Code of Conduct for Manufacturers

At Fossil, we are committed to:

  • A standard of excellence in every aspect of our business and in every corner of the world;
  • Ethical and responsible conduct in all of our operations;
  • Respect for the rights of all individuals; and
  • Respect for the environment.

We expect these same commitments to be shared by all manufacturers of Fossil merchandise. At a minimum, we require that all manufacturers of Fossil merchandise meet the following standards:

Child Labor

Manufacturers will not use child labor.

The term “child” refers to a person younger than 16 or, if higher, the local minimum age for employment or the age for completing compulsory education.

Manufacturers employing young persons who do not fall within the definition of “children” will also comply with any laws and regulations applicable to such persons.

Involuntary Labor

Manufacturers will not use any forced or involuntary labor, whether prison, bonded, indentured or otherwise, or engage in Human Trafficking.

Coercion and Harassment

Manufacturers will treat each employee with dignity and respect and will not use corporal punishment, threats of violence or other forms of physical, sexual, psychological or verbal harassment or abuse. Sexual or any other kind of harassment is not acceptable. Fossil expects that all manufacturing personnel are trained on harassment and related laws annually.

Nondiscrimination

Manufacturers will not discriminate in hiring and employment practices, including salary, benefits, advancement, discipline, termination or retirement, on the basis of race, religion, age, nationality, social or ethnic origin, sexual orientation, gender, pregnancy, political opinion or disability.

Association

Manufacturers will respect the rights of employees to associate, organize, and bargain collectively in a lawful and peaceful manner, without penalty or interference.

Health and Safety

Manufacturers will provide employees with a safe and healthy workplace in compliance with all applicable laws and regulations, ensuring, at a minimum, reasonable access to potable water and sanitary facilities; fire safety; and adequate lighting and ventilation. Manufacturers will also ensure that the same standards of health and safety are applied in any housing that they provide for employees. Manufacturers will provide reasonable arrangements for women in connection with pregnancy, childbirth and nursing. Manufacturers will also provide reasonable safety precaution to protect pregnant women.

Compensation

We expect manufacturers to recognize that wages are essential to meeting employees’ basic needs. Manufacturers will, at a minimum, comply with all applicable wage and hour laws and regulations, including those relating to minimum wages, overtime, maximum hours, piece rates and other elements of compensation, and provide legally mandated benefits. Manufacturers should provide equal pay and benefits for equal work.

Hours of Work

Except in extraordinary business circumstances, manufactures will not require employees to work more than the lesser of (a) 48 hours per week and 12 hours overtime or (b) the limits on regular and overtime hours allowed by local law or, where local law does not limit the hours of work, the regular work week plus 12 hours overtime. In addition, except in extraordinary business circumstances, employees will be entitled to at least one day off in every seven-day period.

Manufacturers will compensate employees for overtime hours at such premium rate as is legally required or, if there is no legally prescribed premium rate, at a rate at least equal to the regular hourly compensation rate.

Where local industry standards are higher than applicable legal requirements, we expect manufacturers to meet the higher standards.

Protection of the Environment

Manufacturers will comply with all applicable environmental laws and regulations.

Other Laws

Manufacturers will comply with all applicable laws and regulations, including those pertaining to the manufacture, pricing, sale and distribution of merchandise. All references to “applicable laws and regulations” in this Code of Conduct include local and national codes, rules and regulations as well as applicable treaties and voluntary industry standards and, if enforcement of local or national laws is suspended, we still expect Manufacturers to comply with the laws.

Subcontracting

Manufacturers will not subcontract production for Fossil products or components, which contain Fossil trademarks, copyrights, designs or patents, without Fossil’s express written consent, and only after the subcontractor has entered into a written commitment with Fossil to comply with this Code of Conduct.

Monitoring and Compliance

Manufacturers will authorize Fossil and its designated agents (including third parties) to engage in monitoring activities to confirm compliance with this Code of Conduct, including unannounced on-site inspections of manufacturing facilities and employer-provided housing; reviewing books and records relating to employment matters; and private interviews with employees. Manufacturers will maintain on- site all documentation that may be needed to demonstrate compliance with this Code of Conduct.

Publication

Manufacturers will take appropriate steps to ensure that the provisions of this Code of Conduct are communicated to employees, including the prominent posting of a copy of this Code of Conduct, in the local language and in a place readily accessible to employees, at all times.

Ethical Standards

Bribes, kickbacks or similar unlawful or improper payments, in cash or kind, are strictly prohibited, whether
given to obtain or retain business or for any other purpose.