gssbsecretariat@globalreporting.org

Item 04 – GRI Topic Standard Projectfor Labor – Significant Changes forWorkers – Exposure draft
For GSSB approval
Date

26 April 2024

Meeting

16 May 2024

Project

GRI Topic Standard Project for Labor

Description

This document sets out the exposure draft of the GRI Significant Changes forWorkers Standard, including the explanatory memorandum summarizing theobjectives of the project and the significant proposals contained within the draft.
These are submitted for GSSB approval for public exposure.
If approved, public exposure is proposed to commence in early June and run untillate September 2024.

This document has been prepared by the GRI Standards Division and is made available to observers
at meetings of the Global Sustainability Standards Board (GSSB). It does not represent an official
position of the GSSB. Board positions are set out in the GRI Sustainability Reporting Standards. The
GSSB is the independent standard setting body of GRI. For more information visit
www.globalreporting.org.

© GRI 2024

GRI SICH: Significant Changes forWorkers 202X

Page 2 of 20

Content
Introduction ........................................................................................................................................... 4
1. Topic management disclosures ...................................................................................................... 8
Disclosure SICH 1 Management of significant changes for workers .................................................. 8
2. Topic disclosures ............................................................................................................................ 13
Disclosure SICH 2 Minimum consultation and notice periods........................................................... 13
Disclosure SICH 3 Redeployment and training ................................................................................. 14
Glossary ............................................................................................................................................... 18
Bibliography ........................................................................................................................................ 20

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1

Introduction

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GRI SICH: Significant Changes for Workers 202X contains disclosures for organizations to report
information about their impacts related to significant changes for workers and how these impacts aremanaged.

5

The Standard is structured as follows:

67•

Section 1 contains one disclosure, which provides information about how the organization
manages its significant changes to workers-related impacts.

89•Section 2 contains two disclosures, which provide information about the organization’s
impacts related to significant changes for workers.

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•

The Glossary contains defined terms with a specific meaning when used in the GRI
Standards. The terms are underlined in the text of the GRI Standards and linked to thedefinitions.

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•

The Bibliography lists authoritative intergovernmental instruments and additional referencesused in developing this Standard.

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The rest of the Introduction section provides a background on the topic, an overview of the system of
GRI Standards, and further information on using this Standard.

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Background on the topic

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This Standard addresses the topic of significant changes for workers.

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A significant change is an alteration to the organization’s pattern of operations that has significant
positive or negative impacts on workers. Examples include closures, expansions, mergers, newopenings, outsourcing operations, restructuring, sale of all or part of the organization, and takeovers.
Business model transformations, demographic shifts, the introduction of technology, or the climate
just transition to a greener economy can cause significant changes.

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Variations to the organization’s activity can affect workers by causing changes in day-to-day tasks,
work locations, the number of hours worked, working time arrangements, or even mass terminations.
It can cause disproportionate negative impacts for certain workers, such as those in low-skilled roles
and fewer skills, migrant workers, or workers with disabilities.

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Significant changes for workers can also result in positive impacts, such as opportunities for theorganization to provide more quality jobs. For example, the adoption of new technologies caneliminate work-related hazards. This can also lead to higher-quality jobs requiring new skills,
promoting worker upskilling, and potentially improving job satisfaction. Another example is thechanges to day-to-day operations, such as teleworking, which can lead to policies prioritizing workers’
well-being and promoting a better work-life balance.

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Organizations should report the actions taken to mitigate the negative impacts of significant changes
on their workers. For example, organizations can consider alternatives to mass termination, such as
voluntary retirement or restricting overtime. Workforce planning is another effective strategy to alignthe existing workforce with anticipated future labor demand, thus ensuring organizational stability andavoiding sudden mass termination. Upskilling and re-skilling programs also allow existing workers toenhance their employability and gain valuable portable skills. Additionally, redeployment enables
workers to stay employed and enables organizations to retain skilled workers.

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The International Labour Organization (ILO) Termination of Employment Convention, 1982 (No. 158)
aims to protect workers’ rights during employment termination, particularly in the context of economic
challenges and technological changes. The ILO provides additional guidelines through the
Recommendation Termination of Employment Convention, 1982 (No. 166) and the Termination of
Employment Convention, 1982 (No. 158). These instruments cover issues related to termination
payments, notice periods, and appeal procedures. In addition, early and meaningful consultation withworkers’ representatives provides an opportunity for cooperation to mitigate the impacts of such

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changes, promote suitable alternatives to mass termination, and balance employer rights with worker
protection.

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The scope of this Standard is the organization's employees and workers who are not employees andwhose work is controlled by the organization, hereinafter ‘workers who are not employees’. Workers
who are not employees perform work for the organization but are not in an employment relationshipwith the organization. Control of work implies that the organization directs the work performed or has
control over the means or methods for performing the work. See the Control of Work Standard
Interpretation to GRI 2 for more information.

56

System of GRI Standards

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This Standard is part of the GRI Sustainability Reporting Standards (GRI Standards). The GRI
Standards enable an organization to report information about its most significant impacts on theeconomy, environment, and people, including impacts on their human rights, and how it manages
these impacts.

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The GRI Standards are structured as a system of interrelated standards that are organized into threeseries: GRI Universal Standards, GRI Sector Standards, and GRI Topic Standards (see Figure 1 inthis Standard).

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Universal Standards: GRI 1, GRI 2 and GRI 3

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GRI 1: Foundation 2021 specifies the requirements that the organization must comply with to report inaccordance with the GRI Standards. The organization begins using the GRI Standards by consulting
GRI 1.

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GRI 2: General Disclosures 2021 contains disclosures that the organization uses to provide
information about its reporting practices and other organizational details, such as its activities,
governance, and policies.

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GRI 3: Material Topics 2021 provides guidance on how to determine material topics. It also contains
disclosures that the organization uses to report information about its process of determining material
topics, its list of material topics, and how it manages each topic.

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Sector Standards

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The Sector Standards provide information for organizations about their likely material topics. The
organization uses the Sector Standards that apply to its sectors when determining its material topics
and when determining what to report for each material topic.

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Topic Standards

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The Topic Standards contain disclosures that the organization uses to report information about its
impacts in relation to particular topics. The organization uses the Topic Standards according to the listof material topics it has determined using GRI 3.

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82

Figure 1. GRI Standards: Universal, Sector and Topic Standards

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Using this Standard

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This Standard can be used by any organization – regardless of size, type, sector, geographic location,or reporting experience – to report information about its impacts related to significant changes forworkers. In addition to this Standard, disclosures that relate to this topic can be found in• GRI CC: Climate Change 202X
• GRI EMPL: Employment 202X
• GRI TRED: Training and Education 202X
• GRI REWO: Remuneration and Working Time 202X
• Control of Work Standard Interpretation to GRI 2

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An organization reporting in accordance with the GRI Standards is required to report the following
disclosures if it has determined significant changes for workers to be a material topic:

94•

Disclosure 3-3 in GRI 3: Material Topics 2021.

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•

Any disclosures from this Topic Standard that are relevant to the organization’s significant
changes for workers-related impacts (Disclosure SICH-2 through Disclosure SICH-3).

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See Requirements 4 and 5 in GRI 1: Foundation 2021.

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Reasons for omission are permitted for these disclosures.

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If the organization cannot comply with a disclosure or with a requirement in a disclosure (e.g.,
because the required information is confidential or subject to legal prohibitions), the organization isrequired to specify the disclosure or the requirement it cannot comply with and provide a reason foromission together with an explanation in the GRI content index. See Requirement 6 in GRI 1 for more
information on reasons for omission.

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If the organization cannot report the required information about an item specified in a disclosure
because the item (e.g., committee, policy, practice, process) does not exist, it can comply with therequirement by reporting this to be the case. The organization can explain the reasons for not having
this item or describe any plans to develop it. The disclosure does not require the organization to
implement the item (e.g., developing a policy), but to report that the item does not exist.

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If the organization intends to publish a standalone sustainability report, it does not need to repeat
information that it has already reported publicly elsewhere, such as on web pages or in its annual
report. In such a case, the organization can report a required disclosure by providing a reference in
the GRI content index as to where this information can be found (e.g., by providing a link to the web
page or citing the page in the annual report where the information has been published).

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Requirements, guidance and defined terms

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The following apply throughout this Standard:

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Requirements are presented in bold font and indicated by the word ‘shall’. An organization mustcomply with requirements to report in accordance with the GRI Standards.

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Requirements may be accompanied by guidance.

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Guidance includes background information, explanations, and examples to help the organization
better understand the requirements. The organization is not required to comply with guidance.

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The Standards may also include recommendations. These are cases where a particular course ofaction is encouraged but not required.

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The word ‘should’ indicates a recommendation, and the word ‘can’ indicates a possibility or option.

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Defined terms are underlined in the text of the GRI Standards and linked to their definitions in the
Glossary. The organization is required to apply the definitions in the Glossary.

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126

1. Topic management disclosures

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An organization reporting in accordance with the GRI Standards is required to report how it manages
each of its material topics.

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An organization that has determined significant changes for workers to be a material topic is required
to report how it manages the topic using Disclosure 3-3 in GRI 3: Material Topics 2021. The
organization is also required to report any disclosure from this section Disclosure SICH-1 that isrelevant to its significant changes for workers-related impacts.

133This section is, therefore, designed to supplement – and not replace – Disclosure 3-3 in GRI 3.

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Disclosure SICH 1 Management of significant changes
for workers

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REQUIREMENTS
The organization shall:

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a. describe how significant changes affecting employees and workers who are not
employees are managed, including how it consults workers’ representatives;

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b. describe any actions taken to mitigate the negative effects of significant changes for
employees and workers who are not employees, including:i. redeployment;
ii. training for up- and reskilling;iii. workforce planning;c. in cases where significant changes result in mass termination for employees and workers
who are not employees, describe how it manages:

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i. the termination procedure, including how workers’ representatives are consulted
ii. the appeal procedure;iii. notice periods provided;
iv. termination payments and separation benefits.
GUIDANCE

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The disclosure provides an understanding of how organizations manage significant changes,
especially those that result in mass termination, as well as how it mitigates negative impacts on
employees and workers who are not employees.

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Mass termination occurs when a significant number of workers' employment is terminatedsimultaneously or within a short period. Although there is no specific numerical criterion or threshold,national laws establish the threshold for mass termination.

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Consultations with workers’ representatives and relevant authorities are vital to seeking genuine,
effective solutions through constructive social dialogue to mitigate the effects of significant changes
on workers, especially in cases of mass termination. This disclosure provides an understanding of theorganization’s consultation practices with workers’ representatives.

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For the purpose of clarity, the term ‘workers who are not employees’ refers to workers who are not
employed by the organization but whose work is controlled by the organization. See the Control ofWork Standard Interpretation to GRI 2 for more information.

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168

Guidance to SICH 1-a

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Organizations should describe how significant changes are managed from the beginning until thecompletion of the process. In addition, the organization should explain how employees and workers
who are not employees are informed of any changes that would affect them. The organization canalso describe how it notifies and cooperates with authorities in the locations where significant changes
occur.

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For example, newly introduced anti-money laundering legislation in the retail banking sector requires
significant changes within an organization that will result in revised roles and responsibilities for
employees. Performance targets may no longer be met due to the increased time taken to verify
customer identities. Sales employees may lose cash bonuses, and employees found violating theregulations may face monetary fines or criminal liability. The organization can describe how itprioritizes transparent communication and explain why roles and responsibilities need adjustment. It
can also introduce training to ensure employee awareness of the legislation and new IT software to
reduce the time taken by employees for new tasks. Additionally, the organization can describe how it
updates its disciplinary and termination processes when an employee is non-compliant and does thisin consultation with its workers’ representatives.

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The organization should report whether there is a procedure to consult workers’ representatives as
early as possible, as these negotiations can affect how the organization manages significant changes
and, ultimately, the outcomes. The organization can also report how it ensures that all relevant
information is available to workers’ representatives so that workers can participate effectively inconsultations.

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Guidance to SICH 1-b

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The organization can report how it provides alternatives to voluntary retirement, restriction of paid
overtime, or a temporary reduction of normal working hours to employees and workers who are not
employees. The organization should also report whether it provides compensation for the loss of
remuneration during temporary reductions in normal working hours, and if so, whether thiscompensation is financed and if this is financed by methods appropriate under national laws andpractices.

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The organization should report the social contributions made in cases of early retirement. See
Disclosure REWO 5 in GRI Remuneration and Working Time 202X.

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The organization should report how it ensures that any alternatives to mass termination, such as early
retirement, are freely chosen. For example, the organization can report how it determines this wasvoluntary by informing the workers that a refusal does not affect their employment status.

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The organization should report if it enters a dialogue with government entities or worker
representatives to discuss significant changes and actions to mitigate adverse effects.

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See reference [2] in the Bibliography.

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The organization can report additional incentives, especially those implemented with otherstakeholders and government entities. This may include providing outplacement support and careertransition services to former employees and workers who are not employees.

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Significant changes can result in a disproportionately negative impact on specific segments ofworkers, such as those on temporary contracts, low-skilled workers, and those from vulnerable
groups. For example, the pandemic has affected workers globally, with low-skilled workers being
more heavily affected than highly-skilled employees during the initial phase. Women were more likely
than men to reduce their working hours to manage family responsibilities with the closure of schools
and childcare facilities. In addition, low-paid workers in essential services faced more challenging
health and safety issues as their work could not be completed remotely.

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Therefore, the organization should report how they mitigate changes so as not to disproportionallyaffect specific groups of employees or workers who are not employees.

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See reference [4] in the Bibliography

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Guidance to SICH 1-b-i

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Redeployment is the process of moving existing workers to a different job before a notice period
expires. Redeployment can be internal within the organization or external to another organization.
This can be managed directly by the organization or with the assistance of government authorities or
private recruitment agencies. An example of external redeployment is when an employee signs atemporary contract with another organization during a suspension of employment with the primaryorganization.

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The organization should describe its process for managing redeployment, including:

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•
•
•
•
•

identifying available internal job opportunities for redeployment within the organization;
outlining the selection criteria and process for choosing workers;
ensuring that offers are extended to employees and workers who are not employees before
the end of their notice period;
incorporating employees and workers who are not employees into the process who are on
sick leave, maternity leave, paternity leave, or other family and care leave;
communicating with employees and workers who are not employees about the process, aswell as any possible consequences for declining a job offer.

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The organization should explain how it determines if the offered employment is suitable with similar
employment conditions to the worker’s current job. Working conditions include remuneration, benefits,working time arrangements, contract type (permanent, full-, or part-time), location of the work, andhow it matches the workers’ skills and abilities. It should also consider personal circumstances, suchas a worker’s childcare obligations.

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The organization should report how the employees and workers who are not employees are given
adequate information and time to assess the suitability of the jobs offered.

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Guidance to SICH 1-b-ii

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Up- and re-skilling are formal or non-formal training and education activities provided directly or
indirectly by the organization. Upskilling of workers refers to training that supplements and updates
existing knowledge, skills, and competencies. An example of re-skilling is when an employee in a
manufacturing plant, faced with the prospect of losing their job due to the introduction of new
machinery, undergoes training in machine operation and maintenance. As a result, the employee
becomes a highly skilled technician responsible for maintaining the new machinery. Re-skilling iswhere the training and education of a worker enable them to acquire new skills. An example ofupskilling is when an administrator in the finance department is trained in financial knowledge,
technical expertise, and professional certifications to become a qualified accountant. The goal of
upskilling and re-skilling is to provide and enhance a worker’s transferable skills and competencies.
This strategy improves the ability to secure decent work in a changing labor market by ensuring aworker has portable skills that can be used in other occupations or in a different socio-cultural or
technical environment.

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The organization should report if the worker pays for the cost of up- and re-skilling activities and if theworker still receives remuneration during this period.

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See reference [4] in the Bibliography

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The organization should report on the type and the content of training provided for up- and re-skilling.
See TRED 2 in GRI TRED: Training and Education 202X.

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Guidance to SICH 1-b-iii

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Workforce planning is the process by which the organization understands its expected short- andlong-term organizational needs for worker supply and demand. It uses this information to develop
existing workers to meet these expected needs, which can result in upskilling, recruitment, andintroduction of technologies, such as automation.

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An organization can report how information on workforce planning was gathered, including any
involvement of stakeholders, such as national authorities and workers representatives, and how thisinformation was used to make decisions. Important information can include the timeframes, scenario
planning, and the gap analysis of workers' current skills and expected needs. For example, National
authorities can assess the labor supply, demand, and any gaps in skills, as well as develop policies
related to education, training, and job creation.

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See reference [1] in the Bibliography.

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Guidance to SICH 1-c

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The organization should report whether it communicates mass terminations to workers in writing andthat relevant information is provided. Relevant information includes termination payment and an
explanation of calculation, notice period, any time off to look for employment, advice on social
protection, and information on the procedure to appeal.

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The organization should describe how it complies with national law and collective bargaining
agreements when administering mass termination, including notifying the relevant competentauthorities. When public authorities and other relevant stakeholders are notified in advance, they may
mediate between an organization and workers in finding appropriate solutions, thereby mitigating thenegative effects of mass terminations on workers and the wider community [2]. The organization canalso report any joint incentives taken with the public authorities or other stakeholders.

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In addition, the organization can describe how it manages the termination process and who is exempt
from the mass termination procedure. If employees and workers who are not employees are exempt
from the mass termination procedure, the organization can describe why this is the case and how it
manages the termination for these categories.

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Guidance to SICH-1-c-i

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The organization should report all stages of the termination process, including consultations withworker representatives, notifying competent authorities, selecting workers for termination, informing
workers, providing a notice period, and ensuring an appeals procedure is available.

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According to the ILO Termination of Employment Recommendation, 1982 (No. 166) [1], when an
organization considers significant changes that would cause terminations, it must consult workers’
representatives as early as possible. These consultations should be held before the stage at which
the termination becomes inevitable to allow timely cooperation to mitigate the effect of such changes.

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In accordance with the ILO Termination of Employment Convention, 1982 (No. 158) [2], theorganization needs to provide accurate and relevant information to workers’ representatives, enablingthem to have an accurate and fair view of the organization’s performance. Important information to beprovided to workers’ representatives includes:

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clear and objective criteria for reasons for the termination;
number of affected workers;
period over which the terminations are intended to be carried out;
information on the employment status of affected workers, including employment category,
employee type, and skill level;
gender, other social demographic groups of affected workers;
likely impacts of the changes;
intended measures to mitigate the negative impacts.

The organization should report on the accuracy and relevance of the information provided to ensurethat workers' representatives can effectively participate in the negotiations.

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The organization should report how the input of the workers' representatives was considered before
making any decisions, such as providing consultation on the selection criteria for employment
termination. Where trade union representatives and elected representatives exist in the organization,
the organization should report the appropriate measures taken to ensure that elected representatives
are not used to undermine the position of workers’ representatives.

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The organization can report the selection criteria used for mass terminations to demonstrate how theinterests of employees and workers who are not employees and the organization are balanced. The
organization can report how it uses a combination of criteria for termination to ensure it does not
disproportionally affect a single demographic group. For example, using length of service as aselection criterion may disproportionately affect migrant workers or young workers as they often havethe shortest length of service.

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The organization is expected to have safeguards to prevent the discriminatory dismissal of employees
and workers who are not employees. Some groups of workers are more vulnerable to arbitrary or
discriminatory dismissal, such as workers with disabilities, migrant workers, older workers, union
workers, and women. The organization reports how it ensures that employees and workers who are
not employees when temporarily absent from their employment due to sick leave, maternity leave,paternity leave, and other family and care leave are not dismissed based on such reasons.

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Guidance to SICH 1-c-ii

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In accordance with the ILO Termination of Employment Convention, 1982 (No. 158) [2], any worker
who believes their employment has been unjustifiably terminated has a right to appeal to an impartial
body, such as a court, labor tribunal, arbitration committee, or arbitrator. When describing the process
for appeal against termination, the organization can describe the types of authority to which theappeal can be made, such as intra-company office, government labor authority, or judicial branch,and the period after termination during which the worker can appeal.

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Guidance to SICH 1-c-iii

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In the context of mass termination, a notice period is the period between formally informing the workerof the termination of their work and the end of the last working day. According to the ILO Terminationof Employment Convention, 1982 (No. 158) [2], a worker whose employment is terminated is entitledto a reasonable period of notice or monetary compensation in lieu of, unless a worker is guilty ofserious misconduct. In cases where an organization cannot provide a reasonable minimum notice
period, the organization should report the financial compensation given in lieu of the notice period.
The specific length of notice periods depends on relevant legislation, collective agreements, or
employment contracts. The organization should report if the notice period differs from relevant
legislation or collective agreements stipulated.

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Notice periods enable workers to make necessary preparations and mitigate the negative impacts on
their livelihood by allowing time to make necessary adaptations and look for new employment.
According to the ILO Termination of Employment Recommendation, 1982 (No. 166) [1], during thenotice period, the worker is entitled to a reasonable amount of time off, convenient to both parties andwithout loss of pay, to look for employment. The organization should report its policy allowing time off
during the notice period for workers to seek employment elsewhere.

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Guidance to SICH-1-c-iv

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Requirement SICH-1-c-ic enables the organization to report whether it provides termination payments
to employees and workers who are not employees. The organization is not required to report theamount of termination payments provided.

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352

2. Topic disclosures

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An organization reporting in accordance with the GRI Standards is required to report any disclosuresfrom this section (Disclosure SICH 2 through Disclosure SICH 3) that are relevant to its impacts
related to significant changes for workers.

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Disclosure SICH 2 Minimum consultation and notice
periods

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REQUIREMENTS

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The organization shall:

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a. report how many weeks of notice is provided to workers’ representatives before theimplementation of mass termination affecting employees and workers who are not
employees;

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GUIDANCE

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According to the ILO Termination of Employment Convention, 1982 (No. 158) [2], an organization is
expected to provide reasonable notice of mass termination to its workers, workers’ representatives,and other stakeholders, such as government authorities, before implementing any significant changes
that will affect employees and workers who are not employees. This disclosure aims to understandthe organization’s practice of ensuring timely notice and meaningful dialogue with workers’
representatives.

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For the purpose of clarity, the term ‘workers who are not employees’ refers to workers who are not
employed by the organization but whose work is controlled by the organization. See the Control ofWork Standard Interpretation to GRI 2 for more information.

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Guidance to SICH 2-a

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This requirement provides insight into the organization’s practice of ensuring timely discussion ofmass termination and engaging with its workers’ representatives to negotiate and implement thesechanges, which can have positive or negative impacts on workers. When reporting the minimum
notice period, the organization should report the minimum notice period for mass termination it hasgiven its workers’ representatives before implementing this significant change.

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Guidance to SICH 2-b

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This disclosure requirement aims to report the workers’ representatives’ involvement in negotiationand meaningful dialogue. The organization should report the number of weeks of consultation frominitial communication with workers' representatives to workers receiving their notice period regarding
the termination of employment. The organization can report the number of consultation meetings withworkers' representatives and government authorities.

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Guidance to SICH 2-c

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The organization can use the collective bargaining agreements reported under Disclosure 2-30 of GRI
2: General Disclosures 2021 to determine whether these documents contain a notice period andprovisions for consultation and negotiation.

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b. report how many weeks were taken in consultation with workers’ representatives before
the implementation of mass termination affecting employees and workers who are not
employees;c. report whether a notice period and provisions for consultation and negotiation are
specified within any collective bargaining agreements.

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396Disclosure SICH 3 Redeployment and training

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REQUIREMENTS

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The organization shall:

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a. for each significant location of operation, report the number, in headcount, andpercentage of employees affected by significant changes who received training for upand re-skilling, and a breakdown by:

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i. employee category;ii. employee typeiii. gender;b. for each significant location of operation, report the total redeployed and terminatedemployees due to significant changes and a breakdown by:

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i. employee category;ii. employee typeiii. gender;c. report the definition used for ‘significant locations of operation’

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GUIDANCE

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418This disclosure asks the organization to report its activities to ensure employees can obtain quality
jobs after implementing any significant change, including when mass termination occurs.

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Employees from vulnerable groups are at greater risk of not being able to find employment aftertermination. Therefore, the organization can provide a breakdown of the information required by SICH
3-a and SICH 3-b by vulnerable groups, such as persons with disabilities. The organization can also
report 3-a and SICH 3-b for workers who are not employees.

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For the purpose of clarity, the term ‘workers who are not employees’ refers to workers who are not
employed by the organization but whose work is controlled by the organization. See the Control ofWork Standard Interpretation to GRI 2 for more information.

426

Guidance to SICH 3-a

427
428

The following formula can be used to calculate the percentage of employees affected by significant
changes who received training for up- and re-skilling:d. report contextual information necessary to understand how the data has been compiled,including standards, methodologies, and assumptions used.

Percentage of employees
affected by significant changes
who received training for upand re-skilling=Number of employees affected bysignificant changes who received
training for up-and re-skillingX

100

Number of employees affected bysignificant changes

The organization should describe the employee upskilling or re-skilling programs, including an overview of thecontent and the time taken to complete the program. See TRED 2 and TRED 3 in GRI TRED: Training and

Education 202X. The organization should report if any upskilling or re-skilling has been done incollaboration with a governmental institution or another initiative. The organization may report the
number of up- and re-skilled employees before a significant change as part of long-term workforce
planning.
429

Guidance to SICH 3-b

430
431

The ratio of redeployment of employees by the number of employees whose employment was
terminated due to the significant change can be calculated using the following formula:

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Ratio=Number of employees affected by significant
changes who received training for up-and re-skillingNumber of employees affected by significant
changes

432
433
434

Organizations can report the number of employees affected by significant changes whose
employment was terminated but are awaiting redeployment. For example, they are waiting to finish a
training program prior to their new employment.

435
436

The organization should report the number and percentage of employees affected by significant
changes whose redeployment has been in collaboration with a national authority or another initiative.

437

See Table 1 for an example of how to present the information on SICH 3-a and SICH 3-b.

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438
439
440

Table 1. Example template for presenting the number and percentage of employees who
received upskilling and re-skilling training, and those who were redeployed or terminated due
to significant changes at each location of operation.
Total
number of
employees
affected bysignificant
changesTotal
number of
employees
affected bysignificant
changes
who
received
training for
up- and reskilling

Percentageof
employees
affected bysignificant
changes
who
received
training for
up- and reskillingTotal
numberofemployees
redeploye
d due tosignificant
changesTotal
number of
employees whose
employment wasterminate
d due tosignificant
changes

Ratio of thenumber of
employees
redeployed to
the number of
employees
whose
employment was
terminated due
to significant
changes

Regions A
Employee Category
Employee category 1
Employee category 2
Employee category 3
Employee type
Employee type 1
Employee type 2
Employee type 3
GenderMen
Women
Other *
Not disclosed **Regions B
Employee Category
Employee category 1
Employee category 2
Employee category 3
Employee type
Employee type 1
Employee type 2
Employee type 3
GenderMen
Women
Other *
Not disclosed **Page 16 of 20

441** Gender is specified by the employees themselves.

442** Gender is not disclosed by the employees themselves.

443

Guidance to SICH 3-a-i and SICH 3-b-i

444
445
446

These requirements necessitate the organization to provide a breakdown by employee category tounderstand how upskilling, re-skilling, or redeployment has assisted low-skilled employees who are ata greater disadvantage in finding new job opportunities.

447
448
449

The organization should report the employee category breakdown by level (such as senior
management and middle management) and function (such as technical, administrative, andproduction). This information is derived from the organization’s human resources system.

450

Guidance to SICH 3-a-ii and SICH 3-b-ii

451
452
453

Employee type refers to the different types of employees reported under 2-7-b in GRI 2: permanent
employees, temporary employees, non-guaranteed hours employees, full-time employees, and parttime employees.

454

Guidance to SICH 3-a-iii and SICH 3-b-iii

455
456

The organization is free to choose how to report the breakdown by gender. It is not required to report
the four categories suggested in Table 1.

457

Guidance to SICH 3-c

458
459
460

Significant locations of operations refer to sites or specific geographical areas where the organization
conducts its operations or activities. These locations can affect the likelihood of a potential, actual, or
severe impact, such as areas where migrant workers are at higher risk of exploitation.

461

Guidance to SICH 3-d

462
463

The organization should provide the methodology for determining the overall number of employees
affected, workers eligible for re-skilling and upskilling, deployment, and workers terminated.

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464

Glossary465
466This glossary provides definitions for terms used in this Standard. The organization is required toapply these definitions when using the GRI Standards.

467
468
469

The definitions included in this glossary may contain terms that are further defined in the complete
GRI Standards Glossary. All defined terms are underlined. If a term is not defined in this glossary or in
the complete GRI Standards Glossary, definitions that are commonly used and understood apply.

470

collective bargaining

471
472
473
474

all negotiations that take place between one or more employers or employers’ organizations, on the
one hand, and one or more workers’ organizations (e.g., trade unions), on the other, for determining
working conditions and terms of employment or for regulating relations between employers andworkers475
476

Source: International Labour Organization (ILO), Collective Bargaining Convention, 1981 (No. 154);
modified477

employee category

478
479
480

breakdown of employees by level (such as senior management, middle management) and function(such as technical, administrative, production)[Note:/Note 1:]
This information is derived from theorganization’s own human resources system.

481

employee482
483

individual who is in an employment relationship with the organization according to national law orpractice484

impact

485
486
487

effect the organization has or could have on the economy, environment, and people, including on
their human rights, which in turn can indicate its contribution (negative or positive) to sustainable
development

488
489

Note 1: Impacts can be actual or potential, negative or positive, short-term or long-term, intended orunintended, and reversible or irreversible.

490

Note 2: See section 2.1 in GRI 1: Foundation 2021 for more information on ‘impact’

491

mitigation

492
493
494

action(s) taken to reduce the extent of a negative impact Source:
United Nations (UN), The
Corporate Responsibility to Respect Human Rights: An Interpretive Guide, 2012;
modified

495
496
497
498

Note:] The mitigation of an actual negative impact refers to actions taken to reduce the severity of
the negative impact that has occurred, with any residual impact needing remediation. The mitigationof a potential negative impact refers to actions taken to reduce the likelihood of the negative impact
occurring.

499

non-guaranteed hours employee

500
501

employee who is not guaranteed a minimum or fixed number of working hours per day, week, ormonth, but who may need to make themselves available for work as required

502

Source: ShareAction, Workforce Disclosure Initiative Survey Guidance Document, 2020; modified.

503
504

Examples:casual employees, employees with zero-hour contracts, on-call employees

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505

severity (of an impact)

506
507
508

The severity of an actual or potential negative impact is determined by its scale (i.e., how grave theimpact is), scope (i.e., how widespread the impact is), and irremediable character(how hard it is to counteract or make good the resulting harm).

509
510
511
512

Source:

513
514
515
516
517
518
519
520

Note:

521

temporary employee

522
523
524

employee with a contract for a limited period (i.e., fixed term contract) that ends when the specifictime period expires, or when the specific task or event that has an attached time estimate iscompleted (e.g., the end of a project or return of replaced employees)

525vulnerable group

526
527
528

group of individuals with a specific condition or characteristic (e.g., economic, physical, political social)that could experience negative impacts as a result of the organization’s activities more severely than
the general population.

529
530
531
532
533
534
535

Examples:

536

Note:

537

worker who is not an employees

Organisation for Economic Cooperation and Development (OECD), OECD Due
Diligence Guidance for Responsible Business Conduct, 2018; modified United
Nations (UN), The Corporate Responsibility to Respect Human Rights: An
Interpretive Guide, 2012; modified
See section 1 in GRI 3: Material Topics 2021 for more information on ‘severity’.

significant change
alteration to the organization’s pattern of operations that can potentially have significant positiveor negative impacts on workers performing the organization’s activities
Examples:closures, expansions, mergers, new openings, outsourcing of operations,
restructuring, sale of all or part of the organization, takeovers

children and youth; elderly persons; ex-combatants; HIV/AIDS-affected households;
human rights defenders; indigenous peoples; internally displaced persons; migrant
workers and their families; national or ethnic, religious and linguistic minorities;
persons who might be discriminated against based on their sexual orientation, gender
identity, gender expression, or sex characteristics (e.g., lesbian, gay, bisexual,
transgender, intersex); persons with disabilities; refugees or returning refugees;
women,

Vulnerabilities and impacts can differ by gender.

workers who perform work for the organization and whose work is controlled by the organization but
are not in an employment relationship with the organization. Control of work implies that theorganization directs the work performed or controls the means or methods for performing the work.
Note: the type of contractual relationship between the organization and the worker (e.g.,
employment agency, contractor) does not determine whether the organization controls the work.
Example:agency workers, apprentices, contractors, home workers, interns, self-employedpersons, sub-contractors, and volunteers.
538
539

worker representative

540
541
542
543
544
545

Person who is recognized as such under national law or practice, whether they are:• a trade union representative, namely, a representative designated or elected by trade unions
or by members of such unions; or an elected representative, namely, a representative who isfreely elected by the workers of the undertaking in accordance with provisions of nationallaws, regulations, or collective agreements, whose functions do not include activities which
are recognized as the exclusive prerogative of trade unions in the country concerned.

546
547

Source:(No. 135)International Labour Organization (ILO), Workers’ Representatives Convention, 1971

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548

Bibliography

549
550

This section lists authoritative intergovernmental instruments and additional references used indeveloping this Standard, as well as resources that the organization can consult.

551

Authoritative references:

552
553

1. International Labour Organization (ILO), Termination of Employment Recommendation, 1982 (No.
166).

554

2. International Labour Organization (ILO), Termination of Employment Convention, 1982 (No. 158).

555
556

3. International Labour Organization (ILO), Private Employment Agencies Convention, 1997 (No.
181).

557

4. International Labour Organization (ILO), Paid Education Leave Convention, 1974 (No. 140).

558
559

Additional references:

560
561

5. International Labour Organization (ILO), The Impact of the Covid-19 pandemic on jobs andincomes in G20 economies, 2020.

562
563

Resources:

564
565

6. International Labour Organization (ILO), The regulation of collective dismissals: Economic
rationale and legal practice, 2020.

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