Sedex Members Ethical Trade Audit (SMETA) Best Practice Guidance

5.8. Check that wages are not withheld as a deposit.
5.9. Check whether wages are reduced or deducted as a form of punishment, and if yes is this on line with
national law.
5.10. Carry out wages review in conjunction with the hours review and check the calculation for wages to
ensure accuracy and that wages are in agreement with hours worked and the law. Evidence should be
cross checked through worker interview.
5.11. Whether all workers are given written and understandable information about their employment including
wages and hours before they enter employment and that they receive understandable information of
their pay for each pay period.
5.12. Whether there is a system in place to ensure workers receive final salary payments especially after
unplanned leaving such as after Chinese New Year.
5.13. Whether workers are paid regularly and in line with the law. If there is a legal requirement for a minimum
wage to be paid in every pay period, does this occur?
5.14. How they are paid e.g. by cash, cheque, bank transfer, and not any non-monetary means.
5.15. Check a minimum of 2 pay periods, one at peak and one current.
5.16. Whether any legally allowed deductions for e.g. housing food etc. reduce wages to below minimum
wages and whether this contravenes the law.
5.17. If deductions are made for company loans check they are lawful and that there is correct loan
accounting.
5.18. Check contracts to establish there is:
a. Signed copy or letter of engagement for each worker.
b. Workers have an understandable copy.
c. Includes job description, terms and conditions, length of contract, any probationary period, leave,
notice period, pay, hours, discipline and grievance procedures.
d. Ensure that probationary periods do not exceed the law.
e. That contracts meet the local laws.
5.19. Check payslips to establish:
a. Wage rates paid- normal and overtime,- meet at least the legal required minimums.
b. Number of hours worked (including standard and overtime hours).
c. Method of calculating wages.
d. Frequency of wage periods, and timing of wage periods.
e. Method of payment.
f. Any deductions / withholdings e.g. tax, social insurance, rent, transport, meet legal and code
requirements.
g. Whether understandable to workers.
5.20. Check personnel files to establish:
SMETA Best Practice Guidance (4-Pillar Version 4.0, May 2012)
a. There are copies of any legally required documents such as ID, right to work documentation, work
permits etc.
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