Terms of Engagement Guidebook Revised 022208.docx
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Terms of Engagement Guidebook Revised 022208.docx
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TermsofEngagementGuidebookRevised022208
Kohl’sTermsofEngagementGuidebook
TableofContents
Kohl’sTermsofEngagementGuidebook
Provision1:
WagesandBenefits3
CriticalBenchmarks3
ComplianceTips–WagesandBenefits3
IndicatorsofNoncompliance3
GoodManagementPractices3
Provision2:
WorkingHours3
CriticalBenchmarks3
ComplianceTips–HoursofWork3
IndicatorsofNoncompliance3
GoodManagementPractices3
Provision3:
ChildLabor3
CriticalBenchmarks3
ApprenticePrograms3
ComplianceTips–ChildLabor3
IndicatorsofNoncompliance3
GoodManagementPractices3
Provision4:
ForcedLabor3
CriticalBenchmarks3
ComplianceTips–ForcedLabor3
IndicatorsofNoncompliance3
GoodManagementPractices3
Provision5:
Discrimination3
CriticalBenchmarks3
ComplianceTips–Nondiscrimination3
IndicatorsofNoncompliance3
GoodManagementPractices3
Provision6:
FreeAssociation3
CriticalBenchmarks3
ComplianceTips–FreedomofAssociation3
IndicatorsofNoncompliance3
GoodManagementPractices3
Provision7:
DisciplinaryPractices3
CriticalBenchmarks3
ComplianceTips–HarassmentorAbuse3
IndicatorsofNoncompliance3
GoodManagementPractices3
Provision8:
Women’sRights3
CriticalBenchmarks3
ComplianceTips–Women’sRights3
IndicatorsofNoncompliance3
Provision9:
HealthandSafety3
CriticalBenchmarks3
ComplianceTips:
HealthandSafety3
IndicatorsofNoncompliance3
GoodManagementPractices3
Provision10:
LawsandRegulations3
CriticalBenchmarks3
ComplianceTips3
IndicatorsofNoncompliance3
GoodManagementPractices3
Provision11:
EthicalStandards3
CriticalBenchmarks3
QuickComplianceTips3
GoodManagementPractices3
Provision12:
EnvironmentalRequirements3
CriticalBenchmarks3
Provision13:
Communication3
CriticalBenchmarks3
ComplianceTips3
IndicatorsofNoncompliance3
GoodManagementPractices3
Provision14:
Monitoring/recordKeeping3
CriticalBenchmarks3
IndicatorsofNoncompliance3
Provision15:
Subcontracting3
CriticalBenchmarks3
IndicatorsofNoncompliance3
Provision16:
CorrectiveAction3
CriticalBenchmarks3
Appendix:
Environment,HealthandSafetyChecklist3
Provision1:
WagesandBenefits
Kohl’sBusinessPartnersmustpayworkerswagesandlegallymandatedbenefitsthatcomplywiththehigherof(a)anyapplicablelaw,or(b)tomatchtheprevailinglocalmanufacturingorindustrypractices.Inadditiontotheircompensationforregularhoursofwork,workersshallbecompensatedforovertimehoursatsuchpremiumratesasarelegallyrequired,orinthosecountrieswheresuchlawsdonotexist,atleastequaltotheirregularhourlywage.Kohl’srecognizesthatwagesareessentialtomeetworkers’basicneeds.Kohl’swillseekandfavorBusinessPartnerswhoarecommittedtothebettermentofwagesandbenefitswithintheirfacilities.
CriticalBenchmarks
Theabovecodeprovisiongoverningwagesandbenefitstofactoryworkersclearlystipulatesthat:
Allworkersarepaidnotlessthanthelegalminimumwageapplicableinthecountryofmanufacture.
Wherethereareestablishedwagesthatarehigherthantheminimumwagesestablishedbylaw,factoryworkersshouldreceivethehigherindustrywage.
Inadditiontowagesforthestandardworkweek,workersmustbecompensatedforovertimehoursatthelegallymandatedpremiumrates,orwheresuchratesdonotexist,paymentforovertimehoursmustbeequaltotheregularhourlywage.
Aswellasproperlycompensatingworkersforallhoursworked,factoryworkersshouldreceiveallstatuatorybenefitsmandatedbylaw.
Whileweunderstandthedifficultiesinaccuratelyassessingwhetherwageratesareadequatetomeetworker’sbasicneedsforfood,clothing,shelter,education,utilities,transportation,childcare,healthcareandsavings,Kohl’sbelievesthatitisparamountforourbusinesspartnerstoworktowardsimprovingwagesandthequalityofbenefitsprovidedtoensurethattheymeetworker’sbasicneeds.
ComplianceTips–WagesandBenefits
Reviewarandomsampleofpayrollrecordsandlookforthelowestpaytotalstoensureallmandatedpayandbenefitsareprovided.
Reviewtimesheetsorotherrecordstoensurethatworkerswagesarebeingcalculatedaccuratelyandiftheyhavereceivedcompensationforleavetaken.
Determinehowworkers’timeonthejobisrecorded,andthatitisrecordedaccurately(i.e.workingtimeclocks,validlog-insheets,productionrecords).
Findoutwhetherworkersknowhowtheirpayiscalculatedandreviewevidencethatworkersaregiveninformationrelatingtowagesinanunderstandableform.
Assesstheimpactoftheproductionsystemonpay–ensurethatproductiontargetsdon’tdragworkersbelowthelegalminimum.
Determineifwomenworkersareallowedtotakematernityleavethroughinterviewsandpayrollreview.
Determineifworkersareprovidedwithrequiredinsurance(s).
Determineifsocialsecurityandothercontributionshavebeenmade.
IndicatorsofNoncompliance
Falsifiedpayrecords
Nonpaymentorlatepaymentofwages
Minimumwageandovertimeviolations
Miscalculationofwages
Miscalculationofbenefits
Illegalorunauthorizedwagedeductions
Compensationnotpaiddirectlytoworkers
Failuretoprovideemployer/employeemandatedbenefits
Failuretopayemployeemandatedwithholdingstotheappropriategovernmentagency
Nopaystubsprovidedtoworkers
Incompletepayrollrecords
GoodManagementPractices
Thefactorypaysworkersabovetheminimumwageprescribedbylaw.
Thefactorypaysworkersabovethelegallymandatedpremiumrateforovertimehours.
Thefactoryprovidesbonusesforgoodproduction.
Allworkersgetadetailedpayslipdetailingallcomponents.
Nodeductionsforbenefitsprovided(suchasfreemeals).
Workereducationprogramsareprovided.
Workersareencouragedthroughsurveystosuggestchanges/improvementsinbenefits.
Alltools,equipmentanduniformrequiredbytheworkertoperformtheirjobmustbeprovidedtotheworkeratnocharge.
Provision2:
WorkingHours
Kohl’sexpectsitsBusinessPartnerstooperatebasedonprevailinglocalworkhours.Exceptinextraordinarycircumstances,BusinessPartnersshalllimitthenumberofhoursthatworkersmayworkonaregularlyscheduledbasistothelegallimitonregularandovertimehoursestablishedbylocallawsandregulationsinthejurisdictioninwhichtheymanufacture.Subjecttotherequirementsoflocallaw,aregularlyscheduledworkweekofnomorethansixty(60)hoursandonedayoffineveryseven(7)dayperiodisencouraged.Partnerswillcomplywithapplicablelawsthatentitleworkerstovacationtime,leaveperiodsandholidays.BusinessPartnersmustregularlyprovidereasonablerestperiodsandonedayoffwithinaseven-dayperiod.Anytimeworkedoverthenormfortheareashouldbecompensatedasprescribedbythelocallaborlaws.Workinghoursmustberecordedbyanautomatedtimekeepingsystem.Wheneveraworkerispresentinafacility,theworker’stimemustberecordedandtheworkerproperlycompensated.Thisappliestobothregularandovertimeworkinghoursandanytimeusedforworkpreparationsorrepairs.
CriticalBenchmarks
TheabovecodeprovisiononworkinghoursrequiresthatallKohl’sbusinesspartners:
Notestablisharegularweeklyworkschedulebeyondthelocallegallimitonregularworkinghours.
Provideatleastone24-hourrestperiodeachweekandlimitworkbeyondlocallegallimitor7daysofworktosituationswheretheadditionalhoursareduetoextraordinarycircumstances.
Ensurethatworkersaregivenadvancenoticethatovertimehoursmaybenecessary.
Provideovertimecompensationattheraterequiredbylocallawforallworkers,includingpiecerateworkers.
ComplianceTips–HoursofWork
Reviewsystemforrecordingtimeworkedtoensurethattimeisrecordedaccuratelyandcompletely.
Interviewworkerstodetermineiftheyareknowledgeableaboutthefactory’sovertimepolicies.
Reviewproductionrecordsandcapabilitiestoassessthefactory’sabilitytoavoidexcessiveovertime.
IndicatorsofNoncompliance
Falsifiedtimerecords
Missing,incompleteornotimerecords
Non-paymentforactualtimeworked(workdoneofftheclock)
Excessiveovertimeonaregularbasisinexcessoflaworcode
Notprovidinglegallymandatedrestday(s),holiday(s)andvacationday(s).
Denialofmandatedmealandrestbreaks
Terminationordisciplineofworkersnotwillingtoworkovertimehours
Brokentimeclock
GoodManagementPractices
Thefactorymaintainsanaccountingsystemthatensuresthatallworkersarepaidforovertimeinaccordancewiththepremiumpay.
Thefactoryensuresthatpiecerateworkersinparticularareawareoftherequirementthattheybepaidapremiumrateforovertimework.
Thefactoryisconsciousofcapacityrestraints,thereforelimitingovertimehoursworked.
Employeesareprovidedwithpayslipsthatclearlyindicateovertimehoursandovertimecompensation.
Provision3:
ChildLabor
Useofchildlaborisstrictlyprohibited.Businesspartnersmustobservealllegalrequirementsfortheworkofauthorizedminors,particularlythoserelatingtohoursofwork,wages,minimumeducationandworkingconditions.Kohl’ssupportsthedevelopmentoflegitimateworkplaceapprenticeprogramsandBusinessPartnerswillbeexpectedtocomplywithalllawsandregulationsapplicabletosuchapprenticeshipprograms.
“Child”isdefinedasapersonwhoisyoungerthan15(or14wherethelawofthatcountrypermits)oryoungerthantheageforcompletingcompulsoryeducationinthecountrywheresuchageishigherthan15.Kohl’
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