Supplier Sustainability Management Handbook

Sustainable Development 7 standards of the operating location or those set by the International Labour Organization, whichever is more stringent. 2.2.2 Forced Labor • Forced labor, bonded labor, prison labor, and labor obtained through human trafficking; • Charging employees' deposits, recruitment fees, or other unreasonable costs as a condition of employment in any form; • Withholding employees' identification cards, passports, and other personal documents, illegally restricting employees' personal freedom; • Employees must be able to terminate their labor contracts legally, without suffering illegal penalties or coercion; • Using labor intermediaries that are not legally registered or engage in illegal business activities; • Labor contracts do not comply with the national laws and regulations of the operating location; • Failure to provide foreign employees or those engaged in cross-border employment with a formal copy of the labor contract in a language they understand before they leave their country of origin. 2.2.3 Unauthorized Outsourcing • Subcontracting or outsourcing orders or production tasks to third parties without Bosideng's written authorization. 2.2.4 Work Environments with Severe Life-Threatening Hazards • Conditions in the workplace and daily life may directly lead to serious injury or death of employees or the public. This is particularly the case in "three-in-one" buildings, which combine production, storage and accommodation. 2.3 High-Risk Issues Bosideng defines the following behaviors as high-risk issues. Once identified, parties involved in high-risk operations (including suppliers, factories, auditing agencies, Bosideng employees, and third-party observers) must urgently report to the supply chain management center within 24 hours. 2.3.1 Wages and Benefits • Employee compensation is below the local minimum salary standard. Overtime pay is not fully paid as required by law. There are also instances of salary withholding, unjustified delays, and late payments; • Employees do not have full control over the funds in their bank accounts; • Employees do not enjoy the benefits stipulated by the laws of the operating location. 2.3.2 Working Hours • Failure to comply with regulations regarding working hours at the operating location; forcing or indirectly forcing employees to work overtime; and preventing employees