homeworkers code of practice

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Homeworkers Code of Practice authorised by ACCC

Friday 4 October 2013 @ 9.00 a.m. | Industrial Law | Trade & Commerce

By way of a Media Release (number 227 of 2013) posted to its website on 3 October 2013 the Australian Competition and Consumer Commission ( ACCC ) has authorised a revised form of the Homeworkers Code of Practice for a period of five years.

The Homeworkers Code of Practice is a voluntary Code established to ensure textile, clothing and footwear workers and homeworkers receive appropriate legal award entitlements and legislative protection. The Code is managed by the Homeworker Code Committee as part of the work of Ethical Clothing Australia .

The Homeworker Code Committee sought ACCC authorisation of the Code as the Code contains an agreement to only outsource work to contractors who comply with workplace laws, an agreement which in normal circumstances and without ACCC authorisation would breach the Competition and Consumer Act 2010 . The media release quotes ACCC Commissioner Dr Jill Walker:

“The ACCC considers that the Code is likely to provide businesses with a means to manage risks in their outsourced supply chains, and efficiently signal their compliance with workplace legal obligations . . . [leading] to more informed decision making throughout the supply chain. The ACCC also considers that public benefits are likely to arise from greater compliance by businesses with their legal obligations towards vulnerable workers  . . . The revisions to the Code clarify its operation and extend its potential operation to textiles businesses to reflect changes to underlying laws.”

In its release the ACCC concedes that it considers that the Code could create some "anticompetitive detriment" but such is limited by the following:

  • the Code is voluntary;
  • retail signatories and accredited manufacturers are only able to agree to boycott other businesses that are not compliant with their legal obligations; and
  • the Code contains safeguards against inappropriate accreditation or boycott decisions.

In giving the code authorisation, the ACCC states that it had regard to submissions from interested parties who stated that accreditation under the Code was not voluntary for parties seeking to comply with Commonwealth Procurement Rules pointing out that: "ultimately, it is a matter for individual businesses to decide whether or not they tender for Commonwealth projects and therefore must comply with the requirements set by the Government".

The ACCC through ACCC Commissioner Dr Jill Walker points out that:

“On balance, the ACCC considers the Code is likely to result in net public benefits. The benefits of efficiencies in risk management of outsourced supply chains and of compliance with legal obligations to workers are likely to outweigh the detriments . . .”

Authorisation of then Code has the effect of providing statutory protection for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010 and in general terms the ACCC grants authorisation when it is satisfied that the public benefit from the conduct permitted outweighs any public detriment.

TimeBase is an independent, privately owned Australian legal publisher specialising in the online delivery of accurate, comprehensive and innovative legislation research tools including LawOne and unique Point-in-Time Products.

  • ACCC authorises Homeworkers Code of Practice (ACCC Media Release)
  • ACCC Related public register records (link to related material)
  • Ethical Clothing Australia (link to website)

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ACCC proposes to grant authorisation to Homeworkers Code of Practice

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Code for ethical treatment of clothing workers renewed

homeworkers code of practice

Ethical Clothing Australia’s Homeworkers Code of Practice , which helps reduce the exploitation of textile, clothing and footwear (TCF) workers in Australia, has been reauthorised by the ACCC for a further ten years.

The Code imposes obligations on participants in the supply chain to demonstrate that they provide award wages and conditions to textile, clothing and footwear workers.

The ACCC considers that the Code is an important tool for incentivising businesses to observe their obligations to vulnerable workers in the TCF industry and take steps to manage legal and reputational risks in their outsourced supply chains.

“By increasing industry and consumer awareness about working conditions, businesses accredited under the Code are also able to promote their ethical credentials to consumers,” ACCC Deputy Chair Delia Rickard said.

“The certification trademark for ethical textiles, clothing, and footwear, allows consumers to choose products with confidence that the businesses they are buying from aren’t exploiting workers.”

“Consumers are becoming increasingly aware of the impact of unethical practices on vulnerable workers and some are changing their buying habits as a result.”

The ACCC examined the possibility that the Code could lead to anti-competitive detriment such as increased costs for businesses seeking accreditation, but concluded that this risk of detriment is limited because the Code is voluntary.

Retail signatories and accredited manufacturers are only able to agree to boycott other businesses that are not compliant with their legal obligations, and the Code contains safeguards against inappropriate accreditation or boycott decisions.

Accredited businesses can display the following ethical certification trademark on their signs and products to demonstrate their compliance:

homeworkers code of practice

(Source: IP Australia, Trademark #1338510)

The ACCC’s final determination is available at: Homeworker Code Committee Incorporated .

Homeworkers are individuals and employees who perform work in the textile, clothing and footwear industry from home or at other premises that would not commonly be regarded as business premises.

The Homeworker Code Committee Incorporated is a not-for-profit organisation and registered charity (ABN 88997259919). The Homeworkers Code of Practice is central to its operations in overseeing compliance in the TCF Industry, preventing the exploitation of TCF Workers and promoting TCF products produced in accordance with Australian laws.

The Homeworkers Code of Practice, is soon to be renamed ‘Ethical Clothing Australia’s Code of Practice, Incorporating Homeworkers’. The Code Committee has made minor amendments to the Code since 2013, when the Code was last authorised by the ACCC, and is proposing to implement further changes.

In order to gain accreditation under the Code, businesses must submit to audits undertaken by CFMMEU which check that those businesses are complying with their legal obligations to workers.

Audits are also conducted along the supply chain of businesses seeking (or renewing) accreditation under the Code, to ensure that the accredited businesses are complying with their legal obligations to the workers involved at each stage of the production of TCF products sold by the accredited business.

The positive impact of the Code on the working conditions faced by Vietnamese outworkers in Australia is described in the submission to the ACCC by Dr Shelley Marshall, RMIT University dated 21 May 2018.

Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010 . Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

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Clothing outworkers

The  Clothing Outworker Code of Practice has applied in South Australia since 1 March 2008.

This Code of Practice ensures:

  • greater protection for clothing outworkers by creating greater transparency in the supply and production of clothing
  • a fair system that supports the integrity of employers who act responsibly in the production and sale of clothing.

An outworker is someone engaged to work (e.g. given articles or materials to be made up, cleaned, altered, finished or repaired) at their own home or other location which would not normally be regarded as a place where business or commercial activity is conducted.

The nature of the clothing industry means that outworkers are vulnerable in the workforce as they are often engaged through a long chain of contractors. The Code applies to persons engaged in manufacturing, distribution and retailing of clothing products in South Australia. Clothing retailers, suppliers and contractors are now required to provide and maintain records relating to the engagement of outworkers and show how clothing has been produced and supplied.

The Code was developed through consultation with key stakeholders and developments in laws in other states and the Commonwealth. The Code limits employers who seek to shop around for the cheapest labour in different states and maintains consistency with the current requirements of relevant industrial standards.

Homeworkers Code of Practice

The obligations in the Code complement and encourage compliance with the national and voluntary  Homeworkers Code of Practice (Voluntary Code). A party engaged in the clothing industry is  exempt from the mandatory Code if it is a signatory to, or accredited under, the Voluntary Code, available from  Ethical Clothing Australia .

The Voluntary Code is agreed between organisations representing stakeholders involved in the manufacture and supply of clothing products which have been manufactured (or worked on) in Australia, including the Textile, Clothing and Footwear Union of Australia, the Australian Retailers Association and other associations and individual companies.

The Voluntary Code is closely linked to FairWear, which aims to eliminate the exploitation of outworkers in the Australian clothing industry through actively encouraging Australians to think about where and how their clothing is produced.

Accredited companies benefit from having a group of suppliers they can select from who are meeting legal and community standards. Which means companies can be certain that their clothing products and brand names are protected from unscrupulous activities.

The accreditation process assists companies to develop strong and reliable relationships with suppliers who are providing ongoing assurance of quality, delivery time and meeting both community and legal standards and supports branding protection, integrity of products and minimises poor publicity.

National Industrial Relations

All South Australian private sector businesses (including the non-government community services sector, private schools and universities) have been covered by the Commonwealth  Fair Work Act 2009 and are therefore part of the national industrial relations system.

The modern award relevant to the clothing industry, including wages and conditions of employment, is the  Textile, Clothing, Footwear and Associated Industries Award .

Related information

Fair Work (Clothing Outworker Code of Practice) Regulations 2022 (SA Legislation)

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Ethical Clothing Australia

Ethical Clothing Australia’s Code of Practice, incorporating Homeworkers

Manufacturers Agreement

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Introduction

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CLAUSE 1 – AGREEMENT

Clause 2 – parties, clause 3 – objectives.

  • To end exploitation of workers and homeworkers in the textile, clothing and footwear industry
  • To enable workers and homeworkers to clearly understand their employment entitlements
  • To ensure workers and homeworkers receive their appropriate award entitlements and legislative protection
  • To establish a system of accreditation for Manufacturers who comply with this Agreement,
  • To educate workers, manufacturers, contractors, fashion labels and the wider community about the purposes and operation of this Agreement
  • To assist homeworkers by supporting, consistent with this Agreement, community and industry education securing compliance with this Agreement and promoting its purpose.
  • To facilitate for an accredited business, a transparent, ethical and more sustainable supply chain
  • To provide a mechanism to an accredited business to achieve, and ensure ongoing compliance with the TCF Award and relevant legislation
  • To provide opportunities to accredited business, to promote their products as ethically produced, Australian products and enabling them through a licence agreement to use Ethical Clothing Australia’s trade marks.

CLAUSE 4 – DEFINITIONS

Clause 5 – committee.

  • Accreditation of applicant businesses and reaccreditation of accredited businesses
  • Withdrawing a manufacturer’s accreditation
  • Holding and maintaining the accreditation register of accredited manufacturers
  • Licensing Accredited Manufacturers and registered manufacturers to use the accreditation trade mark
  • Allocating monies from the education, publicity and compliance fund
  • Settling any disputes that may arise in relation to the operation of this agreement, which may include the participation of an independent mediator, where agreed (where the committee cannot resolve a dispute the matter will be referred to the agreed independent mediator for resolution) and
  • Establishing processes and procedures to rapidly and efficiently deal with issues which come before it, in particular those which require mediation.

CLAUSE 6 – ROLE OF THE UNION

  • Undertaking compliance audits as part of the accreditation process;
  • Identifying incidents of non-compliance with the TCF Award and relevant legislation and/or this Agreement;
  • Securing compliance through the promotion of this Agreement;
  • Ensuring compliance with the TCF Award and relevant legislation by non – accredited businesses;
  • Ensuring ongoing compliance with this Agreement by accredited businesses.

CLAUSE 7 – ROLE OF ETHICAL CLOTHING AUSTRALIA

Clause 8 – accreditation.

  • Timely completion of required documentation and payment of a new accreditation fee to Ethical Clothing Australia (ECA)
  • Ensuring all workers and homeworkers (if any) in its supply chain involved in the performance of work in relation to its products, are receiving wages and conditions as provided for in the TCF Award and under all relevant legislation;
  • Co-operating with the Union regarding compliance checks
  • Timely completion of required ECA documentation and payment of an annual accreditation fee to Ethical Clothing Australia;
  • Co-operation with the Union regarding updated compliance checks;
  • Ongoing compliance with the TCF Award and related legislation by the business’ supply chain
  • the accredited business or its supply chain becomes non-compliant with the requirements of this Agreement; and/or
  • the manufacturing circumstances of the accredited business change (for example, the business ceases to be eligible under the Code of Practice because it stops manufacturing in Australia; or the business ceases trading and/or becomes insolvent).
  • the grounds on which it considers that the Accredited Manufacturer has failed to comply with this Agreement; and
  • that the Committee may cancel the accreditation of the Accredited Manufacturer unless the Accredited Manufacturer provides, within twenty eight (28) days of delivery of the notice, material which satisfies the Committee that the Accredited Manufacturer has complied with this Agreement.

CLAUSE 9 – OBLIGATIONS OF ACCREDITED MANUFACTURERS

  • Advising ECA within 7 days of any changes to its manufacturing circumstances, including for example, the removal or addition of suppliers from their supply chain; taking manufacturing off shore; moving location, changing contact or entity details; corporate restructure which impacts on the accreditation of individual brands within the accredited business.
  • Co-operating with the Union regarding ongoing legal compliance and auditing. This includes responding to requests in a timely manner and facilitating the cooperation of all contractors and sub contractors within their supply chain.
  • Co-operating and providing ECA with requested documentation and the payment of fees within the requested timeframe.
  • Keeping and maintaining the following records in connection to arrangements made with other contractors or homeworkers:
  • The appropriate time standard rate for work performed by the homeworker based on the TCF Award hourly rate (minimum skill level 3);
  • At least the minimum number of hours per fortnight as defined by Schedule F of the TCF Award and a maximum workload per fortnight (76 hours); ECA® Code of Practice, incorporating Homeworkers – Manufacturers Agreement Page 12
  • The homeworker is not being required to work on a Saturday, Sunday or public holidays, or beyond 7.6 hours in one day, unless they agree to do so and the homeworker receives the appropriate rate of pay under the TCF Award;
  • Appropriate workers compensation protection as per the relevant state or federal legislation;
  • Appropriate notice and redundancy entitlements as per the TCF Award;
  • Appropriate superannuation contributions are being made on the homeworker’s behalf in accordance with the TCF Award and federal legislation;
  • Appropriate pay slip records containing specified information as per the Fair Work legislation; and
  • The standard letter as provided for in Appendix 1.

CLAUSE 10 – LICENSING AND USE OF TRADE MARKS

Certification Trade Mark

CLAUSE 11 – ACCREDITATION FEES

Clause 12 – code funds.

  • Contributions in kind by the Union, NSW Business Chamber and Ai Group
  • Contributions in kind from accredited manufacturers and retailers which participate as members of the Homeworker Code Committee
  • Contributions from retailers and manufacturers, through payment of accreditation and license fees
  • Financial assistance from Local, State and Commonwealth Governments
  • To the Union for compliance activities;
  • Towards education and publicity activities (education and publicity activities for the purposes of this involves educating homeworkers, contractors, manufacturers, retailers and the wider community about the operation and purposes of the Agreement);
  • Towards the development of accreditation tools and resources; and
  • Other Homeworker Code Committee Inc. costs

CLAUSE 13 – RECORDS TO BE KEPT

Clause 14 – dispute resolution, clause 15 – amendment, signatories.

  • SIGNED BY * on behalf of the applicant business
  • SIGNED BY * on behalf of The Textile, Clothing, Footwear Sector of the Manufacturing Division of the Construction, Forestry, Maritime, Mining and Energy Union (the Union),

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  2. Codes of Practice

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  3. CODE OF PRACTICE

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  4. Code of Practice

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  5. The Benefits

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COMMENTS

  1. The Homeworkers' Code of Practice

    The homeworkers' code of practice has been developed by the TCFUA together with representatives of the retail and manufacturing in the textile, clothing and footwear industries. The Code is a self regulatory system that intends to regulate and monitor the production chain from the retailer to the homeworker.

  2. PDF Revised Homeworkers Code of Practice

    Homeworkers Code of Practice Part 1 - Page 8 of 29 Where accreditation is conferred on a manufacturer, that manufacturer will be entitled to be known as an Accredited Manufacturer and licensed accordingly. In addition all Accredited Manufacturers will be provided with an Accreditation ertificate [ renewed annually.

  3. ACCC re-authorises the Homeworkers Code of Practice

    The Australian Competition and Consumer Commission has issued a final determination re-authorising* the arrangements that comprise the Homeworkers Code of Practice. The Homeworkers Code is a voluntary self-regulatory scheme and provides for accreditation of parties in the garment industry to assist in ensuring that homeworkers are employed according to relevant award conditions.

  4. PDF HOMEWORKERS CODE OF PRACTICE

    Homeworkers Code of Practice 3 (c) ornamentations made of textiles, felts or similar fabrics, and artificial flowers. "Records" means the documents referred to in clause 3.1. "Retailer" means any retailer business which is a member of the ARA. "State Award" means the relevant state industrial instrument eg. Clothing Trades (State)

  5. Homeworkers Code of Practice authorised by ACCC

    The Homeworkers Code of Practice is a voluntary Code established to ensure textile, clothing and footwear workers and homeworkers receive appropriate legal award entitlements and legislative protection. The Code is managed by the Homeworker Code Committee as part of the work of Ethical Clothing Australia.

  6. University of Minnesota Human Rights Library

    The Global Sullivan Principles: The Homeworkers' Code of Practice: The Macbride Principles, by Father Sean McManus, President, Irish National Causus, December 1997.

  7. HOMEWORKERS CODE OF PRACTICE

    manufacturers, suppliers and homeworkers the terms of this statement, the obligations of the award and the code of practice. 9: Nothing in this agreement shall be construed to take away any legal rights of the parties or any employee and shall not be a basis for discriminating unfairly against any employer which conforms with the agreement.

  8. PDF Ethical Clothing Australia's Code of Practice, incorporating Homeworkers

    4.3 "Code of Practice" or "Agreement" means Ethical Clothing Australia Code of Practice, incorporating Homeworkers. 4.4 "Committee" means the management committee of the Homeworkers Code of Practice. 4.5 "Contractor" means a business engaged to produce or arrange the manufacture of products in the textile,

  9. PDF About the ETI homeworker guidelines

    Homeworkers Group was formed in 2002 with representatives of ETI's retailer, trade union and NGO members. Identifying the need for guidance A key aim of the Group was to increase its understanding of how to interpret, monitor and implement the ETI Base Code with homeworkers. Applying codes of labour practice is particularly challenging

  10. Code for ethical treatment of clothing workers renewed

    The Homeworker Code Committee Incorporated is a not-for-profit organisation and registered charity (ABN 88997259919). The Homeworkers Code of Practice is central to its operations in overseeing compliance in the TCF Industry, preventing the exploitation of TCF Workers and promoting TCF products produced in accordance with Australian laws.

  11. PDF Determination

    The Homeworkers Code of Practice, which is to be renamed 'Ethical Clothing Australia's Code of Practice incorporating Homeworkers' (the Code, attached at Annexure A), is a voluntary mechanism within the textile, clothing and footwear (TCF) industry designed to assist businesses to ensure that they, and their outsourced supply

  12. PDF ETI homeworker guidelines: recommendations for working with homeworkers

    In 2002, the ETI Homeworkers Group was set up in the UK, comprised of retailers, brands, suppliers, trade unions and NGO representatives. The Group commissioned a review of current knowledge and experience of applying corporate codes of labour practice with homeworkers, which informed their decision to begin work on a set of guidelines.

  13. PDF Sources of information on homeworker involvement and conditions

    chains, provide more information about homeworkers' conditions, and/or work with you to address areas that fall short of international standards and codes of practice. Particular information sources in the not-for-profit sector include: • National trade union federations. in their respective . countries can provide information or contacts ...

  14. PDF Homeworkers and homeworking

    homeworkers included: delivery and distribution; research and surveys; switchboard or helpdesk; and marketing, sales and administration. See Box 1 for further information on the nature of homeworkers in the UK. 4 Acona, Review of current knowledge and experience of applying corporate codes of practice with homeworkers, Report for ETI, 2002, p 6.

  15. Code for ethical treatment of clothing workers reauthorised

    Ethical Clothing Australia's Homeworkers Code of Practice, which helps reduce the exploitation of textile, clothing and footwear (TCF) workers in Australia, has been reauthorised by the ACCC for a further ten years. ... Homeworker Code Committee Incorporated. Homeworkers are individuals and employees who perform work in the textile, clothing ...

  16. ACCC proposes to authorise Homeworkers Code of Practice

    The Homeworkers Code is designed to supplement the outworker provisions of the Clothing Trades Award 1982 and was negotiated by industry participants in 1997. ... Two key recommendations arising from the 1996 Report was the development of an industry Homeworkers Code of Practice, and that industry adopt an agreed label declaring that the ...

  17. Clothing outworkers

    Homeworkers Code of Practice. The obligations in the Code complement and encourage compliance with the national and voluntary Homeworkers Code of Practice (Voluntary Code). A party engaged in the clothing industry is exempt from the mandatory Code if it is a signatory to, or accredited under, the Voluntary Code, available from Ethical Clothing ...

  18. PDF HOMEWORKER GUIDELINES WHAT SUPPLIERS CAN DO

    Retailers, suppliers and others are trying to address and improve this situation by applying codes of labour practice to homeworkers. However, this can be very challenging because of the complexity of supply chains involving homeworkers, the fact that homeworkers are right at the bottom of the supply chain, and the informal nature of their work.

  19. Homeworker Code Committee Incorporated

    The Homeworkers Code Committee (HWCC) has applied to revoke authorisations A91354-A91357 (which expire on 26 October 2018) and substitute a new authorisation (AA1000418) in order to continue to give effect to the Homeworkers Code of Conduct, to be renamed 'Ethical Clothing Australia's Code of Practice, Incorporating Homeworkers' (the Code), as amended.

  20. Industrial Relations (Ethical Clothing Trades) Act 2001 No 128

    Homeworkers Code and the Target Code, through consultation with the Code of Practice Committee, clothing industry retailers and manufacturers, relevant industrial organisations and other interested persons and bodies, (e) to support changes to the Homeworkers Code that the Council considers might

  21. Ethical Clothing Australia

    Ethical Clothing Australia's Code of Practice, incorporating Homeworkers ('the Code of Practice') is a voluntary Code established to ensure textile, clothing and footwear workers and homeworkers receive appropriate legal award entitlements and legislative protection. Accreditation is only available to businesses who manufacture textile ...

  22. PDF HOMEWORKER GUIDELINES WHAT RETAILERS CAN DO

    3.5 Find out more about homeworkers in your supply chain 11 3.6 Decide where to start 11 4 Taking action 12 4.1 Applying codes of labour practice to homeworkers 12 4.2 Work with your suppliers 16 4.3 Take action in your own company 17 4.4 Work with other stakeholders 18 5 Monitoring progress 19 Annexes

  23. PDF Fair Work (Clothing Outworker Code of Practice)Regulations 2022

    Code of Practice, incorporating Homeworkers by parties to that code. 4—Regulatory framework (1) This code is made under section 99C of the . Fair Work Act 1994. (2) This code is to be read in conjunction with the Act, the Award and any other relevant industrial instrument. 5—Definitions . In this code— Act. means the . Fair Work Act 1994 ...

  24. PDF Draft Determination

    effect to a revised version of the Homeworkers Code of Practice for five years. The ACCC will seek submissions in relation to this draft determination before making its final decision. The Homeworkers Code of Practice, which is to be renamed 'Ethical Clothing Australia's Code of Practice incorporating Homeworkers' (the Code), is a voluntary