Li&Fung Factory Audit Supplier Guidelines

Li&Fung's Supplier Code of Conduct stipulates the basic requirements that all Li&Fung suppliers must comply with. Li&Fung and its principals have the right to request additional provisions at any time. So, what are the contents of Li&Fung's Supplier Code of Conduct? Let's take a closer look.

Li&Fung Factory Audit Supplier Guidelines:

1. Subcontractors and Suppliers

Suppliers shall ensure that their subcontractors and suppliers comply with the requirements of this Code.

2. Working hours

Suppliers shall not require workers to work more than 60 hours per week or more than the maximum working hours required by relevant laws and regulations (whichever is lower). Suppliers shall ensure that employees have at least one day off every seven days.

3. Legal requirements

Suppliers shall comply with all legal requirements, including the above provisions, in their business activities.

4. Punitive measures

Suppliers shall not use corporal punishment or any other form of physical or psychological coercion or intimidation against workers.

5. Child Labor

Suppliers shall not use child labor. "Child" refers to a person under the age of completing compulsory education, but Suppliers shall never use workers under the age of 15. Suppliers must verify the age of workers and retain relevant documentation. Suppliers must comply with all laws and regulations regarding working hours and working conditions for underage workers.

6. Non-discrimination

Suppliers shall employ employees based on their individual abilities and shall not discriminate against employees based on age, gender, race, parental or marital status, national origin or other factors such as culture, religion or personal beliefs in recruitment, wages, benefits, termination or retirement.

7. Involuntary Labor

Suppliers shall not use involuntary labor. “Involuntary labor” means labor or services required from workers under threat or punishment, and includes all forms of prison labor, indentured labor, bonded labor, and forced labor.

8. Health and safety

Suppliers should provide employees with a clean, safe and healthy working environment and comply with all relevant laws and regulations. Suppliers should ensure that workers have access to drinking water and sanitary toilets, provide adequate toilets, fire extinguishers and emergency exits, and ensure that the workplace has adequate lighting and ventilation. If suppliers provide dormitories for employees, they should also ensure that the dormitories meet the above requirements.

9. Salary and Benefits

Wages and benefits provided by suppliers must comply with all relevant laws and regulations or meet the prevailing local manufacturing or industry standards (whichever is higher). Regardless of whether workers are paid by piece or by the hour, overtime pay should be paid according to the legal overtime rate.

10. Freedom of association

Suppliers should respect workers’ rights to freedom of association and collective bargaining, and should also respect workers’ collective bargaining in a legal and peaceful manner.

11. Environmental protection

Suppliers should comply with all environmental protection laws and regulations and establish procedures to ensure that local governments are notified in a timely manner when environmental emergencies occur.

12. Promoting and posting this Code

Suppliers should inform their employees of the requirements of this Code and post it in a conspicuous place in the local language.

13. Standard compliance supervision

Suppliers shall authorize Li & Fung and its responsible persons to conduct announced or unannounced audits of their production units to ensure compliance with the requirements of this Code. During the inspection, Li & Fung and its responsible persons shall have the right to review all documents and records related to employees and may interview employees.

14. Correction Plan

If there are any violations, Li & Fung will reach a rectification plan with the relevant suppliers to promptly resolve the problems found. If a supplier violates the requirements of this Code intentionally or repeatedly, Li & Fung and its responsible persons will take appropriate rectification measures, including canceling orders or terminating the cooperation relationship with the problematic supplier.

Through the above introduction to Li&Fung's factory inspection supplier code, we understand that if the supplier deliberately or repeatedly violates the requirements of this code, the consequences are very serious. Therefore, as a supplier, you must abide by the Li&Fung factory inspection supplier code to avoid losing orders due to some details. If you have any questions about the above introduction, please call Shanghai Chaowang or consult through the online customer service. We have experts to answer your factory inspection questions for free.