Labor and Human Rights

NXP recognizes that our operations can impact the human rights of our team members, workers in our supply chain and the people in our host communities. We respect human rights through our own actions and decision-making and we expect our suppliers and partners to do the same.

Human-Rights Performance
Reports and Commitments
Due Diligence
Salient Risk Issues
Assessments and Results
References

2022 Human-Rights Performance Snapshot

14 Supply-chain
due-diligence audits
Published NXP's first Human Rights Policy in 2022

Reports and Commitments

Our codes, standards, programs and audit procedures are built around our commitment that everything we do must reflect the highest possible standards of ethical business conduct in which everyone is treated with respect and dignity.

Due Diligence

Due diligence is an integral part of our business decision-making and risk-management systems. Our in-place due-diligence processes respect the way we manage labor and human rights, health and safety, and environmental risks associated with our operations and supply chain. Such due diligence includes risk assessments, compliance monitoring, remediation and consultation and engagement with workers, management and other key stakeholders, as well as measurement and public reporting.

To identify potentially adverse human-rights impacts and put in place prevention and mitigation measures, in 2022, we updated the NXP Human Rights Management System. The Management System provides clear guidance on how human-rights due diligence is to be conducted across our business value chain. We use input from internal and external resources to inform our approach and responses.

Salient Human-Rights Issues

No Fees

A clear policy prohibits charging fees to workers and ensures compliance.
If workers are found to have paid fees to gain employment, reimbursement to workers must be completed within 30 days of discovery.
A grievance mechanism is in place to confidentially report policy violations.

Retention of Documents

A clear policy states workers are not required to surrender personal documents.
Personal, lockable, secured storage units are available in facilities and/or dormitories/housing.
A grievance mechanism is in place to confidentially report policy violations.

Fair Treatment of Vulnerable Workers

The well-being and health and safety of workers must be ensured during pandemic and post-pandemic conditions.
Workers must not be discriminated against, regardless of pandemic circumstances.
Workers must continue to be given adequate protection from exposure to hazards, including the pandemic illness.
A grievance mechanism is in place to confidentially report unfair treatment of workers.

Working Hours and Rest Days

There is a clear policy to manage and limit worker 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 are in place to identify and administer the policy.
The regular work week cannot exceed 48 hours and the daily scheduled work cannot exceed 12 hours a day.
Workers receive at least one day off per every six days worked.
Workers are allowed at least a 20-minute rest break every four hours worked as well as a defined meal break.
Workers are provided with legally mandated holidays and vacation days.
A grievance mechanism is in place to confidentially report policy violations.

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.
A comprehensive policy for child labor clearly states the minimum age for workers.
A comprehensive policy prohibits young workers under the age of 18 from performing work that may jeopardize their health or safety, including night-shift and overtime work.
An age-verification process is in place with inspection of validity of at least two identity documents, to be returned to worker.
Personal-record systems are in place as a means of identification and verification.
If workers are discovered to be below the legal age limit, workers will be protected and provided the opportunity for completion of education.
A grievance mechanism is in place to confidentially report policy violations.

Accurate Contracts

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 contract.
Contracts are written in a language that the worker understands prior to employment. If amendments are made prior to employment, the contract must provide equal or better terms of employment.
Contracts ensure workers are free to leave their employment, upon giving reasonable notice, without penalty per applicable law and regulations.
A grievance mechanism is in place to confidentially report contract- related information.

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.
Workers have wage slips in a language they understand, with clear details regarding regular and overtime hours worked and rates.
Wages are paid within 14 days after the end of the working period.
Deductions as a disciplinary measure are prohibited.
There is a grievance mechanism to confidentially dispute wage and benefit-related payments.

Human-Rights Assessment and Results

	2022 NXP Results	2022 Supply Chain Results
No Fees	Workers did not pay fees.	35% of audited suppliers charged hiring fees. All but two suppliers refunded these fees. We are following up with the remaining suppliers to close out the nonconformance.
Retention of Documents	Personal documents are retained by workers.	Of the 14 suppliers audited, six suppliers had retained personal documents of workers. All six suppliers have since returned the documents to the workers.
Fair Treatment of Vulnerable Workers	While the hiring of foreign migrant workers at NXP slowed due to the ongoing COVID-19 pandemic and border closures, NXP continued to comply with our Employer Pays policy, which ensures these workers are treated with respect and dignity during recruitment and hiring.	The resumption of supplier audits enabled NXP to interview workers and gauge their well- being during the pandemic. No serious issues have been reported, even though workers were provided with the NXP anonymous phone line to report any concerns or impacts to their rights.
Working Hours and Rest Days	At one site, the 60-hour working limit was exceeded for approximately 900 workers, or 30% of the site's direct-labor workforce, for a period of one week. This was due to the continued labor shortage, challenges in hiring foreign migrant workers and a border closure during a significant increase in production demand. The site was able to resolve the issue quickly by efficiently allocating the workforce to support production.	64% of audited suppliers did not monitor working hours and rest days, resulting in nonconformances against NXP's requirements. Four suppliers have yet to close this nonconformance.
Young Workers	No child labor. All young workers are in accordance with relevant laws and regulations.	No child labor. All young workers are in accordance with relevant laws and regulations.
Accurate Contracts	Accurate contracts issued to all workers in their native language.	42% of audited suppliers had inaccurate contracts. All suppliers, except one, have closed this nonconformance. We are following up with the remaining supplier to close out the nonconformance.
Fair Wages	No discrepancies in wages or benefits.	21% of audited suppliers had discrepancies in wages and benefits. All suppliers have closed this nonconformance.

References

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