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Li & Fung is a supply chain management partner that connects brands and retailers with a global network of factories. Its Supplier Code sets the social and environmental baseline every supplier must meet, and this 2026 guide explains how Li & Fung audits and manages that supply chain.
What Is a Li & Fung Audit?
A Li & Fung audit is an assessment of a supplier's workplace against the Supplier Code, which is built on the ILO Core Conventions and translated into 13 languages. The audit checks that labor, wage, safety and environmental practices meet the code — and that workers are employed voluntarily, without forced or child labor.
How Li & Fung Manages the Supply Chain
Li & Fung operates as a supply chain orchestrator: it sources and manages production across many factories on behalf of its customers. To keep that network accountable, it backs the Supplier Code with dedicated policies on Forced Labor, Child Labor, Modern Slavery and Responsible Recruitment. Suppliers must allow assessment and grant Li & Fung unhindered access, with or without notice.
Core Supplier Requirements
| Requirement | Li & Fung Standard |
|---|---|
| Child Labor | Working age at or above the minimum employment age or compulsory-education age — never below 15. |
| Forced Labor | Voluntary labor only; no modern slavery, prison, bonded or involuntary labor. |
| Working Hours | ≤60h/week; overtime voluntary and premium-paid; at least 1 rest day in every 7 days. |
| Wages | Wages meet or exceed the legal minimum, industry standard or collective-bargaining agreement. |
| Fair Treatment | No abuse or discrimination; freedom of association respected. |
| Health & Safety | Safe workplace meeting applicable safety standards. |
| Environment | Responsible environmental practices per applicable law. |
| Access & Termination | Unhindered audit access (with or without notice); suppliers retain the right to terminate the relationship. |
Who Performs the Audit?
Assessment may be carried out by Li & Fung itself, by an approved external firm, or by an industry organization. This flexibility lets Li & Fung align audits with customer programs while keeping a consistent ILO-based standard across the supply chain.
Corrective Action Timelines
When findings arise, suppliers implement a corrective-action plan on one of three timelines: immediate, within 3 months, or within 6 months — matched to the severity of the issue. Serious forced-labor or child-labor findings require immediate action.
FAQ: Li & Fung Audit Guide 2026
Q: What standard does the Li & Fung audit use?
A: The audit uses Li & Fung's Supplier Code, which is based on the ILO Core Conventions and supported by policies on forced labor, child labor, modern slavery and responsible recruitment.
Q: Can an external firm conduct the audit?
A: Yes. Assessment can be done by Li & Fung, an approved external firm, or an industry organization, so long as it measures the Supplier Code consistently.
Q: How long do we have to fix findings?
A: Corrective-action timelines are immediate, within 3 months, or within 6 months, depending on severity. The most serious labor violations demand immediate remediation.
Conclusion
Li & Fung's 2026 audit approach blends an ILO-based Supplier Code with flexible, credible assessment and clear corrective-action timelines. Suppliers that treat the code as a standing operating standard — not a one-time check — stay ready for any audit, announced or not.
References
- Li & Fung. Supplier Code (based on ILO Core Conventions; 13 languages).
- Li & Fung. Supporting Policies: Forced Labor, Child Labor, Modern Slavery, Responsible Recruitment.
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