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Indicator 3.9.5
Requirement
The UoC shall ensure that employees do not work more than 12 hours of overtime per week. **
How Do I Interpret This Requirement?
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Overtime is any additional hours spent working beyond normal working hours
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This requirement does not allow these overtime hours to exceed more than 12 per week.
Evidence of Implementation
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contracts
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working hours records.
Auditors Should Confirm
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employees understand how much overtime they are allowed to work.
Indicator 3.9.4
Requirement
The UoC shall ensure that overtime hours are; a. are voluntary; and b. are not requested regularly; and c. have appropriate safeguards in place to protect the employee’s health and safety.
How Do I Interpret This Requirement?
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Overtime should not occur regularly but under exceptional circumstances, for example, overtime can be requested:
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for unexpected peak production times
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if staff are absent and others must cover their work.
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The UoC should plan work in such a way to minimise the risk of regularly requesting overtime.
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If the UoC continues to need the same jobs done in overtime repeatedly, this is an indication that the UoC may need to:
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review resources
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plan work differently
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hire additional employees.
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Any overtime is voluntary, meaning it can only take place if the employee:
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consents to work extra hours
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is not discriminated against or penalised for refusing overtime.
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Health and safety hazards related to excessive overtime can be avoided by implementing a clear overtime policy that:
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limits excessive overtime
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ensures that overtime requirements are announced in advance when possible
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ensures that overtime is voluntary
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rotates schedules so that overtime is not always assigned to the same employees
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ensures that health and safety training shows how to recognise and manage signs of fatigue and stress.
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The UoC should allow regular rest breaks during overtime shifts.
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The UoC can maintain open and transparent communication channels with employees to encourage them to provide feedback about their work conditions and overtime hours, and use this input to adjust schedules.
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Appropriate safeguards in place to protect employees’ health and safety can include:
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a risk assessment looking specifically at the risk of fatigue
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adequate or extra rest breaks and places for employees to rest during long shifts
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enough food and drink available for employees to ensure that they are not hungry
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avoiding employees who have worked long hours of overtime conducting hazardous work (for example, operating heavy machinery)
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ensuring that dark areas are well lit
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ensuring that, where possible, employees are not working alone for long hours.
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Evidence of Implementation
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health and safety risk assessment
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contracts
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working hours records.
Auditors Should Confirm
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employees understand that overtime hours are voluntary;
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management understand the risks in working long hours and are well prepared to mitigate those risks;
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regular activities are carried out in regular working hours and that overtime is used for exceptional circumstances.
Indicator 3.9.3
Requirement
Indicator applicability: any person aged 18 and above. The UoC shall ensure that working hours do not exceed 8 hours per day and 48 hours in a week (excluding overtime). An exception applies where the operations of the UoC require a different working pattern, in which case the UoC may use averaging of working hours if permitted by applicable legal requirements, calculated over a maximum 17-week reference period. When more than 48 hours are worked in a week as a result of averaging, the UoC shall ensure that the following conditions are met: a. it is in line with applicable legal requirements; and b. it is in line with collective bargaining agreements; and c. terms are clearly set out and agreed to by employees in their contracts; and d. appropriate safeguards are put in place to protect the employee’s health and safety. **
How Do I Interpret This Requirement?
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The normal workday is a maximum of 8 hours, excluding breaks, and the normal work week is a maximum of 48 hours.
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Where collective bargaining agreements, industry standards or national law require a shorter day or week, this applies.
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The ILO defines shift work as: ‘a method of organisation of working time in which workers succeed one another at the workplace so that the establishment can operate longer than the hours of work of individual workers at different daily and night hours’.
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Where collective bargaining and national law allows, the UoC can employ people to work in shifts:
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They may choose to work more than eight hours per day and more than 48 hours in one week, if the number of hours averaged over a period of 17 weeks does not exceed a normal workday and normal work week.
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Long working hours can mean that employees can get fatigued, which can result in accidents or mistakes.
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The UoC should recognise that employees could be working two jobs which, whilst outside the scope of the ASC Farm Standard, is still a risk to their health and safety, and consideration should be given to fatigue caused by excessive working hours.
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Appropriate safeguards in place to protect employees’ health and safety can include:
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a risk assessment looking specifically at the risk of fatigue
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adequate or extra rest breaks and places for employees to rest during long shifts
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enough food and drink available for employees to ensure that they are not hungry
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avoiding employees who have worked long hours of overtime conducting hazardous work (for example, operating heavy machinery)
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ensuring that dark areas are well lit
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ensuring that, where possible, employees are not working alone for long hours.
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Evidence of Implementation
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employee contracts
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payslips
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working hours records
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health and safety risk assessment.
Auditors Should Confirm
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any different shift patterns have been entered into voluntarily by employees;
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the UoC understands the risk inherent in long working hours and fatigue and appropriate mitigations are being implemented.
Indicator 3.9.2
Requirement
The UoC shall maintain records of the hours worked by every employee. **
How Do I Interpret This Requirement?
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The UoC’s working hours recording system:
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can help the UoC to protect employees against excessive working hours
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is accessible to employees to verify the record of their hours
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may include the use of:
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time clocks with punch cards
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digital recording systems
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recording hours manually
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or other systems.
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The records should indicate
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the start and finish time each day of the week
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cumulatively add up to the total hours of regular work for the week
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any overtime hours worked.
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Evidence of Implementation
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working hours records, which include:
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start and finish time
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cumulative working hours
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any overtime hours worked.
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payslips
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employee contracts.
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Auditors Should Confirm
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employees are aware that their working hours are being recorded;
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employees are able to access their working hours records;
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employees are able to confirm the accuracy of the working hours records;
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pay slips, employee contracts and working hours records are all aligned.
Indicator 3.9.1
Requirement
The UoC shall ensure that working hours comply with applicable legal requirements and any collective bargaining agreements in place on premium rates, working hours, shift patterns, breaks, daily rest, weekly rest and annual leave.
How Do I Interpret This Requirement?
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National legal requirements on working hours, premium rates, rest times, shift patterns and annual leave can vary according to the country where the UoC is located.
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National legal requirements should always form the minimum requirement for the UoC.
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Collective bargaining:
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is a voluntary negotiation between employers and organisations of employees to establish the terms and conditions of employment by means of a written collective bargaining agreement (CBA)
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typically covers wages, working hours and working conditions.
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In the event that national legal requirements, collective bargaining agreements and the ASC Farm Standard differ, the strictest rule always applies.
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Annual leave:
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is the longest period of rest available to employees
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allows physical and mental recuperation, and a break from the workplace
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is paid with normal wages or with additional holiday pay on top of the normal wage (e.g. 13th month)
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can be taken in days or weeks, with employees being allowed at least a 2-week block, as suggested by ILO standards.
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Laws in many nations set fixed monthly and yearly minimum leave days.
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ILO Convention No. 132 (Holidays with Pay Convention, 1970) specifies that annual leave is:
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3 weeks of leave for 1 year of service
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typically accrued monthly
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calculated pro-rata to their contracted working hours,
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ILO Convention No. 146 (Seafarers’ Annual Leave with Pay Convention, 1976) can apply in aquaculture when vessels used by the site and subcontractors travel between sites in open water. This convention specifies:
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30 days of annual leave for 1 year of service.
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Annual leave days are not the same as public holidays, which are:
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set by governments for cultural or historical reasons
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not counted as part of annual leave days.
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Evidence of Implementation
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any written collective bargaining agreements that are in place
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information about national legal requirements regarding premium rates, working hours, shift patterns, rest breaks and annual leave.
Auditors Should Confirm
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employees understand that they have the right to engage in collective bargaining about their terms and conditions;
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employees have been provided the opportunity to engage in collective bargaining
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any collective bargaining agreements in place meet national legal requirements or the ASC Farm Standard, whichever is stricter, at a minimum.
Useful Resources
Indicator 3.8.7
Requirement
The UoC shall ensure that employees are entitled to maternity leave of a minimum of 14 weeks that includes a guarantee of return to the job. **
How Do I Interpret This Requirement?
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Many countries have legal requirements for the provision of maternity protection for women employees. These typically include:
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maternity leave
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cash benefits
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employment security, which includes a return to the same or a similar position after taking maternity leave.
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This requirement extends some or all of these benefits to employees at the UoC.
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Some countries also have similar legal requirements for the provision of paternity protection for male employees.
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Maternity leave can include both pregnancy leave and leave following the birth of the child.
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Evidence of Implementation
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written confirmation (either in contracts or a company policy or information document) that maternity provisions have been included that meet the requirements of local legislation
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evidence of maternity leave being paid, where national law requires.
Auditors Should Confirm
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employees’ understanding of maternity or paternity leave rights;
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employees who have taken maternity/paternity benefits have rejoined work at the same or similar position without a reduction in wages;
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the UoC does not discriminate in hiring between genders so that they can avoid being obligated to pay maternity (or paternity) benefits to employees, see ASC Farm Standard Criterion 3.4 (Discrimination).
Useful Resources
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International Labour Organization (ILO) V. Maternity Protection Convention, 2000 (No. 183)
Indicator 3.8.6
Requirement
The UoC shall document wage payment and receipt by all employees. Documentation shall be understandable and made available to the employees and shall include information on at least the following: a) wages; and, b) advances; and, c) loans; and, d) hours worked including overtime; and, e) calculation of any withholdings. **
How Do I Interpret This Requirement?
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Wage payment can be documented in several ways, often through a payslip including all wage information. This can be given to the employee:
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electronically
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through a printed copy
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on or before the payday.
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Loans provided by an employer can be an important source of funds for employees in some places.
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Clarity of loan calculations and repayment are particularly important, as loans can be an element driving forced labour if employees are not able to repay within a reasonable amount of time based on their wages.
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If loan interest rates are charged by the UoC, they should be:
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at or below bank rates
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included in receipt of information on advances, loans, hours worked, pay and the calculation of any deductions.
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For each payment cycle, the UoC should provide a written pay record (such as a payslip) to each employee detailing the following:
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employee name
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ID/roll/employee number
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month/week/pay period
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number of regular hours worked
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number of overtime hours worked
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mandatory deductions towards social security, health insurance and taxes, etc.
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deductions towards repayment of advances or loans taken by the employee (see also Indicator 3.2.9).
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The pay record should:
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be provided in paper or digital form.
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be provided in a language and format easily understandable to employees.
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be countersigned by employees unless the payment is traceable by bank transfer.
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It is particularly important that employees understand the calculation of hourly premium wages for overtime work.
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Employees should be able to raise any issues they may have related to doubts on calculations on wages, including overtime wages. The UoC should communicate a clear process on how employees can raise such issues.
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Evidence of Implementation
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employee contracts
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payslips
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any loan agreements in place
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working hours records
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documented wage information, including advances or any withholdings.
Auditors Should Confirm
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records of wage payments;
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accuracy of wage payments;
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employees’ access to wage information through employee interviews.
Indicator 3.8.5
Requirement
The UoC shall pay wages in full directly to employees in legal tender or into a bank account in their name at regular intervals, at least monthly. Wages shall not be delayed, deferred or in any way withheld. **
How Do I Interpret This Requirement?
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Legal tender does not include:
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notes which banks no longer exchange
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notes which are not accepted (for example, too small)
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currency which is unusable due to inflation
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in-kind benefits (food, housing, etc) of any kind.
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There are situations where withholding salary, property or benefits are legally required, and so allowed under this indicator. For example:
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salary withholdings, as required by the government. For example, part of a salary is sometimes withheld by a government for:
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statutory pensions
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health insurance
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taxes.
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a government can sometimes require the withholding of salary to pay overdue child-care support costs to another parent or pay overdue taxes
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salary deductions, as defined in a contract or collective bargaining agreement, that are agreed by both parties. For example, an agreed voluntary deduction for housing costs could be allowable.
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bonuses, which are considered optional and additional to the agreed salary and benefits. However, if clearly defined performance targets related to a bonus payment, as defined in a contract have been achieved, then the bonus cannot be withheld.
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Evidence of Implementation
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employee contracts
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payslips
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payment transactions.
Auditors Should Confirm
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direct, regular, and accurate payment to employees through records review and interviews with employees and management;
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if there are any instances when wages were delayed, deferred or withheld in the past and why;
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employees understand the process for raising grievances if wages are delayed or inaccurate;
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when foreign migrant employees are employed, apart from legally required deductions, no other deductions shall be made from their wages before payment, for example:
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recruitment or agency fees
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cost of airfare
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employment visas
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any fees or costs incurred in the recruitment process for employees to secure employment or placement, regardless of the manner, timing or location of their imposition or collection.
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Useful Resources
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General principles and operational guidelines for fair recruitment and definition of recruitment fees and related costs: <https://www.ilo.org/sites/default/files/wcmsp5/groups/public/@ed_protect/@protrav/@migrant/documents/publication/wcms_536755.pdf>
Indicator 3.8.4
Requirement
The UoC shall, where employee remuneration is below the living wage benchmark (see Indicator 3.8.2), develop and implement a wage improvement plan towards payment of a living wage.
How Do I Interpret This Requirement?
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The wage improvement plan should:
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list all categories of employees who are paid below a living wage
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include targets and timelines for improvements for all categories of employees who are not receiving a living wage
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be developed for a three-year period
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include reporting on progress towards the previous year’s goal and where goals have not been met, a justification should be provided.
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A wage improvement plan template has been developed to support the UoC’s compliance with this Indicator.
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The UoC may also choose to develop their own wage improvement plan format, as long as it includes all of the elements listed above.
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The UoC may choose to use a tool such as the GIZ Living Wage Costing Tool to develop the improvement plan.
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Evidence of Implementation
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completed wage improvement plan.
Auditors Should Confirm
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the presence of the completed wage improvement plan including reporting towards previous year’s goal;
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that the plan provides a clear rationale and explanation where no progress has been made towards closing any living wage gap.
Useful Resources
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ASC’s Wage Improvement Plan template
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GIZ Living Wage Costing Tool: offers various simulations to analyse the direct cost implications for producers to pay workers a living wage: <https://www.nachhaltige-agrarlieferketten.org/en/tips-tools>
Indicator 3.8.3
Requirement
The UoC shall annually report on the gap between employee remuneration and the living wage benchmark, according to ASC data submission procedures.
How Do I Interpret This Requirement?
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This is a reporting requirement, not a disclosure requirement, which means that all data is held confidentially by ASC, who does not share it publicly.
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Companies should never publicly share personal employee data.
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Wage gap data is generated by the UoC through their remuneration calculation (Indicator 3.8.2), and is uploaded by the UoC to MyASC on an annual basis.
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The information collected through wage gap reporting will enable ASC to:
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gain insights into national and regional wage gaps, which will inform the future development of ASC’s living wage requirements
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foster open discussions about the challenges of paying a living wage
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discuss the role in the payment of living wage of the collaborative effort and shared responsibility of participants in the whole supply chain
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develop strategies to raise wages and enhance benefits over time.
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Evidence of Implementation
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confirmation of data uploaded to MyASC.
Auditors Should Confirm
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that data uploaded to MyASC is consistent with results of the wage gap analysis.
Useful Resources
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Living Wage Data Reporting Template
