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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
Indicator 3.8.2
Requirement
The UoC shall annually calculate employee remuneration following the method outlined in Appendix 11, and shall assess this against the living wage benchmarks listed on the ASC website to identify if there is a gap between employee remuneration and the living wage benchmark. **
How Do I Interpret This Requirement?
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A living wage is: ‘the remuneration (wages, bonuses and benefits) received for a standard workweek by a worker in a particular place sufficient to afford a decent standard of living for the worker and their family. Elements of a decent standard of living include food, water, housing, education, health care, transportation, clothing, and other essential needs including provision for unexpected events.’
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A living wage is different to the national minimum wage: it is usually higher and is adjusted yearly for inflation and is voluntary rather than required by law.
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Living wage benchmarks are location-specific monetary amounts calculated by the Anker Research Institute (ARI) and the Global Living Wage Coalition designed to ensure employees receive sufficient income for a living wage. Sites can find relevant benchmarks in the ASC Living Wage Benchmarks document found online, which is regularly updated.
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The living wage gap is defined as the difference between the local living wage and the actual remuneration (wages, bonuses, and benefits) provided to employees.
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ASC’s requirements on living wage are focused on measuring and reporting wages:
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helping the UoC assess whether or not they are paying a living wage to employees
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helping the UoC identify any gap between current wages and the living wage in a particular location.
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These requirements do not require the UoC to:
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close any gaps between current wages and the living wage
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immediately start paying a living wage.
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Appendix 11 outlines the calculation that the UoC can use to understand how much employees are being paid, which is based on a methodology developed by the Anker Research Institute.
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The replacement cost for in-kind benefits such as food and housing for the worker has been set by researchers in local living wage benchmarks, which can be found in the reports linked here: ASC Living Wage Benchmarks.
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ASC recommends the use of a tool called the Salary Matrix developed by IDH, for this calculation, which can help simplify and clarify the process.
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Guidance for completing the upload of employee payroll, bonus and benefit information is embedded in the tool.
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The list of local living wage benchmarks is found on ASC’s website here.
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ASC uses the Anker Research Institute living wage benchmarks. Where one of these is not available, benchmarks from the Wage Indicator Foundation are linked.
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Through the results of this calculation, the UoC should be able to:
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develop the wage improvement plan required by Indicator 3.8.4
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report to ASC, required by Indicator 3.8.5.
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An example of a possible result from the calculation is:
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the living wage benchmark in Country X is $980 per month
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the UoC’s remuneration calculation shows that:
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fish health technicians are paid $940 per month
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farm workers are paid $900 per month.
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The analysis of this calculation shows a living wage gap of:
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4% for fish health technicians
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8% for farm workers.
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Evidence of Implementation
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completed Salary Matrix or similar wage measurement analysis calculation
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employee contracts
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payslips
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payment transaction records.
Auditors Should Confirm
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the accuracy and completeness of wage measurement analysis;
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what bonus payments, and in-kind benefits have been paid, through employee and management interviews and document review;
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the value and benefit of in-kind benefits recorded in the wage measurement analysis, through employee interviews;
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calculations used in calculating in kind-benefits used for wage calculation, including document review, through management interviews;
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wage payments.
Useful Resources
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Living Wages Around the World, Manual for Measurement by Richard Anker and Martha Anker, Chapter 15 Comparing Prevailing Wages to a Living Wage: <https://www.elgaronline.com/monobook-oa/9781786431455/9781786431455.xml>
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Wage measurement tool: IDH Salary Matrix
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List of living wage benchmarks on ASC website
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.
-
Companies should never publicly share personal employee data.
-
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.
