The Chillax Vendor Code of Conduct (“COC”) applies to any Vendor which provides goods, merchandise, or services to Chillax. Chillax recognizes that there are different legal and cultural environments in which factories throughout the world operate. These are the basic requirements our vendors must meet to do business with us. Our COC was guided by the core conventions of the International Labour Organization (ILO), the Ethical Trading Initiative (ETI).  Our code is reviewed to ensure alignment with our core principles and the guidance of the Fair Labor Association (FLA) workplace code of conduct. We regularly review and update our code of conduct as needed. Vendors will receive updates as necessary. Vendors will be expected to keep current third-party certifications for social responsibility and corporate compliance. Vendors will be audited regularly through both in-person direct visits and third-party audits.

The Ten Standards below encompass at a minimum what is expected of our supply chain partners. We highly encourage every Vendor to exceed these standards and operate by recognizing the individuality, value, and contributions each person has in the success of their organization and its operations. This includes giving consideration to the needs of their local communities and, whenever possible, developing programs and incentives to help address the needs within the communities they operate in. The Vendor Code of Conduct is part of our ongoing commitment to ensure those we partner with share the same commitment to fair and legal employment practices, social responsibility, and environmental impact.

Employment Relations

A Chillax vendor must adopt and adhere to rules and conditions of employment which, at a minimum, respect their workers and safeguard their rights under applicable national and international labor and social security laws and regulations. To every extent possible, work performed must be on the basis of recognized employment relationships established through national law and practice. Obligations to employees under labor or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labor-only contracting, sub-contracting, or homeworking arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment, nor shall any such obligations be avoided through the excessive use of fixed-term contracts of employment.

Non-Discrimination

A Chillax vendor must not subject any person to discrimination in employment, including hiring, salary, benefits, advancement, discipline, rewards, access to training, termination, or retirement on the basis of gender, race, religion, age, pregnancy, disability, sexual orientation, gender identity, veteran status, nationality, political opinion, or social or ethnic origin. Women must receive equal treatment in all aspects of employment. Pregnancy testing may not be a condition of employment. Vendors may not force workers to use contraceptives. Vendors must provide reasonable accommodations to workers for religious practice.

Harassment and Abuse

Every vendor employee must be treated with respect and dignity and be provided a safe and healthy working environment. Under no circumstances should any employee be subjected to physical, sexual, or psychological harassment or abuse. Vendors must not engage in or permit physical acts to punish or coerce workers or engage in or permit psychological coercion or any other form of non-physical abuse, including threats of violence, sexual harassment, or any other verbal abuse.

Forced Labor

Chillax will not do business with a vendor if they or their subcontractors or agents engage in or support forced labor and/or human trafficking of persons of any kind. Forced labor includes slavery of any form, prison labor, indentured labor, and bonded, including debt bondage labor. Human trafficking includes transportation, harboring, recruiting, transferring, or receiving persons by means of threat, force, coercion, abduction, fraud, or payments to any person having control over another person for the purpose of exploiting the labor or services or permitting its subcontractors, business partners, or agents to do so. Vendors assure all workers are not required to lodge “deposits” or their identity papers with their employer and are free to leave their employer with reasonable notice.

Child Labor

Chillax vendors and their subcontractors must not permit a person to be employed under the age of 15 years old or under the age for completion of compulsory education, whichever is higher. All manufacturing sites are encouraged to develop lawful workplace apprenticeship programs for the educational benefit of their workers, provided that all participants meet minimum legal age requirements. Compliance with all applicable child labor laws including those related to hiring, wages, hours worked, overtime, and working conditions is expected. Young persons under 18 shall not be employed at night or in hazardous conditions. In the absence of local law specifically regulating child labor, the wage rate for student workers, interns, and apprentices shall be the same wage rate as other entry-level workers who perform equal or similar tasks. Policies and procedures relating to child labor standards shall conform to the provisions of the relevant standards of the International Labour Organization (ILO).

Freedom of Association and Collective Bargaining

Workers must be free to join associations of their own choosing. Vendors must not threaten, penalize, restrict, or interfere with workers who wish to lawfully and peacefully organize or bargain collectively. The decision to do so should be solely at the workers’ discretion. Workers’ representatives are not discriminated against and have access to carry out their representative functions in the workplace. Where the right to freedom of association and collective bargaining is restricted under law, Vendors must facilitate, and not hinder, the development of parallel means for independent and free association and bargaining.

Health and Safety

Vendors must maintain a healthy, safe, and secure work environment and must incorporate sound health and safety management practices to minimize the risk of accidents, injury, and exposure to health risks. Vendors’ physical facilities must comply with all applicable laws regarding working conditions, including workers’ health and safety, sanitation, fire safety, risk protection, and electrical, mechanical, and structural safety. Workers shall receive regular and recorded health and safety training, and such training shall be repeated for new or reassigned workers. Access to clean toilet facilities and to potable water, and, if appropriate, sanitary facilities for food storage shall be provided. Accommodation, where provided, shall be clean, safe, and meet the basic needs of the workers. Appropriate health and safety-related information should be clearly posted in a language understood by the workers in the workplace, and a senior management representative must be assigned responsibility for adherence to the health and safety code.

Hours of Work

Vendors must set working hours, wages, and overtime pay in compliance with all applicable laws. Workers must be paid at least the minimum legal wage or a wage that meets the local industry standards, whichever is greater. Wages must be paid accurately and in a timely manner. While it is understood that overtime is often required in garment production, factories must carry out operations in ways that limit overtime to a level that ensures humane and productive working conditions. Vendors must not require, except in emergencies or unusual situations, a workweek in excess of 60 hours or the maximum allowed by applicable law, whichever is less. Regular (non-overtime) hours must not exceed 48 hours per week. Workers may refuse overtime without any threat of penalty, punishment, or dismissal. Overtime shall be used responsibly, taking into account the extent, frequency, and hours worked by the individual worker and the workforce as a whole. Overtime shall always be compensated at a premium rate, which is recommended to be no less than 125% of the regular rate of pay. Workers shall be provided with at least one day (24 consecutive hours) off per seven-day period. For each pay period, vendors must provide a timely and understandable wage statement to verify accurate compensation for work performed, which includes hours/days worked, wage or piece rate earned per day, hours of overtime at each specified rate, bonuses, allowances, and legal or contractual deductions.

Compensation

Every worker has the right to compensation for a regular workweek that is sufficient to meet the worker’s basic needs and provide some discretionary income, a “livable wage.” Our business partners must pay at least the minimum wage or the appropriate prevailing wage, whichever is higher, comply with all legal requirements on wages, and provide any fringe benefits required by law or contract. When compensation paid does not meet the worker’s basic needs and provide some discretionary income, a Chillax vendor is required to take appropriate actions to seek to progressively realize the level of compensation that does. Vendors must comply with all provisions for legally mandated benefits. Vendors may not take deductions from workers’ wages as a disciplinary measure.

Environment

Vendors must have an environmentally safe and responsible management system, a plan for addressing air emissions, solid waste, hazardous waste, wastewater, and other production byproducts. The plan must include identifying, managing, monitoring, reducing, and responsibly disposing of or controlling such materials. Vendors must adhere to applicable laws, regulations, and Chillax’s requirements regarding prohibition or restriction of specific substances and products and manufacturing, including proper labeling as required. Vendors are encouraged to look for cost-effective methods to improve energy efficiency, minimize energy consumption, and greenhouse gas emissions, and reduce or eliminate the use of resources and the generation of waste of all types by implementing conservative and substitution measures. The Vendor Code of Conduct must be promptly displayed in the workplace and posted in the language that is used by the workers.