A4. Wages and Benefits

Code 8.0

Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits. All workers shall receive equal pay for equal work and qualification. Workers shall be compensated for overtime at pay rates greater than regular hourly rates. Deductions from wages as a disciplinary measure shall not be permitted. For each pay period, workers shall be provided with a timely and understandable wage statement that includes sufficient information to verify accurate compensation for work performed. All use of temporary, dispatch and outsourced labor shall be within the limits of the local law.

Elements to Demonstrate Compliance to RBA Code

1. Policy

Have a detailed, comprehensive documented wage and benefits policy with elements including:

• a. "Pay equals time worked" applies for any company-required activity (e.g., work, training)
• b. "Equal pay for equal work and qualification" applies to prohibit discrimination.
• c. All workers shall be paid no less than the greater of agreed and legal wage for all hours.
• d. Overtime and other compensation and benefits are paid and are on top of the agreed wage for regular hours at a rate which is the stricter of local law or 125% of the standard rate.
• e. Prohibit unauthorized deductions, including for disciplinary measures, company assets, tools, PPE, or any other item.
• f. The wage payment schedule is regular and documented.
• g. Full payment made to leavers (resigned workers) in compliance with the law and not later than one month after the final day on the job.

2. Procedures & Practices

Procedures & Practices are in place such that:

• a. The facility has a system to pay workers for both regular work hours and overtime in accordance with applicable law. Workers are compensated at the minimum wage or greater for regular work hours, and at a premium rate for work over the number of hours in a standard work week (overtime and holidays) which is the stricter of local law or 125% of standard rate.
• b. If there is a period where wages can be below minimum wage as per law it should be limited and reasonable in duration or not longer than 6 months, whichever is stricter.
• c. Correctly calculate wages, benefits, and overtime and maintain detailed accurate pay records.
• d. Provide all legally mandated benefits to workers, including contract elements.
• e. Pay all mandated withholdings to the appropriate government agency (taxes, social insurance, etc.)
• f. Records are maintained to verify these payments for both regular and contract workers.

NOTE: Neither the workers nor the supplier is allowed to "waive" any required mandatory deductions/contributions such as social insurance

• g. Pay (including overtime, others) should be timely per published schedule.
• h. Ensure proper wage rate for learners as follows:
  • i. Intern: at least the minimum wage, unless their performance is significantly below expectation for that wage cycle,
  • ii. Apprentice: at least the minimum wage unless the local law specifically defines a lower wage for this type of worker. Agreed apprentice wage increase when meeting new skills requirements. Workers after a successful apprenticeship have clearly recorded promotion and wage adjustment.
  • iii. No financial/scholastic penalty (note scholastic penalty is allowed only if directly related to underperformance on educational component of program) (student worker and intern).
• i. Medical (including maternity) or sick leave absences do not incur a financial penalty if within the more generous of the law, employment contract/agreement or company policy at the time.
• j. Workers are not to be kept on trainee wages beyond legally specified durations.
• k. Workers are paid directly without any intermediary (except bank) with no unauthorized or prohibited deductions (including for disciplinary measures, PPE, educational fees for learners), in a timely manner.
• l. Workers are provided with pay slips/receipts which clearly list the
  • i. Hours worked in separate categories: regular, overtime, holiday, rest day, and others.
  • ii. Wage rates and wages by category: regular and overtime/holiday/rest/other rate.
  • iii. Legally required withholdings: taxes, deductions and any other previously agreed upon deductions or contributions (e.g., housing, food, social insurance, etc.).
  • iv. Show employer contributions.
  • v. Pay should be shown in a manner which allows workers to "check" that their pay is accurate.
• m. Company, labor agents, and any other 3rd party do not have access to workers' bank or financial accounts even if the workers would allow it.
• n. Withholdings for taxes and other government programs made promptly to the applicable agency.

NOTE: In cases where a worker is permanently transferred to a different state, region, country employment site, the minimum wage and other benefits and entitlements shall be paid according to the legal provisions and standards where workers are now deployed. That is regardless of whether the facility or a third-party service provider, labor agent, vocational school or sub-contractor is their employer. Longer term but not permanent stays/visits must conform to local law in terms of right to work and workers need to be provided with sufficient wages and benefits to maintain a comparable or better standard of living than they have in their permanent place of employment.

3. Controls & Monitoring

Controls & Monitoring should include:

• a. Ensure wage rates are equal or higher to local law, agreement.
• b. Workers (both regular and contract) are provided with information and training at the time of hire to fully comprehend how wages are calculated and what to expect when they receive payment.
• c. You must monitor pay for any workers of on-site supplier, subcontractor, agent to ensure accurate and timely payment, contributions and deductions are occurring.
• d. Workers are made aware of the process to raise a concern over pay. These concerns are reviewed promptly, and workers are provided additional payment / changes to rates when issues.

4. Records

Records are maintained including:

• a. Wages, benefits, and overtime are correctly calculated, and accurate pay records are maintained.
• b. Records of employee concerns, result of self-assessment and adjustments to pay or rates.

Note: the RBA does not accept any agreement with workers that allows for anything except compliance to local law including social insurance.

5. Serious conditions that will result in a severe finding

• Delaying payments to workers for more than 1 month beyond the regular payment cycle.
• If workers' wages are deducted for payment of the government or regulatory deductions, such payment have not been made or auditee's payment is least 3 months overdue.

1.0.0 (2024-01-01)

Initial release.