Code of Conduct – Business Partners

This Code of Conduct applies to suppliers, business partners and any other third party providers of goods or services to ZALORA.

EMPLOYMENT PRACTISES

Child labour:

Employment of children in any form is strictly prohibited. Business Partners must engage workers whose age should not be below the age for finishing compulsory schooling, and in any case not less than 15 years or of the legal minimum age for working in any specific country, whichever is greater. Further, workers below 18 years of age may not be employed in hazardous conditions. The Business partner shall comply with all applicable local laws relating to employment of minors, including employment contracts, access to education, wages, working hours, overtime and working conditions.

Forced labour:

All forms of forced and bonded labour are prohibited, including compulsory overtime. Workers must be able to voluntarily end their employment without any restrictions. Any restrictions on employees to voluntarily end their employment, such as excessive notice periods or substantial fines for terminating their employment contracts are prohibited. We do not accept the use of prison labour or illegal labour in the production of goods or services for ZALORA..

Harassment and abuse:

Employees must be treated with respect and dignity and may not be subject to any form of physical abuse or discipline, corporal punishment, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of intimidation. Employees must be able to express criticism and concerns about conditions in the workplace to their supervisor or to management without fear of retribution, loss of employment or other reprisals.

Discrimination:

All Employees must be treated equally and without discrimination. Employees must not be subjected to discrimination in employment, including hiring, compensation, promotion or discipline, on the basis of gender, race, religion, caste, age, disability, sexual orientation, pregnancy, marital status, nationality, political opinion, trade union affiliation, social or ethnic origin or other status protected by law. Effective measures are to be taken against the exploitation of migrant workers to protect them from all forms of discrimination and to offer them an appropriate support adequate to their special status.

Freedom of association and collective bargaining:

The rights of employees to lawfully associate or not to associate with groups of their choosing shall be respected, as per applicable laws, and without interference from management. The right of employees to engage in collective bargaining as permissible by law shall also be recognised.

Regular employment:

To every extent possible, work performed should be on the basis of a recognised stable employment relationship, established through national law and practice. The Business Partner shall not avoid obligations to employees under labour or social security laws and regulations arising from the regular employment relationship.

Migrant Workers:

Migrant workers shall have exactly the same entitlements as local employees. The employer must cover any commissions and other fees in connection with employment of migrant workers. The employer must not require the employee to submit his/her identification documents. The withholding of bonds or deposits is not allowed. Workers employed through an agent or contractors are the responsibility of the Business Partner, and are thus covered by this CoC.

Wages and benefits:

All employees must be paid in a timely manner and provided with a written statement they are able to understand. Wages paid to workers should be sufficient to cover for their basic needs and allow for some discretionary income. At a minimum, workers should be paid at a rate not less than the minimum wage as required by the industry standard or by local laws. Employees must also be provided with legally mandated benefits, including holidays, leaves, and statutory compensations at the time of ending employment. There may not be any disciplinary deductions from their pay.

Working hours, excluding overtime, shall be defined by contract, and shall not exceed 48 hours per week. The duration of working hours including overtime shall not, on a regular basis, exceed 60 hours per week. Business Partners must comply with applicable laws governing regular working hours and overtime hours. All overtime hours are voluntary and must be compensated at premium rate of no less than 125% of the regular pay rate, or as per legal requirements, whichever is higher. Employees must be provided with at least 24 consecutive hours of rest in every 7 days period, and must also be granted paid annual leave as per local employment regulations.

Housing facilities:

Business Partners shall comply with relevant legal requirements for housing facilities. No restrictions shall be applied which interfere with the workers’ right to leave the housing facility during their free time. Separate toilets shall be available for men and women. Business Partners shall also ensure reasonable living space, cleanliness, privacy, quietness, safety, personal hygiene and access to drinking water. The infrastructure of the buildings shall ensure the personal safety of the Employees.


WORKING CONDITIONS

Health and safety:

Employees must be provided with a safe, healthy, hygienic and hazard free work environment that does not pose any risk to Employees’ health or life. Business Partners shall take steps to prevent accidents, injury and disease in the workplace by minimizing the cause of hazards. Employees must be provided with adequate safety training and equipment when handling hazardous material or working with dangerous tools. All production facilities must have trained personnel on first aid and be equipped with appropriately stocked first aid kits.

Fire, electrical and structural safety:

All Business Partners must comply with local laws and regulations related to fire protection, electrical and structural safety at their offices and production facilities. Employees must be trained about physical safety, emergency evacuation and other basic training to cope with fire or structural hazards. Emergency exits must be unlocked during working hours, aisles and exits must be kept clear, and exits and evacuation routes must be sufficient to allow workers to exit safely. Employees must be allowed to raise concerns regarding unsafe working conditions to their supervisors or to management without fear of reprisals or disciplinary actions.

Certification and record keeping:

Business Partners shall obtain certification from relevant local authorities for all production or other facilities. A log of incidents and corrective action plans along with an updated status shall be maintained at all production facilities. Regular inspection records for potentially dangerous equipment, such as boilers, must be kept accessible and up to date.


ENVIRONMENTAL PROTECTION

Environmental standards:

Business Partners must undertake reasonable measures to avoid any adverse impact on human health and/or the environment by avoiding or minimising pollution from manufacturing activities, and promoting sustainable use of such resources as energy and water. All required environmental permits and licenses must be kept up to date.

Severe pollution:

Business Partners shall manage all waste in a way that minimizes contamination of the environment, promoting programs to minimize the generation of waste, increasing recycling or reuse and disposing properly all wastes. Business Partners must keep up to date original copies of all relevant environmental permits and licenses for its operations. Business Partners shall ensure that all measures are taken to avoid severe pollution to the environment as a consequence of their business operations or that of their sub-contractors.

Banned substances:

Business Partners shall implement necessary controls to ensure that hazardous materials and substances that are banned by international organisations/regulation (e.g. European Union) are not be used in the manufacturing process.

Water Management and Wastewater Treatment:

Water should be used as efficiently as possible. Business Partners shall ensure all outgoing wastewater from wet processes must be treated before it is discharged. The treated wastewater quality must meet the requirements set in local legislation, or the parameters found in BSR’s wastewater quality guidelines, whichever is stricter.


COMPLIANCE

Local laws and regulation:

Business Partners and their sub-contractors shall comply with all local and national laws and regulations of the jurisdictions in which the suppliers are doing business as well as the practices of their industry. Business Partners and their sub-contractors shall further work with suppliers who are committed to meeting required standards as per local and national laws.

Anti-Corruption and Anti-Bribery:

Business Partners confirm that they comply with local, national and international regulations related to anti-corruption (e.g. UKBA and FCPA). Business Partners do not tolerate or participate in any form of corruption, whether it is bribery or accepting or granting advantages or benefits. The same applies for other forms of influence such as fraud, extortion, embezzlement or similar acts. Appropriate internal regulations are implemented across Business Partners to uncover relevant influences and to prevent them. In addition, Business Partners are obliged to report any act or suspicion of corruption.


RIGHT TO INSPECT

Business Partners agree that representatives of ZALORA, its subsidiaries or an organisation nominated by ZALORA or its subsidiaries agent can inspect their or their sub-contractors’ production facilities to implement and monitor standards specified in this Code of Conduct. Such inspections may take place on a surprise, unannounced basis whereby the inspectors are granted immediate access to the facilities and related records.