Sedex Members Ethical Trade Audit (SMETA) Best Practice Guidance

. That legally allowed deductions have a signed agreement from the worker.
c. Any disciplinary records for e.g. fines.
5.21. Check any agency agreements for workers provided by labour providers.
a. Agreements between the site and the labour provider which state individual responsibilities.
b. Agreements between each appropriate worker and the labour provider.
c. Check that rates paid to the agencies / labour providers are sufficient to pay agency workers all
legal wages as well as agency costs.
5.22. Where it is not possible to verify accuracy of wages and hours records because of e.g. discrepancy
with worker testimony or production records, auditors should make it clear to management that
fraudulent records are seen as a more serious issue than correct records which do not meet the
standard. Sites should be encouraged to show accurate records to allow for an open and frank
discussion with customers on how they can work together to make improvements.
5.23. Where the discussion fails to reveal correct records they auditor should record the managements
explanation of why the discrepancy has occurred.
5.24. Where the auditor cannot verify records, it is essential to at least complete the wages and hours
analysis table with the individual records available.
Worker Interviews - to corroborate workplace practices.
Note: Information on pay and hours must never be discussed at an individual level at a group interview. This
type of information is confidential to each worker and therefore can only be discussed in individual interview.
However it will be possible to ask about wages and benefits in more general terms.
Auditor seeks to confirm documents and management interview by worker testimony. Discrepancies
should be noted, taking care to protect the anonymity of workers.
5.25. Whether all workers (include all types of workers, e.g. permanent, casual temporary, agency, part time,
etc.) understand:
a. How their wages are calculated and the pay rates.
b. Whether there are any deductions taken from their wages and if so how much and what for.
c. Whether they are aware of any deductions or fines and have they agreed to them.
d. Do they pay deposits for any type of necessary work equipment and if yes how is it returned to
them.
e. Their wage slips – do they get them and do they understand them.
SMETA Best Practice Guidance (4-Pillar Version 4.0, May 2012)
f. Whether they pay any social insurance and if yes do they know what it covers.
5.26. Whether they are financially stable and are able to earn enough to cover expenses and have some
discretionary income.
5.27. How they receive their wages, by e.g. cash, cheque, bank transfer, and are they paid on time.
5.28. Are they able to take legally mandated leave and is it paid according to law, e.g., annual leave,
maternity leave.
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