Search Report
2017 Sustainability Report
published 2018/08/01

Lawful employment for all employees

It is very important that all employees who make our products are lawfully employed. This means that they are employed in accordance with applicable regulations and that labor laws and social security laws are respected.

“Obligations to employees under labor or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labor-only contracting arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment. Younger workers shall be given the opportunity to participate in education and training programs.”

Audits by independent auditors

An obligation in and of itself is not enough, of course. Therefore, all of our producers are regularly and independently audited by organizations such as the Fair Wear Foundation (FWF). Auditors carefully review whether employment contracts were properly terminated and whether employees are covered by social insurance. This is verified through interviews within and outside the production site and by reviewing documents.

Results of the Fair Wear Foundation (FWF) audit

The 2017 FWF Audits show that there were some findings regarding the issue of proper employment at our production sites. For example:

  • Not all workers are covered by social insurance.
  • Employment contracts did not contain all the necessary information.
  • The probationary period was longer than allowed by law.

We are improving the conditions for proper employment with these measures:

We are discussing the objections with our producers and working together to solve them. Deviations from the provisions governing employment contracts can usually be quickly resolved.

Ensuring that all employees have social insurance, however, is more difficult to achieve. In some cases, the lack of social insurance didn’t come from the employer, but from the employees themselves who could then collect the employer's contribution. It is very important to educate employees on this issue. The advantages of social security often haven’t been explained to employees. We expect our producers to provide their employees with information on this issue. In addition we are carrying out the FWF’s Workplace Education Program training program which also covers this issue.

Labor turnover at our producers

Since there are no figures collected for new recruitments or the number of terminations in FWF audits, we have no data for performance indicators of our producers.