Comply with Industry, Regulatory and Organisational Requirements

Unit Objectives

At the end of this unit, you will be able to:

1. Carryout work functions in accordance with legislation and regulations, organizational guidelines and procedures.

2. Seek and obtain clarifications on policies and procedures, from your supervisor or other authorized personnel.

3. Apply and follow these policies and procedures within your work practices.

4. Provide support to your supervisor and team members in enforcing these considerations.

5. Identify and report any possible deviation to these requirements.

Defining Compliance for Your Organisation

According to Merriam Webster the dictionary definition of compliance is as follows:

1. The act or process of complying to a desire, demand. proposal or regimen, or to coercion.

2. Conformity in fulfilling official requirements.

3 A disposition to yield to others.

4 The ability of an object to yield elastically when a force is applied.

Supervisory compliance for industries, world wide falls under the second definition. There are many managers, general councils, and policy officers that would consent in agreement at any of the other definitions as well Let’s discuss, what is compliance? Whether an organization is confronting an external regulatory compliance from a government agency, or seeks to comply with its own organizational mandates, policies or procedures compliance in actuality means conforming to requirements and a proof that your organization has done so This is usually attained by the scheming and development of managerial policies that will map out the projected code of conduct

From a policy’s point of view, there are many aspects that impact an organization’s policies, including legislative and regulatory requirements, organizational best practices, and the market demands. If we look at government/ public sector agencies, financial service businesses, and healthcare providers we find that they are controlled and must develop internal policies in order to ensure compliance. The actual trial comes from the juncture of practice with the laid policy.

After that, they must adopt ways to enforce those policies and measure their effectiveness Initially this may

seem to be an easy and convenient task. But the dilemma is creating a policy – without any mechanism may it

be manual, automated, or third-part, to measure and monitor compliance of the policies is very difficult in order

to build effective policies, we must not only have an understanding of the statutory requirements that will shape the policy within our organizations, but how these policies relate to the business practices, the workforce, the methodologies of operations and the technologies within the corporation.

Irrespective of the requirements to which an organization must obey, a well-planned model is essential who will be one that assimilates strategies with their people, processes, and technology. This includes educa monitoring and enforcement. Organizations should look to use machineries and to develop procedures that make it easier to do the night thing or to simply disregard the policy all together, in conducting performance audio, an assessment should be made of compliance with applicable laws and regulations when necessary to satisfy the audit objectives. The auditor should design the audit to provide reasonable assurance of detecting illegal acts that could significantly affect audit objectives. The auditor also should be alert to situations or transactions that could be indicative of illegal acts that may have an indirect effect on the audit results.

Significance of Compliance in Indian Garment Industry

Compliance is the standard for the product which ensures that it is aligned to its industry’s qualitative demands This also includes audits and inspections which are crucial to a proper and formal work environment Compliance and its demand is rapidly growing in today’s industrial scene since globalization of manufacturing standards has also created a demand for ethically created products. This standard of compliance is crucial because of the increase in export of garments from India.

Social Compliance

The treatment of the employees by its business constitutes social compliance. This also includes their environment and their personal perspective on social responsibility as an employee. The treatment of employees regarding wages, work conditions and working hours. A compliance audit is necessary in order to determine if the company meets standard environmental laws.

Compliance Audit

Process Safety Management, Risk Management Programs, and Process Security Management are all organised and provided by audits and assessments Compliance and its verification is carried out with audits that focus particularly on these policies and procedures. The design and implementation of these audits ensures this compliance Additionally, all sorts of deficiencies can be addressed and solved through corrective action

In India, compliance audit consists of a thorough examination of orders, regulations, rules and directions for dealing with prudence, legality, transparency and adequacy. It is the job of auditors to collect information by reviewing documents, visually observing the site and staff interviews. This data is cross checked with applicable regulations and permits to ensure how well the operation is when sieved through applicable and required legalities.

There are three main phases of compliance audit in India:

1. Pre-audit: It includes planning and organising the audit, establishing the audit objectives, scope and etiquette, and reviewing the design of the program by inspecting documentation

2. On-site audit: It includes conducting personnel interviews, reviewing records, and making observations to assess program implementation

3. Post-audit: It includes briefing the management on audit findings, and preparing a final report

Therefore, Indian apparel manufacturers need to follow Government guidelines, and social compliance standards not only within their sphere of operations, but also insist their vendors, distributors, and other collaborators involved in the supply chain to do the same.

Core Labour Standards

International labour standards have grown into a wide-ranging system of gadgets on work and social policy, backed by a administrative system intended to address all sorts of complications in their submission at the national level

. Removal of Discernment in Employment and Occupation

. Freedom of Association

. Right to Collective Bargaining

. Elimination of all Forms of Forced or Compulsory Labour

. Effective Abolition of Child Labour

Apparel industry players would ensure that labour contractors don’t involve forced labour or child labour and get the supply chain of the suppliers audited Apparel Export Promotion Council (AEPC), a top organization of Indian apparel exporters, has envisioned a garment factory compliance program ‘Disha’ Driving Industry towards Sustainable Human Capital Advancement. The prime objective of this body is to make India a global benchmark for social compliance in apparel Industrial. This Common Compliance Code design will prepare the Indian apparel industry on a mutual platform towards a more social and ecologically compliant industrial atmosphere

India Adopting Universal Standards on Child Labour

The compliance level of garment factory is very high for Indian exporters To ensure that all standards are being complied with, the big international companies, mindful of their branding, often generate and follow their own compliance standards. Numerous U.S. companies have incorporated “child labour” in their code of conduct, due to tenacious signal of child exploitation in the industry.

Common Compliance Code

There is a compliance exhaustion in the Apparel Industry. Although they are trading with the global brands, the apparel sellers still don’t consent that compliance is an integral management practice The Indian apparel export industry has been indisputable to implement zero tolerance on child labour and cleanse the supply chain.

“This common compliance code will not only give the opportunity for the industry to negate international claims against child labour promotion in the garment industry, but will also help to improve the image of the industry and win more international businesses,” as per Premaludani, Chairman, Apparel Export Promotion Council (AEPC).

 Indian Garment Industry and Social Responsibility

The apparel industry of India, is one of the biggest segments among the various industries existing it is also one of the oldest and an eminent industry in terms of output, investment and employment. A sector which has a global market share and has earned reputation for its permanence, worth and magnificence The industry is growing at a fast pace with change in customer taste and inclinations. There are numerous factors impacting a change in customer preferences. Few of them are here:

. Rise in disposable incomes

. Government policy focused on fast-track growth

. Convenience of shopping at departmental stores and shopping malls

. Increasing demand for branded apparels and fashion accessories

. Boom in the retail industry

International Labour Standards

The Indian apparel industry had established itself substantially not just in the domestic but global market too The improved density from international apparel buyers to comply with labour principles and rights in Indian garment factories has resulted into a vast number of labels and code of conduct.

Corporate Social Responsibility

Corporate social responsibility (CSR) fundamentally connotes that the establishment should work in a principled way; it should work in the best interest of the parties associated with it. The notion of social accountability and responsibilities in Indian apparel sector is fastening acceptance Increasing number of companies are tiresome to work in a mode to defend the interests of the workforce, clients, contractors and the society

Social Responsibility in the Garment Industry

Garment firms have social responsibility associated with workforce and the surroundings Social responsibility in the global clothing industry gives a deep examination of labour practices and values But the ways by which the various organisations takes up to accomplish their social accountability may be different A garment factory can fulfil its social responsibility in the following manner:

. By creating and providing a challenging environment to the workforce

. Creation and provision of fair book of policies for any kind of employes dispute if any.

.  Affirm a safe and positive working environment for the employees.

. Prohibit child labour and abolish any kind of child abuse.

.  Provision of equal opportunities to the employees to voice their feedback and have an effective policy for the solution of dispute.

. Ensure ethical recruitment, training, remuneration, appraisal and other policies.

Indian Apparel Trade and Compliance Standards

The Indian garment industry is aiming to reach 7.5 billion by the end of 2012, a Fig that is practically double the size of the fast profit intended by the Indian Chamber of Commerce (ICC).

With the increasing globalisation, a lot of prominence has been placed on global compliance standards in the garment industry Factories involved in the international trade must keep a proper check of the garment factory compliance at regular interludes. Therefore, every apparel export business needs to have a proper understanding of compliance rules for foreign trade.

Why Code of Ethics is Required

The code of ethics concerned with the quality of the products and services from  the workstations  along with the working  environment that should meet the provisions of audits and assessments .If followed sincerely, these ethics will result into:

. Cumulative national affordability in terms of social compliance . 

. Growing competitiveness of small scale industrialists.

. Dropping burden on manufacturers.

Some of the compliance codes in Indian garment industry are listed below.

Working Hour & Wage Rate Compliance

. Garment workshops should ensure a confirmation that employees should get minimum wages as per the domestic law and according to their working hours spent by them in the industry.

. Employer should confirm an equal wages to both men and women employees who are performing the same work or work of a similar nature.

. Workforce employed for more than nine hours on any day or for more than 48 hours in any week, shall be qualified to wages at premium legal rates for such overtime work.

.Every employee must be entitled to one holiday in a week.

.Whenever a worker is required to work on a weekly holiday, he is to be allowed a compensatory holiday for each holiday so lost.

Tailoring Shop & Work Environment Compliance

.  Businesses units should see that they are providing a proper clean, hygiene well ventilation, sufficient tight and air to provide the workforce with standard work environment A comfortable workstation with a che and neat tailoring shop is a mandate.

. Indian garment industries should ensure that the workers are given a comfortable sitting chair with back support and proper leg space.

Non-discrimination Compliance

Under federal and state laws, it is in contradiction of the law for proprietors to differentiate staff and job applicants and/or harassment to occur with their organizations. It is also against the law to treat people unethically or bother them because of the age, disability, homosexuality, marital or domestic status, race, sex or transgender status of any relative, friend or colleague of a job applicant or employee Employers, managers and supervisors must treat all their job applicants and employees on the basis of their individual merit and not because of irrelevant personal characteristics. They must also do their best to make sure that their employees are not harassing any other job applicant or employee.

Social Compliance in India

Region, community culture or belief characteristics should never be the basis of distinction among employees by the organisation. All the terms and conditions of employment should be based on a person’s ability to do the job The mandate for social compliance is growing every day. One can accomplish a dynamic and vigorous compliance system only when the workforce is provided with an equal stand to voice their concern and have consultative instruments at the tailoring shop. The Apparel Export Promotion Council of India (AEPC), a summit framework of Indian apparel exporters, runs all social compliance services to meet international global standards This counc trains and monitors industrial unit to upgrade the factory conditions and labour values and standards.

Health and Safety Compliance in Indian Garment Industry

Apparel industry has won increased attention from consumers, social workers, welfare organisations and trademarked international buyers. Many global players are demanding that their “code of conduct” should be complied to, before entering into an agreement. Nowadays, continuous observance to quality standards and employee contentment have become significant bounds for gauging the company’s performance.

Apart from the growing quality of outputs that meet transnationally recognised standards, it is essential for the suppliers to improve safety and health compliance code and provide proper working atmosphere in their work locations.

Numerous overseas countries have established various international compliance standards on safety and health compliance. Exporters should follow these codes to live on in the global market. One should not under-estimate the benefits drawn from regular drilling of compliance codes of conduct which can bring higher price of yields, less employee turnover rate, smooth trade relation as well as global image & status.

Need for Compliance Codes

There is prominent impact of social compliance on company’s economic outcomes Companies should adopt compliance code to protect their goodwill and brand name in the market. The Indian apparel industry needs to be hard-hitting on compliance rather than opposing with other developing countries manufacturing low-cos garments.

 Role of Apparel Export Promotion Council in India

In India, the Apparel Export Promotion Council (AEPC) is committed to legal compliance and principled business Practices. It encourages members/exporters to comply with all applicable laws and regulations of the country to meet international compliance standards. Further, the council has designed a garment factory compliance program ‘Disha’ (Driving Industry towards Sustainable Human Capital Advancement) that aims to spread awareness regarding the importance of compliance among garment exporters.

Compliance Code Guidelines

Apparel factories ought to contemplate the below mentioned guidelines when complying with safety and health compliance code standards.

. Trades should comply with international standard code, such as 150 or importing countries standard code to

become competitive in international markets.

. it is necessary for workers involved in loading and unloading operations.

. Young aduls  (between 15 to 18 years) are not allowed to work on any dangerous machine without sufficient training and supervision.

. Ear plugs or muffs should be given in places with excessive sound such as generator rooms and embroidery


. Factories should have effective fire extinguisher with proper usage instructions.

. Eye-wear and face shields should be a must, providing in areas with danger of flying objects, sparks, glare, hazardous liquids and excessive dust.

Compliance Code Guidelines for Indian Garment Industry

he Indian apparel industry supports considerably to India’s export earnings India has industrialised as a major following destination for various buyers The USA and the EU endure to be the most domineering markets for Indian apparel industry, bookkeeping for about two-third of India’s textiles exports. These countries have been demanding upon compliance to certain social, environmental and safety standards and norms by the manufacture units involved in export business Corporate codes of conduct that discourses labour standards vary from corporation to corporation and location to location Some of the common indian Garment industry compliance code guidelines are.

. Exporters must not be intricate in unfair labour practices but limited to interferences in matters regarding freedom of association.

. Exporters shall recompense workforce for all hours operated Workers on a plece rate payment scheme or

any other incentive scheme should be paid according to that.

. Exporters shall not illogically restrain the liberty of movement of workers, including movement in canteen during breaks, using toilets, accessing water, or to access necessary medical attention, as a means to maintain work discipline.

. Exporters are about to offer workers with paid annual leaves as required under local laws, guidelines and

processes Exporters shall not impose any undue limitations on workers’ use of annual leave or taking any

type of sick or maternity leave.

. There shall be no alterations in workers remuneration for work of equal value on the basis of gender race. religion, age, nationality, sexual orientation, social political opinion, disability or ethnic origin.

.  Exporters shall not threaten female workers with firing or any other employment conclusion that adversely

  distresses their service status in order to avert them from getting married or becoming pregnant.

. Exporters shall confirm that proper ventilation systems installed within their premises to preverborne exposures which may affect the health of workers.

. Members shall not custom any form of physical or mental, emotional violence threats harassment or as workers seeking to form organisations or participating in union activities, including strikes.

.  Workers shall be permitted at least 24 successive hours of rest in every seven-day period. If workers must

work on a rest day, another successive 24 hours rest day must be provided. 

. Exporters shall pay workers at least the legal minimum wage or the usual industry wage, the one that Higher This indeed is the most essential code of compliance for Indian Industry.

Garment exporters must ensure that the minimum age requirement to unsafe employment shall not be le than 14 years. This is the most significant concern in the country. Each worker has the right to enter into and to terminate their employment freely indian apparel makers need to follow all the compliance rules to comply with global standards. Often companies adopt industry compliance codes to project a positive imag and protect their goodwill in the market. The Indian garment industry needs to be strong on compliance instead of competing with other developing countries manufacturing inexpensive garments.

India Complying with International Standards on Child Labour

Child labour has been a grave crime in India. It still exists. Children are in poverty, ignorance, and corruption due to illiteracy. Child labour superfluities under many conditions such as discernment (based on gender, ethnic, or religious issues), inaccessibility of educational and other substitutes, weak enforcement of child labour laws, etc. Large global firms, conscious of their image, often set up their own compliance standards for the exporters to ensure that all standards are being complied with. Various companies of US originality have included child labour in their code of conduct, due to tenacious evidence of child exploitation in the industry. In worldwide market, the buyer’s compulsory requirement is to have an audit. As India is a leading garment exporter, the level of garment factory compliance is very high for Indian exporters. The child labour issue is one of the very important aspect that the audit checks. Therefore, all the export units must be highly compliant on issues related to child labour.

Code of Conduct for Garment Exporters

Garment exporters must safeguard that the bottom limit of the age requirement to non-hazardous employment should not be less than 14 years. Moreover, all young workers (between 14 to 18 years) mus be sheltered from doing any work that is likely to be dangerous or that may be injurious to their health and physical, mental, social, or moral development. Exporters must detect all legal necessities for work being performed by lawful young workers.

. Further, the trainees or occupational students shall not be under the legal age for employment (as provided under the applicable laws). They cannot be used on regular production lines as long as they are trainees and unless their pay and other benefits are at par with the regular workforce.

. A proper process is followed for checking the age of the workers. The minimum certification and credentials required to be maintained shall include proof of age certificates by registered/ licensed dentists, birth certificate, school leaving certificate, national identity like passport, driving license, voter card etc. or any other document required under the applicable laws.