Subject: Labor Law

Company

Xiaomi
Group assignment
Participants of the group

Sahana KS 21MBAR0535

Ranjitha S G 21MBAR0077

Sneha Vinod 21MBAR0057

Preeti Banerjee 21MBAR0075

Merlin Priya M 21MBAR0525

Submission to
Prof. Dinesh Nilkant Rao

1|Page
Introduction

Xiaomi Inc is a public company started on 6th of April 2010 by Lei Jun. ‘Xiaomi’ the name
translates to ‘Millet’ which also means rice. The word ‘Xiao’ is related to the Buddhist concept
of ‘A single grain of rice is at great add a mountain’ which indicated the company’s endurance.
Xiaomi belongs to a customer electronic and computer hardware industry that originated in
China. It is the second largest smartphone manufacturer in the world after Samsung. The
company is headquartered in Beijing, China and has customers in over 100 countries across the
world. Xiaomi is considered as the ‘World’s most successful startup’ of the year 2014.

Xiaomi India has created a ‘GUINNESS WORLD RECORDS’ by building the largest light mosaic
(logo) in the world. The logo consists of 9,690 bulbs and this momentous work is in the Xiaomi’s
head office in Bangalore.

Brands like Redmi, POCO are under Xiaomi who manufacture mobile phones and personal
computers respectively. Xiaomi’s products fulfill cutting edge technology while it sells for a
reasonable price.

Xiaomi has a revenue of 50 billion USD and net income of 2.99 USD as per 2021.

2|Page
The founder started the software company and created MIUI ROM which was based on
Google’s Android as to offer more functionality and competitively better UI than Android. This
resulted in 330.7 million MAU (monthly active users) according to a report in March 2020.

Xiaomi’s business partners i.e., their employees are provided with certain rights, responsibilities
and certain other information which is circulated to them. The document starts as follows

“Guiding the Way Forward

Xiaomi Corporation Code of Conduct for Business Partners”

Scope of application
The code of conduct specifies to whom these rules apply to. That includes Xiaomi's distributors,
dealers, suppliers, agents and other upstream and downstream partners (hereinafter referred
to as "Business Partners"). Xiaomi also wants to include the possibilities of making specific
regulations and issuing corresponding norms for certain matters as required. This is to also
confirm the business partners that if there are changes that are required it will take place.

Interpretation and revision

Xiaomi is entitled to modify, revise or adjust certain content of this Code of Conduct in
accordance with changes in circumstances. To the extent permitted by law, Xiaomi reserves the
right of final interpretation of the Code of Conduct.

Workers' rights and interests, health, safety and anti-

discrimination

0.1 General principles

Business Partners of Xiaomi are obligated to uphold the rights and interests of employees, as
well as their personal health and safety, and to treat each employee equally.

3|Page
0.2 Protection of workers' rights and interests
Business Partners must uphold the standards commonly recognized by the world community
and local labor laws in order to respect and protect the fundamental rights, interests, and
dignity of employees. Business Partners must observe these rules:

• To not benefit from any forced or compulsory labor.

• To not employ people under the age of 16 (or older subject to local laws) for any work unless
expressly permitted by applicable laws.

• To comply with applicable laws and regulations regarding working hours, wages, and benefits.

• To not treat employees in a harsh and inhuman manner.

• In accordance with the requirements of applicable laws, to respect the rights of employees to
associate freely, negotiate collectively, and organize and join trade unions.

0.3 Welfare measures

Business partners follow labor welfare is a very broad term covering social security and such
other activities as medical aid, creches, canteens, housing, recreation, arrangement for the
transport of labor to and from the workplace

0.4 Health and safety

Business Partners must ensure a safe and healthy work environment and follow all local laws,
ordinances, and government regulations pertaining to health and safety.

Business Partners are required to set up the necessary procedures and safeguards to stop
accidents, diseases, and other workplace-related problems.

0.5 Penal Provision

Employees must ensure or contraventions of Provisions of the Act, imprisonment up to 7 years
or fine up to Rs.2,00,000/-.For continuous contraventions of the Act, imprisonment up to 10
year and/or fine up to Rs.5,000/- per day

Discrimination, Harassment, Threat and Violence

4|Page
0.1 Management and Employees shall be treated with respect and free from any form of
harassment, threat, intimidation, violence or any other inappropriate behavior.

0.2 The Group are strictly forbidden from discrimination on the basis of any criteria prohibited
by law, including but not limited to race, gender, age, belief or political inclination. This is to
ensure that all management and employees are treated fairly and with respect and dignity.

0.3 All shall not give derogatory comments on any forms of communication channels such as
racial slurs, sexual jokes, pornographic materials, posting offensive statements and distribution
of inappropriate jokes.

0.4 All shall be prohibited from sexual harassment

0.5 All shall avoid making devalued remarks and presenting inappropriate behavior that could
cause misunderstanding and be taken as sedition, discrimination, harassment, threat or
violence.

0.6 All are responsible to report any suspicious act that may indicate any inappropriate
behavior and are required to comply with the Code. In keeping in line with the Code, individuals
who involve in any inappropriate behavior as such, will not be tolerated.

Minimum wage system

According to Minimum wage act 1948, India offers the most competitive labor costs in Asia,
with the national-level minimum wage at around INR 178 per day, which works out to INR 5340
per month. This number is a floor-level wage – and the wage rate will vary depending on
geographical areas and other criteria.

In Xiaomi the minimum wage for employees is 3 lakhs per annum.

The minimum wage for employees in a metropolitan city is 3.5 lakhs and other city employees
it's 3 lakh per year.

In addition, the company announced that all employees will receive half a month's salary as a
labor bonus.

Xiaomi's freshman average salaries range from Rs 1.2 lakh per year for account managers to Rs
13.6 lakhs per year for management trainees.

5|Page
The Minimum Wages Act 1948 was enacted to establish minimum wages in certain
occupations. The provisions of this law aim to achieve the objective of bringing social justice to
workers employed in regular employment by imposing a minimum wage.

Maternity leave

According to Maternity benefit act, 1961, maternity leave in India allows a woman to take time
off work when her child is born. According to the Maternity Benefits Act of 2017 they can take
period to 26 weeks.

In Xiaomi maternity leave is given up to 6 months and they are given present full salary. But
their promotion, bonus, and hike will be restricted for the period of time.

Bonus payment

The Payment of Bonus Act, 1965 provides for a minimum bonus of 8.33 percent of wages

The Xiaomi bonus is paid every year twice in the month of September and may and its paid 10
percent on employees fixed pay.

6|Page