Indicator 3.7.1

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Indicator 3.7.1

by Contact on 8 October 2026

Requirement

The UoC shall ensure that all employees have received, understood and agreed upon, written information about their employment terms and conditions before starting employment and, where applicable, prior to migration. This information shall include, at least the following: a) a description of the role and any responsibilities; and b) the type of contract (e.g. permanent, fixed-term, contractor); and c) working hours, including allowance for breaks, paid annual leave, allowance for days off on public holidays, and sick leave; and d) wages, any agreed wage deductions (e.g. accommodation, meals), compensation for overtime, and loans and advances; and e) social benefits (e.g. insurances); and f) termination terms and conditions, notice period; and g) relevant human rights and labour-related policies; and h) information on labour rights (see Indicator 1.1.2).

How Do I Interpret This Requirement?

  • This indicator applies to all employees.

  • Copies of contracts should be available on file in the language of the employee, and provisions should be made for cases where people have low literacy levels. For example:

    • a colleague verbally communicates the information.

  • In the case of any changes to the contract during employment, the UoC should:

    • discuss the changes with the employee

    • ensure that the employee agrees with the changes

    • records the agreed upon changes

    • provides the employee with a copy of the changes.

  • Examples of changes to terms and conditions can include where employees have:

    • been given a different role or been promoted

    • had changes in their working conditions, for example:

      • wages

      • working hours

      • location.

  • Migrant workers should have contracts that:

    • are written, agreed to, and signed at the time of hiring in the country of origin of the employee

    • state that the employer will pay for travel from the employee’s country and repatriation, and what arrangements are made for that (information about fees and costs related to employment are outlined in Criterion 3.2)

    • do not violate the national laws of the host country, as well as other laws and regulations that apply to migrant employees in their country of origin.

Evidence of Implementation

  • contracts and contract amendments

  • evidence of the contract being explained to the employee in their language and in a way they understand

  • contracts, Memorandum of Understanding or terms and conditions agreed between the UoC and the labour or recruitment agency.

Auditors Should Confirm

  • whether contracts meet national legal requirements for labour contracts;

  • that contract terms and conditions match with working hour records and payroll and wage records and/or the Salary Matrix (see Criterion 3.8);

  • employees’ understanding of the terms and conditions of their contract;

  • whether employees are in possession of a copy of their contract and documented changes;

  • for migrant employees: whether they were required to pay recruitment fees, and any costs incurred for travel to the host country by assessing the process of recruitment. See also Criterion 3.2.