Samsung Electronics’ Supplier Code of Conduct mandates that all overtime work must be done voluntarily (i.e., with the worker’s consent) and compensated at a rate higher than the regular hourly rate, in accordance with local laws and regulations. We uncovered a case of at a first-tier supplier in East Asia where a human resources manager failed to pay overtime wages due to poor working hour management processes. Upon discovering this issue, Samsung Electronics worked with the supplier’s human resources manager to calculate the unpaid overtime wages. We then paid all affected workers the owed amount in one lump sum. We have also improved supplier's processes to ensure that workers complete a pre-application for overtime work, which the human resources manager must approve, and wages are automatically paid.
Samsung Electronics also discovered an audit finding at a second-tier supplier in Southeast Asia. The supplier had failed to provide severance pay to retired workers within 30 days of the end of their employment, a requirement stipulated by the Supplier Code of Conduct for both first-tier and lower-tier suppliers. This oversight was attributed to the supplier’s lack of understanding of the Supplier Code of Conduct and local laws. To rectify this, Samsung Electronics worked with the second-tier supplier’s human resources manager. They ensured that the supplier paid the severance as legally required and informed the workers about the relevant information to prevent the same violation from reoccurring.
Samsung Electronics strictly prohibits suppliers from requiring workers to pay deposits or recruitment fees under its Supplier Code of Conduct. If workers are found to have paid such fees, the supplier must reimburse them within 90 days.
At a first-tier supplier in East Asia, an investigation revealed that 660 workers were required to pay a total of USD 2,503 for medical examinations during the hiring process. The issue arose because the supplier had not properly reviewed contracts between recruitment agencies and workers, making them unaware that workers were being charged. Samsung Electronics worked with the supplier’s HR personnel to ensure immediate reimbursement. To prevent similar cases in the future, the supplier was required to pay medical examination fees directly to medical institutions for new hires. Additionally, contract terms between recruitment agencies and workers were revised to clarify that the company is responsible for these costs.
A review of employment contracts at a first-tier supplier in Southeast Asia found that some contracts were missing worker signatures and did not specify work conditions such as night shifts or dispatched work locations. Samsung Electronics requires all suppliers to include company and worker signatures, wage structure and payment methods, job descriptions, and working and rest hours in employment contracts. The issues were traced back to the supplier’s hiring personnel, who lacked a proper understanding of contract drafting. To address this, Samsung Electronics provided guidelines and training to ensure missing details were properly included. Worker signatures were also made mandatory in contracts to prevent similar issues in the future.
At another first-tier supplier in East Asia, workers who were unable to work on holidays were required to submit a written statement explaining their absence. Samsung Electronics mandates that its suppliers ensure all overtime work beyond regular hours is voluntary and prohibits them from coercing workers into overtime without their consent. The investigation revealed that the supplier had not properly educated workers on overtime management policies and had imposed unnecessary statement requirements on those not working weekends, highlighting deficiencies in its working-hour regulations. Samsung Electronics immediately instructed the supplier to eliminate the requirement for written statements and provided training for HR personnel and workers on attendance and overtime management policies.
Samsung Electronics’ Supplier Code of Conduct requires suppliers to cover the cost of medical examinations when hiring. However, a third-party audit revealed that workers at first-tier and second-tier suppliers in East Asia had been paying for their own medical examinations at the time of recruitment. This misunderstanding arose from recruiters’ lack of understanding of Responsible Business Alliance(RBA) regulations and the Supplier Code of Conduct. In response, Samsung immediately collaborated with suppliers to reimburse all employees who had covered their own medical examinations. We also required the suppliers to revise regulations to pay for medical examinations at the time of recruitment in order to address, and suppliers shared the revised policy with employees to ensure that the policy was internalized.
Samsung Electronics strictly prohibits any form of harsh and inhumane treatment of workers, including sexual harassment, sexual abuse, corporal punishment, mental or physical coercion, and verbal abuse. Workers must be able to report such incidents anonymously without fear of retaliation. Suppliers are required to investigate reports promptly, take appropriate action, and provide feedback to the complainant.
At a first-tier supplier in Latin America, a case of inhumane treatment was identified, but no proper action was taken against the perpetrator. An on-site investigation revealed that the complaint box was placed near the manager’s office, making it difficult for workers to report concerns anonymously. A worker interview also confirmed that an incident involving intimidation and sexual harassment had occurred, but the victim chose not to report it out of fear of dismissal. To address these issues, Samsung Electronics trained the supplier’s management on the prohibition of inhumane treatment and required them to issue a formal letter titled "Zero-Tolerance Policy for Abuse and Sexual Harassment," signed by the CEO and vice president. Additionally, the complaint box was relocated to a more secure location to ensure anonymity and prevent retaliation. A broader awareness campaign was also launched, including surveys on inhumane treatment and distributing brochures to raise awareness among both management and workers.
Samsung Electronics requires its suppliers to make employment-related decisions—such as hiring, wages, promotions, compensation, layoffs, and training opportunities—solely based on workers' job performance and abilities. Discrimination based on personal characteristics such as race, age, gender, religion, or marital status is strictly prohibited. However, a first-tier supplier in Southeast Asia included specific gender and age requirements in two job postings in 2024. An analysis of new hires from 2023 to 2024 revealed that over 80% of those hired fell within the age range specified in the job postings. The investigation found that the supplier's management lacked sufficient understanding of non-discrimination laws and Responsible Business Alliance (RBA) standards. To address the issue, Samsung Electronics immediately required the supplier to remove all discriminatory language from job postings. Additionally, training sessions on RBA standards and local labor laws were provided to both management and workers to ensure non-discriminatory hiring practices in the future.
The standard workweek for Samsung Electronics suppliers is 48 hours and should not exceed 60 hours, including overtime. In addition, suppliers must guarantee at least one day off for every seven working days. However, a sampling investigation at a first-tier supplier in Southeast Asia found that 15 workers exceeded the 60-hour weekly limit, while 6 workers worked more than seven consecutive days without a day off. The investigation revealed that the supplier struggled to meet delivery deadlines due to a sudden surge in production volume, which led to a shortage of skilled workers. As a result, compliance with working hour regulations became challenging. To prevent similar issues in the future, Samsung Electronics provided guidance on optimizing workforce shifts based on production demands and required the supplier to incorporate overtime regulations into its operational manuals. This support helped the supplier establish measures to ensure compliance with working hour requirements and prevent recurrence.
First-tier suppliers based in Southeast Asia are required by local law to provide female workers with a certain amount of rest during their menstrual period. However, an investigation found that 123 female workers at a first-tier supplier based in this area were not receiving this break. Although the supplier had an official policy in place, the absence of a proper management system led to ineffective implementation. To address this, Samsung Electronics worked with the supplier to establish a structured system ensuring that female workers can take their entitled breaks as needed.
During our review, we found workers at a first-tier supplier in East Asia were clocking more than 60 hours a week and not receiving at least one day off per week. The standard workweek for Samsung Electronics suppliers is 48 hours and should not exceed 60 hours, including overtime. In addition, suppliers must guarantee at least one day off for every seven working days. However, in this instance a supplier struggled to comply with these working-hour regulations due to challenges in organizing production schedules and arranging shifts efficiently, given the imminent product delivery dates. In response, Samsung Electronics required the supplier to thoroughly re-examine their production plan, consider the working-hours of its workers, and monitor its managers according to the Supplier Code of Conduct. To further prevent the risk of overtime, we required the supplier to establish a procedure to systematically manage production schedules. This process aims to meet delivery deadlines and ensure that managers review and approve overtime in advance when necessary.
We also discovered a second-tier supplier in the same region failing to provide workers with stipulated rest periods during the workday. These breaks, essential for workers’ health, efficiency, and accident prevention, are a right guaranteed by local law. Our investigation revealed that the supplier’s human resources manager lacked a clear understanding of Samsung Electronics’ Supplier Code of Conduct and local laws. Samsung Electronics requested changes to the company’s regulations to ensure rest periods. We also monitored the progress of these revisions and ensured the company provided training to improve workers’ understanding.
Samsung Electronics’ first-tier suppliers are obligated to disseminate the supplier’s work environment management policy with subcontractors and oversee its implementation. In one case, a first-tier supplier in East Asia neglected to conduct work environment safety audits of non-manufacturing suppliers. This omission occurred because the supplier only included manufacturing contractors involved in their management scope. Samsung Electronics revised the management regulations to include non-manufacturing suppliers in audits. We requested them to address the root cause and confirmed their compliance with the revised regulations, ensuring a safe work environment for all workers.
Samsung Electronics champions the rights of female workers at our suppliers by prohibiting gender-based discrimination in hiring, wages, promotions, compensation, and training opportunities. We also mandate the exclusion of pregnant or breastfeeding women from hazardous processes. With one first-tier East Asian supplier, we found that the work environment risk assessment failed to protect female workers, in particular pregnant women. This issue stemmed from the environment and safety personnel’s lack of understanding of the identification procedures. In response, Samsung Electronics required the supplier to introduce measures to assign women only to verified safe processes and ensured they wear identification for a safer work environment.
A sampling investigation of employee pay stubs at a first-tier supplier in East Asia revealed that one out of 20 workers had been underpaid. The investigation found that the supplier’s complex payroll system, combined with inadequate oversight by the responsible manager, had led to miscalculations in wage payments. The supplier immediately compensated the affected worker with the unpaid amount of USD 4. Additionally, Samsung Electronics required a full review of all worker's wages. While no further miscalculations were found, corrective measures were implemented to simplify the payroll system and ensure that wage calculation and payment procedures were clearly outlined in employment contracts to prevent recurrence.
Samsung Electronics requires its suppliers to comply with both the Supplier Code of Conduct and local labor laws. A first-tier supplier based in Southeast Asia is required by local law to provide partial financial or in-kind childcare support for female workers with children under six who are enrolled in daycare, preschool, or other childcare institutions. However, an investigation found that a second-tier supplier in this region had failed to provide this mandatory childcare support. In response, Samsung Electronics worked with its first-tier supplier to ensure that the second-tier supplier established a support plan for eligible workers. As a result, the supplier, in consultation with its employees, provided a total of USD 494 in childcare subsidies to 143 workers over a three-month period from July to September 2024.