Ensuring fair labour practices is essential for safeguarding employee well-being, promoting equality and fostering responsible business conduct. In a diverse workforce, transparent and lawful employment conditions help to reduce inequalities and promote a safe, respectful workplace.
The establishment ensures fair labour practices for all employees (including subcontracted staff, outsourced staff and service providers working on-site). This includes written contracts, equal pay for equal work, and remuneration at or above the living wage for all employees and subcontracted workers. To conform with this criterion, the establishment:
- ensures that all employees are paid at least the legal minimum wage per hour or, where no legal benchmark exists, a minimum living wage calculated in accordance with the International Labour Organisation’s (ILO) principles of estimating the living wage;
- provides written employment contracts for all staff that include details on salary, working hours (or, where applicable, number of workdays per year) and job descriptions. The contracts are explained in a language or format the employee understands, with translation or verbal support provided as needed. Employees furthermore receive payslips detailing the number of hours worked or days accounted, pay received and any overtime or compensatory leave;
- guarantees equal pay for equal work, irrespective of gender, ethnicity, or disability status and ensures that pay scales are transparent (unless national legislation determines otherwise). A documented pay structure (e.g. salary matrix, pay scale or remuneration framework), reflecting factors such as experience and length of service, is recommended; and
- requires contracts with all internally managed subcontracted service providers that confirm that the same wage and fair labour principles are met. If any facilities are externally managed, the establishment formally informs and encourages them in writing to follow the same standards.
During the audit, the establishment presents supporting documentation demonstrating conformity with fair labour practices.
During the visual inspection, the auditor conducts samplings of the supporting documentation by reviewing a sample of 3 employment contracts in comparison with payroll and pay structure documentation (e.g. payroll overview, salary matrix, pay scale or remuneration framework) to verify that written contracts exist for all staff; salary levels align with legal minimum wage or living wage requirements; and that equal pay for equal work is ensured (methodology C). If necessary, the documents may be shown in anonymised form.
In specific circumstances, when subcontracted or outsourced staff work on-site, the auditor conducts samplings of the supporting documentation by reviewing a sample of 3 written agreements to confirm that they adhere to the same wage and labour principles (methodology C).
If the auditor observes inconsistencies or suspects irregularities, at least 1 anonymous interview with selected employees and subcontracted staff is conducted to confirm compliance with legal minimum wage requirements and living wage benchmarks.
Ensuring fair labour practices is essential for safeguarding employee well-being, promoting equality and fostering responsible business conduct. In a diverse workforce, transparent and lawful employment conditions help to reduce inequalities and promote a safe, respectful workplace.
The establishment ensures fair labour practices for all employees (including subcontracted staff, outsourced staff and service providers working on-site). This includes written contracts, equal pay for equal work, and remuneration at or above the living wage for all employees and subcontracted workers. To conform with this criterion, the establishment:
- ensures that all employees are paid at least the legal minimum wage per hour or, where no legal benchmark exists, a minimum living wage calculated in accordance with the International Labour Organisation’s (ILO) principles of estimating the living wage;
- provides written employment contracts for all staff that include details on salary, working hours (or, where applicable, number of workdays per year) and job descriptions. The contracts are explained in a language or format the employee understands, with translation or verbal support provided as needed. Employees furthermore receive payslips detailing the number of hours worked or days accounted, pay received and any overtime or compensatory leave;
- guarantees equal pay for equal work, irrespective of gender, ethnicity, or disability status and ensures that pay scales are transparent (unless national legislation determines otherwise). A documented pay structure (e.g. salary matrix, pay scale or remuneration framework), reflecting factors such as experience and length of service, is recommended; and
- requires contracts with all internally managed subcontracted service providers that confirm that the same wage and fair labour principles are met. If any facilities are externally managed, the establishment formally informs and encourages them in writing to follow the same standards.
During the audit, the establishment presents supporting documentation demonstrating conformity with fair labour practices.
During the visual inspection, the auditor conducts samplings of the supporting documentation by reviewing a sample of 3 employment contracts in comparison with payroll and pay structure documentation (e.g. payroll overview, salary matrix, pay scale or remuneration framework) to verify that written contracts exist for all staff; salary levels align with legal minimum wage or living wage requirements; and that equal pay for equal work is ensured (methodology C). If necessary, the documents may be shown in anonymised form.
In specific circumstances, when subcontracted or outsourced staff work on-site, the auditor conducts samplings of the supporting documentation by reviewing a sample of 3 written agreements to confirm that they adhere to the same wage and labour principles (methodology C).
If the auditor observes inconsistencies or suspects irregularities, at least 1 anonymous interview with selected employees and subcontracted staff is conducted to confirm compliance with legal minimum wage requirements and living wage benchmarks.