Ethical Trading Initiative

This document has been amended on 1 April 2014 with revisions applied to Clause 6 regarding working hours.

1. Employment is freely chosen

1.1 There shall be no use of forced, bonded or involuntary prison labour.

1.2 Employees shall not be required to lodge deposits or identity papers with the employer and shall be free to leave their employer after reasonable notice.

2. Freedom of association and the right to collective bargaining are respected

2.1 All workers, without distinction, have the right to join or form trade unions of their own choosing and to bargain collectively.

2.2 The employer adopts an open attitude towards the activities of trade unions and their organisational activities.

2.3 Workers’ representatives shall not be discriminated against and shall have access to carry out their representative functions in the workplace.

2.4 Where the right to freedom of association and collective bargaining is restricted under law, the employer facilitates and does not hinder the development of parallel means for independent and free association and bargaining.

3. Working conditions are safe and hygienic

3.1 A safe and hygienic working environment shall be provided, taking into account prevailing knowledge of the industry and any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work.

3.2 Workers shall receive regular health and safety training, and such training shall be repeated for new or reassigned workers.

3.3 Access to clean toilet facilities and potable water shall be provided, and, where appropriate, sanitary facilities for food storage shall be made available.

3.4 Where accommodation is provided, it shall be clean, safe, and meet the basic needs of workers.

3.5 A senior management representative shall be appointed as responsible for health and safety.

4. Child labour shall not be used

4.1 There shall be no recruitment of child labour.

4.2 Companies shall develop or participate in policies and programmes which provide for the transition of any child found to be performing child labour into quality education until no longer a child, as defined in the appendices of this document.

4.3 Children and young persons under 18 shall not be employed at night or in hazardous conditions.

4.4 These principles and procedures shall comply with the relevant standards of the International Labour Organization (ILO).

5. Living wages are paid

5.1 Wages and benefits paid for a standard working week shall meet, at a minimum, national legal standards or industry benchmark standards, whichever is higher. In any event, wages shall always be sufficient to meet basic needs and to provide some discretionary income.

5.2 All workers shall be provided with written and understandable information about their employment conditions, including wage details, before entering employment and for each pay period.

5.3 Deductions from wages as a disciplinary measure shall not be permitted, nor shall any deductions be made without the express and informed consent of the worker, unless required by national law. All disciplinary measures shall be recorded.

6. Working hours are not excessive

6.1 Working hours shall comply with national laws, collective agreements, and the provisions set out in Clause 6.6, whichever provides greater protection to workers.

6.2 Working hours, excluding overtime, shall be defined by contract and shall not exceed 48 hours per week.*

6.3 Overtime shall be voluntary, used responsibly, and shall not replace regular employment. Overtime shall be compensated at a premium rate of not less than 125% of the regular pay rate.

6.4 Total working hours shall not exceed 60 hours in any seven-day period, except as provided in Clause 6.5.

6.5 Working hours may exceed 60 hours in exceptional circumstances where:

- permitted by national law;
- agreed through a collective agreement with a representative workers’ organisation;
- appropriate safeguards are in place to protect workers’ health and safety; and
- the employer can demonstrate that such circumstances arise from exceptional conditions such as unexpected production peaks, accidents, or emergencies.

6.6 Workers shall be provided with at least one day off in every seven-day period, or, where permitted by national law, two days off in every 14-day period.

*International standards recommend progressively reducing normal working hours to 40 hours per week without reducing wages.

7. No discrimination is practised

7.1 There shall be no discrimination in hiring, compensation, access to training, promotion, termination, or retirement based on race, nationality, social origin, religion, age, disability, gender, marital status, sexual orientation, union membership, or political affiliation.

8. Regular employment is provided

8.1 Work shall be performed on the basis of a recognised employment relationship established through national law and practice.

8.2 Obligations to employees under labour or social security laws shall not be avoided through the use of labour-only contracting, subcontracting, home-working arrangements, apprenticeship schemes without genuine intent, or excessive use of fixed-term contracts.

9. No harsh or inhumane treatment is allowed

9.1 Physical abuse or discipline, threats of physical abuse, sexual harassment, verbal abuse, intimidation, or any other form of inhumane treatment is strictly prohibited.

The provisions set out in this document are minimum standards and shall not be used to prevent companies from exceeding these standards. Companies applying these principles are expected to comply with national laws and applicable regulations, and where both legal provisions and these standards apply to the same subject, the provision offering greater protection to workers shall prevail.

Note: Every effort has been made to ensure that translations of the ETG Base Code and Implementation Principles are as accurate and complete as possible. However, the English version shall prevail as the official version in all cases.

CHAIRMAN OF THE BOARD