Global Ethical Sourcing and Modern Slavery Policy

Businesses today have an increasingly important role to play in ensuring respect for and in promoting human rights and in eradicating modern slavery. Sadly, modern slavery and human trafficking are growing and complex problems. Data from the Walk Free Foundation published in their 2018 Global Slavery Index suggests that the problem is still pervasive.

The Australian Modern Slavery Act 2018 (Act) took effect on 1 January 2019 and requires corporations make an annual public report (a Modern Slavery Statement) on their actions to address modern slavery risks in their business and their supply chains. In addition, other jurisdictions have implemented modern slavery legislation and, where applicable and where those laws impose different obligations than under the Act, Appen will comply with those laws. For example, the UK, California and NSW governments have passed modern slavery legislation. Because this is a global issue Appen has made this a global policy. It will apply to all companies in the group and all operations around the world. The Policy will be updated over time to address new legislative initiatives where they apply to Appen’s operations.

Beyond legal compliance, stakeholders, employees, the community and shareholders share an expectation today that companies take steps to help eliminate modern slavery.

The purpose of this Policy is to ensure that Appen:

1. complies with applicable laws and regulations regarding ethical sourcing, human trafficking and modern slavery;
2. acts to reduce the risk of modern slavery occurring in Appen’s operations and supply chains;
3. sources products and services in accordance this Policy;
4. educates its workers regarding modern slavery and trains its workers to better understand Appen’s obligations under this Policy; and
5. encourages its suppliers to improve their practices regarding modern slavery.

This Policy is divided into two main sections:

1. Things we require of our Suppliers; and
2. Things we will do ourselves.

Appen will, as far as practicable, use in its operational and supplier contract terms requirements that suppliers comply with the principles set out in Exhibit 1 (Principles) and which allow termination if the suppler fails to meet these Principles or elects not to work towards meeting the Principles in a timely fashion. Appen will monitor the effectiveness of and compliance with the Principles by itself and its suppliers. A supplier is a person or business supplying products or services for use by Appen itself or for Appen’s customers.

Appen will implement an approach to modern slavery risk management and compliance internally in accordance with the guidelines in Exhibit 2 (Guidelines). This approach will ensure due diligence is performed on target companies and that acquired companies transition to Appen’s practices in a timely fashion.

If the Policy is breached, the company will act as quickly as practicable to investigate the breach and mitigate adverse impacts on those affected, including workers, individuals or communities.

This Policy cannot be amended without approval of the Appen Board. The Appen Board is responsible for oversight of the company’s ethical sourcing and modern slavery commitments and will review this Policy regularly to ensure it continues to evolve and reflect legal requirements and community expectations.

Suppliers must not use forced labour (slave, prison, indentured, bonded, or otherwise). Suppliers must not traffic workers. Suppliers must not exploit their workers by means of threat, force, coercion, abduction, or fraud. Working must be voluntary, and workers must be free to leave work and terminate their employment with reasonable notice. Involuntary labour includes the transportation, harboring, recruitment, transfer, receipt, or employment of persons by means of threat, force, coercion, abduction, fraud, or payments to any person having control over another person for the purpose of exploitation.

Workers shall not be required to pay recruitment, hiring, or other similar fees related to their employment and that shall be communicated to workers in their native language in advance of employment. If such fees are found to have been paid by workers, such fees shall be repaid to the worker. Supplier shall ensure that the third-party recruitment agencies it uses are compliant with the provisions of this Policy and the law.

Worker employment terms must be clear and understandable. Supplier shall ensure that workers’ contracts clearly convey the conditions of employment in a language understood by the workers.

Our suppliers must not require their workers to surrender government issued identification, passports, or work permits as a condition of working, and our suppliers may only temporarily hold onto such documents to the extent reasonably necessary to complete legitimate administrative and immigration processing.

Supplier shall not impose unreasonable restrictions on movement within their workplace or upon entering or exiting company-provided facilities.

Suppliers must ensure that labour sourcing or recruiting organisations also comply with these requirements.

In some jurisdictions, suppliers may offer children and young people paid or unpaid opportunities to assist with data collection (eg. voice recording), to participate in research or gain work-experience, provided it does not conflict with the ILO Convention and is consistent with local laws. Suppliers will ensure that any tasks performed by a child or young person are closely supervised and not likely to interfere with that person’s education, or to be harmful to that person’s health or mental, spiritual, moral or social development.

Otherwise, suppliers may only employ workers whose age is the greater of: (i) 15 years, (ii) the age of completion of compulsory education, or (iii) the minimum age to work in the country where work is performed. Suppliers may employ such people, provided they do not perform work that might jeopardize their health, safety, or morals, and is otherwise consistent with ILO Minimum Age Convention No. 138. Suppliers shall not require juvenile workers to work overtime or perform night-time work. Suppliers shall ensure proper management of student workers through proper maintenance of student records, rigorous due diligence of educational partners, and protection of students’ rights in accordance with applicable law and regulations. Suppliers shall provide appropriate support and training to all student employees.

Suppliers may provide legitimate opportunities or other workplace apprenticeship programs for educational benefit that are consistent with the ILO Minimum Age Convention No. 138.

If a Supplier engages an employee, those Suppliers must comply, at a minimum, with all laws regulating local wages, overtime compensation and legally mandated benefits. Record keeping must be accurate. Such employees must be provided with written and understandable information about their pay and employment conditions. Deductions from wages, unless provided by law, shall not occur without the agreement of the employee concerned

A workweek for employees shall be restricted to 60 hours, including overtime, and workers shall take at least one day off every seven days except in emergencies or unusual situations. Regular work week shall not exceed 48 hours. Supplier shall follow all applicable laws and regulations with respect to working hours and days of rest for employees, and all overtime must be voluntary.

Suppliers must ensure that all conditions of employment must be based on an individual’s ability to do the job, not on the basis of characteristics, such as gender, ethnic origin, religion, age, disability, personal beliefs, marital status, sexual orientation, union membership or political affiliation. Certain projects may require participants have certain characteristics (eg. a voice sample may be required of people from various age groups as voice patterns and pitch change throughout life).

Workers shall be treated with dignity and respect. Suppliers must ensure that they provide an environment where their employees can work without distress or interference caused by illegal harassment, discrimination, bullying or any other inappropriate workplace behaviour.

Suppliers shall provide a safe and hygienic working environment for their workers (including supplier provided worker accommodation) that is without risk to health and without any unreasonable hazards. Workers have the right to refuse work that is unsafe.

Suppliers must act ethically and comply with relevant anti-corruption laws. Bribes, favours, benefits or other similar unlawful or improper payments, in cash or in kind, are strictly prohibited, whether given to obtain business or otherwise.

Where sub-contracting is permitted, suppliers must have adequate processes in place for properly managing sub-contracting to ensure that sub-contractors operate in accordance with these requirements.

Suppliers shall comply with relevant local and national environmental protection laws and will as far as practicable comply with applicable international environmental protection standards.

Suppliers shall respect the rights of their workers to lawfully associate or not to associate with worker groups or trade unions of their choosing, as long as such groups are legal in the country of operation. Where provided for under local law, workers are allowed to select worker representatives and those representatives will not be discriminated against.

Migrant workers shall have the same entitlements as local workers as stipulated by local law. If suppliers engage foreign or migrant workers, such workers must be engaged in full compliance with the immigration and labour laws of the host country.

Suppliers must have a process to allow their workers to raise grievances. Suppliers must protect worker whistleblower confidentiality and prohibit retaliation against workers who report workplace grievances.

Appen will appoint a risk-owner with accountability for modern slavery issues and compliance with this Policy. The risk owner will be accountable for addressing modern slavery issues in company operations and with supplier relationships.

Appen will ensure that due diligence activities are directed towards understanding the risks of modern slavery with regard to any target company. Consistent with the approved integration plans and any earnout obligations, acquired companies will transition to being subject to these Guidelines.

Appen will map supply chains it manages (eg. Appen Connect) and assess the risks of modern slavery across its operations and the modern slavery risks of those suppliers.

Appen will seek assurances from or perform due diligence on new (or renewing) suppliers to determine their risk in relation to ethical sourcing and modern slavery. Appen will have a process in place to consider the supplier’s reported ethical sourcing and modern slavery performance.

Appen will assess these processes through their audit/compliance program to confirm compliance with this Policy.

During the time leading up to the first required Modern Slavery Statement, Appen will train its workers in relation to the Policy and ensure they receive training on any supporting processes applicable to their role.

Appen must not use forced labour (slave, prison, indentured, bonded, or otherwise). Appen must not traffic workers. Appen must not exploit their workers by means of threat, force, coercion, abduction, or fraud. Working must be voluntary, and workers must be free to leave work and terminate their employment with reasonable notice. Involuntary labour includes the transportation, harboring, recruitment, transfer, receipt, or employment of persons by means of threat, force, coercion, abduction, fraud, or payments to any person having control over another person for the purpose of exploitation.

Workers shall not be required to pay recruitment, hiring, or other similar fees related to their employment and that shall be communicated to workers in their native language in advance of employment. If such fees are found to have been paid by workers, such fees shall be repaid to the worker. Appen shall ensure that the third-party recruitment agencies it uses are compliant with the provisions of this Code and the law.

Worker employment terms must be clear and understandable. Appen shall ensure that workers’ contracts clearly convey the conditions of employment in a language understood by the workers.

Appen must not require their workers to surrender government issued identification, passports, or work permits as a condition of working, and Appen may only temporarily hold onto such documents to the extent reasonably necessary to complete legitimate administrative and immigration processing.

Appen shall not impose unreasonable restrictions on movement within the workplace or upon entering or exiting company-provided facilities.

Appen must ensure that labour sourcing or recruiting organisations also comply with these requirements.

In some jurisdictions, children and young people may be offered paid or unpaid opportunities to assist with data collection (eg. voice recording), to participate in research or gain work-experience, provided it does not conflict with the ILO Convention and is consistent with local laws. Appen will ensure that any tasks performed by a child or young person are closely supervised and not likely to interfere with that person’s education, or to be harmful to that person’s health or mental, spiritual, moral or social development.

Otherwise, Appen may only employ workers whose age is the greater of: (i) 15 years, (ii) the age of completion of compulsory education, or (iii) the minimum age to work in the country where work is performed. Appen may employ such people, provided they do not perform work that might jeopardize their health, safety, or morals and is otherwise consistent with ILO Minimum Age Convention No. 138. Appen shall not require juvenile employees to work overtime or perform night-time work. Appen shall ensure proper management of student workers through proper maintenance of student records, rigorous due diligence of educational partners, and protection of students’ rights in accordance with applicable law and regulations. Appen shall provide appropriate support and training to any student employees.

Appen may provide legitimate opportunities or other workplace apprenticeship programs for educational benefit that are consistent with the ILO Minimum Age Convention No. 138.

If Appen engages an employee, Appen must comply, at a minimum, with all laws regulating local wages, overtime compensation and legally mandated benefits. Record keeping must be accurate. Such employees must be provided with written and understandable information about their pay and employment conditions. Deductions from wages, unless provided by law, shall not occur without the agreement of the employee concerned.

A workweek for Appen employees shall be restricted to 60 hours, including overtime, and employees shall take at least one day off every seven days except in emergencies or unusual situations. Regular work week shall not exceed 48 hours for employees. Appen shall follow all applicable laws and regulations with respect to working hours and days of rest, and all overtime must be voluntary.

Appen must ensure that all conditions of employment must be based on an individual’s ability to do the job, not on the basis of characteristics, such as gender, ethnic origin, religion, age, disability, personal beliefs, marital status, sexual orientation, union membership or political affiliation. Certain projects may require participants have certain characteristics (eg. a voice sample may be required of people from various age groups as voice patterns and pitch change throughout life).

Workers shall be treated with dignity and respect. Appen must ensure that they provide an environment where their employees can work without distress or interference caused by illegal harassment, discrimination, bullying or any other inappropriate workplace behaviour.

Appen shall provide a safe and hygienic working environment for their workers (including Appen provided worker accommodation) that is without risk to health and without any unreasonable hazards. Workers have the right to refuse work that is unsafe.

Appen must act ethically and comply with relevant anti-corruption laws. Bribes, favours, benefits or other similar unlawful or improper payments, in cash or in kind, are strictly prohibited, whether given to obtain business or otherwise.

Where contracting or sub-contracting is permitted, Appen must have adequate processes in place for properly managing sub-contracting to ensure that sub-contractors operate in accordance with these requirements.

Appen shall comply with relevant local and national environmental protection laws and will as far as practicable comply with applicable international environmental protection standards.

Appen shall respect the rights of their workers to lawfully associate or not to associate with worker groups or trade unions of their choosing, as long as such groups are legal in the country of operation. Where provided for under local law, workers are allowed to select worker representatives and those representatives will not be discriminated against.

Migrant workers shall have the same entitlements as local workers as stipulated by local law. If Appen engages foreign or migrant workers, such workers must be engaged in full compliance with the immigration and labour laws of the host country.

Whistleblowers will be treated in accordance with the Appen Whistleblower (Speak Up) Policy.

Appen will implement a reporting mechanism for concerns in relation to modern slavery which allows for confidential and anonymous reporting and provides protection from reprisal. Concerns which are reported will be investigated and reported back to the Board.

Appen and its suppliers must be committed to remediate any breaches of this Policy, mitigate risks and constantly improve processes.

Appen will monitor and review the effectiveness of this Policy and the risk management measures described above.