Sedex Members Ethical Trade Audit (SMETA) Best Practice Guidance

8. Regular Employment
CODE REQUIREMENTS
8.1 To every extent possible work performed must be on the basis of recognised employment relationship
established through national law and practice. 8.2 Obligations to employees under labour or social security laws
and regulations arising from the regular employment relationship shall not be avoided through the use of labouronly
contracting, sub-contracting, or home-working arrangements, or through apprenticeship schemes where
there is no real intent to impart skills or provide regular employment, nor shall any such obligations be avoided
through the excessive use of fixed-term contracts of employment.
AUDIT CHECKS AND EVIDENCE GATHERING
Document and system checks including management interview.
Auditors examine policies and written procedures in conjunction with relevant managers. In this section
the auditor checks whether the site knows, and is up to date with, relevant local and national law, the
ETI Code and the standards required.
The auditor checks and reports on:
SMETA Best Practice Guidance (4-Pillar Version 4.0, May 2012)
8.1. What proportion of workers are permanent, part time, fixed term contract workers, temporary workers,
and do their terms and conditions meet the law.
8.2. Checks and records specifically the social security benefits and payments for all types of workers
present, casual, temporary, subcontract, apprentice, trainee, do they meet the law.
8.3. Is there any evidence of casual, temporary or fixed term contract workers being employed on a semipermanent
basis to avoid legal obligations on the part of the employer, such as payment of social
security, annual leave benefits etc.
8.4. Checks hiring and termination records over the last 6 month to see if patterns exist.
8.5. Checks patterns on hiring around peak periods and whether these are normal within the company
Note: Under some circumstances regular layoffs during quiet periods may be acceptable; the auditor
should state the law in the report.
8.6. Records details of seasonal or contract workers and compares this with the national law. The auditor
must clearly state the law in the report.
8.7. Check the policy concerning pay in quiet periods, and if annualized hours are being used ensure this is
legal and that overtime hours in busy periods are still being paid according to law.
8.8. Checks any service level agreements with agencies in the case of agency workers. What do they cover
and how do they manage workers, how much notice is given, are they paid if they turn up, are they
paid for down time.
8.9. If contract workers are on site, if possible reviews their contracts and terms and conditions. Do these
meet the legal requirements?
8.10 Reviews workers legal right to work and the procedures in place to ensure these comply with legal and
industry requirements, especially when they are supplied by an agency.
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