Supplementary Explanations

6.1 Worker recruitment and employment
Transporting, concealing, employing, transferring, and receiving people by means of threat, coercion, abduction, or deceit is prohibited. Additionally, workers cannot be forced to pay fees for employment, as this may also lead to forced labor.
Forced work to pay off such a fee is also prohibited.
In particular, there are many reports of migrant workers including foreign workers being forced to work. Foreign workers must be provided with an employment contract containing the employment conditions in a language that they can understand, before they leave their home country.
Other acts that lead to forced labor include hindering workers from using their government-issued identification, passport/visa, work permit, or immigration application (except when the law stipulates that someone other than the worker retain such documents) by means of concealment or confiscation, or imposing limitations on worker entry/exit to facilities or movement within facilities.

6.2 Working hours
In addition to compliance with relevant laws and regulations, it is necessary to respect such international human rights standards as the Universal Declaration of Human Rights and International Covenants of Human Rights of the United Nations and the Core Labor Standards of the ILO.

Under Japan's Labor Standards Act, workers cannot be required to work more than 40 hours per week. The law also stipulates that workers must not be required to work more than 8 hours per day, excluding rest periods, on each day of a week. (legally prescribed working hours) If a company wants to require workers to work overtime hours beyond the legally prescribed amount, it must conclude a labor-management agreement based on Article 36 of the Labor Standards Act (called a “36 Agreement) and notify the director of the labor standards inspection office having jurisdiction. It should be noted that the type of work to be performed during overtime hours and the upper limit of overtime work per day, per month, and per year must be established in the 36 Agreement.

Appropriate management of these matters refers to the following:

• Annual working days not exceeding the maximum set by law.
• Weekly work hours, including overtime, not exceed the maximum set by law (excluding unavoidable times of disaster or emergency)
• Observance of workers’ right to paid annual leave, maternity leave, and childcare leave as stipulated by the law
• Workers’ break time as stipulated by the law
• Provision of physical and mental health checks to ensure the health of workers

6.3 Wages and benefits
Minimum wage refers to the minimum wage stipulated by laws regarding wages in the country where the company is operating, with employees paid in excess of the minimum. Compensation for overtime work must be paid to workers at a wage rate that is in accordance with the laws and regulations of the region. When paying compensation, companies must provide a wage slip that includes information enabling the breakdown of the payment to be checked. Unfair wage deductions may be deemed to be the non-payment of wages.

6.4 Elimination of child labor and employment of young workers
Child labor is internationally prohibited in all circumstances by the ILO and national laws.
Child labor, by its nature or the circumstances in which it is carried out, is harmful to the intellectual, physical, social and moral development of youngsters. It is believed that preventing them from going to school, forcing them to abandon schooling too soon, or requiring them to work and study at the same time significantly affects their educational opportunities and healthy development.

6.5 Prohibiting discrimination
Behavior that may lead to discrimination is not allowed in wages, promotions, rewards, access to training, hiring, and employment practices, including discrimination based on race, color, age, gender, sexual orientation, gender identify and expression, ethnicity or national origin, disability, pregnancy, religion, political affiliation, union membership, veteran status, protected genetic information, or marital status.
Furthermore, health checks and pregnancy tests are also regarded as discrimination if they could harm equal opportunity or the fairness of treatment.

6.6 Freedom of association, collective bargaining rights
The right of workers to establish and join trade unions must be respected, as well as the right of workers not to join a trade union and refrain from such activities.
Furthermore, workers and their representatives must be able to engage in collective bargaining to formally gain mutual understanding with management regarding concerns about working conditions and management practices, without fear of discrimination, retaliation, intimidation, or harassment.

6.7 Prohibition of inhumane treatment
Callous behavior such as sexual harassment and verbal abuse may intensify in the working environment without people nearby noticing it.
It is necessary therefore to establish procedures for quickly detecting and responding to such behavior while at the same time creating and promoting an environment within the company where employees can seek advice.

6.8 Promotion of diversity and inclusion
Respecting diverse human resources (i.e., having diversity in terms of race, nationality, gender, sexual orientation, age, disability, religion/beliefs, values, career and experience, and ways of working, for example) and providing them with opportunities to maximize their abilities will lead to corporate growth. Examples include appointing female executives, hiring foreign workers and people with disabilities, and rehiring retirees.