Version 6.

1
 Sedex Audit Reference:
Sedex Audit Reference:
DRAFT - SMETA
SMETA Corrective
Corrective Action
Action Plan Plan
Report Report
(CAPR) (CAPR)
Version 6.1
ZAA600072919 Version 6.1

Audit Content:
(1) A SMETA audit was conducted which included some or all of Labour Standards, Health &
Safety, Environment and Business Ethics. The SMETA Best Practice Version 6.1 (March 2019)
was applied. The scope of workers included all types at the site e.g. direct employees,
agency workers, workers employed by service providers and workers provided by other
contractors. Any deviations from the SMETA Methodology are stated (with reasons for
deviation) in the SMETA Declaration.

(2) The audit scope was against the following reference documents
2-Pillar SMETA Audit
• ETI Base Code
• SMETA Additions
• Universal rights covering UNGP
• Management systems and code implementation,
• Responsible Recruitment
• Entitlement to Work & Immigration,
• Sub-Contracting and Home working,
4-Pillar SMETA
• 2-Pillar requirements plus
• Additional Pillar assessment of Environment
• Additional Pillar assessment of Business Ethics
• The Customer’s Supplier Code (Appendix 1)

(3) Where appropriate non-compliances were raised against the ETI code / SMETA Additions
& local law and recorded as non-compliances on both the audit report, CAPR and on
Sedex.

(4) Any Non-Compliance against customer code shall not be uploaded to Sedex. However,
in the CAPR these ‘Variances in compliance between ETI code / SMETA Additions/ local
law and customer code’ shall be noted in the observations section of the CAPR.

Audit company: Report reference: Start Date: End Date:

Audit company:
Intertek Philippines
Report reference:
ZAA600072919
Date:
2024-10-11 2024-10-11
23
 Sedex Audit Reference:
Sedex Audit Reference:
DRAFT - SMETA
SMETA Corrective
Corrective Action
Action Plan Plan
Report Report
(CAPR) (CAPR)
Version 6.1
ZAA600072919 Version 6.1

Guidance
The Corrective Action Plan Report summarises the site audit findings and a corrective, and preventative
action plan that both the auditor and the site manager believe is reasonable to ensure conformity with the
ETI Base Code, Local Laws and additional audited requirements. After the initial audit, the form is used to re-
record actions taken and to categorise the status of the non-compliances.

N.B. observations and good practice examples should be pointed out at the closing meeting as well as
discussing non-compliances and corrective actions.

To ensure that good practice examples are highlighted to the supplier and to give a more ‘balanced’ audit
a section to record these has been provided on the CAPR document (see following pages) which will
remain with the supplier. They will be further confirmed on receipt of the audit report.
Root cause (see column 4)
Root cause refers to the specific procedure or lack of procedure which caused the issue to arise. Before a
corrective action can sustainably rectify the situation, it is important to find out the real cause of the non-
compliance and whether a system change is necessary to ensure the issue will not arise again in the future.
See SMETA BPG Chapter 7 ‘Audit Execution’ for more explanation of “root cause’’.
Next Steps:
1. The site shall request, via Sedex, that the audit body upload the audit report, non-compliances,
observations and good examples. If you have not already received instructions on how to do this
then please visit the web site www.sedexglobal.com.
2. Sites shall action its non-compliances and document its progress via Sedex.
3. Once the site has effectively progressed through its actions then it shall request via Sedex that the
audit body verify its actions. Please visit www.sedexglobal.com web site for information on how to
do this.
4. The audit body shall verify corrective actions taken by the site by either a "Desk-Top” review process
via Sedex or by Follow-up Audit (see point 5).
5. Some non-compliances that cannot be closed off by “Desk-Top” review may need to be closed off
via a “1 Day Follow Up Audit” charged at normal fee rates. If this is the case, then the site will be
notified after its submission of documentary evidence relating to that non-compliance. Any follow-
up audit must take place within twelve months of the initial audit and the information from the initial
audit must be available for sign off of corrective action.
6. For changes to wages and hours to be correctly verified it will normally require a follow up site visit.
Auditors will generally require to see a minimum of two months wages and hours records, showing
new rates in order to confirm changes (note some clients may ask for a longer period, if in doubt
please check with the client).

Audit company: Report reference: Start Date: End Date:

Auditcompany:
Audit company: Report Report
Audit company Report reference:
Intertek Philippines
reference: Date:
reference Date: DD/MM/YY
ZAA600072919 2024-10-11 2024-10-11
37
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Audit Details
Sedex Company ZC1023281 Sedex Site Reference: ZS1020917
Reference: (only available on Sedex System)
(only available on Sedex System)

Business name Interpack Packaging Product Corporation

(Company name):
Site name: Interpack Packaging Product Corporation
Site address: 50 Maysan Road, Maysan Country: PH
50 Maysan Road, Maysan
Valenzuela
1440
PH
Site contact and job title:
Site phone: 09985723004 Site e-mail: ruth.venegas@interpack.
com.ph
SMETA Audit Pillars: Labour Health and Environment Business
Standards Safety (plus 4-pillar Ethics
Environment
2-Pillar)
Date of Audit: 2024-10-11

Audit Company Name:

Intertek Philippines

Audit Conducted By
Affiliate Audit Purchaser Retailer
Company
Brand owner NGO Trade Union

Multi- Combined Audit (select all that apply)

stakeholder

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
4
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Audit Parameters
Time in and time out Day 1
In 09:00
Out 17:00
Audit type: FULL_INITIAL
Was the audit announced? ANNOUNCED
Was the Sedex SAQ available for review? Yes
Any conflicting information SAQ/Pre-Audit Info to No
Audit findings?

Who signed and agreed CAPR

Is further information available No

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
5
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Audit attendance Management Worker Representatives

Senior management Worker Committee Union representatives
representatives
A: Present at the Yes No Yes
opening meeting?
B: Present at the audit? Yes No Yes
C: Present at the closing Yes No Yes
meeting?
Reason for absence at the No workers representative on site.
opening meeting
Reason for absence during the No workers representative on site.
audit
Reason for absence at the No workers representative on site.
closing meeting

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
6
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Summary of Findings
Issue Area of Number of issues Findings
Non–Conformity
(please click on the issue title to go direct to the Local
appropriate audit results by clause) ETI NC Obs GE
Law
NC - 8a8231a6-90a6-4fba-
971e-dcce5fd4959c
3.1 §1
3 - Working conditions are safe and NC - 4e485361-15f1-4bc5-
3.1 §2 3 0 0
hygienic 3.1 §3 8b95-87586bf952f8
NC - 951c2d92-8990-4e52-
bdf6-9df2e7d0fd45
NC - dc65f879-40d1-440f-
1 - Freely chosen employment 1.1 §4 1 0 0 a091-6b649d38e9a0
NC - dba714c0-0ab4-4cf3-
5.1 b945-176c8d01de1e
5 - Living wages are paid 5.1 2 0 0 NC - 2718ba77-18ec-4c90-
a024-e9beb9208a0a
NC - 6a16faeb-1959-437e-
813a-3c353a3f1697
6.1 NC - 50d11582-eb4d-471d-
6.1 §5 99ba-b7819795ca30
6 - Working hours are not excessive 6.3 §6 4 0 0 NC - dc0f5b36-2a23-4d30-
6.6 ad43-a3a2a29e3a56
NC - 1fc25d0d-5a31-4b1f-
be6b-463e8894429f

Local Law Issues

Issue Description
§1 IRR of Fire Code of the Philippines SECTION 10.2.5.13 EMERGENCY
EVACUATION PLAN . This shall be drawn with a photo-luminescent background
to be readable in case of power failure.
§2 Department Order 198 Implementing Rules and Regulations of RA 11058,
Section 15. Occupational Health Personnel and Facilities. Covered workplaces
shall have qualified occupational health personnel such as certified first aiders,
nurses, dentists, and physicians, duly complemented with the required medical
supplies, equipment and facilities. The number of health personnel which may
be classified as full time (FT) or part-time (PT), equipment and facilities and the
amount of supplies shall be proportionate to the total number of workers and
the risk or hazard involved in the workplace, the ideal ratio of which shall be as
follows: (under medium risk facility) 100-199 shall have 2 first aiders, 200-500
shall have 3-5 first aiders, 501-200 shall have 6-20 first aiders.
§3 Department of Labor and Employment Occupational Safety and Health
Standards Rule 1222.02 No elevator, (passenger or freight) shall be installed
and/or operated in any place of employment in the Philippines without a
written permit issued for the purpose by the Regional Labor Office or
authorized representative having jurisdiction.

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
7
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

§4 Department of Labor and Employment Occupational Safety and Health

Standards Rule 1967 Physical Examination: (1) All workers, irrespective of age
and sex, shall undergo physical examination:
a. before entering employment for the first time; b. periodically, or at such
intervals as may be necessary on account of the conditions or risks involved in
the work; c. when transferred or separated from employment; and d. when
injured or ill. (2) All examinations shall: a. be complete and thorough; b. be
rendered free of charge to the workers; and c. include X-ray or special
laboratory examinations when necessary due to the peculiar nature of the
employment. (3) The results of these physical examinations shall be recorded
carefully and legibly on appropriate forms by the health service personnel
charged with such responsibility. (4) Records of physical examinations and all
information obtained by the health personnel shall be considered strictly
confidential.
§5 Labor Code of the Philippines Art. 91. Right to weekly rest day.
a. It shall be the duty of every employer, whether operating for profit or not, to
provide each of his employees a rest period of not less than twenty-four (24)
consecutive hours after every six (6) consecutive normal work days.

b. The employer shall determine and schedule the weekly rest day of his
employees subject to collective bargaining agreement and to such rules and
regulations as the Secretary of Labor and Employment may provide. However,
the employer shall respect the preference of employees as to their weekly rest
day when such preference is based on religious grounds.
§6 Labor Code of the Philippines Book 3 Rule 1 SECTION 9. Premium and overtime
pay for holiday and rest day work. — (a) Except employees referred to under
Section 2 of this Rule, an employee who is permitted or suffered to work on
special holidays or on his designated rest days not falling on regular holidays,
shall be paid with an additional compensation as premium pay of not less than
thirty percent (30%) of his regular wage. For work performed in excess of eight
(8) hours on special holidays and rest days not falling on regular holidays, an
employee shall be paid an additional compensation for the overtime work
equivalent to his rate for the first eight hours on a special holiday or rest day
plus at least thirty percent (30%) thereof.

Philippine Labor Code Book III Title I Chapter III Article 94, every worker shall
be paid his regular daily wage during regular holidays except in retail and
service establishments regularly employing less than ten (10) workers.

The employer may require an employee to work on any holiday but such
employee shall be paid compensation equivalent to twice his regular rate.

Pursuant to the provisions of the Labor Code, as amended in relation to the

observance of declared holidays and in response to the queries received every
time a Presidential Proclamation or a law is enacted by Congress which
declares certain days either as a regular holiday, a special day or a special
working holiday, the following guidelines shall be observed by all employers in
the private sector:
Every employee covered by the holiday pay rule is entitled to his daily basic
wage for any unworked regular holiday. This means that the employee is
entitled to at least 100% of his basic wage even if he did not report for work,
provided he is present or is on leave of absence with pay on the work day
immediately preceding the holiday.

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
8
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Corrective Action Plan - Non Compliances

Non-Compliance Evidence

[Back to findings summary]

Non-Compliance
Status OPEN
Reference 8a8231a6-90a6-4fba-971e-dcce5fd4959c
Clause 3 - Working conditions are safe and hygienic
Issue Title 215 - Evacuation plan not adequately communicated
to workers
Subcategory Fire Safety - Fire alarms & Evacuation
New or carried New Carried Over
over?
Root cause Training System
Costs Lack of workers
Other
Root cause -
Other
Local law issue IRR of Fire Code of the Philippines SECTION 10.2.5.13
EMERGENCY EVACUATION PLAN . This shall be
drawn with a photo-luminescent background to be
readable in case of power failure.
ETI code 3.1 - A safe and hygienic working environment shall
be provided, bearing in mind the prevailing
knowledge of the industry and of any specific
hazards. Adequate steps shall be taken to prevent
accidents and injury to health arising out of,
associated with, or occurring in the course of work,
by minimising, so far as is reasonably practicable,
the causes of hazards inherent in the working
environment.
Explanation to All installed Evacuation plans are not photoluminous
the non as required.
compliance
Follow up Follow up audit Desktop audit
method
Timescale Immediate 30 days 60 days
90 days 120 days 180 days
365 days Other
Actions Facility management to ensure evacuation plans are
photo luminuous as required

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
9
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
10
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Non-Compliance Evidence

[Back to findings summary]

Non-Compliance
Status OPEN
Reference 4e485361-15f1-4bc5-8b95-87586bf952f8
Clause 3 - Working conditions are safe and hygienic
Issue Title 290 - No first aiders in place
Subcategory First Aid / Accidents
New or carried New Carried Over
over?
Root cause Training System
Costs Lack of workers
Other
Root cause -
Other
Local law issue Department Order 198 Implementing Rules and
Regulations of RA 11058, Section 15. Occupational
Health Personnel and Facilities. Covered workplaces
shall have qualified occupational health personnel
such as certified first aiders, nurses, dentists, and
physicians, duly complemented with the required
medical supplies, equipment and facilities. The
number of health personnel which may be classified
as full time (FT) or part-time (PT), equipment and
facilities and the amount of supplies shall be
proportionate to the total number of workers and
the risk or hazard involved in the workplace, the
ideal ratio of which shall be as follows: (under
medium risk facility) 100-199 shall have 2 first aiders,
200-500 shall have 3-5 first aiders, 501-200 shall have
6-20 first aiders.
ETI code 3.1 - A safe and hygienic working environment shall
be provided, bearing in mind the prevailing
knowledge of the industry and of any specific
hazards. Adequate steps shall be taken to prevent
accidents and injury to health arising out of,
associated with, or occurring in the course of work,
by minimising, so far as is reasonably practicable,
the causes of hazards inherent in the working
environment.
Explanation to It was noted that the utilized agency (Kengy
the non Manpower and General Services Co. and Symanpro
compliance Manpower Service Contractor Corporation ) has no
deployed First aider and Safety officer onsite.
Follow up Follow up audit Desktop audit
method
Timescale Immediate 30 days 60 days
90 days 120 days 180 days

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
11
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

365 days Other

Actions Facility to enusre that utlized agency has trained first
aiders onsite.

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
12
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Non-Compliance Evidence

[Back to findings summary]

Non-Compliance
Status OPEN
Reference 951c2d92-8990-4e52-bdf6-9df2e7d0fd45
Clause 3 - Working conditions are safe and hygienic
Issue Title 267 - No / inadequate certificates for inspections of
machinery, or machines not registered as required
by law
Subcategory Machinery
New or carried New Carried Over
over?
Root cause Training System
Costs Lack of workers
Other
Root cause -
Other
Local law issue Department of Labor and Employment Occupational
Safety and Health Standards Rule 1222.02 No
elevator, (passenger or freight) shall be installed
and/or operated in any place of employment in the
Philippines without a written permit issued for the
purpose by the Regional Labor Office or authorized
representative having jurisdiction.
ETI code 3.1 - A safe and hygienic working environment shall
be provided, bearing in mind the prevailing
knowledge of the industry and of any specific
hazards. Adequate steps shall be taken to prevent
accidents and injury to health arising out of,
associated with, or occurring in the course of work,
by minimising, so far as is reasonably practicable,
the causes of hazards inherent in the working
environment.
Explanation to The facility does not have Permit To Operate for 4
the non units of Pressure Vessel, 1 unit of Dumbwaiter
compliance (elevator), 4 units of Mechanical Hoist, 4 units of
Power Piping Line as well as Certificate of Electrical
Wiring Installation.
Follow up Follow up audit Desktop audit
method
Timescale Immediate 30 days 60 days
90 days 120 days 180 days
365 days Other
Actions Facility to enusre a valid permit and licenses is
available for the special machines use onsite.

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
13
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
14
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Non-Compliance Evidence

[Back to findings summary]

Non-Compliance
Status OPEN
Reference dc65f879-40d1-440f-a091-6b649d38e9a0
Clause 1 - Freely chosen employment
Issue Title 80 - Workers incur fees, legal or otherwise, during
the recruitment process
Subcategory Recruitment/termination
New or carried New Carried Over
over?
Root cause Training System
Costs Lack of workers
Other
Root cause -
Other
Local law issue Department of Labor and Employment Occupational
Safety and Health Standards Rule 1967 Physical
Examination: (1) All workers, irrespective of age and
sex, shall undergo physical examination:
a. before entering employment for the first time; b.
periodically, or at such intervals as may be necessary
on account of the conditions or risks involved in the
work; c. when transferred or separated from
employment; and d. when injured or ill. (2) All
examinations shall: a. be complete and thorough; b.
be rendered free of charge to the workers; and c.
include X-ray or special laboratory examinations
when necessary due to the peculiar nature of the
employment. (3) The results of these physical
examinations shall be recorded carefully and legibly
on appropriate forms by the health service
personnel charged with such responsibility. (4)
Records of physical examinations and all information
obtained by the health personnel shall be
considered strictly confidential.
ETI code 1.1 - There is no forced, bonded or involuntary
prison labour.
Explanation to Pre-employment medical examination is being
the non shouldered by workers including agency.
compliance
Follow up Follow up audit Desktop audit
method
Timescale Immediate 30 days 60 days
90 days 120 days 180 days
365 days Other
Actions Facility to ensure that pre-employment exam is free
of charge as required.

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
15
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Non-Compliance Evidence

[Back to findings summary]

Non-Compliance
Status OPEN
Reference dba714c0-0ab4-4cf3-b945-176c8d01de1e
Clause 5 - Living wages are paid
Issue Title 406 - Unable to verify wages due to missing/
incomplete/ inconsistent records
Subcategory Record keeping and documentation
New or carried New Carried Over
over?
Root cause Training System
Costs Lack of workers
Other
Root cause -
Other
ETI code 5.1 - Wages and benefits paid for a standard working
week meet, at a minimum, national legal standards
or industry benchmark standards, whichever is
higher. In any event wages should always be enough
to meet basic needs and to provide some
discretionary income.
Explanation to Reviewed time and payroll records for service
the non provider in core operation SYMANPRO could not be
compliance fully verified. Time records presented for Worker A is
5 days work; 40 hours; wherein payroll records is 6
days and 48 hours a week. Workers B is 5 days work;
40 hours; wherein payroll records is 48 hours days a
week.

Interviewed workers states no concerns on non

payment of wages versus rendered working hours.
Follow up Follow up audit Desktop audit
method
Timescale Immediate 30 days 60 days
90 days 120 days 180 days
365 days Other
Actions Facility to ensure document records are available for
review.

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
16
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Non-Compliance Evidence

[Back to findings summary]

Non-Compliance
Status OPEN
Reference 6a16faeb-1959-437e-813a-3c353a3f1697
Clause 6 - Working hours are not excessive
Issue Title 471 - Total working hours exceed 72 hours per week
on a regular basis and over an extended period (but
are within the parameters of local law or collective
bargaining agreement)
Subcategory Excessive hours
New or carried New Carried Over
over?
Root cause Training System
Costs Lack of workers
Other
Root cause -
Other
ETI code 6.1 - Working hours must comply with national laws,
collective agreements, and the provisions of 6.2 to
6.6 below, whichever affords the greater protection
for workers. Sub–clauses 6.2 to 6.6 are based on
international labour standards.
Explanation to There are workers who worked more than 72 hours
the non per week as below sample:
compliance September 2024 (Current month) - 2 out of 26
samples rendered 84 hours per week
October 2023 (Peak month) - 2 out of 26 samples
rendered 84 hours per week
January 2024 (Non-peak) - 2 out of 26 samples
rendered 84 hours per week
Follow up Follow up audit Desktop audit
method
Timescale Immediate 30 days 60 days
90 days 120 days 180 days
365 days Other
Actions Facility to ensure that workers do not render more
than 72 hours a week

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
17
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Non-Compliance Evidence

[Back to findings summary]

Non-Compliance
Status OPEN
Reference 50d11582-eb4d-471d-99ba-b7819795ca30
Clause 6 - Working hours are not excessive
Issue Title 485 - Workers do not take off 1 day in 7, and this is
contrary to law or collective bargaining agreement
(CBA) – systemic
Subcategory Rest breaks and rest days
New or carried New Carried Over
over?
Root cause Training System
Costs Lack of workers
Other
Root cause -
Other
Local law issue Labor Code of the Philippines Art. 91. Right to weekly
rest day.
a. It shall be the duty of every employer, whether
operating for profit or not, to provide each of his
employees a rest period of not less than twenty-four
(24) consecutive hours after every six (6) consecutive
normal work days.

b. The employer shall determine and schedule the

weekly rest day of his employees subject to collective
bargaining agreement and to such rules and
regulations as the Secretary of Labor and
Employment may provide. However, the employer
shall respect the preference of employees as to their
weekly rest day when such preference is based on
religious grounds.
ETI code 6.6 - Workers shall be provided with at least one day
off in every 7-day period or, where allowed by
national law, 2 days off in every 14-day period.
Explanation to There are workers who rendered more than 6
the non consecutive days in week.
compliance September 2024 (Current month) - 2 out of 26
samples rendered 9-14 days consecutive
October 2023 (Peak month) - 2 out of 26 samples
rendered 8-9 days consecutive
January 2024 (Non-peak) - 2 out of 26 samples
rendered 7-8 days consecutive
Follow up Follow up audit Desktop audit
method
Timescale Immediate 30 days 60 days
90 days 120 days 180 days

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
18
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

365 days Other

Actions Facility to ensure that workers are given at least 1
day off every 6 consecutive days.

Non-Compliance Evidence

[Back to findings summary]

Non-Compliance
Status OPEN
Reference dc0f5b36-2a23-4d30-ad43-a3a2a29e3a56
Clause 6 - Working hours are not excessive
Issue Title 474 - Total hours exceed 60 hours per week - ETI
requirements are not met - isolated
Subcategory Excessive hours
New or carried New Carried Over
over?
Root cause Training System
Costs Lack of workers
Other
Root cause -
Other
ETI code 6.1 - Working hours must comply with national laws,
collective agreements, and the provisions of 6.2 to
6.6 below, whichever affords the greater protection
for workers. Sub–clauses 6.2 to 6.6 are based on
international labour standards.
Explanation to There are workers who worked more than 60 hours
the non per week as below sample:
compliance September 2024 (Current month) - 3 out of 26
samples rendered 63 to 72 hours per week
Follow up Follow up audit Desktop audit
method
Timescale Immediate 30 days 60 days
90 days 120 days 180 days
365 days Other
Actions Facility to ensure that workers do not render more
than 60 hours a week.

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
19
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Non-Compliance Evidence

[Back to findings summary]

Non-Compliance
Status OPEN
Reference 1fc25d0d-5a31-4b1f-be6b-463e8894429f
Clause 6 - Working hours are not excessive
Issue Title 457 - Overtime hours are not paid according to
SMETA guidance (at the premium rate of 125% basic
hours), but this is not contrary to law - systemic
Subcategory Overtime Premium
New or carried New Carried Over
over?
Root cause Training System
Costs Lack of workers
Other
Root cause -
Other
Local law issue Labor Code of the Philippines Book 3 Rule 1 SECTION
9. Premium and overtime pay for holiday and rest
day work. — (a) Except employees referred to under
Section 2 of this Rule, an employee who is permitted
or suffered to work on special holidays or on his
designated rest days not falling on regular holidays,
shall be paid with an additional compensation as
premium pay of not less than thirty percent (30%) of
his regular wage. For work performed in excess of
eight (8) hours on special holidays and rest days not
falling on regular holidays, an employee shall be
paid an additional compensation for the overtime
work equivalent to his rate for the first eight hours
on a special holiday or rest day plus at least thirty
percent (30%) thereof.

Philippine Labor Code Book III Title I Chapter III

Article 94, every worker shall be paid his regular
daily wage during regular holidays except in retail
and service establishments regularly employing less
than ten (10) workers.

The employer may require an employee to work on

any holiday but such employee shall be paid
compensation equivalent to twice his regular rate.

Pursuant to the provisions of the Labor Code, as

amended in relation to the observance of declared
holidays and in response to the queries received
every time a Presidential Proclamation or a law is
enacted by Congress which declares certain days
either as a regular holiday, a special day or a special
working holiday, the following guidelines shall be
observed by all employers in the private sector:
Every employee covered by the holiday pay rule is
entitled to his daily basic wage for any unworked

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
20
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

regular holiday. This means that the employee is

entitled to at least 100% of his basic wage even if he
did not report for work, provided he is present or is
on leave of absence with pay on the work day
immediately preceding the holiday.
ETI code 6.3 - All overtime shall be voluntary. Overtime shall
be used responsibly, taking into account all the
following: the extent, frequency and hours worked
by individual workers and the workforce as a whole.
It shall not be used to replace regular employment.
Overtime shall always be compensated at a
premium rate, which is recommended to be not less
than 125% of the regular rate of pay.
Explanation to Reviewed sample time and records of Security Guard
the non under Victor Security Agency confirmed that work
compliance during rest day is paid on regular day 100% and no
rest day premium; 130% for the first 8 hours of work.
Likewise payment of overtime during rest day of
125% is instead of Php130%.
Follow up Follow up audit Desktop audit
method
Timescale Immediate 30 days 60 days
90 days 120 days 180 days
365 days Other
Actions Facility to ensure that workers are being paid align
with the local law for overtime and rest day pay.

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
21
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

Non-Compliance Evidence

[Back to findings summary]

Non-Compliance
Status OPEN
Reference 2718ba77-18ec-4c90-a024-e9beb9208a0a
Clause 5 - Living wages are paid
Issue Title 425 - Failure to retain records of all required social
insurances
Subcategory Benefits & Insurance
New or carried New Carried Over
over?
Root cause Training System
Costs Lack of workers
Other
Root cause -
Other
ETI code 5.1 - Wages and benefits paid for a standard working
week meet, at a minimum, national legal standards
or industry benchmark standards, whichever is
higher. In any event wages should always be enough
to meet basic needs and to provide some
discretionary income.
Explanation to Utilized agencies No records presented of receipt for
the non mandated benefits.
compliance
Symanpro Manpower Service Contractor
Corporation
- No SSS remitance receipt presented

Kengy Manpower and General Services Co.

-No SSS, Philheath and Pag-ibig receipt presented.
Follow up Follow up audit Desktop audit
method
Timescale Immediate 30 days 60 days
90 days 120 days 180 days
365 days Other
Actions Facility to ensure document records are available for
review.

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
22
 Sedex Audit Reference: DRAFT - SMETA Corrective Action Plan Report (CAPR)
ZAA600072919 Version 6.1

SMETA Declaration

I declare that the audit underpinning the following report was conducted in accordance with SMETA Best
Practice Guidance and SMETA Measurement Criteria.

(1) Where appropriate non-compliances were raised against the ETI code / SMETA Additions & local
law and recorded as non-compliances on both the audit report, CAPR and on Sedex.
(2) Any Non-Compliance against customer code alone shall not be uploaded to Sedex. However, in
the CAPR these ‘Variances in compliance between ETI code / SMETA Additions/ local law and
customer code’ shall be noted in the observations section of the CAPR.

Auditor Team
Lead Auditor: Milagros M. Manalac APSCA Number: 21700512
Additional Jimmy Rafal 32200367
Auditors:
Kate Beatriz M. Conti 32200198
Date of null
declaration:

Note: The focus of this ethical audit is on the ETI Base Code and local law. The additional elements will not
be audited in such depth or scope, but the audit process will still highlight any specific issues.

Site Representation
Refusal to sign: Yes No
Date of null
declaration:
Comments:
Any exceptions to this must be recorded here (e.g. different sample size):
Sampled wage records from the past 5 months were provided for review (5 months only since the operation for digital thermometer just
started last Sep 2020).
The audit took 2.0 man-days (9AM-6PM per day). Audit time was extended until 8PM due to the extent of documentation; this was agreed
upon with the factory representatives

null

Audit company: Report reference: Start Date: End Date:

Intertek Philippines ZAA600072919 2024-10-11 2024-10-11
23
 Sedex Audit Reference: • SMETA Corrective Action Plan Report Version 6.1

Guidance on Root Cause

Explanation of the Root Cause Column

If a non-compliance is to be rectified by a corrective action which will also prevent the non-
compliance re-occurring, it is necessary to consider whether a system change is required.

Understanding the root cause of the non-compliance is essential if a site is to prevent the issue re-
occurring.

The root cause refers to the specific activity/ procedure or lack of activity /procedure which
caused the non-compliance to arise. Before a corrective action can rectify the situation, it is
important to find out the real cause of the non-compliance and whether a system change is
necessary to ensure the issue will not arise again in the future.

Since this is a new addition, it is not a mandatory requirement to complete this column at this time.
We hope to encourage auditors and sites to think about Root Causes and where they are able to
agree, this column may be used to describe their discussion.

Some examples of finding a “root cause”

Example 1
Where excessive hours have been noted the real reason for these needs to be understood, whether due to
production planning, bottle necks in the operation, insufficient training of operators, delays in receiving
trims, etc.

Example 2
A non-compliance may be found where workers are not using PPE that has been provided to them. This
could be the result of insufficient training for workers to understand the need for its use; a lack of follow-up
by supervisors aligned to a proper set of factory rules or the fact that workers feel their productivity (and thus
potential earnings) is affected by use of items such as metal gloves.

Example 3
A site uses fines to control unacceptable behaviour of workers.

International standards (and often local laws) may require that workers should not be fined for disciplinary
reasons.

It may be difficult to stop fines immediately as the site rules may have been in place for some time, but to
prevent the non-compliance re- occurring it will be necessary to make a system change.

The symptom is fines, but the root cause is a management system which may break the law. To prevent the
problem re-occurring it will be necessary to make a system change for example the site could consider a
system which rewards for good behaviour

Only by understanding the underlying cause can effective corrective actions be taken to ensure
continuous compliance.

The site is encouraged to complete this section so as to indicate their understanding of the issues raised and
the actions to be taken.

Audit company: Report reference: Start Date: End Date:

Auditcompany:
Audit company: Report Report
Audit company Report reference:
Intertek Philippines
reference: Date:
reference Date: DD/MM/YY
ZAA600072919 2024-10-11 2024-10-11
24
15
 Sedex Audit Reference: • SMETA Corrective Action Plan Report Version 6.1

For more information visit: Sedexglobal.com

Your feedback on your experience of the SMETA audit you have observed is extremely
valuable. It will help to make improvements to future versions.

You can leave feedback by following the appropriate link to our questionnaire:

Click here for Buyer (A) & Buyer/Supplier (A/B) members:

http://www.surveymonkey.com/s.aspx?sm=riPsbE0PQ52ehCo3lnq5Iw_3d_3d

Click here for Supplier (B) members:

http://www.surveymonkey.com/s.aspx?sm=d3vYsCe48fre69DRgIY_2brg_3d_3d

Click here for Auditors:

https://www.surveymonkey.co.uk/r/BRTVCKP

Audit company: Report reference: Start Date: End Date:

Auditcompany:
Audit company: Report Report
Audit company Report reference:
Intertek Philippines
reference: Date:
reference Date: DD/MM/YY
ZAA600072919 2024-10-11 2024-10-11
25
16