Supply Chain Labor Policy

Suppliers are committed to safeguarding the human rights of employees in accordance with internationally recognized norms and treating them with dignity and respect. This provision applies to all employees, including temporary workers, foreign workers, apprentices, contract workers, direct employees and any other type of employee. This Code has been drafted with reference to some of the recognized standards (listed in the Annex), which may also serve as a useful source of additional information.


Labor practices and human rights standards are:

1) Free choice of career

No forced, bonded (including debt bondage) or indentured labor, involuntary or exploitative prison labor, slavery or human trafficking shall be employed. This includes not transporting, harboring, recruiting, transferring, or receiving persons through threats, violence, coercion, abduction, or labor and services fraud. There should be no unreasonable restrictions on employees' freedom of movement within the factory and access to and from places provided by the company. As part of the employment process, employees must be provided with a written employment agreement in their native language that includes a description of the terms and conditions of employment before they leave their country of origin. Furthermore, the employment agreement may not be altered or modified after the employee arrives in the receiving country, except to comply with local laws and provide equivalent or better conditions. All work must be voluntary and employees are free to leave or terminate their employment at any time. Employers and agents may not withhold or otherwise destroy, conceal, confiscate or deny employees access to their identification or immigration documents, such as government-issued identification cards, passports or work authorizations, unless the retention of such proof is required by law. Employees are not required to pay recruitment fees or other related fees to their employer or agency in connection with their employment. If an employee is found to have paid any of the above fees, the fee should be returned to the employee.


2) Underage employees

Child labor shall not be used at any stage of production. The term "child" means any person who is under the age of 15, or below the age for completing compulsory education, or below the minimum age for employment in the country, whichever is the greater. Support learning programs that comply with all laws and regulations and make legitimate use of the workplace. Employees under the age of 18 (underage employees) shall not engage in work that may endanger their health or safety, including night work and overtime work. Suppliers shall ensure appropriate management of student workers by properly maintaining records of student workers, conducting rigorous due diligence on educational partners providing student workers, and protecting the rights of student workers in accordance with laws and regulations. Suppliers shall provide appropriate support and training to all student workers. If local law does not provide otherwise, student workers, interns and apprentices shall be paid at least the same wage as entry-level employees performing equivalent or similar positions.

3) Working hours

Business practice research shows that employee overwork is significantly related to reduced productivity, increased turnover, and increased numbers of injuries and illnesses. Working hours must not exceed the maximum hours specified by local law. Moreover, the working hours including overtime should not exceed 60 hours per week unless there is an emergency or unusual situation. Employees should take at least one day off every seven days.


4) Salary and benefits

Compensation paid to employees shall comply with all applicable wage laws, including those regarding minimum wage, overtime and statutory benefits. Under local law, employees should be paid overtime at a rate above their regular hourly rate. Deductions from wages as a disciplinary measure are prohibited. During each payroll period, clear and easy-to-understand payslips should be provided to employees in a timely manner. The payslips should contain sufficient information to be able to calculate whether the remuneration for labor paid is accurate. The use of temporary workers, dispatch workers and outsourced workers must comply with local legal restrictions.

5) Humane treatment

Employees shall not be subjected to harsh and inhumane acts such as sexual harassment, sexual abuse, corporal punishment, mental or physical coercion or verbal insults; nor shall they be threatened to commit any such acts. Disciplinary policies and procedures to support these requirements should be clearly established and communicated to employees.

6) No discrimination

Suppliers shall commit that all employees will be free from harassment and unlawful discrimination. The Company shall not discriminate on the basis of race, color, age, sex, sexual orientation, gender identity and expression, ethnicity or national origin, disability, pregnancy, religion, political affiliation, union membership, veteran status, protected genetic information or Marital status, etc., discriminates against employees in the recruitment and employment process (such as wages, promotions, rewards and training opportunities, etc.). Employees should be provided with reasonable accommodation for religious activities. In addition, employees or prospective employees should not be forced to undergo medical examinations or examinations that may have discriminatory purposes.


7) Freedom of association

In accordance with local laws, suppliers shall respect the rights of all employees to voluntarily form and join trade unions, engage in collective bargaining and peaceful assembly, and to refuse to participate in such activities. Employees and/or their representatives should be able to communicate openly with management and express their views and concerns about working conditions and management practices without fear of discrimination, retaliation, threats or harassment.


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