Working Conditions

Working conditions encompass wages, working hours, rest periods, holidays, disciplinary practices, dismissal procedures, maternity protection, and the physical working environment — the fundamental elements that determine the quality of work and workers' well-being.

The ILO has adopted numerous conventions establishing minimum standards for working conditions, including the Hours of Work Convention (C001), the Minimum Wage Fixing Convention (C131), and the Maternity Protection Convention (C183). ISO 26000 emphasises that organisations should provide working conditions that permit a reasonable work-life balance and are consistent with applicable laws and international labour standards.

Wages and Compensation

The distinction between minimum wage and living wage is increasingly important in ESG discourse. A minimum wage is the legally mandated minimum; a living wage is the remuneration sufficient to afford a decent standard of living for the worker and their family. The Global Living Wage Coalition and the Fair Wage Network provide methodologies for calculating living wages. GRI 202 (Market Presence) requires disclosure of ratios of standard entry-level wage compared to local minimum wage. ESRS S1 requires disclosure on adequate wages.

Working Hours

ILO Convention 1 established the principle of the eight-hour day and 48-hour week. Excessive working hours remain prevalent in many sectors and regions, with negative impacts on health, safety, and productivity. Responsible practices include limiting regular working hours, ensuring adequate rest periods and holidays, compensating overtime fairly, and monitoring working hours across the supply chain.

Work-Life Balance

Flexible working arrangements, parental leave policies, and support for caregiving responsibilities are increasingly recognised as essential elements of decent working conditions. The COVID-19 pandemic accelerated the adoption of remote and hybrid working, raising new questions about the boundaries between work and personal life.

Further Reading

• ILO Decent Work — Working conditions standards
• Global Living Wage Coalition — Living wage benchmarks

Related Topics

• Employment Relationships
• Health & Safety
• SDG 8: Decent Work