Sedex Member Ethical Trade Audit
SMETA is an international standard for ethical business practices and social responsibility — applicable to Sedex Members.
What is the SMETA Standard?
SMETA, short for Sedex Member Ethical Trade Audit, is a globally recognized and widely used methodology for assessing and reporting on ethical and socially responsible business practices. The SMETA framework is built on three key components:
- A unified set of guidelines for conducting ethical trade audits
- A standardized Audit Report format
- A standardized Corrective Action Plan (CAPR) template
SMETA is designed to meet a wide range of customer requirements while minimizing duplication in ethical and social compliance audits.
SMETA CODE OF CONDUCT
1. Compliance with the Law
Companies must comply with all applicable national laws, regulations, industry minimum standards, relevant ILO and United Nations Conventions, and any other applicable requirements. The stricter standard must always be applied. In the carton packaging industry, compliance with ILO Convention No. 110 is required.
- Compliant with Vietnamese labor laws and other applicable legal requirements.
2. Freedom of Association and Collective Bargaining
All individuals have the right to freely form or join trade unions and select representatives to negotiate collectively on their behalf. Employers must respect these rights and clearly communicate that participation in such organizations will not lead to retaliation. Companies must not interfere in the formation, operation, or management of worker organizations. Where these rights are restricted by law, companies must allow workers to freely elect their own representatives. Worker representatives must not face discrimination, intimidation, or retaliation and must be allowed reasonable access to workers within the workplace.
- Compliant with Vietnamese labor laws and applicable legal requirements.
- Compliant with ILO Conventions 11, 87, 98, 135, and 154.
3. Non‑Discrimination
No employee shall be discriminated against in recruitment, compensation, training, promotion, termination, or retirement based on gender, age, religion, ethnicity, social background, disability, nationality, union membership, political affiliation, sexual orientation, family responsibilities, marital status, or any other status that could give rise to discrimination.
- Compliant with Vietnamese labor laws and applicable legal requirements.
- Compliant with ILO Conventions 100, 111, 143, 158, 159, 169, and 183.
4. Wages and Benefits
Wages paid for regular working hours, overtime hours, and overtime differentials must be equal to or higher than the statutory minimum wage and/or applicable industry standards. Unauthorized or improper wage deductions are strictly prohibited, and wages must not be deducted as a disciplinary measure. In cases where legally required wages and/or industry standards are insufficient to cover basic living expenses and leave workers with no disposable income after taxes or necessary costs, suppliers are encouraged to pay a fair living wage that meets workers’ essential needs. Wage deductions as a form of discipline are prohibited unless expressly permitted by local law and an effective collective bargaining agreement. Suppliers must ensure that the structure of wages, allowances, and benefits is clearly itemized, transparent, and communicated regularly to workers. Suppliers must also ensure that all wages, allowances, and benefits fully comply with current legal regulations and are paid in a manner convenient for workers.
Overtime must be compensated at a premium rate and in accordance with national laws. In countries where overtime pay rates are not regulated by national law or collective bargaining agreements, workers must be paid overtime at a rate higher than the regular hourly rate or in line with prevailing industry standards—whichever is more favorable to the worker.
- Compliant with Vietnamese labor laws and all other relevant legal requirements.
- Compliant with ILO Conventions 12, 26, 101, 102, and 131.
5. Working Hours
Suppliers must comply with all applicable national laws and industry standards regarding working hours and public holidays. The maximum allowable working hours per week must follow national legal requirements; however, regular working hours must not exceed 48 hours per week, and overtime must not exceed 12 hours per week. Overtime must be voluntary and compensated at a premium rate higher than the regular wage.
If the company needs to increase working hours temporarily to meet short‑term production demands, and the company has a collective bargaining agreement in place with a worker representative organization (as mentioned above) representing the majority of employees, then the company must comply with the overtime provisions stated in that agreement.
Any such agreements must still adhere to the requirements stated above.
Each worker must be granted at least one day off after six consecutive days of work. Exceptions are allowed only if both conditions below are met:
a) National law permits exceeding these limits; and
b) A valid collective bargaining agreement allows averaging working hours, including rest periods.
- Compliant with Vietnamese labor laws and other applicable legal requirements.
- Compliant with ILO Conventions 1 and 14, and ILO Recommendation 116.
6. Workplace Health & Safety
The company must provide a safe and healthy working environment and implement effective measures to prevent occupational accidents and injuries that may occur or are likely to occur during work. This must be achieved by minimizing inherent risks and hazards in the workplace, supported by appropriate industry knowledge and awareness of specific risks. Clear and comprehensive occupational health and safety (OHS) rules and procedures must be established and followed—particularly those regarding the proper use of personal protective equipment (PPE). Clean and adequate toilet facilities, hygiene equipment, potable drinking water (where appropriate), and safe food‑storage facilities must be provided.
The company must ensure that dormitory facilities provided to workers are clean, safe, and meet basic living standards. All individuals have the right to leave any area where serious and imminent danger may occur, without needing prior permission from the employer.
Practices and conditions in both the workplace and dormitories that violate basic human rights are strictly prohibited. Young workers must not be exposed to hazardous, dangerous, unsafe, or unhealthy working environments.
- Compliant with Vietnamese labor laws and all other applicable legal requirements.
- Compliant with ILO Conventions 155 and 184 and ILO Recommendations 164 and 190.
In particular, a designated management representative must be appointed to oversee health and safety for all personnel and to ensure the implementation of BSCI Occupational Health & Safety requirements. All individuals must receive regular health and safety training, with records maintained. Additional training must be provided for newly hired workers or when employees are transferred to different tasks or job assignments.
Systems must be established to identify, prevent, and respond to potential hazards that may affect the health and safety of all personnel.
7. Prohibition of Child Labor
The use of child labor is strictly prohibited as defined by ILO and United Nations Conventions and/or national laws. Among these standards, the company must always comply with the strictest applicable requirement. All forms of child exploitation are forbidden. Work conditions resembling slavery or those harmful to a child’s health are strictly prohibited. The rights and welfare of young workers must be protected. If a child is found working under any conditions that violate the above standards, the supplier must establish and maintain written policies and remediation procedures. Additionally, the supplier must provide appropriate financial support and other necessary assistance to ensure the child can return to school and continue their education until reaching the legal minimum working age.
- Compliant with Vietnamese labor laws and other relevant legal requirements.
- Compliant with ILO Conventions 10, 79, 138, 142, 182 and ILO Recommendation 146.
8. Prohibition of Forced Labor and Disciplinary Practices
All forms of forced labor—such as requiring deposits or withholding personal identification documents during recruitment—are strictly prohibited. The use of prison labor is also forbidden, as it violates fundamental human rights.
Companies and labor service providers must not withhold any portion of wages, benefits, assets, or personal documents for the purpose of coercing individuals to continue working.
Workers must have the right to leave the workplace or factory after completing standard working hours and may freely terminate their employment with reasonable notice to the employer.
Companies and labor service providers are prohibited from engaging in or supporting human trafficking.
The company must treat all individuals with dignity and respect. Physical punishment, mental or emotional abuse, coercion, violence, or the use of degrading or insulting language towards any individual are strictly prohibited.
- Compliant with Vietnamese labor laws and other relevant legal requirements.
- Compliant with ILO Conventions 29 and 105.
9. Environmental and Safety Issues
Procedures and standards for managing, handling, and disposing of chemical waste and other hazardous materials, as well as the treatment of air emissions and wastewater, must meet or exceed the minimum legal requirements.
- Compliant with Vietnamese environmental protection laws and all other relevant legal requirements.
