The importance we place on maintaining high ethical and corporate social responsibility is reflected in our commitment to labor and human rights. Our codes, standards, programs and audit procedures are built around the recognition that everything we do in connection with our work must reflect the highest possible standards of ethical business conduct and all employees are treated with respect and dignity.
NXP is responsible for providing a work environment in which ethics, integrity and trustworthiness are accepted and shared, not just among ourselves but with all our stakeholders, including the communities in which we operate and work. We support the aim of the International Labor Organization (ILO), the Universal Declaration of Human Rights (UDHR), the International Bill of Human Rights and the UN Guiding Principles on Business and Human Rights to arrive at universally accepted labor standards and have therefore adopted internal policies, standards, procedures and guidelines.
NXP became a member of the Responsible Business Alliance (RBA), in April 2014 and has continued to be a full member since 2015, demonstrating our full support of the vision and goals of the RBA. The requirements from the RBA Code of Conduct are either part of NXP's own Code of Conduct or have been included in NXP policies, standards and procedures. NXP also commits to apply NXP standards to our suppliers, through the NXP Supplier Code of Conduct and to monitor the application of the Supplier Code of Conduct.
We have specific standards in place regarding labor and human rights which is approved by the Social Responsibility board. These standards are to be strictly followed by NXP and all NXP suppliers, which are thoroughly tested during our internal and supplier audits.
NXP's auditable standards on labor and human rights consist of the following categories:
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:
In Action: To address concerns at all stages of the recruitment process, NXP started a comprehensive training and audit program of all labor agents and subagents in the sending and receiving countries to ensure compliance with the NXP standards and to mitigate the risk of modern day slavery. While in the sending countries of the labor agents and subagents, we educate them of the NXP requirements, such as: Employment contracts written in native language of the worker, contract has accurate written details in regarding working conditions, nature of work, wages, benefits, working hours and duration of contract. Contract must be the same at the time of recruitment and at the receiving country. NXP’s “No Fee Policy” and prohibition on the withholding of government issued documentation is thoroughly discussed in the training sessions. NXP goes through each Labor and Human Rights topics. In addition to training our suppliers, we also educate students that are potential employees of NXP within the villages of the sending country to educate them on their human rights and what it is like to be a foreign migrant worker. After training and collaboration, NXP audits the labor agents and subagents to help them identify areas of strength and weakness.
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.