Labour & Working Conditions Assessment

A Labour and Working Conditions Assessment is a structured evaluation of an organisation's employment practices and the conditions under which its workers — including direct employees, contract workers, and migrant workers — are engaged and managed. It examines wages and benefits, working hours, leave entitlements, employment contracts, recruitment practices, grievance mechanisms, and the overall quality of the working environment against applicable legal requirements and international labour standards.

The assessment identifies gaps between current practices and the requirements of applicable labour law and international frameworks — including IFC Performance Standard 2, ILO Core Conventions, and the labour standards components of buyer codes of conduct — and provides recommendations for improvement. It is a standard component of ESG due diligence, supply chain social auditing, and responsible investment assessment — and is particularly relevant for labour-intensive industries including manufacturing, construction, agriculture, and services where working conditions vary significantly across the workforce.