Capitol Tech U Doctoral Presentation - April 2024.pptx
ZnZ _ Compliance Training (2).pptx
1. Applicable laws & Rules
Buyer Code of Conduct (CoC)
ZT (Zero Tolerance), IMUST (IWAY
MUST), MR (MINIMUM
REQUIREMENT
Wages Grid & Its implementation
Case Study
Supplier Training:
2.
3. Labor law 2006 most applicable
Chapter & clause
Applicable laws &
Rules
15
minutes
4. ▪ Bangladesh labour Act, 2006
▪ Bangladesh Labor Rules, 2015
▪ The Bangladesh Environment
Conservation Act, 1995
▪ The Environment Conservation Rules,
1997
▪ Fire Prevention & Resist 2003
▪ Building code 2006
▪ Boilers Act, 1923
CHAPTER 1- PRELIMINARY
CHAPTER II- CONDITIONS OF SERVICE AND EMPLOYMENT
CHAPTER III -EMPLOYMENT OF ADOLESCENT
CHAPTER IV- MATERNITY BENEFIT
CHAPTER V- HEALTH AND HYGIENE
CHAPTER VI- SAFETY
CHAPTER VII- SPECIAL PROVISIONS RELATING TO HEALTH,
HYGIENE AND SAFETY.
CHAPTER VIII- WELFARE
CHAPTER IX- WORKING HOURS AND LEAVE
CHAPTER X- WAGES AND PAYMENT
CHAPTER XI- WAGES BOARD
CHAPTER XII- WORKERS COPENSATION FOR INJURY BY
ACCIDENT
CHAPTER XIII- TRADE UNION AND INDUSTRIAL RELATIONS
CHAPTER XIV - DISPUTES, LABOUR COURT, LABOUR
APPELLATE TRIBUNAL, LEGAL PROCEEDINGS, ETC
CHAPTER XV -WORKERS PARTICIPATION IN COMPANIES
PROFITS
CHAPTER XVI- REGULATION OF EMPLOYMENT AND SAFETY OF
DOCK WORKERS
CHAPTER XVIII- APPRENTICESHIP
CHAPTER XIX- PENALTY AND PROCEDURE
CHAPTER XX- ADMINISTRATION, INSPECTION. ETC.
CHAPTER XXI- MISCELLANEOUS
Labour Law 2006
6. 1. IWAY Must Requirements
2. General Conditions
3. Business Ethics
4. Environment
5. Chemicals
6. Waste
7. Emergencies and Fire Prevention
8. Worker Health & Safety
9. Recruitment, Working Hours,
Wages and Benefits
10. Accommodation
11. Child Labour and Young
Workers
12. Discrimination
13. Worker involvement
14. Harassment, Abuse and
Disciplinary Actions
1. Recruitment and Hiring
2. Working Hours
3. Wages and Benefits
4. Employee Treatment
5. Employee Involvement
6. Health and Safety
7. Termination and Retrenchment
8. Management Systems
9. Above and Beyond
10. Migrant Workers
1. Compliance with Laws and Workplace
Regulations
2. Prohibition of Forced Labor
3. Prohibition of Child Labor
4. Prohibition of Harassment or Abuse
5. Compensation and Benefits
6. Hours of Work
7. Prohibition of Discrimination
8. Health and Safety
9. Freedom of Association and
Collective Bargaining
10. Environment
11. Customs Compliance
12. Security
1: Social management systems and
cascade effect
2: Workers involvement and protection
3: The rights of freedom of association
and collective bargaining
4: No discrimination Performance area
5: Fair remuneration
6: Decent working hours
7: Occupational health and safety
8: No child labour
9: Special protection for young
workers
10: No precarious employment
11: No bonded labour
12: Protection of the environment
13: Ethical business behaviour
1: Social management systems and cascade effect
2: Workers involvement and protection
5: Fair remuneration
9: Special protection for young workers
10: No precarious employment
12: Protection of the environment
13: Ethical business behavior
1. Compliance with Laws and Workplace Regulations
11. Customs Compliance
12. Security
1. IWAY Must Requirements 5. Chemicals
6. Waste
10. Accommodation
13. Worker involvement
1. Recruitment and Hiring
4. Employee Treatment
5. Employee Involvement
8. Management Systems
9. Above and Beyond
10. Migrant Workers
H&M
BSCI
IKEA
WRAP
7. ZT, IMUST, MR, RED Critical
15
minutes
Code of Conduct (CoC)
Zero Tolerance (ZT)
IMUST
MR (Minimum Requirement)
RED Critical
8. • Written anti-harassment and anti-abuse
policies and procedures for the workplace.
• Functional Fire alarm
• 2 unlocked exits on every floor ( including
dormitory)
• Clear aisles marking ( including dormitory)
• Fire extinguishers ( including dormitory)
• Chemical inventory list.
•Documented chemical purchasing
procedures
• Anti-harassment and anti-discriminatory
recruitment policy
• Employment Contract
• Not subcontract to prison
• Should have a Forced Labor policy
• Should have a Child Labor policy
• Not to underage person
• No to pregnancy test
• Ensure legal minimum wage
• Ensure overtime wage
• Written policy on Freedom of Association
• Written grievance policy
Social
Social
9. • Should not use H&M banned organic solvents
• Energy meter
• Water meter at all water inlet (only industrial
water use)
• Water METERs at industrial effluent
discharge points (applicable for all units with
internal/onsite ETP)
• Wastewater quality meets BSR standards
• Waste water treatment facility
• For off-site water treatment should have an
evidence of the treatment service agreement
• Delaying self reporting
• No Progress (over 2 years)
Environment
Progress/ Reporting
10. • Transparent reporting
• No to Use Undeclared Unit
• No child labor (any person(s) under the age of
14 years, or local minimum age, whichever is
higher)
• Should have Legal Licenses, as part of the
legislation of each country
11. 1.1 Child labour
• Child labour is not used at the Supplier
• Proof of age documentation for all Workers is in place
Child labour is work performed by a child which interferes with a child’s right to
healthy growth and development and denies him/her the right to quality education.
Child labour is work performed by a child below the minimum working age that has
not been specifically approved by IKEA as light work or apprenticeship / vocational
training, as specified in the “IKEA Way on Preventing Child Labour and Supporting
Young workers”.
The minimum working age is defined by the national legislation and is the age, above
which a person can be employed on a full time basis. It can be 16 years, 15 years or
14 years in certain developing countries.
1. IWAY Must requirements
12. 1.2 Forced and bonded labour
There is no forced, prison, bonded or involuntary labour.
Workers:
- have the legal right to perform work at the Supplier premises
- have the freedom to terminate employment at any time according to the agreed
notice period, without penalty or salary deductions.
- have the freedom to leave the premises when their work shifts end.
- personal documents or other belongings are not withheld.
- have not been charged, directly or indirectly, any fees or commission related to the
recruitment and/or employment process. If the recruitment agent has requested any
such fee, the Worker has been reimbursed by the Supplier.
- have not been requested to provide deposits and have not payments delayed, been
offered wage advances or loans with the consequence of indebting the Worker and
binding him or her to employment.
1. IWAY Must requirements
13. 1.3 Business ethics
Trust and transparency related to the IKEA
business are ensured at all times.
There is no case of corruption or the use of
bribery related to the IKEA business.
IWAY related official documents required
by law are not manipulated.
1.4 Severe environment pollution
There is no severe environmental
pollution, which is to be understood as
pollution that is likely to spread widely
from the site and where the effects will be
very difficult or expensive to correct.
1.5 Severe health or safety hazards
Workers are prevented from exposure to
severe health or safety hazards, which are
to be understood as health or safety
hazards that are likely to pose an
immediate risk of causing death or
permanent injury or illness.
1.6 Working hours
A transparent and reliable system for
records of working hours and wages for
all Workers is maintained by the IKEA
Supplier.
1. IWAY Must requirements
14. 1.7 Wages
The Worker is paid a wage equal to or
exceeding the legal minimum wage.
1.8 Workers’ accident insurance
The Supplier provides accident insurance
to all Workers, covering medical treatment
for work related accidents and
compensation for work related accidents
resulting in permanent disability.
1. IWAY Must requirements
17. 4. Setting basic wage levels for each position
5. Review gaps between each level
6. Inform and discuss with workers
WAGE GRID
JOB CLASSIFICATION
1. List and describe all positions available
in the unit
2. Appraisal of skill required for each
position (incorporate bonus)
3. Classification of positions
CLASSIFY SKILLS
1. No need to have this skill to this position
2. Basic awareness and knowledge
3. First experience, know-how to apply
knowledge into practice
4. Good experience, know-how to transfer
knowledge to others
5. Expert, know-how to solve problem and
innovate with such skill
18. Employment condition, Wages, Compensation & Benefit
9. Recruitment, Working Hours, Wages
and Benefits
9.1 Reporting and inspection by authorities.
9.2 Recruitment routines and recruitment
agents
9.3 Employment contracts
9.4 Payrolls and attendance records
9.5 Working hours and overtime
9.6 One day off in seven
9.7 Wages
9.8 Leave
9.9 Breaks
9.10 Benefits
9.11 Legal compliance
100. Daily hours
101. Interval for rest or meal
102. Weekly hours
103. Weekly holiday
104. Compensatory weekly holiday
105. Spread over
106. Night shift
107. Restriction on cumulative hours of work on a vehicle
108. Extra –allowance for work overtime
109. Limitation of hours of work for women
110. Restriction on double employment
111. Notice of periods of work for adults and preparation thereof
112. Special age limit for road transport service worker
113. Hours of work to correspond with notice and register
114. Closure of shops etc.
115. Casual leave
116. Sick leave
117. Annual leave with wages
118. Festival holiday
119. Calculation of wages and payment during leave or holiday period.
Period-------
Labor Law VS Buyer CoC
Labor Law
Buyer CoC
19. Employment condition, Wages, Compensation & Benefit
• Group Insurance
• Maternity benefit (Form and Register, Pay voucher & OT)
• Dismissed, Resigned, Retrenchment, Termination etc
• Service benefit (Payment date and if any absent)
• Payment notice (Cash receive), Revenue stamp, Wages slip
• OT minutes/ hours (if less than 1 hour's minutes)
• Unauthorized/10 days absent deduction/ Blank sign (if any)
• Wages held up incase of absent/ Delay payment
• Min. Wages based on grade/ designation including all dept.
• Min. wages Structure vs ID card, Designation and Job nature
• 5% increment (Yearly)
• Pay date/ Regularly delayed payments/ Bank transaction
• OT Wages payment notice (to check delay payment)
• Earned/ Annual leave encashment and procedure
• Eid bonus
Auditors Check
20. Employment condition, Wages, Compensation &Benefit
• Attendance/ Card records with OT for all worker
• Shift rotation roster including in all dept.
• Working hour approval from chief Inspector
• Breaks (All shift)
• Working hours/ week
• One Day Off in Seven (covering all dept)
• Weekend work (Friday) notice
• Compensatory leave
• Festival work (Notice) and adjust (if any)
• Festival work payment
• Festival bonus
• Leave register, Leave form and Leave card
• Work related injury and leave
Leave
Working Hours & Overtime
22. Prescribed form, Submission and Approval
• Appointment letter and Provide to the workers
• ID Card, Service book, Prescribed form
• Certificate of Age Estimation/ Fitness form
• Leave register, Leave form and Leave slip
• Form of declaration and nomination
• Working Hour approval covering all shift
• Festival leave list approval/ notice
• Compensatory leave
• Annual return (Monthly/Semi-yearly/Yearly)
• Pre/Post Notice for informing about pregnancy
• Register of the Beneficiary of Maternity Benefit
• Record Book for fire drill and inform to FSCD
• Health assessment for dangerous operation (Once/year)
• Register of accident (10 days expiry 6 months over records)
• Health check
23. Committee Formation, Validity, Collective Bargaining
• Formation
• Duration of activity: PC validity
• Participation committee (Election)
• Notice for PC meeting
• Meetings of the PC (2 months)
• Meeting minutes of the PC (send director of labor)
• Implementation of recommendations of PC
Collective Bargaining
• Health & Safety Committee
• Participation Committee
• Anti-harassment Committee
• Grievance Committee
25. Fire
• Fire License (covering ALL areas/sft)
• Fire Equipment list and Req. quantity
• Fire Drill/ Prescribed form/ Inform FSCD
• Night Fire drill
• Fire Detection System covering all Building/Shed
• Fire Hydrant system covering all Building/Shed
• List of Fire Fighter & Uniform for Fire fighter
• Battery operated exit light
• Evacuation plan Vs Layout plan
• Assembly point (Space and Designated sign)
• Fire equipment (Fire Blanket, Gum boat etc)
• Number of Fire Extinguisher (DCP, Co2)
29. • Air Emission (Stack emission) test
• Noise/ Sound test (Day/Night)
• Waste water test
• Environmental performance report
• Continuous improvements (Environmental
Impacts)
• Legal compliance (Inspection report if any
from authority)
• Water extraction permission
• Chemical Inventory with valid MSDS
• Chemical SDS/MSDS by following GHS
• Chemical supplier declaration for RSL/
MRSL
• Chemical Labelling/ identification
• Chemical Purchasing Policy
• SOP for Chemical/ Policy
• Recipe Chart
• Training for Chemical user
• Health check for chemical user
Environment
Chemical
30.
31. GUIDELINE ON LETTER OF CONCERN
Clarification on policies, procedures, and consequences
associated with the issuance of a Letter of Concern
Definition:
Letter of Concern is the term used for the letter that is sent by an H&M
Production office to a Production Unit and the associated Supplier if there is a
violation of any of H&M’s Minimum Requirements or Business practices.
Minimum requirement violations are: • Social • Environmental
Business practices violations are:
• Child labor • Use of an undeclared unit • Fake documents • No progress (for
example no progress on index, Effluent Treatment Plant implementation or
correction action plan for minimum requirements)
Refer to the full list of minimum requirements on the Supplier Portal.
32. GUIDELINE ON LETTER OF CONCERN
Clarification on policies, procedures, and consequences associated
with the issuance of a Letter of Concern
Sending a Letter of Concern
If a violation is found in a Production Unit and confirmed with the Supplier, a Letter of
Concern will be sent.
The letter should clearly explain the violation of the concerned Production Unit.
No orders shall be placed/confirmed with the Production Unit until the noncompliance
is resolved or a corrective action plan is submitted to and accepted by H&M. The
Production Unit will be graded “On hold”.
Corrective Action
The supplier should provide a written corrective action plan for how they will prevent
this violation from being repeated in the future.
Business reduction
Violation of Minimum Requirements & Business Practices will lead to business
consequences.
33. GUIDELINE ON LETTER OF CONCERN
Clarification on policies, procedures, and
consequences associated with the issuance of a
Letter of Concern
Letter of Concern Points
Each Letter of Concern sent will generate points in a point system.
These scores will be aggregated on a supplier level, as the Supplier
is responsible for all its Production Units.
Point system for Violation of Social or Environmental
Minimum Requirement
• 1 point for a letter of concern issued on each violation
• However, a repeated violation on the same subject leads to 3
points. Another repeat on the same subject leads to 9 points Point
system for a
34. GUIDELINE ON LETTER OF CONCERN
Clarification on policies, procedures, and consequences
associated with the issuance of a Letter of Concern
Letter of Concern Points
Business Practice Violation
• 2 points for a letter of concern on each violation
• However, a repeated violation on the same subject leads to 8
points
It is important to note that this progressively weighted point
system is designed to capture the risk of “No Improvement” on
the same violation subject within a Supplier’s Production Unit(s),
which is itself reflecting a lack of Supplier Ownership.
35. GUIDELINE ON LETTER OF CONCERN
Clarification on policies, procedures, and consequences
associated with the issuance of a Letter of Concern
Production/Business stop
When a Supplier or Production Unit reaches certain scores production will stop
• 5 points or more at a Production Unit will lead to “STOP Production” in that
Production Unit
• 10 Points or more at a Supplier will lead to “STOP business with Supplier”
When the Production Unit reaches 5 points, no further H&M orders shall be produced
in that Unit and the Supplier will have an aggregated score of 5.
If the violation is self-assessed /self-reported by the Production Unit or the Supplier, no
Letter of Concern will be sent. It is nonetheless important that suppliers take the
responsibility to ensure that corrective action takes place immediately, that this is
confirmed in all approved Production Units, and that H&M is notified. In order to
ensure that corrective action takes place, a Notification Letter will be sent by H&M.
36. GUIDELINE ON LETTER OF CONCERN
Clarification on policies, procedures, and consequences
associated with the issuance of a Letter of Concern
Validity
The Letter of Concern is valid for 2 years from the date sent. After the expiration of the
Letter of Concern the total points for the Supplier and for the Production Unit will be
reduced by the equivalent points for that violation. For example if the Production Unit
has 4 points and the Supplier has 8 points, and one Minimum Requirement Letter of
Concern expires, then 1 point will be subtracted from the Supplier and from the
Production Unit. Thus the remaining points will be Supplier 7 and Production Unit 3.
If, for any reason, a Production Unit ceases to be an H&M business partner, the
Supplier’s points will remain, i.e. they are not eliminated with the Production Unit’s
departure.
37. GUIDELINE ON LETTER OF CONCERN
Clarification on policies, procedures, and consequences
associated with the issuance of a Letter of Concern
Potential New Unit
(PNU) of Existing
Supplier
It is important that a current Supplier that
proposes a new Production Unit for H&M
production ensures that the new
Production Unit fulfills all Minimum
Requirements before H&M’s Minimum
Requirement check. This will otherwise
lead to a Letter of Concern being sent.
The Supplier then cannot start business in
the new Production Unit until the
violation has been resolved.
Third party validation
For third party validation violations, for
example violations found by Better Work,
sustainability team should send a Letter of
Concern to the supplier. Third party violations
should be confirmed by H&M before issuing a
letter of concern.
39. Announced:
Audit date is agreed with, or disclosed to, the audited site.
Semi-announced:
Audit date will fall within an agreed ‘window’.
Unannounced:
No prior notice is given.
Notification of an Audit
Category of Auditor
First Party:
A company that “self-audits” their own employment site using
their own audit resource.
Second Party:
An audit or assessment undertaken by a body with a trading
relationship with the site such as a retailer, brand, vendor or
agent.
Third Party:
An audit or assessment undertaken by an independent party e.g.
an independent commercial audit company,.
40. Sequence of
Audits
Full Initial Audit:
The first time a site of employment is audited.
Periodic Audit:
Usually a full audit used to monitor supplier sites on an on-going
basis. The intervals between periodic audits may vary depending on
the individual member.
Follow-up Audit:
Depending on the outcome of the initial audit, a follow-up audit may
be required.
Partial Follow-up Audit:
Where the auditor visits a site but only checks progress against issue
found during a previous audit.
Desktop Follow-up:
Can be used for certain corrective actions for which a site
visit is not required and can instead be verified remotely e.g. through
photographic evidence or documents provided via e-mail.
