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Indicator 3.8.1
Requirement
The UoC shall set wages, before overtime and bonuses, at or above the legal minimum wage. An exception applies where a minimum wage has not been established by applicable law, in which case the UoC shall calculate wages in consultation with employees or their representative organisations. **
How Do I Interpret This Requirement?
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The following countries do not have a minimum wage established by law:
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Denmark
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Finland
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Italy
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Norway
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Sweden
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Iceland
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Singapore
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La Reunion
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Tonga
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Tuvalu
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North Korea
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South Sudan
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Brunei
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Zimbabwe
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Djibouti
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Somalia
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In these countries wages should be negotiated:
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through collective bargaining or
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other consultation with employees and their representative worker organisations.
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Further guidance on collective bargaining and worker organisations can be found in Criterion 3.6.
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In-kind benefits provided by the UoC should not be used as a way to pay less than the legal minimum wage to any employee.
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In-kind benefits can include:
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housing
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subsidised rations, food, meals
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transport
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utilities such as water and electricity, etc.
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Some of these in-kind benefits can be included in the living wage calculation, as described in Appendix 11: Methodology for Wage Measurement.
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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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payment transaction records
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any collective bargaining agreements that are in place.
Auditors Should Confirm
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national legal requirements on minimum wage;
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relevant collective bargaining agreements on wages in the sector (recommended prior to audit visit);
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that no in-kind benefits have been paid in place of the legal minimum wage.
Useful Resources
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Regularly updated list of minimum wages by country: <https://wageindicator.org/salary/minimum-wage/minimum-wages-per-country>
Indicator 3.7.5
Requirement
The UoC shall report to ASC the employee composition, 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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The information collected through this reporting requirements will enable ASC to gain insights into employee composition, which will inform the future development of ASC’s requirements related to employees.
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.
Indicator 3.7.4
Requirement
The UoC shall ensure that no employment arrangements are used to avoid obligations to employees under applicable national labour and social security laws, and social security for all employees is paid according to applicable legal requirements.
How Do I Interpret This Requirement?
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Systematic use of home working, labour-only contracting, sub-contracting, and fixed-term contracts is often an indication of attempts to avoid social or labour obligations.
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Such employment arrangements can be legitimately used within employment relationships if:
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they are legally permitted
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adequately documented
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not used to avoid social or labour obligations.
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Home working carries risks that:
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employees do work that is hidden and not paid for
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employees miss out on benefits that they are entitled to because they are not present at the workplace.
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Ongoing, routine tasks necessary for the UoC to operate should be carried out by contracted employees.
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Temporary employees, such as day labourers, should only be hired for unanticipated peak work or seasonal work. For example, routine feeding is an ongoing task that is carried out by an employee. A day labourer could be hired to support a busy harvest period or to handle an unexpected feed delivery.
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Fixed-term contracts should have a clearly defined or predictable duration.
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excessive use of these contracts, or when employees are continuously required to reapply for positions lasting less than six months, should be avoided.
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Examples of when sub-contracting is used at a UoC are:
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production
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fish transfer
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veterinary treatment
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diving
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maintenance
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harvest
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slaughter
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storage
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transport of fish
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cleaning
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catering.
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Evidence of Implementation
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contracts with contract-workers, sub-contractors and recruitment agencies
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documentation regarding social security.
Auditors Should Confirm
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employees are paid social security according to national legal requirements;
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employees understand their right to social security and how that applies to their contracts.
Indicator 3.7.3
Requirement
The UoC not engage in false-apprenticeships.
How Do I Interpret This Requirement?
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The indicator does not permit false apprenticeships but apprenticeships may be legitimately used within employment relationships if they are:
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legally permitted
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adequately documented
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not used to avoid social or labour obligations.
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Evidence of Implementation
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apprenticeship agreement
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contracts
Auditors Should Confirm
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that any apprentices at the UoC are aware of the terms agreed in their apprenticeship agreement and that their work fits in the scope of that agreement.
Indicator 3.7.2
Requirement
The UoC shall ensure that if family members are working on the site they are either subject to Indicator 3.7.1 or they receive compensation or benefits for work done that is proportional to the productivity or profit of the site.
How Do I Interpret This Requirement?
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While the ASC Farm Standard requires that all employees working at the UoC are employed through contracts with agreed upon terms and conditions, and fair wages, ASC recognises that:
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some sites are small businesses that are run with the support of close family members
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where businesses are supported by family members, it is not always possible to contract and pay those family members in the usual practice outlined in the ASC Farm Standard.
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This indicator allows for small sites to receive help in operating the business from close family members in a more informal manner and in exchange for some compensation or benefits. These can include:
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payment in money
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payment in kind (exchange of goods or other services)
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a share of the profits of the business.
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The compensation or benefits is proportional to the productivity or profit of the site, implies fair compensation for the work given.
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Family members is defined as first or second-degree blood relatives, or those adopted.
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First-degree blood relative is someone’s:
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parent
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sibling
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child.
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Second-degree blood relative is someone’s:
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grandparent
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grandchild
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uncle or aunt
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niece or nephew
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cousin.
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Evidence of Implementation
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agreement with the family member about work, working conditions, compensation and benefits
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evidence of first or second-degree blood relative of the owner or spouse of the owner.
Auditors Should Confirm
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everyone working at the UoC understands their role and how they are compensated;
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everyone working at the UoC is fairly compensated for their work;
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everyone working at the UoC is either an employee with a contract or a first or second-degree blood relative of the owner or spouse of the owner.
Indicator 3.7.1
Requirement
The UoC shall ensure that all employees have received, understood and agreed upon, written information about their employment terms and conditions before starting employment and, where applicable, prior to migration. This information shall include, at least the following: a) a description of the role and any responsibilities; and b) the type of contract (e.g. permanent, fixed-term, contractor); and c) working hours, including allowance for breaks, paid annual leave, allowance for days off on public holidays, and sick leave; and d) wages, any agreed wage deductions (e.g. accommodation, meals), compensation for overtime, and loans and advances; and e) social benefits (e.g. insurances); and f) termination terms and conditions, notice period; and g) relevant human rights and labour-related policies; and h) information on labour rights (see Indicator 1.1.2).
How Do I Interpret This Requirement?
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This indicator applies to all employees.
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Copies of contracts should be available on file in the language of the employee, and provisions should be made for cases where people have low literacy levels. For example:
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a colleague verbally communicates the information.
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In the case of any changes to the contract during employment, the UoC should:
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discuss the changes with the employee
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ensure that the employee agrees with the changes
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records the agreed upon changes
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provides the employee with a copy of the changes.
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Examples of changes to terms and conditions can include where employees have:
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been given a different role or been promoted
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had changes in their working conditions, for example:
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wages
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working hours
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location.
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Migrant workers should have contracts that:
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are written, agreed to, and signed at the time of hiring in the country of origin of the employee
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state that the employer will pay for travel from the employee’s country and repatriation, and what arrangements are made for that (information about fees and costs related to employment are outlined in Criterion 3.2)
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do not violate the national laws of the host country, as well as other laws and regulations that apply to migrant employees in their country of origin.
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Evidence of Implementation
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contracts and contract amendments
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evidence of the contract being explained to the employee in their language and in a way they understand
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contracts, Memorandum of Understanding or terms and conditions agreed between the UoC and the labour or recruitment agency.
Auditors Should Confirm
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whether contracts meet national legal requirements for labour contracts;
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that contract terms and conditions match with working hour records and payroll and wage records and/or the Salary Matrix (see Criterion 3.8);
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employees’ understanding of the terms and conditions of their contract;
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whether employees are in possession of a copy of their contract and documented changes;
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for migrant employees: whether they were required to pay recruitment fees, and any costs incurred for travel to the host country by assessing the process of recruitment. See also Criterion 3.2.
Indicator 3.6.5
Requirement
The UoC shall uphold any collective bargaining agreements developed.
How Do I Interpret This Requirement?
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A collective bargaining agreement is a labour contract usually set out between a union representing employees and management.
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It can set terms and conditions of employment, including:
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wages
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working hours
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working conditions
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grievance procedures
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rights and responsibilities of the worker representatives and management.
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Evidence of Implementation
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documented collective bargaining agreements and which employees are covered by them.
Auditors Should Confirm
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employees’ and managers’ understanding of the right of collective bargaining
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any collective bargaining agreements in place are upheld.
Indicator 3.6.4
Requirement
The UoC shall report to ASC if there are any collective bargaining agreements in place and if there is any engagement with local trade unions, 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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The information collected through this reporting requirements will enable ASC to:
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gain insights into collective bargaining practices and contact with local trade unions, which will inform the future development of ASC’s collective bargaining and freedom of association requirements, and worker voice programme.
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foster open discussions about collective bargaining, and worker voice.
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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.
Indicator 3.6.3
Requirement
The UoC shall not interfere with collective bargaining processes or the establishment, operation, or administration of trade unions or worker organisations.
How Do I Interpret This Requirement?
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The UoC:
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does not disrupt any employees looking to form or join an organisation
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does not interfere in the election of representatives
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allows representatives access to employees and workplaces during working hours
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engages in meaningful negotiations when approached by worker organisations.
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Interference by employers can take many forms, such as making use of their positions of power and influence to:
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coerce or intimidate employees into not participating in workers’ organisations or collective bargaining
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compromise the independence and effectiveness of these organisations and bargaining processes.
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An employee committee or union shall make decisions independently from the management. For example:
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representatives are not appointed or supervised by management when executing their union or employee committee duties
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participation is voluntary
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there is no limitation to the number of employee organisations that can be set up.
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Management should be willing to enter into dialogue with employee organisations.
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Engagement in meaningful negotiations with employee organisations means that the UoC bargains in good faith and does not engage in actions to slow, stop or limit the bargaining process.
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Employee organisations are allowed to hold meetings at the UoC, if that is what they choose to do, but management cannot ask them to do so.
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Evidence of Implementation
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documents related to the representative election process
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list of current representatives.
Auditors Should Confirm
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employee knowledge and awareness on:
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how employee representatives were elected, and if any candidates were chosen by the management
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whether management interferes with the establishment, functioning and administration of employee organisations
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whether employee organisations’ meetings can be held freely and without management interference.
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Indicator 3.6.2
Requirement
The UoC shall allow all employees to engage in collective bargaining. An exception applies where this is restricted by applicable law, in which case the UoC shall allow alternative lawful mechanisms for employee engagement.
How Do I Interpret This Requirement?
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Collective bargaining:
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is a voluntary negotiation between employers and workers organisations to establish the terms and conditions of employment by means of written collective agreements
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aims to reach a collective agreement, however, if bargaining is undertaken in good faith but an agreement cannot be reached, this may still comply with the requirement
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includes mutually agreed conditions that may be beneficial to workers and/or the management, for example, collective bargaining may mean that workers are:
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paid a higher wage other than the minimum prescribed by law
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work a different shift pattern that both workers and management agree is more appropriate to their context.
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Allowing employees to engage in this process includes ensuring that they understand:
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what collective bargaining is
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that they have the right to engage in it.
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Ensuring employees understand this can form part of training on the human rights policy (Indicator 3.1.4).
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The term ‘lawful mechanism’ means a legal process.
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In countries where collective bargaining is restricted by law, the management must allow workers to have parallel means to engage in discussion and negotiation between employees and employers.
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Evidence of Implementation
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documents, records or other evidence that show how sites have informed their employees that they are free to bargain collectively, such as:
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employee contract
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employee handbook
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training records
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written policy
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displayed information on the site
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any collective bargaining agreements that are in place
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meeting minutes of collective bargaining negotiations.
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Auditors Should Confirm
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documents, records or other evidence allow for verifying that sites have informed their employees that they are free to bargain collectively;
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any collective bargaining agreements in place are being followed;
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employees’ awareness and knowledge of their right to bargain collectively;
