Cooperation from our suppliers is critical to making this program
a success. We value your participation in this program. It is our
aim to provide you with the appropriate information to assist you in
preparing for an audit.
Step One: Identification of Active Factories
TJX requires the Vendor to notify our Agent of all active TJX
production factories, on a monthly basis. Active factories are
defined as factories with current production, future on order, or
production within the past 12 months.
Step Two: Communication to Active Factories
The Vendor is responsible for informing the active factories
that a social compliance audit will take place and for ensuring that
the ‘Audit Procedure Outline’ and ‘Factory Evaluation Checklist’ are
provided to the factory, as it offers assistance to prepare for the
audit. Conducting a mock audit of the factory using the checklist
provided in this manual is highly recommended.
Step Three: Making an Appointment
The auditor will contact the factory directly to make a 2-week
window announcement for the audit. The Vendor and Agent will also be
informed of the audit timeframe. Please ensure at least one member
of the factory’s management team, who has access to the appropriate
documents required to complete the audit, is present in the audit
timeframe.
Step Four: Prepare for an Audit
Please ensure that the following list of documents is made
available to the auditors to avoid further re-audit. Please provide
any other additional documentation upon the auditors’ request.
Employee Documentation
o Employment contracts/ terms & conditions of employment
o Employee files (including employment application, discipline
letters, labor contract, etc.)
o Proof of age documentation (copies of identification cards, birth
certificates, medical clearance, etc.)
o Restrictions on workers below the age of unrestricted employment
Facility Policies and Procedures
o Internal operating policies and procedures (Company Policy)
o Business licenses, maintenance and health licenses
o Wage and hour policies (Minimum wage, overtime, maximum daily/
weekly hours)
o Annual leave and required holidays
o Nondiscrimination/ Harassment
o Other benefits and allowances
o Any other government licenses, certificates of operation, etc.
Payroll Documents (for the current 6 months)
o Payroll records
o Time records
o Piece rate records
o Payroll registers
o Payroll stubs
o Special labor waivers such as the overtime extension waiver
General Environmental Health & Safety
o Plant layout or facility plot plan
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o Environmental Health & Safety manual and/or written programs
o Assessment records (machinery, fire extinguisher, eyewash/shower,
etc.)
o Dormitories (government licenses, assessment reports)
Environmental (only if working with chemicals)
o Hazardous waste manifests or shipping papers
o Waste profiles/test results/waste analyses
Health & Safety
o Accident or injury reports
o Chemical inventory
o Material safety data sheets (MSDS’s)
o List of required/approved personal protective equipment
o Emergency response plan
o Testing, inspection, and maintenance records for fixed and
portable fire equipment
o Evacuation/emergency maps
Step Five: Wait for Audit Results
Typically, the turnaround time for the auditor to complete the
audit and finalize the full report is 10 business days. During this
time, the report goes through a number of checks to ensure that the
audit findings are accurate, the assessment is fair and reflects
TJX’s criteria, and any grammatical errors are corrected.
In special cases, where production needs to start as soon as
possible, the auditor should be notified of this in Step One. The
auditor will try their best to schedule the audit with respect to
your timeline, however they cannot guarantee that this is possible
every time.
Step Six: Re-audit (If required)
The re-audit evaluation has been designed for verification of
compliance and ensures that recommended corrective actions have been
taking place since the last audit. Any re-audit requirement is
determined by TJX based on the status of the factory and/or previous
audit findings.
In the event that a re-audit is required, an invoice will be
issued to the supplier directly by TJX's third-party auditor. A
re-audit will not take place until the invoice is paid. Failure to
pay this invoice is synonymous with non-participation in the
program, and TJX reserves the right to suspend or terminate business
until such time that the invoice is paid and an audit can occur.
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AUDIT PROCEDURE OUTLINE
The audit is a fact-finding process, designed to help you
identify areas within the factory's operations that require
improvement to ensure you are in compliance with TJX standards and
country-specific legal requirements related to the factory’s
production. No certificate is provided at the completion of the
audit, and it does not automatically approve you for production for
any other brands or retailers, or qualify you for membership in
industry associations.
An audit consists of five components (not necessarily completed
in this order): an opening meeting, health and safety tour, payroll
and documentation inspection, employee interviews, and a closing
meeting. In addition, if further steps or documents are needed in
order to have a complete understanding of the factory situation,
they can be requested and should be provided.
Management such as the factory manager or human resource
personnel should be present.
Otherwise, assistance may be provided by anyone whom the factory
deems has the authority to provide the documents needed and to
answer the questions from the auditors.
Opening Meeting
After the auditors have passed all security requirements and are
given access to the factory, an opening meeting is held with the
contact person, preferably management. During this meeting, the
format of the audit is described. The production manager and the
human resource personnel are needed in order to answer a series of
questions regarding production capacity, machines, lead times, and
hiring practices.
Health and Safety Tour
A walkthrough of the factory is conducted to ensure adequate
measures are in place to protect the health of workers and guarantee
their safety and the safety of the surrounding environment.
Production capacity is also evaluated during the walkthrough.
Housing units, if applicable, need to be inspected by the auditors.
The eating area used by the workers is also viewed, as is the
kitchen if cooking takes place onsite.
Security of the facility will be evaluated, with attention to
physical security features as well as factory policies concerning
security.Photographs of the factory are also taken with permission
from management.
Payroll and Documentation Inspection
Payroll documentation is reviewed. Payroll journals, timecards,
production records, attendance books, proof of insurance payment or
tax payment (if applicable) must all be provided to the auditors for
a complete audit to take place. The auditors are checking to ensure
that the regional minimum wage is provided to all employees for all
hours worked, including overtime compensation. Also evaluated is
whether maximum hours authorized to work, including weekend and
evening hours, are in compliance with regional labor laws.
Copies of operating licenses and other government issued permits
are also reviewed. Customs documents will also be requested. If
quota restrictions apply, quota information should be provided along
with shipping invoices and country of origin documentation.
Company policies handbooks and management systems are reviewed.
Employee records are reviewed. Proof of age documentation must be
available.
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Employee Interviews
The auditors will randomly select employees from various
production areas for interviews, away from the presence of
management or other employees. Auditors will require the use of a
private room in which to conduct these interviews. Employees are
asked questions regarding hours of work, length of employment, their
understanding of human rights (freedom of association, collective
bargaining, equal opportunity, non-discrimination, unrestricted
liberties, etc.),disciplinary policies of the factory, hiring
policies, and working conditions.
Closing Meeting
At the conclusion of the audit a Corrective Action Plan (CAP) is
created if necessary and all concerns are discussed with the
facility management. Management is encouraged to write comments in
the second part of the CAP as to reflect any disagreements or
clarifications.
Management is requested to sign the CAP, to verify that they
understand the findings. A copy of
the CAP is left with management to assist them in resolving the
concerns detected during the audit.
Post-Audit Activities:
Within 15-20 days from this audit, a formal, typed copy of this
audit report will be sent to the Agent. A copy will be automatically
sent to TJX.