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Worker Welfare Compliance

Ensuring that contractors working on a project provide minimum acceptable level of employee welfare.

1. General Requirement: All contractors, subcontractors, and any other parties entering into a contract or agreement with the client for any project must adhere to the Worker Welfare Minimum Standards as outlined in the document "Assurance Standards for Worker Welfare" (Document No. [NUMBER], dated [DATE]). Complete document is included in the Appendix [NUMBER] of this contract.

2. Compliance Obligations:

a. Contractors and subcontractors must ensure that their operations, including those of their subcontractors and labor suppliers, comply with the requirements set forth in the Worker Welfare Minimum Standards.

b. Contractors must develop and implement a Worker Welfare Management Plan (WWMP) that includes specific elements demonstrating their ability to meet the standards.

c. Contractors must monitor and audit their own operations and those of their subcontractors to ensure ongoing compliance with the standards.

3. Consequences of Non-Compliance: Failure to comply with the Worker Welfare Minimum Standards may result in penalties, including but not limited to, delay of approvals, suspension of works, financial deductions, or termination of the contract.

4. Authority and Access: The Client/The Employer will have the authority to govern and audit all matters regarding the implementation of the standards. They will have the right to access the contractor’s offices, accommodation facilities, and records to verify adherence to the standards and applicable laws.

5. Worker Welfare Policy: Contractors must ensure fair and free recruitment, provide safe and healthy working and living environments, respect the rights of workers to retain their personal documents, and ensure timely payment of wages and benefits. They must also provide access to grievance mechanisms and ensure that no bonded, indentured, forced, or child labor is used.

6. Reporting and Documentation: Contractors are required to prepare and submit a Worker Welfare Report on a monthly basis, using the approved template, detailing their performance and that of their subcontractors against the standards. All relevant records must be maintained and made available for inspection.

7. Worker Welfare Manager: Contractors and subcontractors must assign a dedicated Worker Welfare Manager responsible for the implementation and management of the standards. This individual must have the necessary qualifications and experience as specified in the document.

8. Worker Welfare Forum and Committee: Contractors must participate in the Client’s Worker Welfare Forum and establish a Worker Welfare Committee to facilitate effective communication and address worker welfare issues. By including this clause in the General Conditions of the contract, all parties involved in the delivery of the project will be contractually obligated to uphold the highest standards of worker welfare as detailed in the referenced document.

Clause Type Social
Jurisdiction UAE, but can be adopted for generic use
Industry Multiple / cross-industry
Focus Area Buy-side
Scope company
Contract Type Master Services Agreement (MSA), Facilities Management Agreement, Construction Agreement
Relevant UNSDGs Goal 3: Good Health and Well-being, Goal 8: Decent Work and Economic Growth
Connecting Clauses No
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⚠ This clause may not align perfectly with all of our criteria, but we have decided to share it in our library because it provides a valuable, real-world example of an effective approach to sustainable contracting.

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