Labor and Human Rights

We shall under no circumstance make use of any form of slaved, forced, bonded, indentured or prison labor. All work must be voluntary and there will not be a restriction on movement of workers and their access to basic liberties. Depending on local law requirements, everybody is free to terminate their employment with NXP upon reasonable notice without penalty. We will only employ, directly or through others, such as labor agents, people who are working of their own free will. Workers shall not be required to participate in any form of forced savings or loan program where repayment terms are indicative of debt bondage or forced labor. Paying fees, deposits or debt repayment for their recruitments or employment is prohibited and no one shall be deprived of his or her identity documents.

Fees in the recruitment of workers include:

• Application
• Recruitment
• Hiring
• Placement
• Processing fees of any kind, and at any stage, including agent, subagent, or employer operating, administrative or overhead costs associated with the recruitment, selection, hiring and placement of direct and contract workers
• Travel fees

Our efforts to eradicate modern day slavery, educate our supply chain and students earned us the Thomson Reuters Foundation’s Stop Slavery Award for policy and implementation.

NXP is committed to the United Nations International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families.

We will always adhere to the legal minimum age requirements in all countries in which we operate with commitments to the principles of the United Nations Convention on the Rights of the Child and the UNICEF Children’s Rights and Business Principles. We will never employ children under the age of 16, under the age for completing compulsory education or under the minimum age for employment in the country, whichever is stricter. To make sure all our employees are age-qualified, NXP has a strong age-verification process during the recruitment and selection process. This includes at a minimum, inspection and verification of at least two forms of identification and visual identification. In China, for example, the national issued identification can be cross referenced at a Chinese government website to determine if the identification presented is the real id issued to that person.

If workers between the ages of 16 and 18 are employed, we will ensure that this work does not affect or preclude their educational opportunities or obligations, nor jeopardize their health and safety, including restrictions on overtime and night work.

NXP has yet to discover child labor in our factories or in our supply chain. If an underage worker were found, NXP would immediately implement a remediation program, which includes protecting the young worker from reprisal and provide the completion of the young worker’s compulsory education. Audit findings related to child labor in our supply chains are because there is a lack of policies or procedures on how to manage the situation if child labor is discovered. These findings are placed in a corrective action plan and is monitored diligently until acceptable closure is approved.

Work weeks must not exceed the maximum set by local law and in any event, must not be more than 60 hours, including overtime, except during emergencies or unusual situations. Workers will be entitled to have at least one day off per seven-day period. Overtime work is voluntary, unless agreed upon by a collective labor agreement or union contract, or during emergencies or unusual situations. Worker can refuse to work overtime hours without penalty. Workers will have legally mandated breaks, holidays and vacation days. To manage working hours and rest days, adequate and effective systems, policies and procedures must be established to determine, record, manage and control working hours, including overtime and rest days.

Our remuneration shall be consistent with the provisions of all applicable wage laws, including those relating to minimum wage, overtime hours and legally mandated benefits. In compliance with local laws, workers must be compensated for overtime at pay rates greater than regular hourly rates. Workers must be paid regularly, in full and on time and must receive equal pay for equal work. Deductions from wages as a disciplinary measure or unauthorized deductions are not permitted. Vacation time, leave periods and holidays are consistent with applicable laws and regulations.

Workers must always be aware of the composition of pay and benefits, explaining any legitimate deductions, in a detailed and clear manner, prior to employment. Workers must receive clear statements in detail, in a language understood by workers.

Harsh or inhumane treatment of workers, including any sexual harassment, sexual abuse, corporal punishment, mental or physical coercion or verbal abuse is prohibited. Employees must be able to communicate openly with management regarding working conditions without having fear of reprisal, intimidation or harassment. Disciplinary policies and procedures in support of these requirements must be clearly defined and communicated to workers. There will be no restriction of workers’ access to basic physical comforts such as toilets, bathrooms, drinking water or medical facilities. There must be free exit and entry of facility or dormitories that does not limit access to specific times of the day.

NXP is committed to diversity in its workforce and encourages equality of opportunity and fairness. Therefore, we do not tolerate any kind of harassment or discrimination based on, among other things, race, color, age, gender, sexual orientation, ethnicity, disability, pregnancy, religion, political affiliation, veteran status, union membership, or marital status in hiring or employment practices such as promotions, rewards or access to training.

NXP is committed to providing an attractive working environment for employees and we will recruit, hire and promote employees solely based on suitability for the job.

NXP recognizes and respects the freedom of employees to establish or join an organization of their choice. We will not make employment subject to the condition that a person must not join a union or must terminate membership in a trade union. NXP commits not to tolerate threats, intimidation, physical or legal attacks against human rights defenders, for both our operations and our supply chain.

NXP respects the right for workers to be represented by trade unions or other employee organizations. NXP will, whenever applicable, engage in the negotiation process either on its own behalf or through employers' associations. Local rights and codetermination will be fully respected with a view to reaching agreement on the terms and conditions presented by employees.

Workers must be able to openly communicate and share grievances with management regarding working conditions and management practices without fear of reprisal, intimidation, harassment or violence. More information about grievance and whistleblower policies can be found in NXP’s Code of Conduct.