Samsung on Monday said its audit of Chinese suppliers identified several instances of inadequate practices at the facilities, including overtime hours, management of supplier companies holding copies of labor contracts, and the imposition of a system of fines for lateness or absences. In response to China Labor Watch's reports on Samsung's suppliers, the South Korean company conducted an audit over a four-week period in September of 105 suppliers that manufacture Samsung products in China, covering more than 65,000 employees.

Samsung said it did not identify any instance of child labor during the audits after reviewing HR records of all workers aged below 18 and conducting face-to-face ID checks.

However, the company identified overtime hours in excess of local regulations, management of supplier companies holding copies of labor contracts, and the imposition of a system of fines for lateness or absences.

Samsung's corrective actions include immediate termination of contracts with any suppliers who may possibly use child labor and a better identity verification process of candidate workers in order to make sure they are adults. The company has also demanded all suppliers to correct irregularities in labor contracts and distribute one copy to all their employees and abolish any possible applied fine/penalty system. In addition, Samsung said it had enforced all suppliers to provide adequate safety equipment and sufficient safety training, first-aid kits at manufacturing facilities and dormitories. Samsung is also working to to reduce employee overtime and says it is developing measures that will eliminate hours beyond legal limits by the end of 2014. Finally, Samsung plans to financially support suppliers in China to increase investment in equipment and to hire additional workers.