People

INTRODUCTION

Spell Designs Pty Ltd is a global fashion label. Our vision is to become one of the most inspiring and conscious fashion brands in the world. We understand that every garment we produce has an impact. We are committed to truly understanding and finding the most effective way to manage and reduce these negative impacts on the environment and communities in which our global families live and work, empowering our global workforce & our community of customers. The foundations of our Spell Supplier Code of Conduct (our “Code”) are based on the most respected global standards and initiatives relating to our three pillars of sustainability: People, Planet and Prosperity. This Code of Conduct outlines the minimum requirements that should be implemented throughout every stage of our value chain as we work together to ensure the highest standards are being met within our business operations.

Our Code is based upon the foundations of the Ethical Trading Initiative (ETI) Base Code and the International Labour Organisation (ILO) respectively. The four categories pertain to:

• Freedom of association and the effective recognition of the right to collective bargaining;
• Elimination of forced or compulsory labour;
• Abolition of child labour; and
• Elimination of discrimination in respect of employment and occupation.

We are committed to making a measurable contribution on our global community and environment through responsible procurement by working closely with each of our global partners. If we determine a supply chain partner is not compliant, then we will work with them to implement a corrective action plan to make improvements to remedy the problem. Failure to improve will result in Spell seeking new supply chain partners who share our vision.

CODE TERMS

Our Code Terms apply to all supply chain partners including agents, traders, manufacturers, farmers, and subcontractors. Should a direct partner require a subcontractor, Spell must be notified, in writing. It is the direct partner’s responsibility to ensure all subcontractors comply to Spell’s Code of Conduct and respective policies. Our supply chain partners are responsible for implementing this Code and applicable local and international laws into the business. Our Code will be provided to all supply chain partners in the applicable local languages and communicated to all direct and indirect employees of our organisation.

PEOPLE

CHILD LABOUR

There shall be no use of child labour. The age for admission to employment shall not be less than the age of completion of compulsory schooling and, in any case, not less than 15 years. It is expected that our Suppliers develop adequate policies and programs which provide for the transition of any child found to be performing child labour to enable them to remain and attend in education until no longer classified as a child. Children and persons under 18 shall not be employed in hazardous conditions or at night. These policies and procedures shall confirm to the provisions of the relevant ILO standards.

FORCED LABOUR, INVOLUNTARY LABOUR & MODERN SLAVERY

Spell forbids and therefore prohibits the use of any forced or involuntary labour or any form of Modern Slavery, including prison labour, slavery, servitude, debt bondage, human trafficking, and deceptive recruitment. All work shall be under voluntary conditions. Our Suppliers shall not restrict the movements of workers by requiring deposits, imposing financial penalties, requiring recruitment fees, or retaining identity documents or other personal legal documents. Workers shall be free to leave and have the ability to terminate their employment after reasonable notice. Compliance with the Uyghur Forced Labor Prevention Act, Pub.L.No.117-78 (2021) (“UFLPA”) is mandatory and materials, including in particular, without limitation, apparel and cotton and cotton products, may not be sourced from the Xinjiang Uyghur Autonomous Region (XUAR) of the People’s Republic of China or other regions prohibited by US or International Law.

WAGES

Wages must be paid regularly and on time and reflect the experience and qualifications of the employee. Wages and benefits paid shall meet at least legal or industry minimum standards, whichever is higher, and always be sufficient to meet basic needs of workers and their families and to provide some discretionary income. Workers must be provided with appropriate information in their language of understanding, about their employment conditions in respect to wages before they agree on employment. Disciplinary measures around wages or unfair deductions shall not be permitted. Workers should be informed about how their wages are made up, including wage rates, pay periods and deductions from their pay. At Spell we support living wages, and our Suppliers are audited against a criteria in which wages are taken into consideration, helping us to ensure all workers are receiving a fair wage.

WORKING HOURS

Hours of work shall comply with applicable local laws and industry standards. In any event, workers shall not on a regular basis be required to work in excess of 48 hours per week and shall be provided with at least one day off in every seven-day period. Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be demanded on a regular basis and shall always be compensated at a premium rate which is recommended not to be less than 125% of the regular pay-rate.
Working hours may only exceed 60 hours in any seven-day period only in exceptional circumstances where all the following ILO conditions are met:

This is allowed by national law;

• This is allowed by a collective agreement freely negotiated with a workers’ organization representing a significant portion of the workforce;
• Appropriate safeguards are taken to protect the worker’s health and safety;
• The employer can demonstrate that exceptional circumstances apply such as unexpected production peaks or disruptions, accidents, or emergencies.

NON-DISCRIMINATION

Our Suppliers must not discriminate when it comes to recruitment, wage policy, admittance to training programs, employee promotion policy, policies of employment termination, retirement, and any other aspect of the employment relationship. Suppliers shall treat all employees based on the principle of equal opportunities, regardless of race, colour, gender, sexual orientation, pregnancy, religion, political opinion, union membership, nationality, social origin, economic situation, medical condition, or disability.

FREEDOM OF ASSOCIATION AND THE RIGHT TO COLLECTIVE BARGAINING

The right of all workers to form and join trade unions and bargain collectively shall be recognised. Workers’ representatives should not be discriminated against and have the support of the organisation to carry out their functions in the workplace. An open mind and encouraging attitude towards trade unions and their activities must be a prerequisite. If the right to freedom of association and collective bargaining is restricted under law, the employer must facilitate the means for independent and free association and bargaining.

DISCIPLINARY PRACTICES

Physical abuse, threats of physical abuse, unusual punishments or discipline, sexual and other harassment, and intimidation by the employer is strictly prohibited.

HEALTH AND SAFETY

A safe and hygienic working environment shall be provided and shall exercise best occupational health and safety practices, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Our Suppliers must comply with applicable national laws and standards on Workplace Health and Safety practices and management. Appropriate attention shall be paid to occupational hazards specific to this branch of the industry and assure that a safe and hygienic work environment is provided for. Effective regulations, policies and procedures shall be implemented to prevent accidents, injuries and illness and minimise health risks as much as possible. Clean, safe, and sanitary facilities and equipment shall be provided.
In the case of emergencies, the workplace must be prepared to evacuate and protect employees including:

Fire alarm and fire extinguisher must be easily accessible on every floor;

• Adequate first aid equipment must be easily accessible; and
• At least one person in each division must be trained in the provision of first aid.

Effective health and safety training shall be provided and repeated regularly for workers. Pregnant employees shall be educated about any potential risks that some tasks may pose. If accommodation is provided, these environments shall be clean and safe, meeting the basic needs of the workers. A senior management representative must be assigned to manage and uphold the health and safety of workers.

LEGALLY BINDING EMPLOYMENT RELATIONSHIP

Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labour-only contracting arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment. All workers shall be given the opportunity to participate in education and training programs.

EFFECTIVE GRIEVANCE MECHANISMS

Procedures shall be in place that allow employees to anonymously or directly raise and address workplace grievances or unlawful activities confidently without fear of retaliation or reprisal. Complaints shall be respectfully received and evaluated promptly in confidentiality and corrective actions taken as necessary.

BRIBERY AND CORRUPTION

Spell does not tolerate any corruption, extortion, or bribery within its supply chain. A bribe includes financial or other advantages which are given, promised, offered, accepted, requested, or received with the intention to influence the ability to make objective and fair business decisions.

COMMUNITY

Born and raised in Byron Bay, Australia, the idea of community is at the heart of Spell. We align with Suppliers who show commitment to their communities. Be it investment in education or local infrastructure, we encourage all our Suppliers to be the leaders of social development in their local communities.

PLANET

ENVIRONMENTAL RESPONSIBILITY

We choose to work with businesses who share our commitment to sustainability and preservation of the environment. We ask our Suppliers to choose leading technologies that reduce the negative impacts that their manufacturing has on the environment. Our Suppliers should have systems and policies in place to manage energy and water consumption, waste disposal, and take steps to reduce environmental pollution and climate impact. Suppliers must comply with all applicable environmental laws in the country of business. In addition, we expect businesses to implement practices that promote environmental responsibility and garner relevant certifications to demonstrate their commitment.

CHEMICAL SAFETY

Spell has a commitment to ensure its products are made without the use of hazardous chemicals to protect the environment and workers and will at any stage work with Suppliers to test against our provided Restricted Substance List (RSL) and Manufacturing Restricted Substance List (MRSL). By agreeing to and signing this Code, our Suppliers declare they agree to abide by our RSL and MRSL which is located at our website at https://au.spell.co/pages/restricted-substances-list. Compliance with this list is essential and in the event we identify non-compliant substances we will work with partners to find an adequate solution. If any Suppliers are not able to comply, please inform Spell before this document is signed. Once signed, you declare you can confirm to our chemical safety obligations under national and other equivalent legislation.

SUSTAINABLE SOURCING AND TRANSPARENCY

Upon request by Spell or a third-party organisation, any partners, including manufacturers and Suppliers (Tiers 1 to 6) within our supply chain shall present relevant documentation to qualify the sustainability claims in the aim of ensuring full transparency within the value chain. We expect our Suppliers to be transparent and not intentionally mislead an auditor or enquirer. Upon availability, requested details shall be provided.

ANIMAL WELFARE

Garments or products produced from animal-based materials must meet the highest ethical animal welfare standards and practices that focus on the OIE Five Freedoms. We strongly believe that animals are entitled to humane treatment and have the freedom to express normal behaviour. This must be achieved through implementation of good animal husbandry and becoming certified to selected animal welfare programs or initiatives where applicable. Our Animal Welfare Policy is provided to our suppliers alongside the Supplier Code of Conduct and Supplier Agreements.

At Spell, we understand that our environment is facing some serious challenges and we are committed to living our vision to become one of the most inspiring and conscious fashion brands in the world. In order to bring this to life we have embedded sustainability into each part of our business operations, and we expect that partners across our value chain do the same.

We recognise our legal responsibilities set out in our code of conduct however we aim a little higher each day and aim to take our business partners on our journey to walk a little lighter within the fashion industry.

Providing a healthy and safe workplace is an integral part of our focus. We work towards international and national standards to address the following areas:

• Diversity and equal opportunity
• Upholding human rights
• Fair wages
• Working hours
• Health and safety
• Collective bargaining and freedom of association

Ensuring minimal impact on our natural resources is fundamental to our industry. We are working to implement the following:

• Animal rights
• Chemical restrictions
• Waste, recycling and circular practices
• Regeneration programs
• Energy saving

Working with Spell as a business partner comes with the expectation that each entity address each of the above and uphold the law within the appropriate jurisdiction. This is a journey of constant improvement and we believe that collectively we can make a huge impact.

At Spell, we are committed to implementing high ethical and environmental standards within every part of our business which is reflected within our Animal Welfare Policy. The objective of our policy is to meet growing expectations (by our staff, customers, consumers, etc) of better animal welfare and through greater transparency to mitigate the animal welfare risks within our supply chain, as well as to promote the best practices for land management. Read our Animal Welfare Policy here.

All of our policies extend to business partners that we work with including contractors. We take a proactive, pragmatic and collaborative approach to transforming our supply chain.

Spell is a member of the Fur Free Retailer program, an international initiative driven by the Fur Free Alliance that aims to encourage companies to go fur-free and further the spirit of ethical consumerism.

Spell has established a Modern Slavery Statement that outlines Spell’s approach in assessing and mitigating the potential risks of modern slavery practises within our organisation and global supply chain. We train, educate, and work closely with our domestic and global teams to raise awareness and to develop our remediation strategy.

Spell’s position on modern slavery is as follows:

“Our commitment to people is to contribute to the improvement of social conditions globally, and our partners are aware of this. Each partner we work with signs a strict and enforceable Supplier Agreement and Code of Conduct, of which both stipulate that we do not condone the use of forced labour anywhere within our supply chain. Further to that, we are working tirelessly to trace our supply chain in the aim of full transparency, and we are committed to mitigating any form of modern slavery through activities that we are implementing through our ethical sourcing work”.

According to the UN Global Compact:

“Modern slavery is an umbrella term that refers to exploitive practices including forced labour, slavery, servitude, debt bondage, human trafficking, deceptive recruiting for labour services, the worst forms of child labour, and forced marriage.”

We recognise that modern slavery exists and is systemic, therefore it is an important issue to address across our whole supply chain to ensure that those who are vulnerable are not exploited. The scope of our Modern Slavery Statement applies to all employees, contractors, and suppliers in our organisation and extended value chain.

Although our business falls below the threshold for obligatory reporting, we have volunteered to develop our Modern Slavery Statement in compliance with the requirements of the Australian Modern Slavery Act 2018. In doing so, we have addressed the following:

• Identifying Spell as a reporting entity
• An overview of our operations and supply chain
• The risks of modern slavery in our supply chain
• Actions taken by Spell
• Spell’s actions planned for on-going improvement
• An assessment of the effectiveness of our actions
• Our consultation processes

Our commitment to upholding the highest standard for human rights within all parts of our operations is a fundamental part of our business. Our Modern Slavery Statement will be reviewed each year to ensure that we are regularly reassessing the risk in our supply chain and improving upon our remediation strategy.

To read our full Modern Slavery Statement please click here.

We are committed to ensuring the unique lived experiences and perspectives of our team and global community are acknowledged and championed; it’s these lived experiences and perspectives that form the tapestry of our organisation. From age, race, ability to gender identity, we strive to build and nurture a business culture that is open, honest, and inclusive. We aim to also foster a business culture that values continuous learning.

Spell is committed to providing a website that is inclusive and accessible to the widest possible audience, regardless of circumstance and ability.

We aim to adhere to the Web Content Accessibility Guidelines (WCAG) 2.1, Level A and AA and comply with the Disability Discrimination Act 1992 (DDA) and Americans with Disabilities Act 1990 (ADA) effective communication requirements, and other applicable regulations. These guidelines explain how to make web content more accessible to people with a wide array of disabilities. Complying with these guidelines helps us provide a site that is accessible to all people.

To accomplish this, we work with third party providers to scan and audit our website weekly to determine the areas we can improve on. We are constantly improving the accessibility of our website, adding, updating and improving its features and developing new technologies. If you encounter any accessibility barriers on our digital properties please contact our team via enquiries@spell.co.

We are proud to have completed the first stage of our Reconciliation Action Plan with Reconciliation Australia. Stage one, the reflect stage has been a rewarding journey for our team.We took our time and worked at the speed of trust- ensuring we lead with heart and immerse ourselves in the learning.