By Hari K in Module-005-t-04 — Dec 13, 2022

4. Social Practices for Employees

There are fair practices code of ethics in all types businesses. Its fair to understand that these practices should be brought to the foreground. This part will throw light on some of these practices.

Fair Practices

Fair workplace practices ensure that processes are balanced and that every employee is treated fairly. A fair workplace requires policies that consider equity & respectful treatment to all, with regards to the individual’s education, caste, sex, religion, etc.

The fundamentals of a fair workplace begin with the thought that every employee regardless of background or gender must be given an equal opportunity in the organization. Remuneration should be defined solely on the basis of the employee's work. This will aid in establishing parity across levels and employees.

Furthermore, processes at the organization should be objective, with the emphasis solely on performance, employee development, and the individual's and the organization's success. It becomes even more important in processes such as performance appraisal, rewards and recognitions.

A fair workplace is transparent and is open in its decision making.
Sharing and communicating the criteria, standards, progress and results is an intuitive yet humble process.
There should be honest communication in explaining the reasons for decisions taken and why things are done the way they are.

Labour Rights

Labour rights or Workers' rights include both legal and human rights in connection to labour relations between employees and employers. The rights are codified in National laws ( example. Minimum Wages Act, 1948) and International labour and employment standards (example. ILO Declaration on Fundamental Principle and Rights at Work, 1998).^[3]

Promoting labour rights and compliance to labour standards are the foundation to decent work. Even though there has been progress, decent work deficits still exist. Raising the standards and progressing towards decent work requires companies to adopt sustainable, accountable and inclusive practices.
Labour rights are a crucial component in any due diligence process as companies are under pressure for conducting due diligence on human rights issues in operations and supply chain.

Decent Work

Decent work involves a productive job that pays a fair wage. Further, it should guarantee social protection, workplace security, improved chances for personal growth, and integration. Additionally, non-discrimination, equality of opportunity and treatment (including for men and women), and the right to voice workplace issues should all be priorities for businesses.

Decent work is beneficial for society and businesses as companies that follow labor standards throughout their operations and value chains face reduced reputational risk and legal liability.
Access to productive talent will also increase when non-discriminatory policies are implemented and diversity and inclusion are valued.

Promoting decent work entails that businesses uphold workers' rights and take steps to enhance working conditions for all personnel employed by them. Some of the actions to adopt are sustainable procurement, providing living wages in the operations and value chains, adoption of occupational safety and health practices and eliminate child labour and forced labour.

The Concept of Wages

The concept of wage includes wages, living wages and minimum wages.
The minimum wages act of 1948 defines Wages^[4]as:

All remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment .

While global living wage^[5] coalition defines living wage as:

The remuneration received for a standard workweek by a worker in a particular place sufficient to afford a decent standard of living for the worker and her or his family. Elements of a decent standard of living include food, water, housing, education, health care, transportation, clothing, and other essential needs including provision for unexpected events.

On the other hand, minimum wage by International Labour Organisation^[6] has been defined as:

Minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract.

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