TOP GLOVE CONTINUOUSLY DEMONSTRATES ETHICAL LABOUR PRACTICES (APPENDIX)

APPENDIX: Social Compliance at Top Glove: Ongoing Good Practices and Improvements since 2019

Guided by the Top Glove Human Rights & Ethical Conduct policy, Top Glove is committed to uphold good labour practices and comply with requirements of labour laws and best practices. We are also continuously improving our social compliance towards ensuring our employees’ well-being is always well taken care of.

1.      Continuous compliance with Malaysian labour authorities on payment of wages

• Top Glove pays its workers in accordance with Malaysian labour law on wages, which is a basic monthly salary of RM1,200 per month. However, the worker’s take-home pay is more than RM1,600 per month. Workers’ wages are always paid in a timely manner and salaries are never withheld.
• In accordance with labour law, Malaysian labour authorities have allowed monthly deductions amounting to RM60 (which consists of RM10 for insurance under the Foreign Worker Hospitalisation and Surgical Insurance Scheme and RM50 for accommodation) to be made. However, Top Glove has its own medical clinics which provide free medical check-ups, consultation and medication for both workers and staff.
• In addition, the company recently made an ex-gratia payment to its workers in appreciation of their contributions during the COVID-19 pandemic.

2.      Absolutely no forced or excessive overtime by workers

• Our workers do not perform excessive OT and are given rest daysin line with Malaysian labour law, which is 104 hours OT per month and 1 rest day per week respectively.
• Overtime (OT) is solely performed on a voluntary basis. Workers are only allowed to perform OT if they have not exceeded the daily maximum allowable working hours.
• Strict monitoring via digital tools with regard to rest days and overtime hours clocked is implemented, to ensure full compliance with labour law. This has been verified by external audits and Malaysian government authorities.

3.      Decent accommodation and facilities for workers

• Decent accommodation with proper facilities and sufficient spacing are provided to all workers.
• All our workers’ accommodation is fitted with cooking facilities. Cooking is allowed at all hostels, except for 1 hostel where there is no centralised kitchen. At this particular hostel, a 24-hour canteen which offers 2 types of cuisine is operational for the convenience of its workers.
• In addition, this hostel provides various amenities including a barber shop, prayer halls, mini market, Automatic Teller Machines (ATM), laundromat, money transmission operators and recreational areas.

4.      Employee safety and health is our foremost priority

• Over and above meeting requirements set out by the Department of Occupational Safety & Health (DOSH), a department under the Ministry of Human Resources, we are the only manufacturing company to have invested in the Zero Harm and Safety Health Emergency Preparedness Program effective 1 May 2019. Under this program, factories have a designated First Aid Corner equipped with cardiac emergency, immobilisation, stabiliser and mobiliser equipment. The factories’ First Responders and Safety Health Officers will work in tandem with a 24-hour emergency response team.
• Top Glove has also invested in two 24-hour emergency ambulance with trained paramedics for all its factories located within the vicinity. The ambulance is stationed at TGGD Medical and Dental Clinic, which is at Top Glove’s 23-storey Corporate Office and just a 10-minute drive to Top Glove’s Klang factories.
• Top Glove is authorised to set up its own auxiliary police, who help look after the safety of our office staff and workers, as well as Top Glove’s properties.
• Patrols conducted are for the safety of our workers, as well as the community. There are cases of workers being robbed while out, especially at night; having police patrolling the area will minimise this. This also prevents foreign workers from loitering and possibly causing social problems. Top Glove maintains a good relationship with the local police, working together with them to ensure the safety of our workers and the community.
• We also have 7 full-time Corporate Nutritionists who ensure the health of all our employees are being well-taken of. In addition, there is a Workers’ Health Protection Programme (WHPP) in place, which is fully subsidised by Top Glove and entitles workers to a free blood screening, as well as basic vision and hearing assessment.

5.      Upholding the highest standards of governance

• Top Glove is proudly the first private company in Malaysia to receive the ISO 37001: 2006 Anti-Bribery Management System (ABMS) certification, which is the culmination of many years of consistently practising and inculcating an environment that advocates Honesty, Integrity and Transparency, values which represent Top Glove’s Business Ethics.
• We also make it a point to work with business partners who share our values and sustainability commitment; our suppliers and customers are expected to embed sustainability throughout their business operations especially with regards to social compliance.
• Anti-corruption is overseen by the Group’s Managing Director, who is also the head of the Top Glove Prevention and Anti-Corruption Committee (TGPAC). In the event of a suspected corruption or bribery activity, TGPAC will conduct an investigation, take action and report to the Board accordingly.

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