Supplier Sustainability Management Handbook

Sustainable Development 18 4.3.3 Labor Intermediaries • Labor intermediaries must obtain licenses in accordance with the laws and regulations of the operating location ； • Suppliers must provide labor intermediaries with clear written instructions that explicitly prohibit forced labor and human trafficking. 4.3.4 Formal Employment • Suppliers shall ensure that all employees have written employment contracts in compliance with applicable local laws and regulations. 4.3.5 Wages and Benefits • The minimum wage for employees should not be lower than the local minimum wage standard; • Overtime pay shall be fully disbursed in accordance with local laws and regulations; • Suppliers shall provide and contribute to statutory social insurance for employees in compliance with applicable laws and regulations; • Employees are entitled to paid leave as required by law, including time off for public holidays, as well as leave for marriage, maternity, and paternity; • Suppliers shall provide documentation on local minimum wage standards, attendance records, and payroll data to support Bosideng’s assessment of compliance with wage standards, overtime compensation, and wage payment practices. The assessment aims to align with the ILO definition of a living wage and in alignment with Anker and IDH methodologies, to ensure employees’ legal rights and basic living needs are met. 4.3.5.1 Payslips and Salary Payment • Employees must be given payslips in a language they can understand. This ensures that they are clearly aware of their actual earnings and the amount paid; • Salaries must be paid into bank accounts opened in the employee's name. Employees without bank accounts should be assisted in establishing one. 4.3.5.2 Deductions • Arbitrary deductions are prohibited. Only statutory withholdings and mutually agreed- upon deductions are allowed, and these must meet strict conditions; • Unreasonable deductions are prohibited, including those for drinking water, uniforms, tools, and safety equipment; the deductions for accommodation, meals, and other expenses must not exceed the actual costs; all deductions must be recorded to prove the actual costs. 4.3.6 Working Hours • Work arrangements should be clear and compliant with the law. They should also fully protect employees' right to rest and provide the necessary conveniences and support for employees in special circumstances, such as breastfeeding mothers; • Establish a standardized approval mechanism for vacation and overtime, strictly implement the principle of voluntary overtime, and strictly prohibit forcing or indirectly forcing employees to work overtime. Overtime must strictly comply with national laws