SMETA 6.1 Non Compliance Guidance Ver. 2.1 - May 2019

Sedex Members Ethical Trade
Audit (SMETA) Non-Compliance

Guidance
(Guidance initially for Sedex members only,
Version 2.1, May 2019)
This non-compliance guidance for ethical trade audits has
been updated by the Sedex Stakeholder Forum (SSF) to
support the Sedex Members Ethical Trade Audit (SMETA)
process.
The document uses a selection of non-compliance

issue titles taken from those currently on the Sedex
platform.
An auditor may find it helpful when completing

an audit, as a guide to the verification
timescales and method of corrective actions
sign off which should be recommended to
a supplier.
It is not intended as a standalone

document, but rather to supplement
a company’s own systems. It does
not include all issue titles, but the
auditor should use it to inform
their judgment when agreeing
timeframes for corrective
actions and verification.
.
Sedex Members’ Ethical Trade Audit (SMETA) Non-Compliance Guidance (Version 2.1, May 2019)
SMETA Non-Compliance
Guidance
Background
This document has been produced by the Sedex The non-compliance issues are detailed under
stakeholder forum (SSF), to support a more consistent each element of a labour standards code and
approach to the grading of non-compliances, they aim to cover the majority of non-compliances
suggested timeframes for correction, and found at audit.
recommended methods for sign-off. It is intended to
supplement a company’s own systems, rather than
Issue Definitions
be used as a standalone document and replaces the
previous version of the guidance dated June 2010. Non-Compliance: An instance where the practices
of the site of employment do not meet the
This is one of several publications which support a requirements of either the law or the ETI Base
SMETA audit, including but not limited to: Code. Since the Sedex system encourages audit
sharing it is very important that the standard
●● SMETA Best Practice Guidance procedure is followed and that non-compliances
(version 6.1, May 2019) are recorded where the site practice does not meet
EITHER the law OR the ETI Base Code OR both. A
●● SMETA Measurement Criteria
non-compliance can be raised where either there
(version 6.1, May 2019)
is no system in place, the system is not effective
●● SMETA Audit Report (version 6.1, May 2019) in ensuring compliance or where a lapse in the
system puts workers at a disadvantage.
●● SMETA Corrective Action Plan Report (CAPR)
(version 6.1, May 2019) Observation: An instance where the practices of
the site of employment do not break the law or
ETI Base Code, but if not corrected, could lead
Contents to non-compliance. An observation can be noted
The below list represents a selection of possible where there are robust systems in place and there
non-compliances whilst the comprehensive is only an isolated lapse which can be corrected
list can be found on Sedex Advance. Auditors immediately. An observation can also be noted
will use SMETA methodology (SMETA Best when a non-compliance can be rectified and
Practice Guidance and Measurement Criteria) correction verified, before the end of the audit.
in conjunction with international, local law
and customer requirements as well as their Good Example: An instance where the site practice
experience and judgment to raise findings as part exceeds the requirements of the law or ETI Base
of a SMETA audit. The below non-compliances are Code or a practice which exceeds the expectation
a selection designed to highlight the principles of workers which could help drive best practice at
and give an overview of possible issues within an other sites if recorded on the audit.
audit which will require to be supplemented with
more detailed information.
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Issue Significance and Criticality

The suggested significance of issue, Critical non-compliance:
recommended completion timescales and
verification method are suggestions only and not ●● A severe breach which represents a danger to
rigidly set. The final decision is that of the auditor workers / those on site, or which constitutes a
and the site of employment, arrived at during their severe breach of workers’ human rights.
discussions, in conjunction with the final customer
●● A severe material breach of a code
as necessary.
requirement / law. A systematic and deliberate
Unless specifically instructed, auditors do not breaking of a code requirement / law.
grade non-compliances during an audit, however
●● An attempt to pervert the course of the
recommended criticality is visible on the Sedex
audit through fraud, coercion, deception,
system to assist when the audit information is
interference or deliberate damage to brand
uploaded.
reputation
A customer’s own systems may use different
●● Or a major non-compliance that has not
terminologies for significance of issue, but for the
been addressed over time, or for which no
sake of consistency the SSF would like to propose
significant improvement has been made.
the following definitions:
Major non–compliance:
Business critical non-compliance:
●● A material breach of a code item or local law
●● A critical breach of a code item or local law
which represents a danger to workers / those
resulting in an issue which presents a critical or
on site
imminent risk to worker’s safety / critical risk
to life and limb or which constitutes a critical ●● Or any breach which constitutes an
breach of workers’ human rights. This may put infringement of workers’ human rights.
either new business or ongoing business at
risk and is therefore likely to require immediate ●● Or a minor non-compliance that has not
correction or improvement. been addressed over time, or for which no
significant improvement has been made.
●● Or a critical non-compliance that has not been
addressed over time. This is likely to require Minor non-compliance:
immediate action and may put business
relationships at risk. ●● An occasional or isolated problem
●● An issue which represents low risk to workers

/ those on site
●● A policy issue or misunderstanding where

there is no evidence of a material breach.
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03
Completion Timescales
Completion timescales are suggested timelines An auditor will expect documentary evidence to
and not rigidly set. Timescales can be reviewed confirm a system change and in turn, verify the
and amended by agreement between auditor / corrective action. Therefore, correction timescales
auditee / customer as appropriate. are set at a suggested minimum of 30 days for
verification for most issues.
For business critical issues, the completion time
frame has been listed as immediate. This indicates Since audit information is mainly based on
the requirement to immediately deal with the corroborated documentary evidence, the
issue. It is understood that verification of the extended completion timescales of 30 days+
corrective action by an auditor could take longer, recognises that an auditor will require at least 30
but the time frame for verification should be as days’ records (or one calendar month) to verify
short as possible. corrective actions have been completed. In the
case of wages and hours corrections this may be
a minimum of 60 days.
An example timeline
Agree corrective actions and time frames day 0 (date of audit)
Site starts corrective actions day 1 (audit date +1)
Site uploads corrective action plans day 1-5 (audit date (1-5)
to Sedex
Site uploads its corrective action evidence (audit date + specified completion timescales e.g.
for verification audit date +30, 60, 90 days)

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Verification Methods Follow-up: A follow-up audit is a re-visit to site

and will be required when the adequacy of
Auditor verification of adequate corrective actions
corrective actions cannot be clearly demonstrated
can either be completed remotely by a desktop
by documentary evidence alone. Follow-up audits
review on Sedex or a follow-up audit onsite. The
can be partial in scope and focus on previous
Sedex Stakeholder Forum (SSF) recommends the
issues raised, or a full scope audit. A partial scope
use of desktop verification where reasonable and
audit would not normally reset the date for a next
practical.
scheduled audit.
Desktop Review: An offsite assessment of
A follow-up audit may take place when:
documented evidence which demonstrates that a
non-compliance has been corrected and systems ●● A sampling of wage or hours records is
put in place to prevent its reoccurrence. required
Evidence for verification by desktop may include ●● Worker testimony is essential to verify
but not be limited to:
●● An issue is systemic or complicated
●● A clear description of actions taken to address
the non-compliance ●● Confidential information cannot adequately be
shared with the auditor or loaded on Sedex
●● A copy of documents which demonstrate the
corrective actions
●● A copy of any new policy documents
●● A photo of the newly corrected issue (perhaps

before and after)
●● A copy of any updated systems or process

documents
●● A copy of any documents which show that the

ongoing effectiveness of corrective actions
has been assessed / will be assessed
Note: for corrective actions which have been verified

by follow-up review, the auditor / supplier should
endeavour to confirm these corrections are
necessary during any subsequent audit visit,
such as during a periodic audit.
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Evidence examined during a follow-up audit Review

may include, but not be limited to:
This non-compliance document has been
●● Document review and worker interviews at created by the members of the SSF Group with
the site of employment which confirms that input from the wider Sedex membership, many
a corrective action has been completed. of whom have experienced ethical audits. It
This is likely to be a minimum of one months’ is a consultation document, and we welcome
(30 days) records and for wages and hours any comments / feedback on its usefulness or
issues, and may be a minimum of 2 months content here:
(60 days). For seasonal work the timeframe for www.surveymonkey.co.uk/r/PVCSJTW
verification may be longer.
●● Review of whether the corrective action has Contact Us

been sustained. For example, an internal Companies who are not members of Sedex
audit by a member of staff from a different are also able and encouraged to use SMETA.
department which proves the issue has not We welcome any feedback on the SMETA
re-occurred. documents. Please complete the following
feedback link: or for more information on Sedex
●● A follow-up audit may also be required for
please go to
issues regarding child labour, discrimination,
www.sedexglobal.com.
harassment, freedom of association and other
topics where there is a need to compare
documented evidence with a fresh sample of
worker interviews.

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Contents
NON-COMPLIANCE LISTING BY CLAUSE
0B: Management Systems
1: Freely Chosen Employment
2: Freedom of Association
3: Health & Safety
3.1: Health & Safety Management / Training
3.2: Fire Safety
3.3: Chemicals
3.4: Buildings, Site Maintenance & Machinery
3.5: Personal Protective Equipment, First Aid & Accidents
3.6: Worker Health, Hygiene & Housekeeping
3.7: Accommodation
3.8: Accommodation Fire Safety
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4: Children & Young Workers
5: Wages & Benefits
6: Working Hours
7: Discrimination
8: Regular Employment
8A: Sub-contracting & Homeworking
9: No Harsh or Inhumane Treatment - Discipline &

Grievance
10A: Entitlement to Work
10B: Environment
10C: Business Ethics
11: Other Issue Areas
The index numbers and lettering relate directly to other SMETA

methodology documents to aid with consistency.
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Column 1: Column 2: Column 3: Column 4:
Issue title Significance of Completion timescale Verification method

issue
The issues listed These timescales are suggestions The recommended
are taken from This is not currently only and not rigidly set. The time method of
the issue titles recorded on audit periods refer to the time thought verification confirms
listed on the reports, but this to be necessary to demonstrate how completion of
Sedex “Audit column gives that a non-compliance has been a corrective action
upload” section of guidance on how corrected. in response to a
Sedex Advance. It seriously Sedex non–compliance
should therefore members view Completion of corrective actions finding can be
be possible for each particular normally requires a 3-step process: substantiated.
Sedex members, issue. We hope this
Step 1: The non-compliance activity This will permit
auditors and may bring some
ceases immediately. agreement of
suppliers to use convergence to
these tables how members corrective action
Step 2: A system is put in place to
to improve deal with findings completion
ensure there is no re-occurrence of
consistency when especially where between supplier
the issue.
uploading non – audit information and auditor by
compliance issues is shared. It Step 3: An auditor verifies completion remote evidence
onto the Sedex is intended of the corrective action by checking for example, by
system. as a broad documentary evidence to confirm document copy or
categorisation a system change, and also where by a photograph.
The list cannot aimed at appropriate uses interviews to
include all issues However, the
supplementing substantiate the evidence.
which occur decision on
and not replacing
and auditors The completion timescales in substantive
any grading
and suppliers column 3 reflects the time required evidence remains
system that
are encouraged to prove completion to a verifying between the
individual Sedex
to use their auditor. It does not denote the time auditor and the
members may
judgement to taken to carry out the corrective auditee, the
already be using.
match any new action. verification method
issues to those listed is a guideline
listed, in order to Therefore, in the majority of cases only.
arrive at a decision the completion timescale is given as
a minimum of 30 days and has been Verification
on significance
extended where established records by Desktop
and corrective
are needed as proof of sustained review has been
action time frame.
improvement. recommended
wherever possible.
LOCAL LAW B
reaches of Local or National Law, represent significant risks to a brand and its
supply chain and wherever possible remediation should be immediate.

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0B: Management
Systems
●● ●Includes policies, procedures and practices. ●● ●Verification evidence is documentation and
Wherever possible verification should be follow-up should only be necessary where
agreed as a desktop sign-off. worker testimony is needed for confirmation.

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0: Management Systems
Significance of Completion Verification

Issue
issue timescale method
1. Auditor refused access for audit Business Critical Immediate Follow-up
2. Auditor refused access to some areas Major 30 days Follow-up
of site
3. Auditor not allowed to interview Major 30 days Follow-up
workers
4. Indication of workers being coached Major 30 days Follow-up
5. Audit results not reviewed with Major 30 days Follow-up
management
6. Inadequate training / communication Minor 60 days Desktop
of workers on ethical code /
customer code as employees are
not aware of the social and ethical
standards the company upholds
7. No communication / training of Minor 60 days Desktop
workers on ethical code / customer
code e.g. code not displayed
8. No / inadequate management Major 30 days Follow-up
awareness of the social and ethical
standards required / ETI base code
9. No system in place or way to keep Major 60 days Desktop
up-to-date with local and national
laws or otherwise inadequate
management awareness
10. No person responsible for Major 30 days Desktop
communicating, implementing and
checking compliance against code
requirements
11. Failure to provide accurate wages Critical 60 days Follow-up
and hours records (verified double note: may be
books) downgraded
to major if
correct records
produced on
request
12. No management systems in place Major 90 days Follow-up

11
0: Management Systems
13. Inadequate management systems Major 60 days Follow-up

e.g. not appropriate for size of site,
not effective.
14. No system to check the site’s Minor 90 days Desktop
performance against compliance
requirements e.g. internal audits
15. Inadequate systems to check Minor 60 days Desktop
the site’s performance against
compliance requirements e.g. internal
audits not conducted regularly or
missing crucial elements
16. No staff handbook issued where Major 30 days Desktop
required
17. Evidence of prosecutions / fines to Major 30 days Follow-up
site for breaking laws / regulations
and no actions have been taken to
correct
18. Failure to provide other legally Major 30 days Desktop
required documentation
19. No systems for monitoring labour Major 30 days Desktop
providers
20. Inadequate systems for monitoring Minor 60 days Desktop
labour providers
21. No system in place to monitor the Major 90 days Desktop
site’s own suppliers against social
standards

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1: Freely Chosen
Employment
●● ●With the publication of the Modern Slavery ●● A contract which states ‘required to do
Act in the UK and the increased focus on overtime’ will always mean a non-compliance.
this issue, verification of correction is likely to Overtime should always be voluntary.
require worker testimony i.e. a follow-up audit.
●● Substantive evidence of bonded or indentured

labour may require a supplementary report to
the customer who can then address the issue
directly with the supplier.

013
1: Freely chosen Employment

Issue
1. No policy on employment is freely Minor 30 days Desktop

chosen / bonded / prison labour
2. No evaluation systems in place Major 30 days Follow-up
to ensure compliance with laws
on slavery and human trafficking
including no monitoring of agency
workers, temporary / casual /
contractor labour
3. Overtime is compulsory as per Major 30 days Desktop
contract e.g. ‘opt-out’ agreement and
targets achieved in order to leave, but
no evidence that this is enforced.
4. All workers are required to pay fees Critical 30 days Follow-up
upon termination of employment
including security deposits are not
returned.
5. Some workers (e.g. foreign workers Major 60 days Follow-up
/ migrant workers / agency
workers etc.) are required to pay
excessive fees upon termination
of employment including security
deposits that are not returned.
6. Unreasonable delay in payments Major 60 days Follow-up
due to workers when they leave -
systemic occurrence
7. Unreasonable delay in payments due Minor 60 days Desktop
to workers when they leave - isolated
occurrence
8. Probation periods are excessive and Major 60 days Desktop
contrary to law
9. Notice period required from the Major 60 days Follow-up
worker is in excess of the pay period
/ contract terms or contrary to law
10. Workers paying excessive fees / Major 30 days Follow-up
deposits to agency / employer when
commencing employment

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Issue
11. Fees charged to the worker by Critical 30 days Follow-up

agencies exceed the legal limit
12. Workers are charged deposits for Major 30 days Follow-up
work tools and work clothing e.g. PPE
and safety equipment.
13. Isolated occurrence of deductions Minor 60 days Desktop
taken from workers’ wages e.g.
deposits for staying in employment.
14. Workers are being fraudulently Critical 30 days Follow-up
charged fees for food, clothing,
transportation, health checks, work
documentation and / or supplies as
part of their recruitment
15. Workers are required to sign up Critical 30 days Follow-up
for an excessively long period
of accommodation rental or
lodge excessive deposits with
financial penalties for leaving early
employment or accommodation
16. Workers have wages paid into Critical 60 days Follow-up
someone else’s accounts or workers
are not in control of own bank
accounts
17. Monetary deposits required and / Major 60 days Follow-up
or wage deductions made for work-
related items that employer should
pay and takes wages below minimum
18. Worker is in debt to employer and Critical 30 days Follow-up
unable to pay it off
19. Systemic / regular occurrence of Critical 30 days Follow-up
deductions e.g. deposits for staying
in employment taken from workers’
wages including bonds etc.
20. Proportion of wages are Critical 30 days Follow-up
unreasonably withheld and paid
at the end of the year / at end of
contract

15

Issue
21. Substantiated evidence of bonded / Business Critical Immediate Follow-up

indentured labour
22. Suspicion / indication of bonded / Major 30 days Follow-up
indentured labour
23. Workers cannot leave employment Critical 30 days Follow-up
until they have worked to pay off
debts owed to the employer
24. Substantial loans held by workers, Business Critical Immediate Follow-up
with excessive interest rates and / or
onerous financing schemes and / or
unreasonable terms and conditions
of repayment
25. Workers have to work to pay off Critical 60 days Follow-up
unreasonable debts owed to an
employment / work finding agent
26. Workers are not able to leave at the Critical Immediate Follow-up
end of shift
27. Security guards restrict workforce Critical 30 days Follow-up
compromising their health, safety or
rights
28. Lack of agreed transport leading to Minor 60 days Follow-up
long waits before leaving
29. Workers’ movements are controlled Critical 30 days Follow-up
outside the workplace by agents or
their employers
30. Workers are required to stay in Critical 60 days Follow-up
company or broker controlled
housing and are unable to enter or
leave the premises freely
31. Job adverts (particularly for jobs Major 30 days Desktop
requiring migration) are misleading
about the job, job location, employer,
working conditions, contract terms or
earnings

16

Issue
32. Job advertisements and / or Minor 30 days Desktop

application documents are written
at a level or different language than
workers understand
33. Practice of compulsory overtime Critical 30 days Follow-up
34. Passports / ID papers of all workers Business Critical Immediate Follow-up
kept by employer and not a legal
requirement
35. Passports / ID papers of foreign Business Critical 30 days Follow-up
workers kept by employer and not a
legal requirement
36. Workers are led to believe that if they Business Critical Immediate Follow-up
do not comply with what is being
asked of them they or their family
will be subject to physical, social or
financial retribution
37. Workers are controlled through Business Critical Immediate Follow-up
religion / faith, violence, threats, etc.
either to self or others
38. Recruiter or employer employs Critical 30 days Follow-up
coercive recruitment practices, which
physically or psychologically control
the worker during recruitment
39. Substantiated evidence of forced Business Critical Immediate Follow-up
labour
40. Evidence of involuntary prison labour Business Critical Immediate Follow-up
on site or in the supply chain
41. Substantiated evidence of trafficked / Business Critical Immediate Follow-up
slave labour
42. Undocumented migrant workers Business Critical Immediate Follow-up
have been subjected to threats of
being returned to their home country
and / or reported to authorities if they
leave employment
43. Workers are required to pay to Critical 30 days Follow-up
access their ID papers / passports
with no consent forms etc.

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2. Freedom of
Association
●● Where worker management dialogue exists ●● Where there is evidence of poor industrial
but documentary evidence is poor, it is relations or no worker representation it is likely
possible that improved documentation can be that improvement can only be verified by a
signed off by desktop review, e.g. evidence of follow-up visit and worker testimony.
meeting minutes.
●● Extended timeframes in this section recognise
the challenges of establishing worker /
management dialogue in areas where worker
representation is not the norm.

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Issue
1. Workers not aware of their right to Major 60 days Follow-up

join or form any worker committee,
trade union or bargain collectively
2. No policy on freedom of association Minor 30 days Desktop
and right to collective bargaining
3. Evidence of strikes which have not Critical 60 days Follow-up
been appropriately resolved in line
with local law
4. Workers representatives are not from Minor 60 days Desktop
production workers e.g. they are
administrators or supervisory staff
but are elected
5. Worker committee on site, but Minor 60 days Desktop
meetings not recorded / no
documentary evidence
6. There is no worker committee or Critical 30 days Follow-up
equivalent on site i.e. there is no
effective communication channel
between management and workers,
and it is a legal requirement
7. There is no worker committee or Major 60 days Desktop
equivalent on site i.e. there is no
effective communication channel
between management and workers,
and it is not a legal requirement
8. Worker representatives are not Major 60 days Desktop
democratically elected, they are
assigned by the management.
9. Evidence of an employer’s refusal to Critical Immediate Follow-up
allow presence of a union
10. Employer does not recognise the Critical 30 days Follow-up
trade union present, contrary to law
11. Employer does not recognise the Major 90 days Follow-up
trade union present and it is not
contrary to law

19

Issue
12. There is a union on site, but Major 60 days Desktop

representatives are not freely elected
by workers
13. It is a legal requirement to have a Major 60 days Follow-up
union but there is no union present
14. There is no legal requirement to have Minor 90 days Desktop
a union and there is no union present
but there is an alternative worker
representation
15. Union fees deducted from workers’ Major 60 days Follow-up
pay is excessive
16. Union not registered with appropriate Major 60 days Desktop
authorities as per law
17. There is direct discrimination against Critical 30 days Follow-up
worker representatives / union
members / worker committee
18. There is a worker committee but Major 90 days Follow-up
elections with workforce are not
conducted consistently
19. Insufficient meetings between Minor 60 days Desktop
management and worker
representatives for the meetings to
be effective
20. Lack of documentary evidence of Minor 30 days Desktop
management action on issues raised
21. Worker committee / trade union / Major 60 days Desktop
equivalent not meeting regularly
22. Evidence of a critical communication Critical 30 days Follow-up
breakdown between workers and
employers which may lead to serious
conflict or abuse
23. Employer obstructing union Major 30 days Follow-up
recruitment activities or denying
unions reasonable access for
recruitment

20

Issue
24. Evidence of an employer’s refusal to Critical Immediate Follow-up

allow presence of a union
25. Rights for workers to join or Critical 30 days Desktop
form trade unions is proactively
discouraged by management
through contracts / handbooks /
internal rules.
26. Penalising workers in any way for Major 60 days Follow-up
seeking to join, being members
of or seeking to establish or be
represented by a trade union
27. No evidence of a collective Major 30 days Desktop
bargaining agreement (CBA) contrary
to law
28. Agreements made by collective Minor 60 days Desktop
bargaining group is not
communicated to remainder of
workforce

21
3: Health &
Safety
●● There are more than the average number ●● For less severe issues, photographic or
of business critical issue titles in this section documentary evidence may be sufficient and
which signifies where there is imminent desktop verification is recommended.
danger to personnel. The timescale on these
is given as immediate, and a follow-up visit
is required to ensure that dangers have been
removed.

22
3: Health & safety
3.1 Health & Safety Management / Training

Issue
1. No Health & Safety manager in place Major 30 days Desktop

2. H&S Manager in place, but does Minor 60 days Desktop
not have the adequate training /
experience / authority to manage
H&S
3. No H&S worker committee / H&S Critical 90 days Desktop
representatives in place
4. No / inadequate H&S risk / hazard Critical 30 days Desktop
factors assessment conducted
5. Failure to submit H&S audit Minor 60 days Desktop
to external party as per legal
requirements e.g. government
authority
6. No quality management system in Major 60 days Desktop
place including anti-blade / anti-
needle policy / scissors
7. No ongoing H&S training for all Critical 60 days Desktop
workers
8. Isolated incidents of missing records Minor 30 days Desktop
for general H&S training
9. No H&S training for employees Critical 30 days Follow-up
working in hazardous conditions e.g.
chemicals / machinery
10. Systemic lapses / inadequate Major 60 days Desktop
training for employees working in
hazardous conditions e.g. chemicals
/ machinery

23
3: Health & safety
3.2: Fire Safety

Issue
1. No firefighting equipment on site Business Critical Immediate Follow-up

2. Locked firefighting equipment Critical Immediate Desktop
3. Blocked access to fire fighting Major 30 days Desktop
equipment e.g. fire extinguishers
4. Inadequate firefighting equipment Critical 30 days Desktop
e.g. bad condition, leaks or otherwise
broken
5. Fire extinguishers incorrectly Minor 30 days Desktop
installed e.g. incorrect height /
placed on floor
6. Inadequate hose reel installation and Major 60 days Desktop
maintenance
7. No firefighting equipment signage / Major 30 days Desktop
labelling / instructions
8. No / inadequate / poorly maintained Major 90 days Desktop
sprinkler system installed anywhere
on site
9. No extraction fans / extraction Major 30 days Desktop
equipment
10. No fire alarm / smoke detector or Critical 30 days Follow-up
equivalent
11. No fire exits at site including only Business Critical Immediate Follow-up
one exit
12. Some fire exits, but not enough for Critical 30 days Desktop
size of site / number of employees
13. No / inadequate fire exits due to Major 30 days Desktop
building design / construction e.g.
width, fire doors opening inwards /
incorrect direction of evacuation flow
/ sliding doors
14. Systemic locking of all fire exits. Business Critical Immediate Follow-up
15. Systemic occurrence of blocked fire Major 30 days Follow-up
exits

24
3: Health & safety

Issue
16. No fire exit signage including Critical 30 days Desktop

emergency lighting
17. No evacuation plan / emergency Critical 30 days Desktop
route / unclear signage including
marking of fire assembly points
18. Fire assembly point in place, but Major 30 days Desktop
inadequate e.g. too small for the
number of employees / inaccessible
/ situated in a dangerous place e.g.
side of a busy road
19. No fire drill since establishment of Critical 30 days Follow-up
site
20. Fire drill / evacuation did not cover Major 30 days Desktop
all employees e.g. night shift /
foreign workers
21. Combustible / flammable materials Critical Immediate Desktop
stored / blocking electrical
equipment
22. Systemic occurrence of incorrect Major 30 days Desktop
/ damaged insulation in electricals
including burnt / damaged wiring
and plugs
23. Fire license / fire inspection / legal Major 30days Desktop
fire certificates not in place
24. No fire safety committee Major 60 days Desktop
25. No training for fire marshals Critical 30 days Desktop
26. No / inadequate records for fire Minor 30 days Desktop
safety training / evacuation training
27. Unmarked / incorrect labels / Major 30 days Desktop
signage / instructions for electrics
28. Production area and dormitory area Critical 60 days Desktop
together, creating potential fire risk

25
3: Health & safety
3.3: Chemicals

Issue
1. No material safety data sheet (MSDS) Minor 30 days Desktop

obtained / available
2. MSDS is incomplete / inaccurate Minor 30 days Desktop
/ not in worker language / not
understood by workers
3. Hazardous chemicals are stored Major 30days Desktop
unlabelled or labelling is incorrect
4. Chemicals stored without restricted Major 60 days Desktop
access
5. No / inadequate explosion proof Major 60 days Desktop
lighting where a legal requirement
6. No / inadequate separate storage Major 30 days Desktop
area for hazardous chemicals (e.g.
stored on production floor)
7. No / inadequate spill kit provided Major 30 days Desktop
for handling chemical spillage and
leakage
8. Regular exposure to dangerous Critical 30 days Follow-up
fumes / dust / dangerous gas levels
in workplace
9. No training for the handling of Major 30 days Desktop
dangerous / hazardous materials
including chemical handling training

26
3: Health & safety
3.4: Buildings, Site Maintenance & Machinery

Issue
1. Site does not have an up-to-date Critical 30 days Desktop

legally required business / factory
license.
2. Premises are structurally unsafe (e.g. Business Critical Immediate Follow-up
major cracks observed)
3. Premises used for other functions Business Critical Immediate Follow-up
(e.g. commercial or residential
premises and therefore not safe)
4. Rooftop stores hazardous materials Major 30 days Follow-up
or operations
5. Multi-storey building does not have Major 30 days Desktop
two vertical exit routes
6. Low level / inadequate lighting in all Major 30 days Desktop
areas of the site including production
area
7. Evidence of hazardous asbestos Major 30 days Desktop
present
8. No / inadequate pest control system Minor 30 days Desktop
9. No license or inadequate experience Major 30 days Desktop
/ training of company / engineer
providing machinery maintenance
10. Safety functions on machinery not Critical 30 days Follow-up
present / not functioning e.g. alarm
/ safety stop buttons
11. Majority of machines used on site Business Critical Immediate Follow-up
constitute a serious danger to life or
limb

27
3: Health & safety
3.5: Personal Protective Equipment, First Aid & Accidents

Issue
1. PPE provided, but inadequate Major 30 days Desktop

condition or wrong type
2. No / inadequate training in how to Minor 30 days Desktop
use PPE
3. No recording of accidents Major 30 days Desktop
4. Adequate records for injuries / Minor 30 days Desktop
accidents but no analysis / root
cause analysis / no action taken to
remediate
5. First aid boxes not available Major 30 days Desktop
anywhere on site
6. No first aiders Major 60 days Desktop
7. First aid kits are available but boxes Major 30 days Desktop
are locked or not accessible
8. Evidence of serious worker injuries Critical Immediate Follow-up
as a result of risk to life or limb
9. Workplace traffic management Major Immediate Desktop
system / roads etc. is unsafe or
inadequate
3.6: Worker Health, Hygiene & Housekeeping

Issue
1. Workers report feeling unsafe in their Major 30 days Follow-up

work environment
2. Pregnant workers working in unsafe Critical 30 days Follow-up
/ unsuitable conditions
3. Overcrowded work stations e.g. Major 30 days Desktop
insufficient space per person as
required by law, including ‘breathing
space’

28
3: Health & safety

Issue
4. No rest area Major 60 days Desktop

5. No nurse on site as required by law Major 30 days Desktop
6. Nurse on site, but doesn’t cover all Minor 30 days Desktop
necessary shifts / lack of training /
not enough nurses for the size of site
7. No / inadequate medical facilities Major 30 days Desktop
which does not meet legal
requirements
8. No / inadequate regular medical Major 30 days Desktop
examinations for juvenile workers
where a legal requirement
9. Inadequate / isolated failure in Minor 30 days Desktop
conducting medical examinations
/ occupational health checks of
workers in hazardous situations e.g.
noise / chemicals
10. Boxed goods storage not in line with Minor 30days Desktop
legal requirements (e.g. too high)
11. Toilets unhygienic and not clean Major 30 days Desktop
12. Toilets not meeting minimum Major 60 days Desktop
requirements, numbers, access,
gender split etc.
13. No / insufficient availability of Major 60 days Desktop
properly equipped hand wash sinks
14. No / inadequate health checks for Minor 30 days Desktop
kitchen personnel
15. No canteen facility provided as per Major 60 days Desktop
local law
16. No / inadequate hygiene checks and Minor 60 days Desktop
/ or catering license in the canteen
17. No / inadequate testing of water for Major 30 days Desktop
potability
18. Rest facilities in poor condition Major 30 days Desktop
19. Workstations and work areas are Major 30 days Desktop
untidy creating a serious risk of injury

29
3: Health & safety
3.7: Accommodation

Issue
1. The facility lacks the permits and Major 30 days Desktop

certificates required by local law
2. Serious structural issues at workers’ Business Critical Immediate Follow-up
accommodation (immediate risk of
serious injury or death)
3. Minor structural issue at workers’ Minor 60 days Desktop
accommodation (e.g. broken windows,
small cracks, peeling paint etc.)
4. Accommodation not adequately Major 30 days Follow-up
separated from production areas
5. Accommodation used to store Critical 30 days Desktop
hazardous materials
6. Accommodation is located in an Major 30 days Follow-up
unsafe environment / area (e.g.
exposed manhole etc.)
7. Unsafe electrical wiring and other Major 30 days Desktop
electrical equipment
8. Accommodation has inadequate Major 60 days Desktop
canteen facility / eating area or
inadequate appliances for cooking
9. No washing facilities (e.g. showers or Major 60 days Desktop
baths)
10. No privacy in washing and toilet Major 30 days Desktop
facilities
11. Unsanitary and unhygienic conditions Major 30 days Desktop
in sleeping areas / dormitories
12. Unsanitary and unhygienic conditions Major 30 days Desktop
in accommodation washing / toilet
areas and / or kitchen / dining area
13. Overcrowding in dormitories Major 30 days Desktop
14. Unfair / excessive rents for Major 30 days Follow-up
accommodation compared with local
norms

30
3: Health & safety
3.8: Accommodation Fire Safety

Issue
1. No / inadequate means of Critical 30 days Desktop

summoning emergency services
2. No fire exits at site including only one Critical 30 days Follow-up
exit
3. Some fire exits, but not enough for Critical 30 days Desktop
size of site / number of employees
e.g. only one feasible and usable exit
4. No firefighting equipment Business Critical Immediate Follow-up
5. Inadequate firefighting equipment Critical 30 days Follow-up
6. No emergency exit signs Critical 30 days Desktop
7. No fire alarms Critical Immediate Follow-up

31
4: Children and
Young Workers
●● The number of business critical issues in this ●● Any child labour found will require a follow-up
section recognises the market sensitivity audit.
towards child labour and the need for
immediate improvement as per international ●● Where the only non-compliance is one
standards. Any child labour found requires of an incorrect or insufficient policy, but
remediation - back into education - see practice is as required, a desktop review is
SMETA Measurement Criteria. recommended.

32
4: Children and Young Workers

Issue
1. No formal policy on child / underage Minor 30 days Desktop
labour / minimum age in place but
no Child / Underage Labour present
2. Systemic incidents of missing Critical 30 days Desktop
records that verify worker’s age e.g.
in personnel files
3. Incidents of Child / Underage Business Critical Immediate Follow-up
Labour found on site
4. Child / Underage Labour working Business Critical Immediate Follow-up
on site for supplier or sub-contractor
e.g. caterer / cleaning staff
5. Evidence of child on site but not Major 30 days Follow-up
working
6. Child workers given false ID cards Business Critical Immediate Follow-up
7. No management system in place Critical 30 days Desktop
to check and manage age of all
employees
8. Management unaware of the laws on Major
minimum age of employment
9. No / inadequate management Major 30 days Desktop
system in place to check and
manage age of certain types of
workers e.g. temporary / agency
10. Evidence found of the practice of Business Critical Immediate Follow-up
dismissing child workers without
remediation
11. Child care facilities compromise Critical Immediate Follow-up
children’s safety at a severe level
including inadequate fire or building
safety, exposure to persons not
designated for childcare and / or
exposure to abuse.
12. Child care facilities are not provided Major 30 days Desktop
/ adequately provided and it is a
legal requirement

33
4: Children and Young Workers

Issue
13. No recruitment policy for young / Minor 30 days Desktop
juvenile workers
14. Majority of young workers engaged Critical 30 days Follow-up
in night work
15. Majority of young workers’ overtime Critical 30 days Follow-up
hours are contrary to law
16. Apprentices / trainees / vocational Critical 30 days Follow-up
workers are employed under terms
and conditions contrary to law

34
5: Wages &
Benefits
●● Correction of wages issues must start ●● SMETA guidelines require a minimum of 60
immediately, but a minimum of 2 months’ days (or two wages periods) wage records
records will be required for verification of to confirm that corrective actions have been
correction. completed.
●● Most wages and benefits corrective actions ●● Confirmation will also require that
can only be verified by a follow-up visit. documentary evidence is substantiated by
worker interview. The number of records
reviewed and number of workers interviewed
will not be less than the original audit.

35
5: Wages & Benefits

Issue
1. No payroll records exist Critical 60 days Follow-up

2. Falsified, duplicate or intentionally Critical 60 days Follow-up
incomplete payroll records including
verified inconsistencies
3. Wages could not be verified due Major 60 days Follow-up
to unknown inconsistencies e.g. no
system in place to manage hours
4. No pay stubs / payslips were Critical 30 days Follow-up
provided to employees
5. Systemic incidents of payslips Major 60 days Follow-up
inconsistent with wages paid
6. Payslips are unclear / not Major 60 days Desktop
understood including missing
information, unclear calculations or
not in workers language
7. Deductions which are made without Critical 30 days Follow-up
worker’s written permission e.g.
food allowance deductions /
accommodation deductions / not
provided for by national law
8. Loans exceed the legally allowed Major 30 days Follow-up
maximum limit
9. Systemic instances of insufficient Major 60 days Follow-up
legally required leave payments, e.g.
annual, maternity, paternity leave
10. Systemic instances of non-payment Critical 60 days Follow-up
of sick leave
11. No accident insurance for all workers Major 30 days Desktop
12. Some social insurance paid for some Minor 120 days Desktop
employees
13. No records retained of all required Major 30 days Desktop
social insurances
14. Legally required allowances, Major 60 days Follow-up
bonuses or benefits are not paid /
paid incorrectly for any employee

36
5: Wages & Benefits

Issue
15. Isolated instances of employees Critical 30 days Follow-up

working without payment
16. Systemic instances of employees Business Critical Immediate Follow-up
working without payment
17. All workers are paid less than the Critical 60 days Follow-up
legal minimum wage
18. Workers are paid piece rate and Critical 60 days Follow-up
wages are below legal minimum
wage
19. Isolated instances of workers paid Major 60 days Follow-up
less than the legal minimum wage
20. Wages are above legal minimums Minor 90 days Follow-up
but below the industry benchmark
21. Systemic failures of wage Major 60 days Follow-up
miscalculation / deductions leading
to wage reduction (but not below
legal minimum wage)
22. Systemic instances of Critical 60 days Follow-up
miscalculations / deductions mean
that worker earns below minimum
legal wage
23. Worker misclassification resulting in Major 30 days Follow-up
wage or benefit deficiency
24. Systemic incidents of wages being Major 30 days Follow-up
delayed upon termination
25. Systemic occurrence of wages not Major 60 days Follow-up
paid on time
26. Isolated occurrence of wages Minor 90 days Desktop
being paid / partly paid in cash (i.e.
unofficially) to avoid tax and other
requirements
27. Systemic occurrence of wages Major 60 days Follow-up
being paid / partly paid in cash (i.e.
unofficially) to avoid tax and other
requirements

37
5: Wages & Benefits

Issue
28. No premium is paid for overtime Critical 60 days Follow-up

hours for all employees and this is
contrary to law
29. All workers receive a premium rate Major 60days Follow-up
for overtime, but does not meet the
legal requirements
30. Overtime premium is between +0% Major 60 days Follow-up
and 10% and this is not contrary to
local law
31. Overtime premium is between +10% Minor 90 days Follow-up
and 25% and this is not contrary to
local law

38
6: Working Hours
●● ●Correction of these issues must start ●● Confirmation will also require that
immediately but a minimum of 2 months’ documentary evidence is substantiated by
records will be required for verification of worker interview. The number of records
correction. reviewed and number of workers interviewed
will not be less than the original audit.
●● Working hours’ corrective actions will require a
follow-up visit for verification. ●● Where policies are inadequate, but practices
meet the standard a desktop review may be
●● SMETA guidelines require a minimum of possible at the discretion of the auditor.
60 days (or two wages periods) attendance
records to confirm that corrective actions have
been completed.

39
6: Working Hours

Issue
1. Falsified, duplicate or intentionally Critical 60 days Follow-up

incomplete working hour /
time records including verified
inconsistencies
2. Systemic working hour / time Critical 60 days Follow-up
records missing or incomplete
3. Working hours / time records are not Critical 60 days Follow-up
monitored by site
4. No time records available at the audit Critical 30 days Follow-up
resulting in working hours could not
be verified
5. Working hour records missing for Major 60 days Follow-up
some employees e.g. agency or
temporary workers
6. Contracted working hours (excluding Major 90 days Follow-up
overtime) regularly exceed 48 per
week
7. Standard / contracted hours is not Minor 30 days Desktop
defined by contract / employment
agreement
8. Improper use of other types of Major 30 days Desktop
contracts e.g. zero hours contracts
/ variable hour contracts / part-
time contracts to avoid regular
employment
9. Excessive overtime hours i.e. total Critical 60 days Follow-up
hours in excess of 72 hours per
week on a regular basis and over an
extended period.
10. Systemic use of overtime hours Critical 60 days Follow-up
which exceed the local law daily /
weekly / monthly over an extended
period of time
11. Site does not monitor / is not aware Critical 60 days Follow-up
of overtime hours for all employees

40
6: Working Hours

Issue
12. Illegal or improper use of overtime Critical 60 days Follow-up

for pregnant / young or specific
categories of worker
13. Overtime is not voluntary for some Major 30 days Follow-up
workers (e.g. agency / temporary
workers) including threats of
penalties e.g. threats of dismissal,
pay cuts, demotion etc.
14. Contract / employment conditions Minor 30 days Desktop
‘require’ overtime, but there is no
practice of requiring overtime
15. Total hours exceed 60 hours on a Major 60 days Follow-up
regular basis for a minority of the
workforce - ETI requirements are not
met
16. Total hours exceed 60 hours per Major 60 days Follow-up
week on an occasional basis for
the majority of the workforce - ETI
exceptions are not met
17. Isolated occurrence of workers not Minor 30 days Follow-up
receiving 1-day rest in every 7 days
18. Systemic occurrence of workers not Critical 30 days Follow-up
receiving 2 days rest for every 14
days
19. Workers are not entitled to daily Major 30 days Follow-up
meal and / or rest breaks that are in
accordance with law
2.0. No sick leave provided for any Critical 30 days Follow-up
workers
21. Insufficient (as per law) / Major 60 days Follow-up
unreasonably restricted leave for
all workers e.g. annual, maternity,
marriage leave
22. No maternity / paternity leave given Critical 30 days Follow-up
to employees in line with local law
requirements including marriage
leave or other legally required leave

41
7: Discrimination
●● ●Most of the evidence for this issue will come ●● The presence of a non-discrimination policy is
from interviews with personnel at the site of significant evidence of meeting the standard,
employment and therefore any changes in this if the auditor finds that the site processes and
area will require to be confirmed by interviews. practices support its policies.
●● There may be obvious issues such as

discrimination in job adverts and in such a
case a document change can be signed off by
desktop.

42
7: Discrimination

Issue
1. Evidence of discriminatory systems Major Immediate Desktop

in hiring practices
2. Evidence of discriminatory systems Critical 30 days Follow-up
in termination process
3. There is no discrimination policy in Minor 30 days Desktop
place
4. No policy on wages and Major 30 days Desktop
transparency in remuneration as
required by law.
5. Worker promotion scheme Minor 60 days Desktop
complicated and is not clearly
communicated to workforce
6. Evidence of discrimination based on Major 30 days Desktop
race, caste, origin, ethnic group or
religion in hiring practices
7. Evidence of terminations based on Critical 30 days Follow-up
race, caste, origin, ethnic group or
religion
8. Evidence of gender discrimination in Major 30 days Desktop
hiring / recruitment practices
9. Evidence of terminations based on Critical 30 days Follow-up
gender
10. No sexual harassment committee Major 30 days Desktop
where required by local law
11. Evidence of discrimination in hiring Major 30 days Desktop
/ recruitment practices based on
sexual orientation / marital status
12. Discrimination against married / Critical 30 days Follow-up
pregnant workers in contract and /
or treatment of workers
13. Pregnancy testing as part of Critical 30 days Follow-up
recruitment and not required by law

43
7: Discrimination

Issue
14. Evidence of discrimination against Major 30 days Follow-up

married / pregnant workers in
contract or treatment including
for training / remuneration /
promotions
15. Workers can be dismissed if found Business Critical Immediate Follow-up
to be pregnant including if stated in
contract
16. Recruitment / employment policy Critical Immediate Desktop
unnecessarily discriminates against
individuals with disabilities
17. Evidence of discrimination in training Major 30days Follow-up
/ promotion / pay opportunities
based on disabilities
18. Site requires medical test for Major 30 days Follow-up
all workers and it is not a legal
requirement
19. No recruitment of young workers 16- Minor 60 days Desktop
18 years contrary to law
20. Evidence of other discriminatory Major 30 days Follow-up
actions against worker
representatives / union members
21. Evidence of termination based Critical 30 days Follow-up
on union membership / political
affiliation
22. Evidence of discrimination against Major 60 days Follow-up
agency workers with regards to
benefits and sick leave etc.
23. Terms and conditions for agency Major 30 days Desktop
workers differ from other workers,
contrary to law
Any findings of harassment or abuse must be dealt with immediately, but any policy changes, or
implementation of anti – discrimination training may require longer. A period of 30 -60 days is allowed
for proof of change and implementation of new policies. However, all critical discrimination issues must
cease immediately.

44
8: Regular
Employment
●● Written policies or standard practices such as ●● In this section, there is an increased focus
missing or incorrect contracts may be verified on agency and temporary labour, as this
by desktop review at the discretion of the employment type becomes more prevalent.
auditor. Any non-compliances which are linked to
wages and benefits will again require a
minimum of 2 months documentation for sign-
off, but it will also be necessary to confirm the
written evidence with worker interviews.

45
8: Regular employment

Issue
1. No contracts / letters of Major 30 days Desktop

appointment in place
2. Workers have not been given / do Major 30 days Desktop
not have a copy of contracts or letter
of appointments
3. Inadequate contracts in place Major 30 days Desktop
(e.g. missing crucial elements e.g.
remuneration / hours, working
place, legislation applied, terms of
employment (permanent etc.) or
other ILO minimum requirements)
4. Workers are required to sign blank Critical 30 days Follow-up
papers, resignation letters
5. Excessive probationary period stated Major 30 days Desktop
in contract / letter of appointment
6. Systemic incidents of contracts Major 30 days Desktop
requiring overtime
7. Zero hours contracts in place which Major 30 days Desktop
do not meet legal requirements
8. Labour contracts not authenticated Major 30 days Desktop
or registered by / with the local
labour bureau where it is a legal
requirement
9. Contracts for young workers not Major 60 days Desktop
signed by parent or legal guardian
/ approved by local authority as per
law
10. Information about internal rules Major 30 days Desktop
and regulations is not available e.g.
by providing handbooks or terms
& conditions for workers and it is a
legal requirement
11. Labour providers used on site not Major 30 days Follow-up
known by management
12. System in place to monitor labour Major 60 days Follow-up
providers but inadequate

46

Issue
13. Agencies / labour providers / Major 60 days Follow-up

contractors used do not meet legal
requirements as a labour provider
e.g. no license, not registered
14. Site has disproportionate numbers of Major 60 days Follow-up
temporary worker contracts and it is
contrary to law
15. Majority of workers in precarious Major 90 days Follow-up
employment (e.g. seasonal contract,
apprentices, trainees, probationary
workers not moved to permanent
status in line with law)
16. Agencies are charging recruitment Minor 60 days Follow-up
fees within legal limits
17. Agencies are charging recruitment Major 30 days Follow-up
fees which exceed legal limits
18. Systemic occurrence of agency Critical 60 days Follow-up
workers not receiving full legal
benefits, wages, allowances and
social security entitlements, PPE
charged for
19. Agency workers receiving benefits Major 60 days Follow-up
according to law, but not the same as
permanent employees
20. Agency workers work excessive Major 60 days Follow-up
working hours
21. Inadequate contracts for agency Critical 60 days Follow-up
workers resulting in unprotected
employment or salary / benefits
status for workers
22. Agency workers on zero-hours Major 30 days Follow-up
contracts / not guaranteed work e.g.
turned away at the beginning of day
with no compensation
23. Agency workers have no contract in Major 30 days Desktop
place and the site has no system for
checking and ensuring contracts are
in compliance including availability of
contracts

47

Issue
24. Excessive and repeated use of Major 60 days Follow-up

agency labour used to replace
regular employment
25. Excessive and repeated use of Critical 60 days Follow-up
temporary labour / contracts used to
replace regular employment
26. Systemic / all temporary workers Major 30 days Follow-up
on zero-hours contracts / not
guaranteed work, e.g. turned away
at the beginning of day with no
compensation
27. Systemic incidents of temporary Major 30 days Desktop
workers not being offered permanent
contracts, contrary to law
28. Illegal / unreasonable deductions Major 30 days Follow-up
made from temporary workers e.g.
for accommodation / transport /
PPE
29. Systemic occurrence of temporary Critical 30 days Follow-up
workers not receiving all legally
required benefits wages allowances
and benefits e.g. social insurance
30. Temporary workers receiving Major 60 days Follow-up
benefits according to law, but not the
same as permanent employees
31. Minority of workers in precarious Major 60 days Follow-up
employment (e.g. seasonal contract,
apprentices / trainees / probationary
workers) not moved to permanent
status in line with law
32. Apprentices / trainees / Major 60 days Follow-up
probationary workers not receiving
correct legal wages, allowances,
bonuses, benefits, social insurances

48
8A: Sub-
Contracting &
Homeworking
●● ●Business critical issues in this area recognise ●● Any unauthorised sub-contracting will require
that forced labour at sub-contractors is also a a follow-up visit to sign-off corrective actions.
severe issue and the correction timeframe is
listed as immediate. Any correction can only
be verified by a follow-up audit.

49
8A: Sub-contracting & homeworking

Issue
1. No policy on managing and Minor 30 days Desktop

selecting sub-contractors including
policy on obtaining clients’ approval
2. No system in place to monitor sub- Critical 60 days Follow-up
contractors and it is a customer
requirement
3. No manufacturing at site i.e. all Critical 60 days Follow-up
production sub-contracted without
client knowledge
4. Production processes are used for Minor 30 days Desktop
client’s products and subcontracted
with client knowledge but no written
approval
5. Substantial evidence of forced / Business Critical Immediate Follow-up
bonded / trafficked / prison labour
at subcontractor level
6. Substantial evidence of Child / Business Critical Immediate Follow-up
Underage Labour at subcontractor
site
7. Labour carried out by subcontractors Critical 30 days Follow-up
who do not have the legal right to
work
8. Subcontractors not earning Major 60 days Follow-up
minimum wage or equivalent
9. Homeworking not communicated to Critical 30 days Desktop
main client and the client’s product
is produced by the homeworkers
10. No system in place to monitor Critical 60 days Desktop
homeworkers
11. No records for homeworkers e.g. not Critical 60 days Desktop

on the payroll etc. but homeworking
occurring
12. Child / underage labour was noted Business Critical 30 days Follow-up
working with homeworkers
13. All homeworkers not checked for Major 30 days Follow-up
legal right to work
14. Homeworkers not working in safe Major 30 days Desktop
and hygienic conditions

50
9: No Harsh
or Inhumane
Treatment -
Discipline &
Grievance
●● ●The business critical issue in this section is any
substantial evidence of physical punishment of
workers and correction needs to be immediate
with a follow-up visit to verify this practice has
ceased and other non-physical harassment
or bullying requires rapid correction and
verification by follow-up, but the 30 days
recognises the need for investigation and
remediation.

51
9: No harsh / inhumane treatment - discipline / grievance

Issue
1. No policy on harsh / inhumane Minor 30 days Desktop

treatment (including sexual
harassment)
2. No training on harassment / Major 30 days Desktop
inhumane treatment, bullying etc.
3. Any substantial evidence of physical Business Critical Immediate Follow-up
punishment of workers
4. Any substantial evidence of verbal Critical 30 days Follow-up
harassment / abuse / bullying of
workers
5. Any substantial evidence of sexual Critical Immediate Follow-up
abuse
6. Multiple reports from workers of Critical Immediate Follow-up
harsh / inhumane treatment e.g.
physical / sexual abuse
7. Isolated reports of sexual Major 30 days Follow-up
harassment whether physical, verbal
or mental
8. Multiple reports of sexual Critical Immediate Follow-up
harassment whether physical,
psychological, verbal or mental
9. Isolated reports from workers Major 60 days Follow-up
of psychological / verbal abuse
including shouting
10. Strip or pat down searches Major 30 days Follow-up
conducted
11. Disciplinary policy in place but Minor 30 days Desktop
not communicated or otherwise
inadequate
12. No disciplinary procedure Major 30 days Desktop
13. Inadequate monitoring of disciplinary Major 90 days Follow-up
procedures by senior management
14. Disciplinary penalties are excessive Major 30 days Desktop
compared with the wrongdoing

52
9: No harsh / inhumane treatment - discipline / grievance

Issue
15. Workers fined for disciplinary Critical 30 days Follow-up

reasons including lateness and it is
contrary to law.
16. Workers fined for disciplinary Major 60 days Follow-up
reasons including lateness and it is
not contrary to law.
17. No documentation of disciplinary Major 90 days Desktop
cases and their outcomes
18. No / inadequate grievance Major 60 days Desktop
procedure
19. Inadequate monitoring of grievance Major 90 days Follow-up
procedures
20. No grievance committee in place Major 120 days Desktop
21. Grievance procedure does not allow Major 60 days Desktop
for anonymous / confidential raising
of grievances
22. Multiple concerns raised about Major 60 days Follow-up
lack of confidence in grievance
procedure
23. No records of disciplinary and Major 60 days Desktop
grievance activity
All forms of abuse must cease immediately, but a period of 30 days is allowed for implementing a policy
against abuse.

53
10A: Entitlement
to Work
●● ●The business critical issue recognises that the ●● Where the procedure is correct but there have
need for right to work papers is a legal as well been omissions in documentation there is time
as a code issue. taken to correct the issue. In most of the cases
in this section a follow-up visit is required for
sign-off.

54
10A: Entitlement to Work

Issue
1. All workers do not have the legal Business Critical Immediate Follow-up
right to work
2. Systemic occurrence of workers not Critical Immediate Follow-up
having the legal right to work
3. Isolated incidents of workers not Major 30 days Follow-up
having the legal right to work
4. No process or system to monitor if all Critical 30 days Follow-up
employees have right to work
5. No / inadequate checking for right Major 60 days Follow-up
to work of majority of non-employed
workers e.g. agency / temporary
workers
6. Isolated instances of missing Minor 60 days Desktop
documentation on legal right to work

55
10B: Environment
●● Permits, policies and licenses can be improved ●● In cases where a new construction is required
and signed off by desktop. it may be possible to sign-off by photographic
evidence at the discretion of the auditor.
●● Where there is severe environmental damage
occurring, corrective actions will require
verification by a follow-up visit.

56
10B: Environment

Issue
1. Presence of fines / prosecutions for Critical 30 days Follow-up

non-compliance to environmental
regulations
2. Evidence of environmental Major 90 days Follow-up
complaints / legal action which have
not been corrected
3. Site is not aware of the local and Major 30days Follow-up
national laws related to environment
4. Site is not aware of legally required Major 30 days Desktop
permits related to environment
5. No public / external reporting on Minor 60 days Desktop
environmental performance and it is
required by law
6. No environmental policy in place Minor 30 days Desktop
7. No suitable person responsible for Major 30 days Desktop
environmental issues.
8. Responsible person appointed, but Minor 60 days Desktop
does not have the relevant training /
knowledge
9. No systems for improving Major 30 days Follow-up
environmental performance e.g. no
monitoring of resource handling and
no targeted reduction
10. The site does not have any of the Critical 30 days Desktop
legally required permits for use and /
or disposal of resources e.g. energy,
water, air emissions, waste
11. Hazardous waste improperly handled Critical 30 days Follow-up
/ stored / disposed of
12. No / inadequate records to show Major 30 days Desktop
hazardous waste has been properly
handled / stored / disposed of
13. Uncontrolled waste to landfill Critical 30 days Follow-up
14. No permits for waste water disposal Major 60 days Desktop
(effluent) as per legal requirement

57
10B: Environment

Issue
15. No / inadequate monitoring of waste Major 30 days Desktop

water (effluent) for legal limits
16. No / inadequate drainage system Critical 60 days Desktop
e.g. no separation clean and foul
water
17. No / inadequate training of Major 60 days Desktop
personnel for monitoring effluent
18. No water treatment in place contrary Critical 60 days Desktop
to law
19. Waste water contains contaminants Critical 30 days Follow-up
over legal limits
20. No appropriate permits for water Major 60 days Desktop
use / extraction as per legal
requirements
21. No required air emission treatment in Major 60 days Desktop
place contrary to law
22. Air emissions contain contaminants Major 60 days Desktop
over legal emission limits
23. No permits for use of energy as per Major 60 days Desktop
legal requirements
24. No monitoring of energy usage Major 30 days Desktop
25. Evidence of illegal natural damage Major 30 days Follow-up
e.g. deforestation
26. Site does not have a biodiversity Minor 30 days Desktop
policy in place contrary to law

58
10C: Business
Ethics
●● Where there is substantive evidence of ●● Where a policy or procedure is not written
unethical business practices such as bribes but there is no reason to suspect unethical
or fraud, correction can only be verified by practices, it may be possible to verify new
interview and therefore by follow-up. documentation by desktop.

59
10C: Business Ethics

Issue
1. Site is not aware of all local or Major 30 days Desktop

national laws covering bribery,
corruption or unethical business
practice
2. Site is not aware of the audit / audit Minor 30 days Desktop
company’s policy on Business Ethics
including the need to avoid bribery
during audits
3. No Business Ethics policy concerning Minor 30 days Desktop
bribery, corruption or unethical
business practices
4. The site does not comply with local Major 30 days Follow-up
/ national laws concerning bribery,
corruption or unethical business
practices
5. No designated person to monitor Major 30 days Desktop
Business Ethics standards
6. Evidence of Business Ethics issues Critical 30 days Follow-up
e.g. bribery, facilitation payments,
fraud, tax evasion, anti-competitive
practices, extortion, money
laundering, political contributions.
7. No transparent system in place for Critical 30 days Desktop
confidentially reporting and dealing
with bribery, corruption and unethical
Business Practices
8. No procedures / training in place Critical 30 days Follow-up
to avoid bribery and corruption
especially amongst high risk staff
such as purchasing and logistics
9. No / inadequate system to prevent Critical 30 days Follow-up
any misuse of private and / or
confidential data
10. All required taxes not paid e.g. Critical 30 days Desktop
corporation tax, social security taxes,
etc.

60
11: Other Issue
Areas
Human Rights
●● ●As a new findings area for SMETA and an ●● Extended time frames reflect the time required
emerging issue most corrective actions in this to understand and mitigate the impacts of a
section involve creating policies / procedures business on its stakeholders.
to minimise human rights violations, or to better
understand the impacts on human rights of the
business enterprise.

61
11: Other Issue Areas

Issue
1. No legally required land rights, Critical 60 days Follow-up

related licenses and permissions e.g.
illegal appropriation of land
2. Evidence of illegal appropriation of Major 60 days Follow-up
land
3. Planned acquisition of land without Major 30 days Follow-up
plans to obtain free, prior and
informed consent (FPIC) and / or
adhere to local law.
4. Facility lacks dispute and grievance Major 30 days Desktop
resolution process for the land the
facility owns or leases.
5. Open disputes and grievances Critical 30 days Follow-up
relating to facility’s land.
6. Evidence of animal cruelty Critical Immediate Follow-up
7. No relevant animal welfare Major 30 days Desktop
certificates
8. Failure to meet any relevant animal Critical 60 days Follow-up
welfare laws
9. No training for appropriate personnel Major 60 days Desktop
on international human rights
standards
10. No / inadequate process to assess Minor 120 days Desktop
impacts of the key human rights
aspects of the site
11. No / inadequate system to minimise Minor 120 days Desktop
the impacts of the key human rights
aspects of the site
12. No / inadequate process to identify Minor 360 days Desktop
the key human rights impacts of the
sub suppliers and to minimise those
impacts

62
Sedex has developed a suite of publications and multi-media resources to help
drive improvements in ethical and responsible business practices.
See more on the Sedex Advance Knowledge Hub.
Your feedback on the Non-compliance Guidance is extremely valuable.

It will help to make improvements to future versions.
You can leave feedback by following the appropriate link to our questionnaire:
www.surveymonkey.co.uk / r / PVCSJTW
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Head Office: 5th Floor, 24 Southwark Bridge Road, London, SE1 9HF
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SMETA 6.1 Non Compliance Guidance Ver. 2.1 - May 2019

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SMETA 6.1 Non Compliance Guidance Ver. 2.1 - May 2019

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Sedex Members Ethical Trade

Audit (SMETA) Non-Compliance

The document uses a selection of non-compliance

An auditor may find it helpful when completing

It is not intended as a standalone

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Issue Significance and Criticality

●● An issue which represents low risk to workers

●● A policy issue or misunderstanding where

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Agree corrective actions and time frames day 0 (date of audit)

Site starts corrective actions day 1 (audit date +1)

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Verification Methods Follow-up: A follow-up audit is a re-visit to site

●● A copy of any new policy documents

●● A photo of the newly corrected issue (perhaps

●● A copy of any updated systems or process

●● A copy of any documents which show that the

Note: for corrective actions which have been verified

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Evidence examined during a follow-up audit Review

●● Review of whether the corrective action has Contact Us

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0B: Management Systems

1: Freely Chosen Employment

3: Health & Safety

3.1: Health & Safety Management / Training

3.2: Fire Safety

3.4: Buildings, Site Maintenance & Machinery

3.5: Personal Protective Equipment, First Aid & Accidents

3.6: Worker Health, Hygiene & Housekeeping

3.8: Accommodation Fire Safety

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4: Children & Young Workers

5: Wages & Benefits

8A: Sub-contracting & Homeworking

9: No Harsh or Inhumane Treatment - Discipline &

11: Other Issue Areas

The index numbers and lettering relate directly to other SMETA

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Column 1: Column 2: Column 3: Column 4:

Issue title Significance of Completion timescale Verification method

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Significance of Completion Verification

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13. Inadequate management systems Major 60 days Follow-up

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●● Substantive evidence of bonded or indentured

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Significance of Completion Verification

1. No policy on employment is freely Minor 30 days Desktop

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Significance of Completion Verification

11. Fees charged to the worker by Critical 30 days Follow-up

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Significance of Completion Verification

21. Substantiated evidence of bonded / Business Critical Immediate Follow-up

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Significance of Completion Verification

32. Job advertisements and / or Minor 30 days Desktop

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9: No Harsh or Inhumane Treatment - Discipline &