EMPLOYMENT PRACTISES

Child labour:

Employment of children in any form is strictly prohibited. Suppliers must engage workers whose age is not below the age for finishing compulsory schooling, and in any case is not less than 15 years of age or the legal minimum age for working in the applicable country, whichever is greater. Further, workers below 18 years of age must not be employed in hazardous conditions or at night. Suppliers must comply with all applicable local laws relating to employment of minors, including in relation to employment contracts, access to education, wages, working hours, overtime and working conditions. No children are allowed in the production area, even if they are not working.

Forced labour:

All forms of forced, indentured and bonded labour are prohibited, including all forms of modern slavery and compulsory overtime. Suppliers must cover any commissions and other fees in connection with recruitment. Workers’ passports or identity documents should never be retained by the Supplier, and withholding of bonds or deposits is not allowed. Workers must be able to voluntarily end their employment without any restrictions. Any restrictions on a worker’s ability to voluntarily end their employment, such as excessive notice periods or substantial fines for terminating their employment, are prohibited. ZALORA does not accept the use of prison labour or illegal labour in the production of its goods or services. Workers must have free access to toilets, water and breaks without any disadvantage, disciplinary action, discrimination or termination.

Harassment and abuse:

Workers must be treated with respect and dignity and must not be subject to any form of physical abuse or discipline, corporal punishment, the threat of physical abuse, sexual or other harassment, verbal abuse, or other forms of intimidation. Workers must be able to express criticism and concerns about conditions in the workplace to their supervisor or to management without fear of retribution, loss of employment or other reprisals.

Discrimination:

All workers must be treated equally and without discrimination. Workers must not be subjected to any form of discrimination in the employment life-cycle, including recruitment, hiring, training, working conditions, job assignments, compensation, promotion, discipline, termination, or retirement, whether on the basis of gender, race, religion, caste, age, social background, disease, disability, sexual orientation, pregnancy, marital status, nationality, political opinion, trade union affiliation, social or ethnic origin, or any other status protected by law. Effective measures are to be taken against the exploitation of migrant workers to protect them from all forms of discrimination and to provide them with appropriate support commensurate to their special status. Migrant workers must be afforded exactly the same entitlements as local workers and must be employed in compliance with ZALORA’s Policy on the Responsible Recruitment and Employment for Migrant Workers, Agency Workers and Temporary Staff.

Freedom of association and collective bargaining:

The rights of workers to lawfully associate or not to associate with groups of their choosing must be respected, as per applicable laws, and without interference from management. The rights of workers to engage in collective bargaining as permissible by law must also be recognised.

Regular employment:

To the fullest extent possible, workers should be engaged on the basis of a recognised stable employment relationship established in accordance with applicable law. Suppliers must not attempt to avoid their obligations to their workers under labour or social security laws and regulations arising from a regular employment relationship. Workers employed through an agent or contractors are the responsibility of the Supplier, and are also covered by this Code of Conduct.

Wages and benefits:

All workers must be paid in a timely manner and provided with a written payment statement they are able to understand. Wages paid to workers should be sufficient to cover the costs of their basic needs and provide some discretionary income. At a minimum, workers should be paid at a rate not less than the minimum wage required by industry standards or applicable law, whichever is higher. Workers must also be provided with legally mandated benefits, including holidays, leave, and statutory compensation for termination of employment. Deductions from pay for disciplinary purposes are prohibited.

Working hours:

Working hours, excluding overtime, must be defined by contract, and must not exceed 48 hours per week or as prescribed by applicable law, whichever is lower. The duration of working hours, including overtime, must not exceed 60 hours per week on a regular basis or as prescribed by applicable law, whichever is lower. Suppliers must comply with applicable laws governing regular working hours and overtime hours. All overtime hours must be voluntary and must be compensated at premium rate of no less than 125% of the regular pay rate, or as prescribed by applicable law, whichever is higher. Workers must be provided with at least 24 consecutive hours of rest in every 7 day period, and must also be granted paid annual leave as per local employment law.

Housing facilities:

Suppliers must comply with all relevant legal requirements relating to workers’ housing facilities. Restrictions interfering with a worker’s right to leave the housing facility during free time are prohibited. Separate toilets must be available for men and women. Suppliers must also ensure reasonable living space, cleanliness, privacy, quietness, safety, personal hygiene and access to drinking water. The condition of the housing infrastructure must be sufficient to ensure the personal safety of the workers. Dormitories must be clearly separated from the production facility or warehouse.

WORKING CONDITIONS

Health and safety:

Workers must be provided with a safe, healthy, hygienic and hazard free work environment. Suppliers must take steps to prevent accidents, injury and disease in the workplace by minimizing the cause of hazards. Workers must be provided with adequate safety training and equipment when handling hazardous material or working with dangerous tools. All production facilities must have trained personnel on first aid and must be equipped with appropriately stocked first aid kits.
Fire, electrical and structural safety: All Suppliers must comply with local laws and regulations related to fire protection, and electrical and structural safety at their offices and production facilities. Workers must receive training on maintaining physical safety, emergency evacuation, and other basic training to cope with fire or structural hazards. Emergency exits must be unlocked during working hours, aisles and exits must be kept clear, and exits and evacuation routes must be sufficient to allow workers to exit safely. Workers must be allowed to raise concerns regarding unsafe working conditions to their supervisors or to management without fear of reprisals or disciplinary action. Suppliers must ensure that railings guard all stairs, platforms, and elevated floors.

Certification and record keeping:

Suppliers must obtain all applicable permits and certifications from relevant local authorities for all production or other facilities. A log of incidents and corrective action plans, together with updated status, must be maintained at all production facilities. Regular inspection records for potentially dangerous equipment, such as boilers, generators, pressure / LPG tanks, must be maintained and easily accessible.

ENVIRONMENTAL PROTECTION

Environmental standards:

Suppliers must undertake reasonable measures to avoid any adverse impact on human health or the environment by avoiding or minimising pollution from manufacturing activities, and promoting the sustainable use of resources, such as energy and water. All required environmental permits and licenses must be kept up to date.

Severe pollution:

Suppliers must manage all waste in a way that minimizes contamination of the environment and must dispose of all waste properly. Suppliers must promote programs to minimize the generation of waste, and increase recycling or reuse. Suppliers must keep up to date original copies of all relevant environmental permits and licenses relating to their operations. Suppliers must ensure that all measures are taken to avoid severe pollution to the environment as a consequence of their operations or the operations of their subcontractors.

Banned substances:

Suppliers must implement all controls necessary to ensure that hazardous materials and substances that have been banned by international organisations (e.g. European Union) are not be used in the manufacturing process.

Water Management and Wastewater Treatment:

Water should be used as efficiently as possible. Suppliers must ensure that all outgoing wastewater from wet processes is treated before it is discharged. The treated wastewater quality must meet the requirements set in applicable legislation, or the parameters found in BSR’s wastewater quality guidelines, whichever is stricter

ANIMAL WELFARE POLICY

All suppliers and factories supplying to ZALORA are subject to the terms outlined in the ZALORA Animal Welfare Policy. The Policy is also applicable to inputs production and raw materials suppliers further down the supply chain, even where the region does not trade with them directly.

COMPLIANCE

Local laws and regulation:

Local laws and regulations: Suppliers and their subcontractors must comply with all applicable laws and regulations in the jurisdictions in which they do business, as well as good industry practice. Furthermore, Suppliers and their subcontractors must work with other suppliers who are committed to complying with applicable laws and regulations, and good industry practice.

Anti-Corruption and Anti-Bribery:

All Suppliers must confirm that they comply with all applicable laws relating to anti-bribery and anti-corruption. Suppliers must not tolerate or participate in any form of corruption, whether it is in the form of bribery or accepting or granting advantages or benefits in order to exert influence. Suppliers must not engage in fraud, extortion, embezzlement or similar acts. Suppliers must implement appropriate internal regulations to prevent and detect bribery, corruption, or the attempted exertion of improper influence. In addition, Suppliers are obliged to report any act or suspicion of corruption.

Right to Inspect:

Suppliers agree that representatives of ZALORA may inspect their production facilities, or the production facilities of their subcontractors, to audit and monitor the standards set out in this Code of Conduct. Such inspections may, at ZALORA’s discretion, take place on an unannounced basis whereby the inspectors are granted immediate access to the facilities and related records. Trust and transparency are fundamental requirements in any supply relationship with ZALORA. Suppliers are required to be transparent during these inspections by informing ZALORA of all practices related to production (facility locations, use of subcontractors, third parties, and homeworkers, etc.) and providing accurate and truthful information and documentation.