual observation can be performed on
an announced or unannounced basis.

Forced Labor

Observation of factory entrances, docks, warehouses and dormitories, particularly at shift changes
may reveal worker movement or transportation of goods to secondary locations. These locations
may house forced labor. The necessity for surveillance should normally be left to the judgment
of the Monitor or monitoring team.

Child Labor

Observe any employees who appear to be very young. Identify them and follow-up through an
appropriate combination of interviews and record review (proof of age, etc.).

Identify any areas that are secured or off-limits. Insist on entry for monitoring purposes.

Identify groups of machines or work stations not staffed. Ask other workers the names of people
who normally work at these stations. Ask them to describe the workers. Check their personnel
files.

If there are any child care or apprenticeship facilities near the factory, observe if any underage
persons linked to those facilities are near or present in the factory.

Determine if there are areas, operations and functions in the factory that are considered hazardous
for underage workers (i.e. those under 18).

Surveillance: Observation of factory entrances, docks, warehouses and dormitories, particularly
at shift changes may reveal worker movement or transportation of goods to secondary locations.
These locations may house child labor.

Harassment or Abuse

Observe the environment in the factory, and compare it to others locally. If workers appear
substantially more or less comfortable, that may provide clues as to the disciplinary practices of
the factory. It is important to keep in mind cultural differences in making this assessment.

Determine whether managers and line supervisors speak the language of workers. If not, that
may suggest that disciplinary practices are more complicated or difficult.

Observe to what extent workers appear to interact with each other and their supervisors. A
complete lack of interaction may suggest a harsh environment, although it is again necessary to
consider cultural tendencies.

Determine if there are signs posted that communicate to workers how they can raise complaints
without fear of retaliation. Are these posted visibly enough to communicate a genuine
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commitment? Is there a secure on-site communication channel, such as a suggestion box? Where
is it posted is it in a location that is likely to promote or deter use, e.g., is it posted right by the
management office?

Determine if the Workplace Code is posted in the local language. Are any other work rules
posted? Are they consistent with the Code? Is a non-retaliation policy posted and in a visible
place? Are signs posted that indicate to workers how, and to whom, they can raise concerns
about harassment or abuse?

Non-Discrimination

Assess whether the demographic nature of the workforce is significantly different than those in
other similar facilities in the area. If there are substantial differences, this may indicate a need to
determine the possibility of discriminatory practices.

Determine whether disadvantaged groups (or other groups) appear to predominate in particular
jobs. While this may possibly simply reflect cultural practices rather than discrimination, it may
also indicate, though not prove, that certain groups are channeled into certain positions, notably
low-paying jobs.

Check to see whether pregnant women are present. In locations where the presence of pregnant
women is likely given the workforce and local cultural norms, their absence could indicate
pregnancy discrimination.

Check to see if regulations barring discrimination are prominently posted where workers can read
them.

Health and Safety

The Audit & Tracking Instrument provides a list of the elements of Health and Safety to be reviewed in
the visual inspection. These include readily discernible items such as general appearance and
maintenance; fire safety including evacuation plans and fire extinguishers and alarms; electrical wiring;
medical facilities and first aid kits; machine guarding; personal protective equipment; hazardous and
combustible materials use, storage and control; comfort and cleanliness including bathroom facilities;
dining facility and food preparation; and dormitory conditions.

In cases where the Monitor finds through this visual inspection, or through worker interviews, records
review, or any other monitoring function that there is a pattern of overexposure to unsafe conditions (such
as hazardous chemicals), or any individual incident of serious overexposure to hazardous conditions, or
patterns of occupational illness or injuries, the Monitor shall report this to the Company in the Audit &
Tracking Instrument. Moreover, if strong odors are present or exceptionally loud conditions prevail or
workers complain about poor air quality or there is other indication of a substantial unresolved problem
the Monitor shall report this to the Company. In every case, the Monitor shall: raise this issue with
management; review any testing conducted by the Company, independent consultants and/or the
employer; review reports, permits or previous remediation; and report managements response along with
a report of the problem to the Company.

In cases where there is evidence of an unresolved problem, testing or other steps shall be undertaken to
respond to the Monitors findings and recommendations. Any investigation undertaken and/or
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remediation carried out shall comply with applicable health and safety laws. In the absence of local laws
or regulations, reference shall be made to widely accepted industry guidelines.

The Monitor will also be guided by instructions that the FLA may provide from time to time with respect
to chemicals that are typically found in apparel and footwear factories, and their handling, storage and
disposal requirements.

Freedom of Association and Collective Bargaining

Observe any posted rules unreasonably restricting workers ability to communicate freely with
each other. These may restrict freedom of association.

If workers meet with management and/or supervisors to discuss complaints, where do these
meetings occur? Such meetings should occur in a setting where the workers confidentiality is
protected.

Ensure that egress which is consistent with the Code is provided to all workers.

Hours of Work

Are time-keeping devices (e.g., time clocks) correctly used?

Are there multiple means by which workers record hours worked?

Observe the time at which workers arrive and leave the factory to check the hours worked and to
see whether workers swipe their own cards.

Wages, Benefits and Overtime Compensation

Closely examine practices in the factory work area. Are there cases where workers who are
ostensibly being paid on an hourly basis and found to be counting pieces or collecting tickets?
Are there tickets or tick sheets at employee work stations?

Are people punching out and then returning to work?

When surveillance is required, observation of factory entrances or docks just before or just after
working hours will sometimes reveal home work arriving or departing and may possibly reveal
people engaging in cash transactions. Returning unexpectedly to a time clock shortly after
closing time may reveal employees working off the clock.


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Analysis and Reporting

The Monitor or monitoring team must analyze the information gathered as discussed in previous sections
of this document. The Monitors must then compare and contrast information received from external
sources and internal sources including worker interviews, management interviews, capacity reviews,
record reviews, general visual observation and observation of health and safety conditions. Testimony,
policies and documents must be cross-checked against visual inspection and actual practice. Conflicting
findings must be sorted out through reiteration and further analysis.

Monitors must thoroughly and objectively sift through a large body of information and make sound,
unbiased judgments concerning compliance with the Code of Conduct. Independent external monitors
may not play a role as mediator or arbitrator of grievances or review broad social issues except as related
to the monitoring process.

The FLA does not intend to fully prescribe the methods and practices used by Monitors to assess
information and make conclusions. Rather, it is the responsibility of the monitoring organization to
conduct these activities in an objective and unbiased manner.

In addition, the FLA Charter requires that

Each accredited independent external monitor conducting external monitoring inspections
for a company shall provide to such company an initial standardized report on each
applicable facility inspected by such independent external monitor.

As well, the Charter requires that Companies be supplied with

a description of any significant and/or persistent patterns of noncompliance, or
instances of serious noncompliance, with the Workplace Code or Monitoring Principles
found at the applicable facility by the accredited independent external monitor.

The FLA Audit & Tracking Instrument provides a basis for gathering and systematically reporting
findings. It is the basic form for reporting findings to the Company and to the FLA.

The Charter also defines the type and timing of reports. Within ten days (i.e. ten consecutive days, not
ten business days) after monitoring a factory the Monitor must submit the completed Audit & Tracking
Instrument to the Company.

The Monitor should also keep a copy of all submitted documents for at least three years. The FLA may
request to review these documents if further details on a particular IEM are required.

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COMPLIANCE BENCHMARKS

The Compliance Benchmarks were revised after the October 2006 FLA Board meeting. New benchmarks
were added at that time. All new benchmarks have been labeled accordingly.

Notes Applicable to All Benchmarks

Where reference is made to local laws, regulations or procedures, it is assumed that this includes the
provisions of freely negotiated and valid collective bargaining agreements even when not specifically
mentioned.

Where laws and the Workplace Code of Conduct are contradictory, the standard that provides the greatest
protection for workers shall apply.

Where provisions are lacking, employers shall take measures, such as creating policies and procedures, to
reasonably accommodate matters concerning the Code provision.

After each benchmark there is a denotation of either (S) or (P). Substantive benchmarks, which set out
the level of compliance required to be in conformity with the rights and duties contained in the FLA
Code, are indicated with the letter (S). Procedural benchmarks, which define a course of action to be
taken in order to increase the probability that the rights and duties contained in the FLA Code are
respected and fulfilled, are indicated with the letter (P).

I. FORCED LABOR (F)

WORKPLACE CODE PROVISION: There will not be any use of forced labor whether in the
form of prison labor, indentured labor, bonded labor or otherwise.

Benchmarks

F.1 General Compliance Forced Labor (New Benchmark)
Employers shall comply with all local laws, regulations and procedures concerning the prohibition of
forced labor. (S)

F.2 Freedom in Employment
All workers shall have the right to enter into and to terminate their employment freely. (P)

F.3 Employment Terms/Voluntary Agreement
Employment terms shall be those to which the worker has voluntarily agreed, in as far as those terms do
not fall below provisions of local laws, freely negotiated and valid collective bargaining agreements, or
the FLA Code. (P)

F.4 Employment Terms/Prohibitions
There can be no employment terms (including in contracts or any other instruments or in any formal or
informal recruitment arrangements) which: specify that employees can be confined or be subjected to
restrictions on freedom of movement; allow employers to hold wages already earned; provide for
penalties resulting in paying back wages already earned; or in any way punish workers for terminating
employment. (P)



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F.5 Debt/Bonded Labor
Employers shall not bind workers to employment as a condition of fulfilling terms of a debt to a third
party or to the employer. (S)

F.6 Wage Advances
Wage advances shall not exceed three months pay or legal limits, whichever is less. Advances shall only
be made following clearly established factory rules which have been communicated to workers.
Advances must be properly documented and their receipt and accuracy must be confirmed by the relevant
worker in writing (signature, thumbprint, etc.). (P)

F.7 Free Disposal of Wages/Cash and In-Kind Compensation
Employers shall not limit in any manner the freedom of workers to dispose of their wages. Workers shall
be compensated for their work directly through the provision of cash or its equivalent. The partial
payment of wages in the form of allowances in-kind is permissible when: allowed under local law, and as
long as legal limits are complied with; they are appropriate for the personal use and benefit of the worker
and his or her family; or the value attributed to such allowances is fair and reasonable and receipt of in-
kind compensation is voluntary. Wages must be paid on regular working days and in principle at or near
the workplace. Workers must be free from any coercion to make use of factory or works stores. (P)
6


F.8 Recruitment through Referrals
Workers shall not be engaged to work in a factory by a family member, friend or associate in order for
that family member, friend or associate to receive continuing remuneration, consideration, or any other
return from the employer. (P) This shall not refer to normal references, referral bonuses or standard
employment recruitment practices.

F.9 Employment Records
Employers shall maintain sufficient hiring and employment records to demonstrate and verify compliance
with this Code provision. (P)

F.10 Freedom of Movement
If factory entrances are locked or guarded to prevent non-employee access to the premises for security
reasons, workers shall have free egress at all times. (S/P)

F.11 Employer Controlled Residence
Employers shall not require workers to live in employer-owned or controlled residences as a condition of
recruitment, continued employment or to receive the same terms of employment and working conditions
as other workers in the same position. Employers shall not subject workers to any undue influence to
persuade workers to live in such residences. (P)

F.12 Freedom of Movement/Employer Controlled Residence
The freedom of movement of workers who live in employer controlled residences shall not be
unreasonably restricted. (P)

F.13 Worker Ability to Terminate-Freedom of Movement
Employers shall not utilize practices that restrict a workers ability to terminate his or her employment or
freedom of movement. Examples of such practices include, but are not limited to:
(the threat of) physical or mental coercion;
requiring deposits;
imposing financial penalties;

6
See also WBOT.28
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requiring recruitment fees;
setting production targets or piece rates at such a level that workers need to work beyond normal
working hours (excluding overtime) as set under the FLA Code in order to make the legal
minimum wage or the prevailing industry wage; and
denying and hampering access to, and renewal of, identity papers and/or work permits or any
other personal legal (identification) documents. (S)

F.14 Forced Overtime (New Benchmark)
The imposition of mandatory overtime beyond the limits set by the law, a freely negotiated collective
bargaining agreement, and/or the FLA Code, in an environment where a worker is unable to leave the
work premises, constitutes forced labor. (S)

F.15 Personal Worker Identification and Other Documents
Workers shall retain possession or control of their passports, identity papers, travel documents or any
other personal legal documents. Employers shall not retain any such documents to restrict workers
access to them for any reason whatsoever, including in order to ensure that workers shall remain in
employment in the factory. (S) Employers may obtain copies of original documents for record-keeping
purposes.

F.16 Storage for Employee Documents
Employers shall provide, at employee request, secure storage for employee documents. Such storage
shall be freely accessible to workers. (P)

F.17 Prison Labor (New Benchmark)
Prison labor shall only be used when the work or service is exacted as a consequence of a conviction in a
court of law. The work of prisoners requires the freely given consent of the workers concerned, without
the menace of any penalty, such as loss of (prison) privileges or an unfavorable assessment of behavior
taken into account for reduction of sentence. Conditions of work by prisoners must approximate
conditions of a free employment relationship in terms of wage levels, social security and other benefits,
and safety and health. (S)

II. CHILD LABOR (CL)

WORKPLACE CODE PROVISION: 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.

Benchmarks

CL.1 General Compliance Child Labor (New Benchmark)
Employers shall comply with all local laws, regulations and procedures concerning the prohibition of
child labor. (S)

CL.2 Child Labor (New Benchmark)
Employers shall not employ children 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. (S)




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CL.3 Proof of Age Documentation
Employers shall collect and maintain all documentation necessary to confirm and verify date of birth of
all workers, such as birth certificates. In addition, the employers shall take reasonable measures to ensure
such documentation is complete and accurate. (P)

CL.4 Other Means of Age Verification
In those cases where proof of age documentation is not readily available or unreliable, employers shall
take all necessary precautions which can reasonably be expected of them to ensure that all workers are at
least the minimum working age, including requesting and maintaining medical or religious records of
workers, or through other means considered reliable in the local context. (P)

CL.5 Government Permits and Parental Consent Documentation
Employers shall abide by all relevant rules and procedures where the law requires government permits or
permission from parents as a condition of employment, and shall keep documentation on-site for
inspection at all times. (P)

CL.6 Employment of Young Workers
Employers shall comply with all relevant laws that apply to young workers (i.e., those between the
minimum working age and the age of 18) including regulations relating to hiring, working conditions,
types of work, hours of work, proof of age documentation, and overtime. (P)

CL.7 Hazardous Work for Young Workers
No person under the age of 18 shall undertake hazardous work, i.e., work which, by its nature or the
circumstances in which it is carried out, is likely to harm the health, safety or morals of persons under the
age of 18. (S)

CL.8 Young Worker Identification System
Employers shall have a system for identifying work stations and operations that are inappropriate for
young workers according to applicable laws. (P)

CL.9 Minimum Working Age (Apprenticeships and Vocational Training)
Apprentices or vocational students shall be at least the higher of (a) the legal minimum working age for
work done in schools for general, vocational or technical education or in other training institutions, or (b)
at least 14 years of age for work done in factories where such work is carried out in accordance with
conditions prescribed under local laws, regulations and procedures. (S)

CL.10 Legal Compliance (Apprenticeships and Vocational Training)
Employers shall comply with all regulations and requirements of apprentice or vocational education
programs, and shall be able to document to Monitors that these are legally recognized programs. Informal
arrangements of any kind are not acceptable. (P)

CL.11 Child Care Facilities
Childcare facilities shall not physically overlap with production areas, and children shall not have access
to production areas. (P)

CL.12 Children on Premises
Children under the minimum working age shall not be allowed in factory work areas at any time, unless
they are part of a guided school group tour or other such unusual event. Children must not visit parents in
factory work areas. (P)


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III. HARASSMENT OR ABUSE (H&A)

WORKPLACE CODE PROVISION: Every employee will be treated with respect and dignity. No
employee will be subject to any physical, sexual, psychological or verbal harassment or abuse.

Benchmarks

H&A.1 General Compliance Harassment or Abuse (New Benchmark)
Employers shall comply with all local laws, regulations and procedures concerning discipline, violence,
harassment or abuse. (S)

H&A.2 Discipline/Progressive Discipline
Employers shall have a written system of progressive discipline (e.g., a system of maintaining discipline
through the application of escalating disciplinary action moving, for instance, from verbal warnings to
written warnings to suspension and finally to termination). Any exceptions to this system (e.g.,
immediate termination for gross misconduct, such as theft or assault) shall also be in writing and clearly
communicated to workers. (P)

H&A.3 Discipline/Review of Disciplinary Action (New Benchmark)
The disciplinary system shall include possibilities for workers to have disciplinary action imposed on
them reviewed by someone at a higher managerial position than the manager who imposed the
disciplinary action. In addition, such a system shall include the ability of a worker to appeal and/or
question any disciplinary action against him or her and/or have a third party of his or her choice present
when the disciplinary action is being imposed. (P)

H&A.4 Discipline/Fair and Non-discriminatory Application
Employers shall apply disciplinary rules, procedures and practices in a fair and non-discriminatory
manner to all workers. (S)

H&A.5 Discipline/Written Disciplinary System
Employers shall maintain a system of written disciplinary rules, procedures and practices. Disciplinary
rules, procedures and practices shall be clearly communicated to all workers. (P)

H&A.6 Discipline/Worker Awareness and Participation of Workers
Workers must be informed when a disciplinary procedure has been initiated against them. Workers have
the right to participate and be heard in any disciplinary procedure against them. Employers shall maintain
written records of all disciplinary actions taken. Workers must sign all written records of disciplinary
action against them. Such records must be maintained in the workers personnel file. (P)

H&A.7 Discipline/Training of Management
Employers shall ensure managers and supervisors are fully familiar with the factory disciplinary system
and trained in applying appropriate disciplinary practices. (P)

H&A.8 Discipline/Monetary Fines and Penalties
Employers shall not use monetary fines and penalties as a means to maintain labor discipline, including
for poor performance or for violating company rules, regulations, and policies. (S)

H&A.9 Discipline/Access to Facilities
Access to food, water, toilets, medical care or health clinics or other basic necessities shall not be used as
either reward or as a means to maintain labor discipline. (S)

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H&A.10 Discipline/Physical Abuse
Employers shall not use any form of or threat of physical violence, including slaps, pushes or any
other forms of physical contact as a means to maintain labor discipline. (S)

H&A.11 Discipline/Verbal Abuse
Employers shall not use any form of verbal violence, including screaming, yelling, or the use of
threatening, demeaning, or insulting language, as a means to maintain labor discipline. (S)

H&A.12 Discipline/Freedom of Movement
Employers shall not unreasonably restrain the freedom of movement of workers, including movement in
canteens, during breaks, using toilets, accessing water, or to access necessary medical attention, as a
means to maintain labor discipline. (S)

H&A.13 Violence/Harassment/Abuse (New Benchmark)
Employers shall ensure that the workplace is free from any type of violence, harassment or abuse, be it
physical, psychological, sexual, verbal, or otherwise. Employers shall refrain from any action and shall
take all appropriate action to ensure that all workers refrain from any action that would result in an
intimidating, hostile or offensive work environment for workers. (S)

H&A.14 Sexual Harassment
Employers shall refrain from: any act of sexual harassment, including any insult or inappropriate remark,
joke, insinuation and comment on a person's dress, physique, age, family situation, etc; a condescending
or paternalistic attitude with sexual implications undermining dignity; any unwelcome invitation or
request, implicit or explicit, whether or not accompanied by threats; any lascivious look or other gesture
associated with sexuality; and any unnecessary physical contact such as touching, caresses, pinching or
assault. Employers shall not offer or take any action that may suggest an offer of recruitment,
continued employment, promotion, improved working conditions, preferential work assignments or other
preferential treatment of any kind in actual or implied exchange for a sexual relationship, nor subject
workers to prejudicial treatment of any kind in retaliation for refused sexual advances or corrected
inappropriate behavior. Employers shall refrain from any action and shall take all appropriate action to
ensure that all workers refrain from any action that would result in a sexually intimidating, hostile or
offensive work environment for workers. (S)

H&A.15 Security Practices/Body Searches
All security practices shall be gender-appropriate and non-intrusive, so that the dignity of the worker
concerned is protected when a search is undertaken. Searching of bags and other personal items to
prevent theft is acceptable. Body searches and physical pat-downs shall only be undertaken when there is
a legitimate reason to do so and upon consent of the worker, unless a state official with the power to do so
(such as police officer) has ordered the search. Body searches cannot be undertaken in public and the
person who undertakes the search shall be of the same sex as the person who is being searched. (S)

H&A.16 Punishment of Abusive Workers/Supervisors/Managers
Management shall discipline anyone (including managers, supervisors or fellow workers) who engages in
any physical, sexual, psychological or verbal violence, harassment or abuse, regardless of whether such
action was intended as a means to maintain labor discipline. Such discipline could include (combinations
of) compulsory counseling, warnings, demotions and termination. (P)





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IV. NON-DISCRIMINATION (D)

WORKPLACE CODE PROVISION: 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.

Benchmarks

D.1 General Compliance Non-Discrimination (New Benchmark)
Employers shall comply with all local laws, regulations and procedures concerning non-discrimination.
(S)

D.2 Employment Decisions
All employment decisions shall be made solely on the basis of a persons qualifications, in terms of
education, training, experience, demonstrated skills and/or abilities, as they relate to the inherent
requirements of a particular job. (P)

D.3 Recruitment and Employment Practices (Job Advertisements, Job Descriptions and
Evaluation Policies)
Recruitment and employment policies and practices, including job advertisements, job descriptions, and
performance/job evaluation policies and practices shall be free from any type of discriminatory bias. (S)

D.4 Sex-Based Wage Discrimination
There shall be no differences in remuneration for men and women workers for work of equal value.
Remuneration (wages, compensation) includes the basic minimum or prevailing industry wage and any
additional payments to be made directly or indirectly, whether in cash or in-kind, by the employer to the
worker and arising out of the workers employment. Such additional payments include wage differentials
or increments based on seniority or marital status, cost of living allowances, housing or residential
allowances, family allowances, benefits in-kind such as the allotment and cleaning of work clothes or
safety equipment, and social security benefits. (S)

D.5 Marital Discrimination
Employers shall not discriminate on the basis of marital status. (S)

D.6 Pregnancy Testing
Employers shall not use pregnancy tests or the use of contraception as a condition of hiring or of
continued employment. Employers shall not require pregnancy testing of female workers, except as
required by national law. In such cases, employers shall not use (the results of) such tests as a condition
of hiring or continued employment. (S)

D.7 Possible Marriage or Pregnancy (New Benchmark)
Employers shall not threaten female workers with dismissal or any other employment decision that
negatively affects their employment status in order to prevent them from getting married or becoming
pregnant. (S)

D.8 Pregnancy and Employment Status
Employers shall not, on the basis of a womans pregnancy, make any employment decisions that
negatively affect a pregnant womans employment status, including decisions concerning dismissal, loss
of seniority, or deduction of wages. (S)

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D.9 Protection and Accommodation of Pregnant Workers and New Mothers
Employers shall abide by all protective provisions in local laws and regulations benefiting pregnant
workers and new mothers, including provisions concerning maternity leave and benefits, prohibitions
regarding night work, temporary reassignments away from work stations and work environments that may
pose a risk to the health of pregnant women and their unborn children or new mothers and their new born
children, temporary adjustment of working hours during and after pregnancy, and the provision of breast-
feeding breaks and facilities. Where such legal protective provisions are lacking, employers shall take
reasonable measures to ensure the safety and health of pregnant women and their unborn children. Such
measures shall be taken in a manner that shall not unreasonably affect the employment status, including
wages and benefits, of pregnant women. (P)

D.10 Health Status (New Benchmark)
Employers shall not, on the basis of a persons health status, make any employment decisions that
negatively affect the persons employment status, including decisions concerning recruitment, termination,
promotion, or assignment of work, unless such decision is dictated by the inherent requirements of the job
or a medical necessity to protect the worker and/or other workers. (S)

D.11 Medical Examination (New Benchmark)
Employers are allowed to require routine medical examination for fitness as a condition of recruitment or
continued employment. Such examination shall, however, be strictly limited to assess general fitness, and
not include testing for any disease or illness, such as HIV/AIDS, that does not have an immediate effect
on a persons fitness and/or is not contagious. (P)

D.12 Confidentiality of Health Status (New Benchmark)
Employers shall respect the confidentiality of workers health status and not undertake any action that
could lead to breach of said confidentiality, including screening of any kind, whether by direct testing,
indirect testing (for instance, by making an assessment of risk behavior) or asking questions about tests
already taken or about medication. (P)

D.13 Reasonable Accommodation for Health Reasons (New Benchmark)
Employers shall take measures to reasonably accommodate workers with (chronic) illnesses, including
HIV/AIDS-related illnesses, which could include rearrangement of working time, the provision of special
equipment, opportunities for rest breaks, time-off for medical appointments, flexible sick leave, part-time
work and return-to-work arrangements. (P)

D.14 Discriminatory Violence/Harassment/Abuse (New Benchmark)
Any type of violence, harassment or abuse, be it physical, psychological, sexual, verbal, or otherwise,
undertaken on any of the grounds referred to in the Code provision shall constitute discrimination. (S)

V. HEALTH AND SAFETY (H&S)

WORKPLACE CODE PROVISION: 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.

Benchmarks

H&S.1 General Compliance Health and Safety (New Benchmark)
Employers shall comply with all local laws, regulations and procedures concerning health and safety. (S)


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H&S.2 Document Maintenance/Worker Accessibility and Awareness
All documents required to be available to workers and management by applicable laws (such as health
and safety policies, MSDS, etc.) shall be made available in the prescribed manner and in the local
language or language(s) spoken by the workers if different from the local language. (P)

H&S.3 Written Health and Safety Policy (New Benchmark)
Employers are required to develop, maintain and regularly review a written health and safety policy. The
policy must, at the very least, be aimed at complying with legal minimum safety and health standards,
regulations and procedures. (P)

H&S.4 Worker Consultation
The health and safety policy shall be developed and implemented in consultation with workers or their
representatives. (P)

H&S.5 Health and Safety Management System (New Benchmark)
The health and safety policy shall contain the framework for a comprehensive health and safety
management system within which employers responsibilities and workers rights and duties, various
responsibilities of designated personnel, procedures that enable workers to raise health and safety
concerns and procedures for reporting death, injury, illness and other health and safety issues (for
instance, near-miss accidents) are clear and regularly tested and reviewed. (P)

H&S.6 Communication to Workers
The health and safety policy shall be communicated to all workers in the local language or language(s)
spoken by workers if different from the local language. (P)

H&S.7 Notification and Record Maintenance
Employers shall notify the relevant authorities of all illnesses and accidents as required by applicable
laws. All illness, safety and accident reports shall be maintained on site for at least one year, or longer if
required by law. (P)

H&S.8 Permits and Certificates
The employer shall at all times be in possession of all legally required and valid permits and certificates
related to health and safety issues, such as those related to the purchase and storage of chemicals, fire
safety inspections, inspection of machinery, and (chemical) waste disposal. (P)

H&S.9 Evacuation Requirements and Procedure
All applicable legally required or recommended elements of safe evacuation (such as posting of
evacuation plans, the installation and maintenance of an employee alarm and emergency lighting systems,
ensuring aisles/exits are not blocked and that workers are not blocked within their workstations, employee
education, evacuation procedures, etc.) shall be complied with. Workers shall be trained in evacuation
procedures. Alarm systems shall be regularly tested and evacuation drills shall be undertaken at least
annually. (S)

H&S.10 Safety Equipment and First Aid Training
All safety and medical equipment (such as fire fighting equipment, first aid kits, etc.) shall be available in
sufficient numbers throughout the factory, maintained and stocked as prescribed and easily accessible to
workers. A sufficient number of workers shall be trained in first aid and fire fighting techniques. (S)

H&S.11 Personal Protective Equipment
Workers shall be provided with effective and all necessary personal protective equipment (such as gloves,
eye protection, hearing protection, respiratory protection, etc.) to prevent unsafe exposure (such as
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inhalation or contact with solvent vapors, noise, dust, etc.) to health and safety hazards, including medical
waste. (S)

H&S.12 Use of Personal Protective Equipment
Workers shall not incur any costs related to the normal and regular provision and maintenance of personal
protective equipment. (P)

H&S.13 Chemical Management and Training
All chemicals and hazardous substances shall be properly labeled and stored in accordance with
applicable laws. Labels shall be placed in the local language and the language(s) spoken by workers, if
different from the local language. Workers shall receive training, appropriate to their job responsibilities,
concerning the hazards, risks and the safe use of chemicals and other hazardous substances. (S)

H&S.14 Material Safety Data Sheets/Worker Access and Awareness
Material Safety Data Sheets (MSDS) for all chemicals used in the factory must be available at the usage
and storage sites of the chemicals, in the local language and the language(s) spoken by workers, if
different from the local language. Workers shall have free access to MSDS. (P)

H&S.15 Chemical Management for Pregnant Women and Young Workers
To prevent unsafe exposure to hazardous chemicals, specific appropriate accommodations shall be made
for pregnant women and workers under the age of 18 as required by applicable laws or the provisions of
the FLA Code in a manner that does not unreasonably disadvantage workers. (S)

H&S.16 Protection Reproductive Health
Employers shall ensure that women are not engaged in work that constitutes a substantial risk to their
reproductive health. (S)

H&S.17 Ventilation/Electrical/Facility Installation and Maintenance
All necessary ventilation, plumbing, electrical, noise and lighting services shall be installed and
maintained to conform to applicable laws and in such a manner as to prevent or minimize hazardous
conditions to workers in the facility. (S)

H&S.18 Machinery Maintenance and Worker Training
All production machinery, equipment and tools shall be regularly maintained and properly guarded.
Workers shall receive training in the proper use and safe operation of machinery, equipment and tools
they use. Employers shall ensure safety instructions are either displayed/posted near all machinery or are
readily accessible to the workers. (S)

H&S.19 Proper Use of Machinery
Employers shall only use positive incentives (risk awareness training, demonstration of proper use,
awards, bonuses, etc.) to ensure workers use machinery, equipment and tools properly and safely.
Workers shall not suffer any negative consequences for refusing to work with machinery, equipment or
tools that are not properly guarded or reasonably considered unsafe. (P)

H&S.20 Bodily Strain (New Benchmark)
Workstations, including seating and standing arrangements and reach required to obtain tools, shall be
designed and set-up in such a manner as to minimize bodily strains. Employers shall train workers in
proper lifting techniques and items such as belts shall be provided. (S)



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H&S.21 Medical Facilities
Medical facilities shall be established and maintained in factories as required by applicable laws. Medical
staff shall be fully licensed and recognized under applicable local rules and regulations. An appropriate
number of medical staff shall be on duty during all working hours, including any type of overtime, as
required under local law. An appropriate stock of medical supplies shall be maintained at all times.
Medicines of which the expiration date has passed must be replaced immediately and disposed of in a safe
manner. (P)

H&S.22 Sanitation in Factory Facilities
All facilities including factory buildings, toilets, canteens, kitchens, and clinics, shall be kept clean and
safe and be in compliance with all applicable laws, including relevant sanitation, medical and safety and
health regulations. (S)

H&S.23 Toilets
Employers shall establish the number of toilets required under applicable laws within reasonable distance
of the workplace. (S)

H&S.24 Toilets/Restrictions
Employers shall not place any undue restrictions on toilet use in terms of time and frequency. (P)

H&S.25 Food Preparation
All food made available to workers shall be prepared, stored, and served in a safe and sanitary manner in
accordance with all applicable laws. All workers handling food shall be provided with the tools and
equipment necessary to do so in a safe and sanitary manner. (S)

H&S.26 Drinking Water
Safe and clean drinking water shall be freely available at all times, within reasonable distance of the
workplace. Drinking water shall be of a reasonable temperature and the means to drink water (cups, etc.)
must be safe and sanitary and available in an appropriate number. (S)

H&S.27 Drinking Water/Restrictions
Employers shall not place any undue restrictions on drinking water in terms of time and frequency. (P)

H&S.28 Sanitation in Dormitories
All dormitories shall be kept secure, clean and have safety provisions (such as fire extinguishers, first aid
kits, unobstructed emergency exits, emergency lighting etc.). Emergency evacuation drills shall also be
conducted at least annually. (S)

VI. FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING (FOA)

WORKPLACE CODE PROVISION: Employers will recognize and respect the right of employees
to freedom of association and collective bargaining.

Benchmarks

FOA.1 General Compliance Freedom of Association (New Benchmark)
Employers shall comply with all local laws, regulations and procedures concerning freedom of
association and collective bargaining. (S)



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FOA.2 Right to Freely Associate
Workers, without distinction whatsoever, shall have the right to establish and, subject only to the rules of
the organization concerned, to join organizations of their own choosing without previous authorization.
The right to freedom of association begins at the time that a worker seeks employment, and continues
through the course of employment, including eventual termination of employment, and is applicable as
well to unemployed and retired workers. (S)

FOA.3 Employer Interference and Control
Employers shall refrain from any acts of interference with workers organizations, including acts which
are designed to establish or promote the domination, financing or control of workers organizations by
employers. (S)

FOA.4 Deduction of Union Dues and Other Fees (New Benchmark)
Employers cannot deduct union membership fees or any other union fees from workers wages without
the express and written consent of individual workers, unless specified otherwise in freely negotiated and
valid collective bargaining agreements. (S)

FOA.5 Employer Interference/Constitution, Elections, Administration, Activities and
Programs
Employers shall not interfere with the right of workers to draw up their constitutions and rules, to elect
their representatives in full freedom, to organize their administration and activities and to formulate their
programs. (S)

FOA.6 Employer Interference/Registration
The employer shall not attempt to influence or interfere in any other way, to the detriment of workers
organizations, with government registration decisions, procedures and requirements regarding the
formation of workers organizations. (S)

FOA.7 Employer Interference/Favoritism
Employers shall not interfere with the right to freedom of association by favoring one workers
organization over another. (S)

FOA.8 Employer Interference/Formation of Alternative Organizations
In cases where a single union represents workers, the employer shall not attempt to influence or interfere
in any way in workers ability to form other organizations that represent workers. (S)

FOA.9 Production Shift/Factory Closure to Prevent Exercise of Freedom of
Association
Employers shall not (threaten to) shift production or close a factory in an attempt to prevent the formation
of a union, in reaction to the formation of a union, in reaction to any other legitimate exercise of the right
to freedom of association and collective bargaining, including the right to strike, or in an effort to break
up a union. (S) If a factory is closing and is suspected of doing so to prevent or hamper the legitimate
exercise of the right to freedom of association, the employer shall provide proof that can be assessed by a
third party to determine the validity of these reasons given for closure. (P)

FOA.10 Anti-Union Violence/Harassment/Abuse
Employers shall not in any way use violence against, threaten, intimidate, harass or abuse workers
seeking to form or join workers organizations or workers participating or intending to participate in
union activities, including strikes. (S)


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FOA.11 Employer Interference/Police and Military Forces
The employer shall not in any way threaten the use of or use the presence of police or military, to prevent,
disrupt or break up any activities that constitute a peaceful exercise of the right to freedom of association,
including union meetings, assemblies and strikes. (S)

FOA.12 Anti-Union Discrimination/Dismissal, Other Loss of Rights, and Blacklisting
The employer shall not engage in any act of anti-union discrimination, i.e., shall not make any
employment decisions which negatively affect a worker, based wholly or in part on a workers union
membership or participation in union activity, including the formation of a union, previous employment
in a unionized facility, participation in collective bargaining efforts or participation in a legal strike.
Employment decisions include: hiring; termination; job security; job assignment; wages; bonuses;
allowances; all other forms of compensation and benefits (social security, retirement, health insurance,
etc.); promotion; downgrading; transfer; (vocational) training; discipline; and assignment of work and
conditions of work including hours of work, rest periods, annual holidays with pay, and occupational
safety and health measures. The use of blacklists used to contravene the exercise of the right to freedom
of association, for instance blacklists based on union membership or participation in union activity, also
constitutes anti-union discrimination. (S)

FOA.13 Protection of Union Officials (New Benchmark)
Employers shall comply with all relevant provisions where local laws provide special protection to
workers or worker representatives engaged in a particular union activity (such as union formation) or to
worker representatives with a particular status (such as union founding members or current union office
holders). (S)

FOA.14 Severance Pay
Employers shall not offer or use severance pay in any form or under any other name as a means of
contravening the right to freedom of association, including attempts to prevent or restrict union formation
or union activity, including strikes. (S)

FOA.15 Right to Strike (New Benchmark)
Employers shall respect all laws, rules and procedures protecting the rights of workers to organize,
bargain collectively, and participate in strikes consistent with ILO principles and jurisprudence. (S)

FOA.16 Right to Strike/Sanction for Organizing or Participating in Legal Strikes
(New Benchmark)
Employers shall not impose any sanction on workers organizing or having participated in a legal strike.
(S)

FOA.17 Right to Strike/Replacement Workers
Employers shall not hire replacement workers in order to prevent or break up a legal strike or to avoid
negotiating in good faith. (S)

FOA.18 Right to Collective Bargaining (New Benchmark)
Employers shall recognize the rights of workers to free and voluntary collective bargaining with a view to
the regulation of terms and conditions of employment by collective agreements. (S)

FOA.19 Right to Collective Bargaining/Good Faith
Employers and worker representatives shall bargain in good faith, i.e. engage in genuine and constructive
negotiations and make every effort to reach an agreement. (S)

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FOA.20 Right to Collective Bargaining/Exclusive Bargaining and Other Recognized
Unions
Employers shall bargain with any union that has been recognized by law or by agreement between the
employer and that union, provided such agreement does not contravene local law, as a or the exclusive
bargaining agent for some or all of its workers. (S)

FOA.21 Right to Collective Bargaining/Unorganized Workers (New Benchmark)
Employers can only engage in collective bargaining with representatives of unorganized workers when no
workers organization exists. (S)

FOA.22 Right to Collective Bargaining/Compliance with Collective Bargaining Agreement
Employers, unions and workers shall honor in good faith, for the term of the agreement, the terms of any
collective bargaining agreement they have agreed to and signed. Worker representatives and workers
shall be able to raise issues regarding compliance with a collective bargaining agreement by the employer
without retaliation or any negative effect on their employment status. (S)

FOA.23 Right to Collective Bargaining/Validity of Collective Bargaining Agreement (New
Benchmark)
Collective bargaining agreements that have not been negotiated freely, voluntarily and in good faith shall
be considered not applicable. Provisions in collective bargaining agreements that contradict national
laws, rules and procedures or offer less protection to workers than provisions of the FLA Code shall also
be considered not applicable. (S)

FOA.24 Rights of Minority Unions and their Members
Trade unions not recognized as a bargaining agent of some or all of the workers in a facility shall have the
means for defending the occupational interests of their members, including making representations on
their behalf and representing them in cases of individual grievances, within limits established by
applicable law. (S)

FOA.25 Facilities for Worker Representatives
Workers representatives shall have the facilities necessary for the proper exercise of their functions,
including access to workplaces. (S)

FOA.26 Grievance Procedure (New Benchmark)
Employer shall have in place written grievance procedures that allow first an attempt to settle grievances
directly between the worker and the immediate supervisor but that, where this is inappropriate or has
failed, it is possible for the worker to have the grievance considered at one or more steps, depending on
the nature of the grievance and the structure and size of the enterprise. Employers shall ensure that the
grievance procedures and applicable rules are known to workers. (P)

FOA.27 Restoration of Worker Rights/Reinstatement (New Benchmark)
Workers who have been unjustly dismissed, demoted or otherwise suffered a loss of rights and privileges
at work due to an act of union-discrimination shall, subject to local laws, be entitled to restoration of all
the rights and privileges lost, including reinstatement, if they so desire. (S)







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VII. HOURS OF WORK (HOW)

WORKPLACE CODE PROVISIONS: 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.

Benchmarks

HOW.1 General Compliance Hours of Work (New Benchmark)
Employers shall comply with all local laws, regulations and procedures concerning hours of work, public
holidays and leave.

HOW.2 Rest Day (New Benchmark)
Workers shall be entitled to at least one day off in every seven-day period. If workers must work on a rest
day, an alternative day off must be provided within that same seven-day period or immediately following
the seven-day period. (P)

HOW.3 Meal and Rest Breaks
Employers shall provide reasonable meal and rest breaks, which, at a minimum, must comply with local
laws. (S)

HOW.4 Protected Workers (Women and Young Workers)
The factory shall comply with all applicable laws governing work hours regulating or limiting the nature,
frequency and volume of work performed by women or workers under the age of 18. (S)

HOW.5 Protected Workers (Women and Young Workers)/Record Keeping
Employers shall maintain necessary records identifying all women workers and all workers under the age
of 18 entitled to legal protection concerning work hours. (P)

HOW.6 Time Recording System
Time worked by all workers, regardless of compensation system, shall be fully documented by time cards
or other accurate and reliable recording systems such as electronic swipe cards. Employers are prohibited
from maintaining multiple time-keeping systems and/or false records for any fraudulent reason, such as to
falsely demonstrate working hours. Time records maintained shall be authentic and accurate. (P)

HOW.7 Maintenance of Reasonable Levels of Staff
Employer personnel practices shall demonstrate an effort to maintain a level of staffing that is reasonable
in view of predictable or continuing fluctuations in business demand. (P)

HOW.8 Overtime/Reduced Mandated Overtime
The employer shall demonstrate a commitment to reduce overtime and to enact a voluntary overtime
system, including for overtime mandated to meet extraordinary business circumstances. (P)

HOW.9 Overtime/Positive Incentives
Employers shall use positive incentive schemes to induce overtime and shall ensure such incentive
schemes are known by workers. (P)



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HOW.10 Overtime/Calculation over Period Longer than One Week (New Benchmark)
Employers are allowed to calculate normal hours of work as an average over a period of longer than one
week where local laws, regulations and procedures provide for such a possibility but only when all formal
and procedural requirements attached to such calculation (for instance, obtaining official permission from
the relevant authorities or limits to the period during which such calculations can be made) are met. The
basis for such calculation shall, however, remain at all times the lesser of 48 hours per week or legal
limits on hours of work in the country of manufacture or, where such legal limits do not exist, the regular
work week in such country. (S)

HOW.11 Extraordinary Business Circumstance/Forced Overtime
In case of extraordinary business circumstances, employers shall make reasonable efforts to secure
voluntary overtime work prior to mandating involuntary overtime. Employers must get workers
voluntary consent periodically for all overtime that is above the 12 hours as provided for in the Code and
that is not due to extraordinary business circumstances. (P)

HOW.12 Extraordinary Business Circumstance/Overtime Explanation
Employers shall be able to provide explanation for all periods when the extraordinary business
circumstances exception has been used. Employers shall take reasonable steps to inform workers about
the nature and expected duration of the circumstances sufficiently in advance to allow workers to make
alternative plans. (P)

HOW.13 Public Holidays (New Benchmark)
Employers shall provide workers with all official public holidays as required under local laws, regulations
and procedures. (S)

HOW.14 Annual Leave (New Benchmark)
Employers shall provide workers with paid annual leave as required under local laws, regulations and
procedures. (S)

HOW.15 Annual Leave/Determination (New Benchmark)
Employers shall not impose any undue restrictions on workers use of annual leave. The time at which
annual leave is taken is determined by the employer in consultation with the worker, taking into account
work requirements and the opportunities for rest and relaxation available to the worker. (S)

HOW.16 Annual Leave/Restrictions (New Benchmark)
Any factory restrictions or procedures applicable to taking annual leave, such as requiring a minimum
period of service before being allowed to use annual leave, written requests to be submitted a certain time
before the annual leave would be taken, etc., must be in line with local laws, regulations and procedures
and must be communicated in full to all workers. (S)

HOW.17 Leave/Retaliation (New Benchmark)
Employers shall not impose any sanction on workers for requesting or taking any type of leave, such as
annual, sick, maternity or other leave, in line with all applicable rules and procedures. (S)

HOW.18 Annual Leave/Wage Payments (New Benchmark)
Employers shall provide workers taking annual leave their normal or average wages for the full period of
annual leave in advance, unless specified differently under local laws, regulations and procedures. (S)

HOW.19 Sick Leave (New Benchmark)
Employers shall provide workers with sick leave as required under local laws, regulations and procedures.
(S)
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HOW.20 Sick Leave/Restrictions (New Benchmark)
Employers shall not impose any undue restrictions on sick leave. Any factory restrictions or procedures
regarding sick leave, such as informing the employer as soon as possible, the provision of medical
certificates, the use of designated doctors or hospitals, etc., must be in line with local laws, regulations
and procedures and must be communicated in full to all workers. (S)

HOW.21 Calculation of Absences (New Benchmark)
Absences from work for reasons beyond the control of workers, such as sick leave or periods during
which factory operations are suspended, shall not be counted as annual leave nor shall they be deducted
from calculations concerning length of service, unless specified differently under local laws, regulations
and procedures. (S)

HOW.22 Suspension of Work (New Benchmark)
Employers can only suspend work in accordance with local laws, regulations and procedures. Workers
shall be paid in full during periods of suspension, unless local laws stipulate otherwise, workers and their
representative organizations (temporarily) agree otherwise, and the relevant national authorities authorize
the alternative arrangement. (S)

VIII. WAGES, BENEFITS AND OVERTIME COMPENSATION (WBOT)

WORKPLACE CODE PROVISIONS:

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.

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.

Definition of Wages, Compensation, etc.

The terms wages, compensation, etc. include the basic minimum or prevailing industry wage and any
additional payments to be made directly or indirectly, whether in cash or in-kind, by the employer to the
worker and arising out of the workers employment. Such additional payments include wage differentials
or increments based on seniority or marital status, cost of living allowances, housing or residential
allowances, family allowances, benefits in-kind such as the allotment and cleaning of work clothes or
safety equipment, and social security benefits.

Benchmarks

WBOT.1 General Compliance Wages, Benefits and Overtime Compensation (New
Benchmark)
Employers shall comply with all local laws, regulations and procedures concerning the payment of wages
and benefits, including overtime compensation. In any case where laws and the FLA Code are
contradictory, the standard that provides the greatest protection for workers shall apply. Where
provisions are lacking, employers shall take measures to reasonably accommodate matters concerning the
payments of wages and benefits, including overtime compensation.

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WBOT.2 Minimum Wage
Employers shall pay workers at least the legal minimum wage or the prevailing industry wage, whichever
is higher. (S)

WBOT.3 Training and Probation Wage
Where probation or training wages are legally allowed, no worker shall be paid a probation or training
wage for more than three months cumulatively. (S)

WBOT.4 Timely Payment of Wages
All wages, including overtime compensation shall be paid within legally defined time limits. When no
time limits are defined by law, compensation shall be paid at least once a month. (S)

WBOT.5 Holidays, Leave, Legal Benefits and Bonuses
Employers shall provide all legally mandated holidays, leave, benefits and bonuses, such as official
holidays, annual leave, sick leave, severance payments and 13
th
month payments, to all eligible workers
within legally defined time periods. In addition, all leave and bonuses shall be calculated correctly. (S)

WBOT.6 Production and Incentive Schemes
Employers shall not set production targets, piece rates or any other incentive or production system at such
a level that workers need to work beyond normal working hours as set under the FLA Code, excluding
overtime, in order to make the legal minimum wage or the prevailing industry wage, whichever is higher.
(S)

WBOT.7 Payment for All Hours Worked
Workers shall be paid for all hours worked in a workweek. Calculation of hours worked must include all
time that the employer allows or requires the worker to work. (S)

WBOT.8 Calculation Basis for Overtime Payments
Employers shall compensate workers for all hours worked. For workers on a piece rate payment scheme
or any other incentive scheme, payments for overtime hours worked shall be calculated by applying the
premium rate required by law or this Code on the same payment scheme as is used for calculating wages
for normal working hours, unless the payment scheme used leads to higher wages for workers. (S)

WBOT.9 Non Payment of Incentives
Regardless of any production quotas, incentives shall not be reduced or not paid if the result shall be
wages below the legal minimum wage or the prevailing industry wage, whichever is higher. (S)

WBOT.10 Premium/Overtime Compensation
The factory shall comply with all applicable laws, regulations and procedures governing the payment of
premium rates for work on holidays, rest days, and overtime. (S)

WBOT.11 Overtime Compensation Awareness
Workers shall be informed, orally and in writing, about overtime compensation rates prior to undertaking
overtime. (P)

WBOT.12 Overtime Compensation for Piece Rates and Other Incentive Schemes
Employers shall not set production targets, piece rates, or any other incentive or production system at
such a level that the payment for overtime work performed is less than the premium pay required by law.
(S)


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WBOT.13 Deposit of Legally Mandated Deductions
All legally mandated deductions for taxes, social insurance, or other purposes shall be deposited each pay
period in the legally defined account or transmitted to the legally defined agency. This includes any
lawful garnishments for back taxes, etc. The employer shall not hold over any of these funds from one
pay period to the other unless the law specifies that deposits are to be made less frequently than pay
periods (e.g., monthly deposits, weekly pay). If the law does not specify, then deposits shall be made
before the next pay period in all cases. (S)

WBOT.14 Voluntary Wage Deductions
Voluntary wage deductions for savings clubs, loan payments, etc. can only be made with the express and
written consent of workers and shall be documented in employee files. All such voluntary deductions
shall be credited to proper accounts and funds shall not be held illegally or inappropriately by employers.
(S)

WBOT.15 Voluntary Wage Deduction/Worker Access to Information
Workers shall have access to regular and full information concerning the status of relevant accounts and
the status and level of their payments thereto. (P)

WBOT.16 Employer Provided Services
All workers have a right to use or not to use employer provided services, such as housing or meals.
Deductions for services to workers shall not exceed the cost of the service to the employer. Employers
must be able to demonstrate the accuracy or reasonableness of these charges. (P)

WBOT.17 Accurate Calculation and Recording of Wage Compensation
All payments to workers, including hourly wages, piecework, benefits, bonuses, and other incentives shall
be calculated and recorded accurately. (S)

WBOT.18 Accurate Length of Service Calculation
All workers shall be credited with all time worked for an employer for purposes of calculating length of
service to determine the benefits to which workers are entitled. (S)

WBOT.19 False Payroll Records
Employers shall not use hidden or multiple payroll records in order to hide overtime, to falsely
demonstrate hourly wages, or for any other fraudulent reason. Payroll records maintained shall be
authentic and accurate. (P)

WBOT.20 Payroll Record Maintenance/Worker Acknowledgement
All compensation records shall be maintained accurately and shall be acknowledged by the worker as
accurate. (P)

WBOT.21 Record Maintenance
Employers shall ensure that all legally required payroll documents, journals and reports are available,
complete, accurate and up-to date. (P)

WBOT.22 Worker Wage Awareness
Employers shall make every reasonable effort to ensure workers understand the wages, including the
calculation of wages, incentives systems, benefits and bonuses they are entitled to in a factory and under
applicable laws. To this end, employers shall communicate orally and in writing to all workers all relevant
information in the local language or language(s) spoken by the workers, if different from the local
language. (P)

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WBOT.23 Posting Notices
All notices that are legally required to be posted in the factory work areas shall be posted. All legally
required documents, such as copies of legal code or law, shall be kept at the factory and available for
inspection. (P)

WBOT.24 Contestation of Wage Payments (New Benchmark)
Employers must establish a system through which workers can contest wage payments and receive
clarifications in this respect in a timely manner. (P)

WBOT.25 Worker Wage Awareness
Workers shall have access to understandable information from their employer about their wages and
benefits. (P)

WBOT.26 Pay Statement
Employers shall provide workers a pay statement each pay period, which shall show earned wages, wage
calculations, regular and overtime pay, bonuses, all deductions and final total wage. (P)

WBOT.27 Wage Receipt (New Benchmark)
All payments of wages and benefits in cash and in-kind made directly to the worker must be properly
documented and their receipt and accuracy must be confirmed by the relevant worker in writing
(signature, thumbprint, etc.). No one can receive wages on behalf of a worker, unless the worker
concerned has, in full freedom, authorized in writing for another person to do so. (P)

WBOT.28 Free Disposal of Wages/Cash and In-Kind Compensation
Employers may not limit in any manner the freedom of workers to dispose of their wages. Workers shall
be compensated for their work directly through the provision of cash or its equivalent. The partial
payment of wages in the form of allowances in-kind is permissible, when: allowed under local law, and
as long as legal limits are complied with; they are appropriate for the personal use and benefit of the
worker and her or his family; the value attributed to such allowances is fair and reasonable; and receipt of
in-kind compensation is voluntary. Wages must be paid on regular working days and in principle at or
near the workplace. Workers must be free from any coercion to make use of factory or works stores. (S)
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APPENDIX PRINCIPLES OF MONITORING

I. OBLIGATIONS OF COMPANIES

Adopt and communicate a code

Formally adopt a Code that meets or exceeds FLA standards
Inform all suppliers in writing
Post the code in a prominent place in supplier facilities in the local languages of workers and
managers
Ensure that workers are informed orally and educated at regular intervals (to take account of
labor turnover)
Obtain written agreement of suppliers to submit to periodic inspections/audits, including by
accredited external monitors, to remediate instances of noncompliances with FLA Workplace
Standards that arise, and to inform employees about those standards

Train internal compliance staff

Identify the staff or service provider responsible for implementing their compliance program
Ensure that they had training in all the areas under their responsibility, including, as appropriate,
international and national labor standards, local languages, occupational and production risk
factors, and techniques for monitoring, interviewing and remediating
Update that training at regular intervals

Provide employees with confidential reporting channels

Encourage the establishment of grievance procedures at supplier facilities
Provide channels for Company employees and workers at those facilities to contact the Company
directly and confidentially if warranted
Ensure the channel is secure, so workers are not punished or prejudiced for using it.

Conduct internal monitoring

Internally monitor an appropriate sampling of suppliers to assess compliance, which includes
worker interviews, records review, occupational safety and health review, practices of suppliers
in relation to the FLA Workplace Standards
Collect, verify, and quantify compliance with workplace standards
Analyze the monitoring results and implemented remediation plans to address non-compliance
issues
Track the progress of remediation

Submit to Independent External Monitoring

Provide the FLA with an accurate, up-to-date factory list, factory profile, access letters etc.
Ensure that the suppliers selected for IEMs cooperate with the FLA Monitors
Cooperate with FLA requests for information, clarification and follow-up in the IEM process



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Collect and manage compliance information

Maintain a database
Generate up-to-date lists of its suppliers when required
Analyze compliance findings
Report to the FLA on those activities

Remediate in a timely manner

Upon receiving the internal and independent external monitoring reports, contact the supplier
concerned (within a reasonable time frame) to agree to a remediation plan that addresses all
compliance issues identified by the Monitor
Implement a remediation plan regarding the noncompliances and the actions taken to prevent the
recurrence of such noncompliance's
Within sixty (60) days, supply the FLA with the remediation plan citing all progress made and a
timeline for outstanding items
Confirm the completion of remediation
Condition future business with contractors and suppliers upon compliance standards

Take all steps necessary to prevent persistent forms of noncompliance

Analyze compliance information to identify persistent and/or serious forms of non-compliance
Establish and implement programs designed to prevent the major forms of such non-compliance
Take steps to prevent recurrence in other Applicable Facilities where such non-compliance may
occur

Consult with civil society

Maintain links to organizations of civil society involved in labor rights and utilize, where
Companies deem necessary, such local institutions to facilitate communication with Company
employees and employees of contractors and suppliers in the reporting of noncompliance with the
workplace standards.
Consult knowledgeable local sources as part of its monitoring activities
Consult periodically with the legally constituted unions representing employees at the worksite
regarding the monitoring process and utilize the input of such unions where appropriate
Assure the implementation of monitoring is consistent with applicable collective bargaining
agreements

Pay dues and meets its other procedural requirements

Pay annual dues
Pay IEM administrative and monitoring fees
Sign and honor required FLA contracts
Submit factory lists, a standardized annual report and other information in complete form and on
time

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II. OBLIGATIONS OF ACCREDITED EXTERNAL MONITORS

Establish clear evaluation guidelines and criteria

Establish clear, written criteria and guidelines for evaluation of Company compliance with the
workplace standards.

Review Company information database

Conduct independent review of written data obtained by Company to verify and quantify
compliance with the workplace standards.

Verify creation of informed workplace

Verify that Company employees and employees of contractors and suppliers have been informed
about the workplace standards orally, through the posting of standards in a prominent place (in
the local languages spoken by employees and managers) and through other educational efforts.

Verify establishment of communications channel

Verify that the Company has established a secure communications channel to enable Company
employees and employees of contractors and suppliers to report to the Company on
noncompliance with the workplace standards, with security that they shall not be punished or
prejudiced for doing so.

Be given independent access to, and conduct independent audit of, employee records

Be given independent access to all production records and practices and wage, hour, payroll and
other employee records and practices of Company factories and contractors and suppliers.
Conduct independent audit, on a confidential basis, of an appropriate sampling of production
records and practices and wage, hour, payroll and other employee records and practices of
Company factories and contractors and suppliers.

Conduct periodic visits and audits

Conduct periodic announced and unannounced visits, on a confidential basis, of an appropriate
sampling of Company factories and facilities of contractors and suppliers to survey compliance
with the workplace standards.

Establish relationships with labor, human rights, religious or other local institutions

In those instances where accredited external monitors themselves are not leading local human
rights, labor rights, religious or other similar institutions, consult regularly with human rights,
labor, religious or other leading local institutions that are likely to have the trust of workers and
knowledge of local conditions.
Assure that implementation of monitoring is consistent with applicable collective bargaining
agreements and performed in consultation with legally constituted unions representing employees
at the worksite.


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Conduct confidential employee interviews

Conduct periodic confidential interviews, in a manner appropriate to the culture and situation,
with a random sampling of Company employees and employees of contractors and suppliers (in
their local languages) to determine employee perspective on compliance with the workplace
standards.
Utilize human rights, labor, religious or other leading local institutions to facilitate
communication with Company employees and employees of contractors and suppliers, both in the
conduct of employee interviews and in the reporting of noncompliance.

Implement remediation

Work, where appropriate, with Company factories and contractors and suppliers to correct
instances of noncompliance with the workplace standards.

Complete evaluation report

Complete report evaluating Company compliance with the Workplace Code of Conduct.