Employers must not require workers to pay deposits or recruitment fees in any form as a condition of employment. If such payments are discovered, they must be reimbursed to the worker within 90 days.
In March 2024, Samsung Electronics received a report that a newly hired recruiter at a first-tier supplier in Southwest Asia had collected a recruitment fee of USD 12 per applicant. We promptly notified the supplier and requested the reimbursement of the fees to the 17 affected workers. A follow-up with the informant later confirmed that, through our intervention, all workers had received full reimbursement.
Through the Supplier Code of Conduct, Samsung Electronics ensures freedom of association, including the freedom to form and join unions and the right to collective bargaining. In July 2023, we received a complaint from a supplier located in Latin America that the company’s union recognition status was unclear and that the salary payment procedures were inadequate. To comprehensively resolve the issues raised, Samsung Electronics required the supplier to follow up with the union and, upon further verification, we confirmed the supplier had resolved the grievance amicably.
A crucial prerequisite for Samsung Electronics' contracts with new suppliers is the prohibition of forced labor. All prospective suppliers must clearly outline and communicate working conditions in their workers’ native language. In December 2023, a European supplier received a complaint that workers’ contracts, paychecks, and job descriptions were not in their native language, potentially leading to unfair employment conditions. Samsung Electronics requested that all documents relevant to workers be provided in their native language, as well as payroll calculation manuals. We subsequently checked with the worker who filed the complaint and confirmed that the supplier made the necessary improvements.
All overtime work must be voluntary and performed with the worker’s consent, and it must be compensated at a rate higher than the regular hourly wage in accordance with local laws and regulations. In February 2024, a grievance was filed against a second-tier supplier operating the cafeteria at a first-tier supplier’s site in Southeast Asia, alleging that workers were being forced to work overtime without proper compensation. An investigation found that the supplier was running two shifts of six workers—12 hours during the day and 14 hours at night—but only paying them for 10 hours of work. In response, Samsung Electronics, in collaboration with the first-tier supplier, ensured that the affected workers were immediately reimbursed a total of USD 395. Training was also provided on proper wage calculation and payment practices, including the prohibition of forced overtime and the importance of accurate compensation. A follow-up investigation confirmed that the overtime issues had since been resolved.
Workers should receive wage-related information in a language they understand, either through paychecks, wage payment records, or the company intranet. In August 2023, we received a complaint from a supplier in Southeast Asia about insufficient clarity in explaining changes to overtime wage calculations and social insurance requirements. We asked the supplier to update workers on the new system. In response, the supplier provided training on how to install the application that explains the rules for overtime pay and check social insurance enrollment. This improved workers’ understanding of accurate pay calculation and benefits.
In August 2023, Samsung Electronics received a complaint about the cafeteria meal plan at a supplier in Southeast Asia, which did not reflect the needs of the workers. Recognizing the link between proper mealtimes and worker productivity, we advised the supplier to update the menu through consultation with the workers. We subsequently monitored the improvement through the supplier and confirmed that they revised the catering provision based on workers’ feedback.
Samsung Electronics requires all suppliers to prohibit any form of harsh and inhumane treatment of workers, including sexual harassment, sexual abuse, corporal punishment, mental or physical coercion, and verbal abuse, as outlined in the Supplier Code of Conduct. In July 2024, multiple grievances were reported by workers at a first-tier supplier in Latin America, alleging inhumane treatment such as mental pressure, threats, and verbal abuse. An on-site audit confirmed the allegations, with our personnel directly witnessing a supervisor mistreating workers. The supplier was instructed to take corrective action. However, follow-up monitoring revealed that similar abusive behavior persisted and that no disciplinary measures had been taken against the perpetrator, indicating the supplier's lack of commitment to improvement. As a result, the subsidiary in this region decided to begin gradually scaling back business with the supplier to push for improvements and is considering a full termination of the partnership if insufficient progress is made.
In September 2024, a similar case arose at another first-tier supplier in Latin America, where a team manager was found to have bullied subordinates and discriminated against them based on personal characteristics. After conducting an on-site audit with the supplier and confirming the misconduct, we requested immediate corrective action. The supplier ultimately dismissed the manager, determining that the behavior was likely to continue. A follow-up with workers later confirmed that no further instances of inhumane treatment had occurred.