TAIPEI (Taiwan News) — Apple Inc. put new business with iPhone assembler Pegatron Corporation on hold after discovering that student workers had been exploited at the Taiwanese company’s plants in China, Bloomberg reported Monday (Nov. 9).

Pegatron violated a code of conduct by misclassifying the students, allowing some to work longer hours or at night, with staff going “to extraordinary lengths” to cover up the incidents, Bloomberg quoted Apple as saying. A probation period for Pegatron will last until all necessary corrective measures have been taken, Apple said in a statement.

The Taiwanese company fired the manager overseeing the student work program, adding that it had taken immediate action to end the violations and tighten supervision. The incidents occurred at Pegatron factories in Shanghai and Kunshan.

Apple’s suspension of new business did not affect ongoing projects, including Pegatron’s expansion of iPhone assembly into other countries such as India. However, the Taiwanese company might lose some business next year to Luxshare Precision Industry Co., the first Chinese enterprise expected to assemble iPhones, Bloomberg reported.