Socially responsible

Terra Rugs – HR & Labour Standards Policy

Introduction

This document outlines the Human Rights & Labour Standards Policy approved and published internally on 20 January 2023.

The principles and guidelines in this policy are based on:

  • The United Nations Universal Declaration of Human Rights

  • The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work

  • The Ten Principles of the United Nations Global Compact

  • The UN Guiding Principles on Business and Human Rights

This policy applies to all directors, officers, and employees of Terra Rugs and its affiliated operations in India.

Policy Statement

Terra Rugs is committed to maintaining a respectful, fair, and safe working environment. Every employee will be treated with dignity and consideration. Our internal framework of policies is designed to support fair recruitment, development, and retention practices.

General Principles

  • All employment practices at Terra Rugs must comply with local laws and regulations of the countries in which we operate.

  • Where local laws provide greater protection for workers than this policy, those laws shall take precedence.

  • All employees are required to report any actual, suspected, or potential violations of company policies, including this HR & Labour Standards Policy.

  • Failure to report violations may result in disciplinary action, including termination.

  • This policy will be reviewed annually to ensure continuous improvement in working conditions and risk management.

  • Terra Rugs is committed to allocating sufficient resources to support ongoing enhancements in labour conditions across its operations.

Specific Provisions

1. Human Rights

  • Terra Rugs upholds the UN Universal Declaration of Human Rights and promotes internationally recognized human rights principles.

  • Every employee must be treated with dignity, free from harassment, abuse, or punishment.

  • Effective, transparent grievance mechanisms are in place to address any adverse human rights impacts.

  • We encourage open employee engagement and welcome feedback across all aspects of the business.

2. Freedom of Association

  • Employees have the right to form and join organisations of their choice, including unions, to engage in collective bargaining.

  • No employee shall face retaliation or discrimination for being a part of such organisations.

  • Employment will never be conditional upon not joining or withdrawing from an employee organisation.

3. Compulsory Labour and Human Trafficking

  • Terra Rugs maintains a zero-tolerance policy towards all forms of modern slavery, including forced, bonded, trafficked, or prison labour.

  • All employment is strictly voluntary, and no person will be compelled to work against their will.

  • We encourage employees to promptly report any suspicion or knowledge of modern slavery.

4. Child Labour

  • Terra Rugs complies with international child labour laws and ILO standards.

  • The minimum employment age shall be no less than the legal school-leaving age in the location of employment and never less than 16 years.

  • For work classified as “hazardous,” the minimum age shall be 18 years, in accordance with ILO Convention 138.

5. Discrimination

  • Discrimination or harassment based on gender, race, age, religion, ancestry, disability, sexual orientation, marital status, or any other protected trait is strictly prohibited.

  • This aligns with Section VIII of our Code of Ethics and Business Conduct, which provides further guidance on maintaining an inclusive and respectful workplace.