PRIMARK Factory Audit Preparation - Key Points

1. Hourly Wage & Work Hours

1. Acceptable attendance records:

① IC card swipe timekeeping records.

② Punched clock attendance records, but employees must sign and confirm on their work cards monthly.

③ Manual attendance records required, with accurate recording of staff's working hours (including overtime) and daily signature confirmation by employees.

2. Note when preparing work cards:

No consecutive 7-day work records allowed.

② Clearly write the total days worked, total overtime hours during weekdays, and total overtime hours on rest days on the employee card for ease of calculating wages and inspections.

If no approval from the Labor Bureau for extended overtime has been obtained, the monthly overtime hours cannot exceed 36. After obtaining the overtime approval, the monthly overtime hours can reach 72 (Monday to Friday: 8 hours of regular work and 2 hours of overtime; Saturday: 8 hours of overtime; Sunday: rest day).

④ No consistent punch card records are allowed, meaning no employee should have the same time for both coming and going for several consecutive days.

3. Payroll Statement

The payroll is based on hourly wages to avoid the complexity and hassle of piece-rate calculations, as hourly wages are straightforward and easier to manage, especially when it comes to overtime pay.

① The salary sheet is designed based on the actual factory conditions, but it is essential to list the regular working hours' wages and overtime wages separately.

② If the payroll includes deductions, pay attention to whether the deduction amounts are reasonable. For example: Deducting 100 RMB per month for employee accommodation, with 8 people per room, the factory collects 800 RMB in rent per room per month. If the rent for rooms of the same grade in the local area is higher than 800 RMB/month, the factory's deduction is reasonable. If the rent for rooms of the same grade is lower than 800 RMB, the deduction is not reasonable, and the factory should reduce the deduction amount to a reasonable level.

The payroll must include the employee's signature.

④ The payroll must include the date of payment. Factories cannot delay workers' wages for more than 30 days, for example, wages for July should be paid before August 30th.

Section II: Employee Personnel Information

① The entry form should include the following information: Name, Date of Birth, Address, ID Number, Employee Signature, Entry Date, Photo, Copy of ID, Contact Number, Work Resume, etc. 4. Entry Form:

②If the ID card's validity period has expired, it must be renewed promptly.

③ Ensure the factory entry date or form submission date on the entry form does not coincide with a rest day listed on the ID card.

④ Be vigilant in verifying the authenticity of employees' ID cards and ensure they are genuine and belong to the individuals in question.

⑤ Methods to distinguish the authenticity of an ID card: a. Online document verification: http://www.lxsk.com/idcark.aspx or download the Idcark.exe file from www.u-jian.com. After installation, input the ID card number to check its authenticity.

5. Employment Contract:

Upon joining the factory, we agree to sign a labor contract and have it notarized at the labor department within one month.

② Note that the contract signing date cannot be on a rest day listed on the ID card, and the labor department's visa date cannot be on Saturdays, Sundays, or legal holidays.

③ Trial Period of the Contract: Existing employees cannot have a trial period when renewing contracts. The trial period for new employees' contracts cannot exceed one month.

④ If the contract contains provisions regarding wages for downtime due to lack of materials, the standard for the subsidy wages will be based on the local minimum wage.

After the contract is signed, a copy should be issued to the employees. It is also required that the workers sign to confirm they have received the contract copy.

6. Minor laborers

①A minor worker refers to an employee who is over 16 years old but under 18 years old.

② If the factory employs minors, it must provide a physical examination for the minors and apply for registration with the labor department.

③If there are underage workers participating in the factory audit, special attention must be paid to verifying the authenticity of their IDs and confirming that the IDs are in their own names.

④ Preferably, do not hire minors. If minors are employed, do not involve them in factory inspections.

Section 3: Social Insurance:

① We offer insurance types including retirement, work-related injury, unemployment, and maternity insurance.

② If unable to provide all five types of insurance to all employees (i.e., lacking any type of insurance or if some employees have not purchased insurance), the following documents must be provided:

a. Proof of insurance payment for employees — Tax payment certificate/bank payment receipt.

b. Certificate issued by local authorities, verifying that the factory has purchased insurance for employees in compliance with local regulations. The certificate should clearly state the number of employees covered and the types of insurance purchased. Meets local requirements.

IV. Factory Regulations and Policies

If an employee violates the factory's regulations and rules, fines should not be the sole form of punishment; at least, a verbal warning, a minor demerit, or a major demerit should be issued.

② No "deposit for entry into the factory" can be collected, nor can employees' documents be detained or pawned.

③ The factory regulations should mention the paid annual leave, with 5 days for those who have worked for one year but less than five, 7 days for those who have worked for five years but less than ten, 10 days for those who have worked for ten years but less than twenty, and 14 days for those with more than twenty years of service. Additionally, this should be reflected in the salary.

Fifth: Fire Safety and Sanitation:

1. Fire Drills

① Retain factory and dormitory fire drill records at least once a year, including written documentation and photographs.

② Retain fire safety training records, which should include the training date, location, content, and participants.

Fire Protection Equipment

① Firefighting equipment should have clear markings, such as large, prominent red letters like "Fire Extinguisher" or "Fire Hydrant" sprayed above the extinguisher or fire hydrant.

② Fire extinguishers and fire hydrants must have an annual inspection certificate issued by the fire department or an equivalent qualified body. Typically, a maintenance certificate or factory certificate attached to the extinguisher is sufficient, but note that it must be valid within one year of the maintenance date or manufacture date. For fire hydrants, a certificate of annual inspection by the local fire department is required.

③Fire hydrants must be sealed with a sticker, including the date and the factory's official stamp.

④ Fire extinguishers and fire hydrants should be regularly inspected and documented.

Type of fire extinguisher should be ABC, not just AB or BC types.

⑥ Portable fire extinguishers should not be placed directly on the ground; they should be hung, placed on a cart, or stored in a fire extinguisher cabinet. The top of the extinguisher should be less than 1.5 meters from the ground, and the bottom should be no less than 0.15 meters from the ground. In a location equipped with fire extinguishers, there should be at least 2 extinguishers, and no more than 5 extinguishers at each installation point.

Section 7: Red markings should be drawn to create a separation zone around fire hydrants or hanging fire extinguishers. Items are strictly prohibited from being stored within this zone to prevent obstruction of fire access routes.

3. Evacuation routes, exit signs, emergency lighting

① Factory buildings and dormitory floors should have at least 2 emergency exits per floor, each exit must be kept clear, and should be marked with "Emergency Exit" signs and equipped with emergency lights.

Each staircase should be equipped with an emergency light.

③ Each floor of the factory and dormitory should display clear evacuation route maps, with clearly marked locations of the exits, fire extinguishers, and fire hydrants.

④ Production areas should be demarcated from walkways by yellow channel lines, with directional evacuation arrows marked on the walkways.

4. Explosion-proof lights

Warehouse lighting should use explosion-proof lamps.

5. Protective devices and supplies.

① All hazardous parts such as belt conveyors, spur gears, grinding wheels, electric saws, belt pulleys, and flywheels must be equipped with protective devices. For example, sewing machines require the installation of upper and lower belt guards.

Operators of industrial shears and electric saws should wear metal gloves for protection.

Employees working in environments with noise levels exceeding 85 dB should wear earplugs.

④ In any of the following situations, the factory shall provide workers with work clothes or aprons, and as needed, supply protective items such as hats, masks, gloves, leg guards, and shoe covers.

a. Operations involving burns, scalds, or a risk of mechanical injuries.

b. Operations under intense radiant heat or low-temperature conditions.

c. Operations involving the release of toxic, irritating, infectious substances or large amounts of dust.

d. Operations that frequently cause clothing to corrode, become damp, or become excessively dirty.

Workers operating in areas with harmful gases, vapors, or dust should be provided with masks, protective goggles, and anti-toxic masks by the factory.

Workers frequently operating on floors with water or other liquids should be provided with waterproof shoes or boots by the factory.

6. Electrical Switch Identification

①Electrical switches should be clearly labeled to indicate which appliance they control.

② The electrical distribution box should have a clear warning sign "DANGER: LIVE WIRING."

7. First Aid Kit

① Each independent workspace or at least one first-aid kit for every 100 workers must be provided. The first-aid kit should not be locked and should be easily accessible.

② First-aid kit should always include: alcohol, burn ointment, and items circled on the list.

Note: No oral products should be included in the first-aid kit.

④ The first-aid kit should have a list and record of its contents.

⑤ Dormitories should also have a first-aid kit.

8. Bathroom

① The factory should supply toilet paper, soap, or hand sanitizer.

② Bathrooms should provide adequate private space (such as with partition walls and doors).

Section 3: Separate male and female restrooms are required.

9. Storage and Usage of Chemicals

All chemicals in use or stored should be labeled.

② When using or storing liquid chemicals, a backup container should be provided.

③ Locations where chemicals are used or stored should display the corresponding Chinese Material Safety Data Sheets (MSDS) for the chemicals.