Sedex Members Ethical Trade Audit (SMETA) Best Practice Guidance

i. Method of recording hours worked.
6.2. Check workers contracts or letters of engagement for:
a. Standard work hours.
c. Rest day and holiday entitlement.
c. Overtime requests and conditions.
6.3. What is the method for recording of hours, is it accurate and are there any signs of falsified records
(double books).
6.4. Do records of hours worked separate standard hours and overtime hours.
6.5. Review the hours and wages records of all employees selected for individual interview. The additional
number of records required to meet the recommended sample size to be taken from the wider
population of workers, taking care to include different work sections and worker levels (but excluding
supervisors and managers). A relevant sample is dependent on the risks of the country and industry.
However as a minimum 10 records or 1% of the workforce if above 1,000 workers should be reviewed,
for each pay period selected. Measure standard and overtime hours against the local laws and the ETI
Base Code.
6.6. Review of records from the relevant sample to include and report on:
a. Full 12 months hours and wages records in conjunction with time cards and individual pay records
(or a 12 month cycle for seasonal work).
b. Report on all records analysed of the standard work week, overtime hours, and any holiday or rest
day working.
c. Check whether breaks, holidays and rest periods are in line with the law.
d. Where overtime hours exceed the national law but are within any waivers obtained it is important to
review a 12 month cycle(waivers often permit ‘annualised hours’ i.e. a maximum number of
overtime hours per year).
e. Where possible auditors should check legality of local waivers, are they signed and by whom.
6.7. For completing the detailed wages and hours records within the report the auditor should:
a. Examine the total records for 12 months to find lowest and highest paid, and report on these
together with their hours worked.
b. Find and report on the lowest and highest number of hours worked over all operators.
c. Record what % of workers are working the highest hours and over how many months.
d. In all cases for wages and hours recording it is important to state the period covered, i.e. per day,
per week, per month, per year.
6.8. Are there management systems in place to allow workers to volunteer for overtime (note this as good
practice).
6.9. Review contracts collective bargaining agreements and all terms and conditions for signs of
compulsory overtime or ‘hours required to finish the job’.
6.10. Check working hours against pay records to ensure no inconsistencies.
SMETA Best Practice Guidance (4-Pillar Version 4.0, May 2012)
6.11. Examine quality records and production records such as broken needle reports to cross check hours
records.
6.12. Where inconsistencies are noted, management shall be invited to provide accurate records as
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