We continuously explore ways to enhance our approach to respecting human rights, through engagements across the world and by implementing improvements identified by our stakeholders.

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

2020 NXP Results 2020 Supply Chain Results
Forced and Bonded Labor
No Fees Workers did not pay fees. One nonconformance identified from an audit charged fees and has since repaid the fees to the workers.
Retention of Documents Personal documents are retained by all workers. One nonconformance identified from an audit lacked a policy for not retaining worker’s personal documents and has since implemented a formal policy.
Fair Treatment of Vulnerable Workers During a Pandemic Forty-two vulnerable workers who completed their employment contracts and were stranded by the pandemic were compensated, provided with food, supplies, and received regular management visits to ensure their well-being, health and safety until they could return to their home countries. Pulse surveys of high-priority suppliers to obtain salient data on how the pandemic may have affected their workers’ rights. Remote audits was a new methodology employed to collect critical information to continue our due-diligence efforts even during a pandemic.
Working Hours and Rest Days At one site, the 60-hour working limit was exceeded for 3 employees over the course of two weeks in 2020. Thirteen nonconformances identified from audits did not monitor working hours and rest days and/or have processes in place. Seven of the identified nonconformances have been closed.
Young Workers Child labor not found. All young workers are in accordance with relevant laws and regulations. Child labor not found in our supply chain. All young workers are in accordance with relevant laws and regulations.
Accurate Contracts Accurate contracts in native language issued to all workers. Three nonconformances identified from audits had inaccurate contracts. All nonconformances have been closed.
Fair Wages No discrepancies in wages or benefits. Five nonconformances identified from audits had discrepancies in wages and benefits. All nonconformances have been closed.

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