Policy for Sri Lanka: Auditing Revenue Share Model/Block Plucking

What is this document about?

This policy establishes the Rainforest Alliance interpretation and compliance framework for Revenue Share Model (RSM)/ Block Plucking systems implemented within the Sri Lankan tea sector.

When and how to use this document?

This document shall be used by Certificate Holders, Certification Bodies, auditors, and service providers involved in RSM systems during implementation of the Rainforest Alliance Sustainable Agriculture Standard (SAS), internal inspections, and audits.

1. RSM/ Block Plucking Service Provider Compliance in Sri Lanka

1.1 Implementation of Rainforest Alliance Standard Requirement 1.2.2 for RSM/Block Plucking Service Provider

Certificate Holders shall maintain mechanisms, including written contracts and monitoring systems, to ensure compliance with Rainforest Alliance Standards requirements.

• All RSM and block plucking service providers shall operate under the signed written contract.

• Contracts shall define responsibilities, tea block allocation, payment systems, and compliance obligations, as well as other contractual elements that are outlined in section C of this policy.

• Tea harvested under RSM systems shall remain fully traceable all the way back to the block, via identity preserved (IP) traceability.

• RSM/block plucking service providers and their workers shall have access to grievance mechanisms and occupational health and safety systems.

• The Certificate Holder shall maintain updated service provider registries and payment records.

2. Contractual Requirements

All RSM workers must have a formal written contract with the certificate holder.

Each contract must include:

• Scope of Work

• Remuneration Structure

• Transparent pricing mechanism

• As well as all other contractual requirements outlined in the Rainforest Alliance SAS, policies and Rules

3. Dual-Capacity Engagement

Estate workers undertaking RSM/Block plucking work as service providers, in addition to their daily work.

The CH must ensure:

Time separation

• The CH must ensure that RSM/Block plucking does not impact the regular working hours

Payment separation

• The CH must ensure calculating and make the RSM/ Block plucking service provider payment independent and separate from the worker wages

Contract separation

• The CH must have a separate, independent written contract for the RSM/Block plucking contract in addition to the worker employment contract

Voluntary participation

• The RSM/Bock plucking service providers and the workers must participate voluntarily in RSM/Bock plucking work. The CH must not force any person to participate in RSM/Block plucking work.

• The implementation of RMS block plucking shall not negatively impact normal work operations or prevent workers from completing their regular duties.

4. Auditing and Audit sampling of RSM/Block Plucking Service Provider in Sri Lanka

4.1 Background

The operational structure of RSM systems requires a modified sampling methodology due to the high number of RSM/Block plucking service providers.

4.2 Applicability of Auditing Rules for Farms 2.3.18 for RSM/Block Plucking Service Provider in Sri Lanka

RSM/Block Plucking service providers shall be sampled equivalent to group-member actors for audits within Sri Lanka.

4.3 Audit Sampling Methodology

Sample Size = √N (Square root of the total number of RSM/Block Plucking service providers)

Where N represents the total number of RSM/Block Plucking service providers.

4.4 Limitations of Estate Responsibility

The Certificate Holder shall only be responsible for activities within the agreed contractual scope and certified operations.

4.5 Auditing RSM/Block Plucking

• The auditor shall verify that an up-to-date register/list of RSM/Block Plucking service providers is maintained and that the corresponding contracts are available, complete, and consistent with the information recorded in the register.

• The auditor must review the contracts – ensuring that 2 separate contracts are available for the RSM/Block plucking and employment, to ensure correct implementation of dual capacity engagement

• The auditor shall verify that the internal inspection covers RSM/Block Plucking operations against all applicable Rainforest Alliance requirements.

• The auditor shall verify that the traceability of harvested produce is effectively maintained and documented from the field through to receipt at the factory, ensuring the process is credible, complete, and supported by appropriate records.

• All applicable SAS requirements shall be verified.