IFC Performance Standard 2

PS 2: Labor and Working Conditions

IFC PS 2 IconKey Questions to be addressed during due diligence:

Working Conditions and Management of Worker Relationship

  • Does the client have an HR policy and procedures in place which reflects the main issues below?
  • Has the client documented and communicated working conditions and terms of employment to all workers directly contracted?
  • Has the client implemented a grievance mechanism for workers?
  • Does the client allow workers to form and join workers organizations and bargain collectively?
  • Does the client have procedures in place that avoid discrimination?
  • Does the client anticipate retrenchment of a significant number of employees? If yes, is there a retrenchment plan in place?

Protecting the Work Force

  • Does the client ensure that child or forced labor is not used?
  • Does the client check the ages of employees?
  • Does the client ensure that young workers are not employed in dangerous work and have the possibility to attend school?

Occupational Health and Safety

  • Does the client provide its workers with a safe and healthy work environment?
  • Does this include providing workers with personal protective equipment (PPE)?
  • Does the client conduct appropriate monitoring and inspections to ensure worker safety?
  • Does the client track rates of injury, occupational diseases, lost days and number of work-related fatalities?
  • Does the client have a fire, life and safety plan?

Workers Engaged by Third Parties

  • Do the subcontractors have an appropriate E&S Management system in place?
  • Does the client monitor the performance of the sub-contractors?
  • Does the subcontracted workforce have access to the client’s grievance mechanism?

Supply chain

  • Has the client identified child labour / forced labour issues in the supply chain and if so has the client taken appropriate steps to remedy them?
  • Does the client sufficiently address significant safety issues in the supply chain?