How to determine which workers are covered by Fair Work subrequirements

Modified on Mon, 9 Mar at 10:08 AM

This article helps you understand which individuals must be included when considering and documenting the Fair Work (FW) Impact Topic under the B Lab’s V2 Standards.


Step 1 - Start from the overall scope of Fair Work

Fair Work covers the company’s own operations and is about “workers” and “employees” in those operations. 

It aims to ensure the company “provide[s] good quality jobs and create[s] positive workplace cultures” by setting clear expectations, implementing fair wage practices, incorporating worker feedback, and monitoring workplace culture.

This means you begin by identifying everyone who works in the certifying entity’s own operations (not in the supply chain), and then you refine who is covered requirement by requirement.

Step 2 - Pay close attention to the wording: “employees” vs. “workers”

Each FW sub‑requirement uses specific terms. For example:

  • FW1.1: “The company provides all employees a signed employment contract or offer letter.”

  • FW3.2: “The company considers feedback from workers on decisions that affect them.”


This means:

  • Where the text says “employees”, you should include everyone with an employment contract or offer letter with the certifying entity : usually, this is anyone with an employment contract. 

  • Where it says “workers”, the intended scope is broader (e.g. all people working in the operations, not just employees), 


In practice, for each sub‑requirement you should:

  1. Check the exact subject in the sub‑requirement text (employees, workers, lowest‑paid employees, etc.).

  2. Check the Clarifying the Compliance Criteria in the Fair Work Topic PDF or on B Impact to see if “workers” is further defined or limited for that sub‑requirement.


Step 3 - Use headcount guidance and thresholds where specified

Some FW sub‑requirements only apply once a company reaches a certain number of workers or employees, based on headcount.

For example, some sub‑requirements might apply only where “the company has 250 or more workers (based on headcount)”, and explicitly says that if the company has fewer workers, it is exempt.


In Fair Work, a similar pattern applies to:

  • Gender wage gap analysis and disclosure for larger companies (FW2.4–FW2.7).

  • Disaggregation of workplace culture measurements (FW4.3–FW4.4). 


Key points when using thresholds:

  • “Headcount” means each individual person = 1. This is different from full‑time equivalency.

  • If a sub‑requirement doesn’t specify a threshold, assume it applies to all workers or employees in your company.

For example: Two people working at 50% each would equal 1 FTE (full-time equivalent) but count as 2 headcount. 

In practice: once you have determined who is in scope for a specific FW sub‑requirement (using the wording and thresholds), you should assume all of those people must be covered by the policy or practice, not only a sample or percentage.

Step 4 - Step-by-step method for companies

You can follow this simple process for each FW sub‑requirement:

  1. Map the workforce in scope of certification: List all people working in the certifying entity’s own operations (not suppliers), by type (permanent, fixed‑term, part‑time, agency, apprentices, interns, etc.). 

  2. Read the exact subject term

    1. If it says “all employees,” include everyone with a contract/offer letter with the entity. 

    2. If it says “workers,” consider all people working for the entity (your company) in its operations, unless the compliance criteria narrow it. 

  3. Apply numerical thresholds: Check whether the requirement applies only above a certain number of workers/employees (for example 250), or only to certain size bands (Large/XL/XXL). 

Confirm that coverage is entity-wide: The standards aim for actions “at the certifying entity level,” and  the auditor will sample sites and workers to confirm the policy/practice is implemented across the company, not just at the headquarters. 

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