Apple Computer said on Thursday it has found no evidence of forced labor at a Chinese factory where its iPods are assembled, however added that its partner did violate some of Apple's code conduct.

We found the supplier to be in compliance in the majority of areas audited. However, we did find violation to our code of conduct, as well as other areas for improvement that we are working with the supplier to address, Apple said in a statement.

Several weeks ago the media reported poor living conditions and forced overtime for employees at Foxconn, the Chinese manufacturer that assembles Apple iPods. In response, Apple sent an audit team to investigate the site.

We found no instances of forced overtime and employees confirmed in interviews that they could decline overtime requests without penalty, Apple said following the 1200 man-hour investigation.

The company did find, however, that employees worked longer hours than permitted per week 35 percent of the time, and worked more than six consecutive days 25 percent of the time.

Apple's code of conduct limits normal work weeks to 60 hours with at least one day off.

The computer maker also said some of its off-site worker dormitories didn't provide reasonable personal space though they were not in violation of Apple's code of conduct.

Additionaly, the Cupertino Calif.-based company said that the pay structure at the plant was unnecessarily complex, however Apple said the supplier has since implemented a simplified pay structure that meets the Code of Conduct.