International

Employment law aspects of ESG

The S or social factor of ESG considerations becomes increasingly important, and legislation focuses more and more on social criteria. For today's employers, safe, modern and sustainable employment conditions, diversity and inclusion in the workplace and compliant internal reporting channels (whistleblowing) are key to managing a global workforce, handling the growing demands of labour unions and works councils.

    New legislation

    COVID-19 and social movements such as MeToo and Black Lives Matter, have helped put social issues on the agenda. The employment law landscape adapts to how employees want to balance their professional and personal lives and the continuing importance of diversity and inclusion. As a result, more legislation has been drafted, which means today’s employers are expected to do more. Dutch employment law sees a continued focus on employee-friendly legislation; parental leave has been extended for fathers, new legislation has been proposed on flexible workplaces (the ‘Work from anywhere Act’) and the Whistleblowing Directive is currently implemented across the EU; all employers in the EU with over 50 employees should be aware of the new legislation introduced across EU jurisdictions to ensure compliance with local laws, while aligning their approach internationally.

    In addition, the obligation for large companies to be transparent on equal pay for equal work is one step closer to becoming reality. On 30 March 2023, the European Parliament adopted the EU Directive on pay transparency to ensure that women and men in the EU get equal pay for equal work. The directive sets out pay transparency measures, such as pay information for job seekers, a right to know the pay levels for workers doing the same work, as well as gender pay gap reporting obligations for companies with more than 100 employees (both public and private companies).

    Social criteria in the context of ESG

    Social criteria cover a wide range of different employment (protection) law, such as reducing inequality, creating an inclusive working environment, promoting greater diversity in the workforce and also covering specific working conditions.

    Typical topics are mainly: (i) working conditions and well-being (compliance with fundamental human rights and human dignity, the support of employees in their professional and personal development, a good work-life balance (e.g. through flexible working hours or mobile working) and the relationship between permanent and temporary employees) (ii) fair pay, (iii) social responsibility (assumption of social responsibility beyond the core performance of the company (especially in the context of donations and sponsoring activities for social, cultural and ecological projects (corporate giving), (iv) occupational health and safety (safe and ergonomic design of workplaces and the implementation of safety instructions and training) and (v) equal treatment and diversity (indicators on the gender quota in management positions as well as the implementation and practical application of equal treatment and diversity policies).

    Our services include:

    The BUREN team can help you navigate all the new regulations and social criteria.

    • ESG employment contracts and policies scan;
    • Codes of conduct;
    • Employee data protection ;
    • Diversity and inclusion policies;
    • Remote working policies;
    • Whistleblower frameworks.