Version 1. 1 Guidebook to RBIS Suppliers Avery Dennison Supplier Standards Version 1 - October 2. Table of Contents Introduction.. Laws, Regulations and Industry Standards.. Employment Standards 1. Hours of Labor....
Forced Labor... 1. Child Labor.... 1. Discrimination/Human Rights... Freedom of Association.... Disciplinary Process. Environmental, Health and Safety..
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Confidentiality.. Conflict of Interest, Bribes and Kickbacks... Right to Access.. Appendix A. Avery Dennison Supplier Standards.. B. Definitions.....
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C. Shared Facilities 3. D. Subcontracting.
Page 2 of 3. 73 Introduction Avery Dennison is committed to conducting its business in accordance with a high standard of business ethics, a regard for human rights, and in compliance with all applicable laws governing issues such as child labor, wages, benefits, working hours, harassment and health and safety. We expect our suppliers to share our high standards of conduct, as outlined in Avery Dennison Supplier Standards.
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Avery Dennison Supplier Standards include minimum requirements and expectations that all suppliers and sub- contractors (collectively Suppliers ) must comply with as a condition of doing business with Avery. Please note that it does not replace the local laws of each country where Suppliers operate. At a minimum, Suppliers should always be familiar with and comply with all relevant laws and regulations. Avery Dennison Standards should be followed where there is no law or where Avery Dennison Standards is stricter. How to use this Guidebook The purpose of the Guidebook is to provide additional guidance and clarification to suppliers on Avery Dennison Standards. We expect suppliers to use it as a reference tool to help identify what workplace practices and working conditions are acceptable when doing business with our company.
Avery Dennison is committed to working with suppliers by providing continuous education and support. In turn, it is our expectation that suppliers are honest and transparent in their dealings with us and committed to making continuous improvements. Page 3 of 3. 74 Guide to Avery Dennison RBIS Standards I. Laws, Regulations and Industry Standards Suppliers and sub- contractors must comply with all applicable local laws and regulations.
In situations where there is a conflict between local laws and regulations and the standards described in the Avery Dennison Supplier Standards, suppliers will be required to meet the higher standards. KEY REQUIREMENTS: Comply with local laws and regulations of the country of manufacture. Operate in compliance with the law and the requirements of Avery Dennison RBIS s requirements.
Avery Dennison Standards should be followed where there is no law or where Avery Dennison Standards are stricter. Track legal and regulatory changes made to the local labor laws (e. Keep business licenses and other documents required by law in order and up- to- date. All employees are provided a copy of their signed employment agreement (written in their native language) that describes the nature of their worker arrangement, terms and duration of their employment contract, starting wages and overtime wages, work hours and holidays, benefits and deductions, resignation and termination conditions. Home- based workers are not allowed. INDICATORS OF NONCOMPLIANCE: Violations of the law or requirements of Avery Dennison s Supplier Standards.
Unfamiliarity with legal requirements or Avery Dennison RBIS requirements. Workers are not trained and unaware of their legal rights. Lack of internal controls to monitor the labor law and internal audit to ensure compliance with the law. BEST PRACTICES: Keep written procedures in place, with a designated responsible management representative, to ensure Supplier is aware of and understands changes that are made to the local labor laws. Changes are communicated to all relevant personnel, and necessary adjustments are made by the Supplier in a timely manner to ensure compliance with the law. Maintain copies or summaries of all applicable laws. Periodically review Supplier work rules and employment handbook to ensure it is aligned with the current law at a minimum.
Supplier does not have exemptions from legal requirements, e. Page 4 of 3. 75 Supplier periodically monitors its compliance with the law and Avery Dennison Standards RBIS s requirements. Questions and Answers A supplier manager claims he was unaware of the legal provision requiring payment of a premium for all hours worked in excess of the legally prescribed workweek. No, all factories should, at a minimum, understand and comply with all applicable legal requirements. Employment Standards 1.
Compensation Suppliers and sub- contractors shall compensate all employees in compliance with all applicable local laws pertaining to wages, including overtime and benefits. Suppliers and sub- contractors may not make deductions from pay for disciplinary infractions. KEY REQUIREMENTS: Legal minimum wage is guaranteed to all employees, including trainees, temporary workers and employees paid on piece rate.
If a worker is paid by piece instead of hour, the worker must receive a wage equal to or above minimum wage. In addition to wages for the standard workweek, all workers must be compensated for overtime hours at the legal or contracted mandated premium rates (if applicable). Employees must be paid on time, in accordance with the law, and in the form of the local currency. Employees must be provided all employee legally required benefits, including vacation, insurance, and retirement benefits, etc. Employees must be informed of wages, withholdings and other legal deductions prior to commencement of employment via a labor contract (if required by law) or other means (e.
Employees are provided pay slips that include their personal information (name, address, etc.) and a detailed explanation of payment, including regular and overtime hours, regular and overtime wage rates or piece rates earned per day, bonuses, allowances and a description of all deductions. Pay slips should be written in employees native language and provided in accordance with the local law. This same information should also be available for subcontractors who work on- site. Legal deductions for housing, food, transportation, etc. Also deductions should not effectively lower an employee s pay below the legal minimum wage. Fines that are not permitted by law, such as disciplinary fines, are prohibited. Employees must not be fined for production mistakes, for failure to meet production targets, or as a form of discipline, Legally required withholdings are withheld correctly and paid to the proper agency(ies).
Employees who leave the factory or are dismissed must receive termination pay- outs and outstanding wages as required by law. Supplier must keep complete and accurate working hour and payroll records for all workers (showing base pay, overtime pay by type, and all deductions). Payroll and working hour records are maintained on site for at least one year. Supplier has a written policy on wage and compensation awards based on legal requirements. Page 6 of 3. 77 INDICATORS OF NONCOMPLIANCE: Incomplete pay records Inconsistencies between pay records and other factory records. Late payment or miscalculation of wages. Not paying legally required wages including, where required, holiday pay.
Compensation not paid directly to employees. Employees are not provided legally required benefits.
Illegal or unfair deductions, including deductions for disciplinary infractions or protective equipment. Failure to pay worker mandated withholdings to the proper agency. No pay slips provided to employees or, if provided, are inadequate.
Supplier pays market wages which are less than legally required wages. BEST PRACTICES: Employees understand their benefits, including paid leave, and how their wages are calculated. Supplier posts a simple written description of how pay is calculated. Supplier has time clocks or other automated methods for tracking working time and calculating pay. Supplier has an established pay schedule that is strictly adhered to. Provide items such as uniforms, equipment or special protective gear free of charge. Questions and Answers What is the definition of legal minimum wage?
The legal minimum wage is the standard that all employees wages, including those who are in probationary, training or internship periods, should meet or exceed during normal working hours or regular working hours as agreed to in labor contracts, if applicable. Is it acceptable if a Supplier offers boarding and lodging allowances to its workers, and they calculate both items as part of the minimum wage? This is not acceptable. Payment for services, such as food and dormitory, should not result in the net wages being below the minimum wage. Moreover, the following items cannot be counted as part of minimum wage: overtime wage and the allowance associated with mid and night shifts. Hours of Labor Except in extraordinary business circumstances, Suppliers and sub- contractors shall limit the number of hours worked in any seven (7) day work week to no more than sixty (6.
Where local standards differ, the requirements that provide for fewer hours per work week shall apply. KEY REQUIREMENTS: Complies with legal requirements and limitations on regular and overtime hours.
Where the law permits working hours beyond 6. Avery Dennison RBIS requests that factories work no more than 6. Avery Dennison RBIS recognizes that excessive overtime is a challenge based on various supplier requirements.
Our goal is to work with Suppliers who are committed to a continuous improvement plan with a target of legal compliance or Avery Dennison Standards, whichever is stricter. Ensure all overtime is strictly voluntary. Employees are educated on the standard workweek and the Supplier seeks their willingness to work overtime. Employees must know they have the right to refuse overtime without incurring fines, penalties or retributions.