Salient Human-Rights Issues

Identifying salient human-rights risks through risk assessments, collaboration with key stakeholders, and the results from our audit program, help identify the most critical to labor and human rights issues within NXP and our supply chain.

  • Forced and Bonded Labor

    NXP and our business partners must not be involved in any form of human-rights abuses. Through our assessments, the salient issues we identified in regards to forced and bonded labor are Fees, Retention of Documents and Fair Treatment of Vulnerable Workers During a Pandemic.

  • Working Hours and Rest Days

    • Clear policy to manage and limit working hours to no more than 60 hours per week or the legal limit, whichever is stricter, and all overtime work is voluntary
    • Record systems and mechanisms in place to identify and administer the policy
    • Regular work-week cannot exceed 48 hours and the daily scheduled work cannot exceed 12 hours a day
  • Young Workers

    • The term "child" refers to any person under the age of 15 or under the minimum age for employment in the country, whichever is greater
    • Comprehensive policy for child labor that clearly states the minimum age for workers
    • Comprehensive policy in place to prohibit young workers under the age of 18 from performing work that may jeopardize their health or safety, including night-shift and overtime work
  • Accurate Contracts

    • Worker contracts may not violate relevant laws or place a worker at risk
    • Prior to departure or hiring, workers are provided with an accurate written employment contract with details of working conditions including nature of work, wages, benefits and duration of the contract
    • Contract written in a language that worker understands prior to employment. If amendments are made prior to employment, contract must provide equal or better terms of employment
  • Fair Wages

    • Workers cannot receive less than the legal minimum wage for all regular hours worked. If legally minimum wage is not set, then industry prevailing wage will be the standard
    • Overtime rates are to be applied to the base wage as required by law or employment contract, whichever is higher. (Where the law is silent, the premium must be at least an additional 50% per hour of the base wage for piece-rate and hourly work, or an additional 50% per hour of the average earnings)

Assessment of Salient Human-Rights Issues

2021 NXP Results 2021 Supply Chain Results
Forced and Bonded Labor
No Fees Team members did not pay fees. Out of 9 suppliers audited in 2021, 4 were found to have charged hiring fees. All but one supplier refunded these fees. Dialogue to close the one remaining nonconformance is ongoing.
Retention of Documents Personal documents are retained by team members. One supplier has yet to return personal documents to workers and dialogue is ongoing to have this resolved.
Fair Treatment of Vulnerable Workers During a Pandemic NXP hired 16 migrant workers from Nepal at our site in Malaysia. These workers were recruited from an employer whose factory was closed due to the pandemic. The workers paid recruitment-related fees to the original employer. After attempts to contact the former employer to repay the fees failed, NXP reimbursed the workers directly. The resumption of more supplier audits enabled NXP to interview workers to understand their well-being during the pandemic. While no serious issues were reported, workers have been provided with the NXP anonymous phone line to report any concerns or impact to their rights.
Working Hours and Rest Days At one site, the 60-hour working limit was exceeded for approximately 180 team members, or 6% of the site's direct-labor workforce for a period of 14 weeks. This was due to the labor shortage, challenges in hiring foreign-migrant workers, and border closures. 83% of suppliers audited did not monitor working hours and rest days. One supplier has not closed this nonconformance.
Young Workers No child labor. All young workers are in accordance with relevant laws and regulations. Child labor nonconformance was not found. All young workers are in accordance with relevant laws and regulations.
Accurate Contracts Accurate contracts in native language issued to all team members. 50% of suppliers audited had inaccurate contracts. All suppliers have closed this nonconformance.
Fair Wages No discrepancies in wages or benefits. 83% of suppliers audited had discrepancies in wages and benefits. All suppliers have closed this nonconformance.

Due Diligence

To prevent and mitigate adverse human-rights impacts, we use input from internal and external sources to prevent human-rights abuses from occurring. For each element of the due diligence process, we take steps to gather information from many sources and then use strategies, processes and tools to address and analyze the input.

Each of the four elements of the UN Guiding Principles on Business and Human Rights incorporate inputs into our strategy, processes, and tools to the desired outputs. Human-Rights Due Diligence Process