SMETA Audit Criteria Guide.xlsx

MEASUREMENT CRITERIACODE 0. Management Systems

CODE 1. Employment is Freely Chosen1.1 There is no forced, bonded or involuntary prison labour.

0.1 Suppliers are expected to implement and maintain systems for delivering compliance to this Code.

0.2 Suppliers shall appoint a senior member of management who shall be responsible for compliance with the Code.

0.3 Suppliers are expected to communicate this Code to all employees.

0.4 Suppliers should communicate this code to their own suppliers and, where reasonably practicable, extend the principles of this Ethical Code through their supply chain.

CODE 2. Freedom of Association

CODE 3. Health and Safety

1.2 Workers are not required to lodge “deposits” or their identity papers with their employer and are free to leave their employer after reasonable notice.

2.1 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 are not discriminated against and 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.

3.1 A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of 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, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment.

CODE 4. Child Labor and Young Workers4.1 There shall be no new recruitment of child labour.

CODE 5. Wages and Benefits

3.2 Workers shall receive regular and recorded Health & Safety training and such training shall be repeated for new or reassigned workers.

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

3.4 Accommodation, where provided, shall be clean, safe and meet the basic needs of the workers.

3.5 The company observing the code shall assign responsibility for Health & Safety to a senior management representative.

4.2 Companies shall develop or participate in and contribute to policies and programmes which provide for the transition of any child found to be performing child labour to enable her or him to attend and remain in quality education until no longer a child.

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

4.4 These policies and procedures shall conform to the provisions of the relevant ILO Standards.

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

CODE 6. Working Hours

5.2 All workers shall be provided with written and understandable information about their employment conditions in respect to wages before they enter employment and about the particulars of their wages for the pay period concerned each time that they are paid.

5.3 Deductions from wages as a disciplinary measure shall not be permitted nor shall any deductions from wages not provided for by national law be permitted without the expressed permission of the worker concerned. All disciplinary measures should be recorded.

6.1 Working hours must comply with national laws, collective agreements, and the provision of 6.2 – 6.6 below, whichever affords the greater protection for workers. Sub clauses 6.2 – 6.6 are based on International Labour standards.

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

6.3 All overtime shall be voluntary. Overtime shall be used responsibly, taking into account all the following: the extent, frequency and hours worked by individual workers and the workforce as a whole. It shall not be used to replace regular employment. Overtime shall always be compensated at a premium rate, which is recommended to be not less than 125% of regular rate of pay.

6.4 The total hours worked in any 7 day period shall not exceed 60 hours, except where covered by clause 6.5. below.

CODE 7. Discrimination

CODE 8. Regular Employment

6.5 Working hours may exceed 60 hours in any 7 day period only in exceptional circumstances where all of the following are met:- This is allowed by national law.- This is allowed by collective agreement freely negotiated with a workers’ organisation representing a significant portion of the workforce.- Appropriate safeguards are taken to protect the worker’s health and safety; and- The employer can demonstrate that exceptional circumstances apply such as unexpected production peaks, accidents or emergencies.

6.6 Workers shall be provided with at least one day off in every 7 day period or, where allowed by national law, 2 days off in every 14 day period.

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

8.1 To every extent possible work performed must be on the basis of recognised employment relationship established through national law and practice.

CODE 8A. Sub-Contracting and Homeworking

CODE 9. No Harsh or Inhumane Treatment is Allowed

CODE 10A. Entitlement to Work

CODE 10B2. Environment 2-Pillar (Shortened Version)

8.2 Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labour-only contracting, sub-contracting, or home-working arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment, nor shall any such obligations be avoided through the excessive use of fixed-term contracts of employment.

8A.1 There should be no sub-contracting unless previously agreed with the main client.

8A.2 Systems and processes should be in place to manage sub-contracting, homeworking and external processing.

9.1 Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of intimidation be prohibited.

10A.1 Only workers with a legal right to work shall be employed or used by the supplier.

10A.2 All workers, including employment agency staff, must be validated by the supplier for their legal right to work by reviewing original documentation.

10A.3 Employment agencies must only supply workers registered with them.

10A.4 The supplier shall implement processes to enable adequate control over agencies with regards the above points and related legislation.

CODE 10B4. Environment 4-Pillar (Extended Version)

10B2.1 Suppliers must comply with the requirements of local, national and international laws related to environmental standards.

10B2.2 The supplier should be aware of and comply with their end clients’ environmental requirements.

10B4.1 Suppliers as a minimum must meet the requirements of local, national and international laws related to environmental standards.

10B4.2 Where it is a legal requirement suppliers must be able to demonstrate that they have the relevant valid permits including for use and disposal of resources e.g. water, waste etc.

10B4.3 The supplier shall be aware of their end client’s environmental standards/code requirements and have a system in place to monitor their performance against these.

10B4.4 Suppliers should have completed the appropriate section of the SAQ and made it available to the auditor.

10B4.5 Suppliers should have an environmental policy, covering their environmental impact, which is communicated to all appropriate parties, including its own suppliers.

10B4.6 Suppliers shall be aware of the significant environmental impact of their site and its processes.

10B4.7 The site should measure its impacts, including continuous recording and regular reviews of use and discharge of natural resources e.g. energy use, water use (see 'SMETA Audit Report' Clause 10B4. and Measurement Criteria below for details).

10B4.8 Suppliers shall seek to make continuous improvements in their environmental performance.

10B4.9 Suppliers shall have available for review any environmental certifications or any environmental management systems documentation.

10B4.10 Suppliers should have a nominated individual responsible for co-ordinating the site’s efforts to improve environmental performance.

10B4.11 Has the site recently been subject to (or pending) any fines/prosecutions for non-compliance to environmental regulations.

CODE 10C. Business Ethics10C.1 Suppliers should have completed the appropriate section of the SAQ and have made it available to the auditor.

10C.2 The supplier should have received and acknowledged – preferably in writing – the Business Ethics policy of the auditor/audit company.

10C.3 Suppliers shall seek to conduct their business ethically without bribery, corruption, or any type of fraudulent business practice.

10C.4 Suppliers shall be aware of any applicable laws, their end client’s Business Ethics standards/code requirements and have a system in place to monitor their performance against these.

10C.5 Supplier should have a Business Ethics policy concerning bribery, corruption, or unethical Business Practice. This should be clearly communicated to all relevant parties.

10C.6 Suppliers should have a designated person responsible for implementing standards concerning Business Ethics.

10C.7 Suppliers should have a transparent system in place for confidentially reporting, and dealing with unethical business practices without fear of reprisals towards the reporter.

10C.8 Suppliers should ensure that the staff whose job roles carry a higher level of risk in the area of ethical business practice e.g. sales, purchasing, logistics are trained on what action to take in the event of an issue arising in their area.

EVIDENCE TO BE EXAMINED


- Assigned HR manager- Monitoring of Worker Turn-Over Rates, Absenteeism, Number of Grievances- Monitoring of LOR related to Labor- Responsible for management of LOR on Labor- Records of government labor inspections- Certification to ISO 9001, ISO 14001 or OHSAS 18001

- Hiring and Recruitment Procedure- Procedure for Termination of Employment- Management of Loan or Fund- Policy on Prison Labor- Policy on Deposits Paid by Workers- No workers' original paper shall be withheld (e.g. passport, IDs)



- Hiring and Recruitment Procedure- Procedure for Termination of Employment- Management of Loan or Fund- Policy on Prison Labor- Policy on Deposits Paid by Workers- No workers' original paper shall be withheld (e.g. passport, IDs)

- Facilitation of workers' union, if there's any- Awareness to law on freedom of association- Outcomes of the meeting with workers' union- Fair representation of workers- Communication method between managers and workers

- Procedure on monitoring and communicating the applicable LOR- Safety inspection records (internal and external)- Certified OHS management system (i.e. certificate by a CB)- Appointed Management Representative- Procedure for Risk Identification and Assessment- Procedure for Incident Investigation and Reporting including records- Accident reduction target- Fire Safety Inspection Certificate- Building safety inspection certificates



- Procedure on monitoring and communicating the applicable LOR- Safety inspection records (internal and external)- Certified OHS management system (i.e. certificate by a CB)- Appointed Management Representative- Procedure for Risk Identification and Assessment- Procedure for Incident Investigation and Reporting including records- Accident reduction target- Fire Safety Inspection Certificate- Building safety inspection certificates

- Organization is up to date with relevant law e.g.:- Criteria on posting of hiring ads- Minimum age of working- Document to verify age- Controls for detecting fraudelent documents- Delegation of authority if responsible person is not available

- Method for calculating wages- Conformance with the minimum legal wages and overtime premiums- Deduction must be legal- Which department currently manages wages.


- Method for calculating wages- Conformance with the minimum legal wages and overtime premiums- Deduction must be legal- Which department currently manages wages.

- Recording or timekeeping system to measure hours worked- Awareness to laws concerning hours of work both standard and overtime limits- Controls to ensure workers do not exceed the allowed maximum- System in place to ensure that workers can refuse to do overtime- Premium paid for workers- Policy on working hours- Availability of employee contracts and handbook- Shift patterns- Collective agreements- Procedure to keep up to date with changes on local LORs- Communication of applicable LORs to employees and subcon- Risk assessment for jobs rendered beyond 60 hours



- Recording or timekeeping system to measure hours worked- Awareness to laws concerning hours of work both standard and overtime limits- Controls to ensure workers do not exceed the allowed maximum- System in place to ensure that workers can refuse to do overtime- Premium paid for workers- Policy on working hours- Availability of employee contracts and handbook- Shift patterns- Collective agreements- Procedure to keep up to date with changes on local LORs- Communication of applicable LORs to employees and subcon- Risk assessment for jobs rendered beyond 60 hours

- Method on job postings- No discrimination in any procedure or policies- Equal chance of training and promotion- Gender and ethnic balance on all levels of employees- Policy and procedure on discrimination- Relevant training provided

- Contract procedure- Awareness on conttractual rights and obligations- Understanding on the terms and conditions of working of agency workers





- Contract procedure- Awareness on conttractual rights and obligations- Understanding on the terms and conditions of working of agency workers

- Auditors will check whether the organization's customer has policies on Sub-Contracting, Homeworking & External Processing- Controls on any external working and the external conditions

- Policies on harsh or inhumane treatment- Documented and understood disciplinary procedures- Responsible for carrying out disciplinary measures- Records of disciplinary measures taken- Procedure for grievance must include provision for non-retaliation and anonymous reporting of harsh treatment including records- Responsible for overseeing grievance process (internally & externally)- Relevant training provided

- Site is updated re: governing laws- Controls to check labor conditions of agency workers


- Awareness on the governing laws- Procedure to monitor and stay updated with the applicable LORs- Records of government inspections- Evidence of improvement of the environmental performance

- Site records of its uses and discharge of natural resources such as water, energy, waste, emissions- Records of review and program for reduction of impact- Awareness of the workforce on how they can contribute to reduction in environmental impacts- Appointed person who manages the site’s environmental performance- Any recognised environmental management system such as ISO 14001- Any other sustainability measures/environmental certificates available at the site such as Forest Stewardship Council (FSC), Chain of Custody (COC) and Marine Stewardship Council (MSC)- Envirommental Policy

EVIDENCE TO BE EXAMINED- Policies and procedures on Business Ethics- Relevant training- Awareness on any financial inducements for e.g. order placement - Avoidance of any financial inducements

MEASUREMENT CRITERIA


- Social Compliance/Ethical Trade Policy to meet Code and International Labor Standards- Documented procedures to meet International Labor Standards- Procedure or policy for freedom of association, discrimination, & human rights standards- Policy on workers' age, wages, hours of work,- SHE policy- Procedure for LOR monitoring concerning workplace requirements, labor and environment- Appointed Management Representative- Procedure for Internal Audit- Procedure to assess awareness to client-specific requirements concerning labor, quality, SHE- Communication methods concerning labor laws to employees and subcontractors- Applicable land rights, titles, permits, licenses, certificates, LTFRB certificates

Contract:- Contract of Employment detailing their rights and obligations as well asnotice and grievance procedures- Contract language is understood by workers- Contract copy is provided to workers- Workers can leave employment after reasonable notice- Workers have the right to receive their final salary payment- Contract shall not restrict workers from leaving their employment- Security guards job should not restrict workers' movement- Workers are free to leave at the end of their shift, should not be delayed (e.g. secutiry checks)- Workers can refuse overtime.Personnel files:- Original copies of Passports are kept by the workers, photocopies only by the employer- If legally required to keep the original copies, written consent should be obtained from the workers- Loans to workers must have signed agreement with provisions on repayment, terms and conditions- Procedure should be in place such that loans will not prevent workers from leaving employmentWage deductions:- There must be a written agreement to wage deduction, signed by the worker- Deductions are reasonable andshall meet the law- Deductions must not reduce wages to below minimum legal wage- Deductions should not be meted for disciplinary reasons- Voluntary deductions must meet the law and the code- Deposits must not be taken for workplace essentials such as PPE- Deposits must not be compulsory condition of gaining employment.- Withhold deposits must be returned to the worker- Deductions must not be taken when commencing, during, or as a condition of employment.



Contract:- Contract of Employment detailing their rights and obligations as well asnotice and grievance procedures- Contract language is understood by workers- Contract copy is provided to workers- Workers can leave employment after reasonable notice- Workers have the right to receive their final salary payment- Contract shall not restrict workers from leaving their employment- Security guards job should not restrict workers' movement- Workers are free to leave at the end of their shift, should not be delayed (e.g. secutiry checks)- Workers can refuse overtime.Personnel files:- Original copies of Passports are kept by the workers, photocopies only by the employer- If legally required to keep the original copies, written consent should be obtained from the workers- Loans to workers must have signed agreement with provisions on repayment, terms and conditions- Procedure should be in place such that loans will not prevent workers from leaving employmentWage deductions:- There must be a written agreement to wage deduction, signed by the worker- Deductions are reasonable andshall meet the law- Deductions must not reduce wages to below minimum legal wage- Deductions should not be meted for disciplinary reasons- Voluntary deductions must meet the law and the code- Deposits must not be taken for workplace essentials such as PPE- Deposits must not be compulsory condition of gaining employment.- Withhold deposits must be returned to the worker- Deductions must not be taken when commencing, during, or as a condition of employment.

- Policy on freedom of association- No restriction on establishing workers' representation or unions- Freely elected union officials- Workers are aware of their representatives- Workers' representatives are independent from the management- The meeting minutes of both worker meetings and their meetings with management are published with agreed actions and responsibilities- Evidence of responding to concerns and proposals raised in themeetings- Percent of workers covered by collective bargaining agreement- Arrangements are made for workers who do not wish to join the union e.g.other workers groups, suggestion box, worker survey, confidential hot line- Organization must not sack workers attempting to form a union- Discrimination is not allowed.

- Safety, Health & Environment Policy- Risk identification an assessment records on all activities, areas- PPE management- Controls on canteen or pantry- Fire safety management- Hazardous chemicals and wastes management- Building permits, CSHP, Occupancy Permit, Fire Safety Inspection Cert- Machine, equipment and trucks inspection records- Drills (e.g. fire, first aid, spill, eartquake, etc.)- Discharge permit- Hazardous waste manifest- Emission tests records- DDC, orientation on SHE related programs- Incident monitoring records- First aiders training and certification- Hazardous wastes management- Blood policy- Electrical safety certifications and inspections- Water potability tests results- Site insurance for workplace and worker- Safety data sheets- Work permiting system- Organizational structure of the QSHE Committee- Management Review records- Machinery safety certificates- Maintenance records- Housekeeping- Personnel training records- Actions taken on personnel who disregard safety- WEM records (ventilation, light, noise, etc.)- Safety visual controls and warning signs- Hygienic, clean, and sufficient CRs for both genders- Machine guardings- Spill containment- Childcare facility



- Safety, Health & Environment Policy- Risk identification an assessment records on all activities, areas- PPE management- Controls on canteen or pantry- Fire safety management- Hazardous chemicals and wastes management- Building permits, CSHP, Occupancy Permit, Fire Safety Inspection Cert- Machine, equipment and trucks inspection records- Drills (e.g. fire, first aid, spill, eartquake, etc.)- Discharge permit- Hazardous waste manifest- Emission tests records- DDC, orientation on SHE related programs- Incident monitoring records- First aiders training and certification- Hazardous wastes management- Blood policy- Electrical safety certifications and inspections- Water potability tests results- Site insurance for workplace and worker- Safety data sheets- Work permiting system- Organizational structure of the QSHE Committee- Management Review records- Machinery safety certificates- Maintenance records- Housekeeping- Personnel training records- Actions taken on personnel who disregard safety- WEM records (ventilation, light, noise, etc.)- Safety visual controls and warning signs- Hygienic, clean, and sufficient CRs for both genders- Machine guardings- Spill containment- Childcare facility

- Policy on child labor and procedure to ensure children are not employed- Policy on child labor is communicated and displayed- Personnel files contain copies of proof of age- No worker is less than 15 years old (RA 7658)- All young workers (15 to 18) meet all local legal requirements (consent of parent/guardian, contract with specified limitations, annual medical exams)- List of young workers and their roles- System to check age of subcontractors- Young workers are not involved in working with hazardous chemicals or heavy machinery

- Wages whether hourly, weekly or monthly must be at least the legal minimum wage, excluding overtime- Trainees or apprentices are paid correctly in accordance to legal reqt.- Working overtime and on holidays are paid at the legally required rate- Local laws that allow payment of overtime below 125% will be recorded in the SMETA Audit Report- Conditions for workers with wages higher than the minimum but paid with the same rate for overtime as in their hourly rate will be reported - OT rate below 125% is NC even locally legal as per SEDEX Associate Auditor Group- Legally required allowances and benefits are provided to workers e.g. social insurance.- Legally allowed deductions are correctly calculated such as social security payments and promptly paid to the appropriate agency- Wages withheld as deposit, deducted as a punishment must be legal- Workers are given understandable information about their employment and their wages before employment- Workers are paid regularly and in lile with the law- Legally allowed deductions (e.g. housing) that reduce wages below minimum will be recorded- Deductions must be lawful and there is correct loan accounting- Contracts are signed by the workers, copy must be furnished to the worker,- Contracts must include job description, terms and conditions, length of contract, any probationary period, leave, notice period, pay, hours, discipline and grievance procedures.- Contracts meet the local laws- Payslips must indicate normal and overtime payments, any deductions/withholdings e.g. tax, social insurance, rent, transport etc.- Payslips must be understandable to workers- Legally allowed deductions have signed agreements from the workers- Personnel files must include disciplinary records- Agency agreements state individual responsibilities- Agency has contract with the individual worker- Rates paid to agencies are in line with the law


- Wages whether hourly, weekly or monthly must be at least the legal minimum wage, excluding overtime- Trainees or apprentices are paid correctly in accordance to legal reqt.- Working overtime and on holidays are paid at the legally required rate- Local laws that allow payment of overtime below 125% will be recorded in the SMETA Audit Report- Conditions for workers with wages higher than the minimum but paid with the same rate for overtime as in their hourly rate will be reported - OT rate below 125% is NC even locally legal as per SEDEX Associate Auditor Group- Legally required allowances and benefits are provided to workers e.g. social insurance.- Legally allowed deductions are correctly calculated such as social security payments and promptly paid to the appropriate agency- Wages withheld as deposit, deducted as a punishment must be legal- Workers are given understandable information about their employment and their wages before employment- Workers are paid regularly and in lile with the law- Legally allowed deductions (e.g. housing) that reduce wages below minimum will be recorded- Deductions must be lawful and there is correct loan accounting- Contracts are signed by the workers, copy must be furnished to the worker,- Contracts must include job description, terms and conditions, length of contract, any probationary period, leave, notice period, pay, hours, discipline and grievance procedures.- Contracts meet the local laws- Payslips must indicate normal and overtime payments, any deductions/withholdings e.g. tax, social insurance, rent, transport etc.- Payslips must be understandable to workers- Legally allowed deductions have signed agreements from the workers- Personnel files must include disciplinary records- Agency agreements state individual responsibilities- Agency has contract with the individual worker- Rates paid to agencies are in line with the law

- Policies and procedures which cover:a. Terms of employment, standard work hours and days, rest days/leave entitlement.b. Overtime requirements and pay.c. Discipline and grievance procedures for lateness and other hours issues.d. Where deductions are made for lateness what is the amount.e. Special terms and conditions for young workers (under 18 years)/pregnant women/nursing mothers.f. Re-work procedures.g. Shift schedules.h. New recruits and training hours.i. Method of recording hours worked.- Workers standard work hours must not exceed 48 hours per week.- Rest day and holiday entitlement.- OT premiums which do not meet the law is considered NC- 10% minimum sampling plan for reviewing hours and wages of employees must be used by the SMETA auditors- Hours work beyond 60 per week must be allowed by law, allowed by collective agreement, with safeguards to protect health and safety, with valid exceptional circumstances as reason- Provide reason why working beyond 60 hours per week is necessary than employing more workers- Review of records of hours and wages require full 12 months of data- Breaks, holidays and rest days must be in line with the law- Record of the lowest and highest number of hours worked will be obtained- Voluntary OT is encouraged- Auditors will examine operation issues attributed to excessive working hours



- Policies and procedures which cover:a. Terms of employment, standard work hours and days, rest days/leave entitlement.b. Overtime requirements and pay.c. Discipline and grievance procedures for lateness and other hours issues.d. Where deductions are made for lateness what is the amount.e. Special terms and conditions for young workers (under 18 years)/pregnant women/nursing mothers.f. Re-work procedures.g. Shift schedules.h. New recruits and training hours.i. Method of recording hours worked.- Workers standard work hours must not exceed 48 hours per week.- Rest day and holiday entitlement.- OT premiums which do not meet the law is considered NC- 10% minimum sampling plan for reviewing hours and wages of employees must be used by the SMETA auditors- Hours work beyond 60 per week must be allowed by law, allowed by collective agreement, with safeguards to protect health and safety, with valid exceptional circumstances as reason- Provide reason why working beyond 60 hours per week is necessary than employing more workers- Review of records of hours and wages require full 12 months of data- Breaks, holidays and rest days must be in line with the law- Record of the lowest and highest number of hours worked will be obtained- Voluntary OT is encouraged- Auditors will examine operation issues attributed to excessive working hours

- Policies and procedure in place to ensure workers are treated equally in all matters of employment (e.g. recruitment, compensation, training, promotion, retirement)- Language on job postings- Policy on health checks prior to employment (e.g. pregnancy and HIV) to ensure they don't discriminate- Contracts must be free from discrimination (e.g. not to have children for a period)- Auditors will check termination policies and procedures (e.g. worker's reason for leaving, exit interviews, disciplinary and notice letters)- Payroll records must ensure fair payments, benefits are given, no unlawful discrimination- Procedure on how workers can repport discrimination (e.g. suggestion box, anonymous phone line, protection of identity)- Prevention of repercussions against reporters (e.g. written non-retaliation commitment)- Auditor will check breakdown of workers by ethnic, gender and position- All benefits are applied equally to all groups- Workers have rights to observe religious practices (e.g. prayers, holidays)

- Proportion of workers that are permanent, part time, fixed term contract, temporary- Social security benefits are provided to all types of workers- Auditors will check whether workers being employed on a semi-permanent basis to avoid legal obligations/benefits- Ensure OT hours are being paid in busy periods- Agency workers are paid for downtime- Pay and conditions of agency workers meets legal req'ts- Contract of workers meet legal req'ts





- Proportion of workers that are permanent, part time, fixed term contract, temporary- Social security benefits are provided to all types of workers- Auditors will check whether workers being employed on a semi-permanent basis to avoid legal obligations/benefits- Ensure OT hours are being paid in busy periods- Agency workers are paid for downtime- Pay and conditions of agency workers meets legal req'ts- Contract of workers meet legal req'ts

- Auditor will check knowledge and agreement of the client if SC, H & EP are being employed- System to monitor SC, H & EP- Controls to ensure that workers in SC, H & EP are in good condition- Evidence of communication of the code of conduct- Auditors will obtain company profile, location and number of SC, H & EP

Auditors will check on:- policies and procedures on disciplinary actions, prevention of harassment, security, grievance and appeal- communication and understanding of the policies and procedures at all levels of the organization- records of disciplinary and grievance activity and reports on actions/outcomes- contracts of security guards as well as their job description to ascertain if any likelihood of harassment or extreme discipline (security should be used to keep the site safe- awareness on the policies and procedures by union reps- record if any deductions from wages were made for disciplinary reasons which does not take workers pay below the minimum

Auditors will check on:- identification documents of workers to ensure the are entitled to work in the particular country- familiarity of the organization with immigration rules and regulations- whether agencies are compliant with the local LOR- whether agencies are audited or visited by the organization to ensure control- contract with agencies- knowledge of the organization of any fees paid by workers to agencies to secure job- evidence that workers are paid by the agencies


- Policies or procedures concerning environmental issues and how do these compare with any requirements of international/national/local laws and regulations- Awareness on client-specific environmental requirements and has systems in place to be able to ensure that they meet these- Procedures on ensuring compliance with applicable LORs- Auditor will report if there is certificatioon to ISO 14001- Appointed person with the responsibility for environmental issues- List of chemicals and applicable LOR - Auditor will check any inspections from local government bodies, along with details of any official complaints, legal actions or recommendations.

Auditor will check on:- the completed SAQ on Environment- awareness applicable environmental LORs- awareness on any client’s environmental requirements and performance targets- communication of the environmental policy- procedures for implementing an EMS- any internationally recognised certifications present e.g. ISO 14001- relevant permits in place for all aspects of its environmental impacts- inspections of government and actions taken- awareness to applicable LOR of the person responsible for EMS- awareness of the site on its main environmental impacts and is measuring these- records of consumption of environmental resources on a continuous basis (possible list includes energy use, water use and disposal, waste and emissions to air)- list of chemicals used and the applicable LOR

MEASUREMENT CRITERIAAuditor will check on:- completed the SAQ in Business Ethics- awareness to any local and national regulations covering Business Ethics and is meeting those requirements- relevant licenses and permits in place for correct and legal practice of its business operations- awareness to client’s Business Ethics standards or codes and is measuring its performance against those, an example would be codes on corporate giving- understanding of the auditor/Audit Company’s policy on Business Ethics ("no bribery during audits and the "zero tolerance" policy of both the auditor and the site to the giving or accepting of any bribe, either in remuneration or in kind- clearly communicated policy, covering Business Ethics- procedures for implementation and management of Business Ethics performance- whether policy has specific reference to such topics as e.g. bribery issues (excessive gifts and entertainment), conflict of interest, charitable donations, facilitation payments, political contributions- any internationally recognised certifications present- communication of policies on Business Ethics issues, especially to those workers in high risk departments, such as purchasing or logistics- designated person with responsibility for management of BusinessEthics issues- communication/training on how to deal with any Business Ethics issues- any fines/prosecutions for non-compliance to business ethics regulations

SMETA Audit Criteria Guide.xlsx

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