Legal & General’s chosen contractors or suppliers are expected to demonstrate that they maintain effective policies and procedures for the management of employee relations within their organisation and their supply chains.
Employee relations’ issues include freedom of association, working conditions, health and safety, working wages and child labour.
Employee Relations Policy
It is anticipated that the supplier will have a current company policy, which includes employee relations. A copy should be provided including the date of last revision if not included on the policy.
We believe that a good statement of employee relations will reflect commitment to employees and recognition of their value to the organisation. This is a strategic document, which will give a high-level overview of the employee relations values held by that organisation.
Employee Advice
We assume that the supplier will have appointed a designated manager or director who is responsible for employee relations within that company. We therefore seek information about the type of management experience that the individual has had and the nature of any qualifications held.
Employee Relations Management
On the basis of ‘what gets measured, gets done’, we anticipate that the organisation will have objectives and targets for employee relations management, which relate to the majority of areas indicated on the policy statement. Examples here include staff satisfaction surveys, low turnover and absence of industrial action.
There is no requirement for the supplier to recognise a particular Union. If a Union is not established, the operation of an employee consultation committee or employee association is desirable.
Legal & General recognises, promotes and supports the right of Amicus to represent its members across the wide range of employment issues. The company also encourages membership of Amicus to ensure that it is as representative as possible of employees’ opinion.
Employee Relations Procedures
We believe that a supplier should maintain a comprehensive employee handbook, which is easily accessible to all employees. The handbook should include details of the terms and conditions of remuneration and holiday entitlement as well as grievance and disciplinary procedures.
Legality to work
It is the responsibility of our suppliers to ensure the legality of their employees to work in the UK.
Where a supplier is providing services to Legal & General through a contractor, it is the responsibility of the suppliers to ensure the legality of the contractor’s employees to work in the UK.
Rates of pay
It is the responsibility of our suppliers to comply with the legal requirements for the payment of UK minimum wage and all other relevant legislation. Where minimum wage only is paid, the supplier is expected to advise Legal & General of their policy concerning rates of pay.
It is the responsibility of our suppliers to ensure that their contractors and subcontractors comply with the legal requirements for the payment of minimum wage and all other relevant legislation. Where minimum wage only is paid, the contractors and subcontractors are expected to advise Legal & General of their policy concerning rates of pay.
Non- financial remuneration
It is the responsibility of our suppliers to comply with the legal requirements for entitlement to holidays, absence payment and all other relevant legislation. Where the non-financial benefits provided to employees are at a level of minimum compliance with legislation, suppliers are expected to advise Legal & General of their policy concerning non- financial remuneration.
It is the responsibility of our suppliers to ensure that their contractors and subcontractors comply with the legal requirements for entitlement to holidays, absence payment and all other relevant legislation. Where the non-financial benefits provided to employees are at a level of minimum compliance with legislation, the contractors and subcontractors are expected to advise Legal & General of their policy concerning non-financial remuneration.
Employment contracts/ forced labour
Legal & General will not tolerate forced, bonded or non-voluntary prison labour within its supply chain, in any form.
It is the responsibility of our suppliers to ensure that they establish recognised relationships with their employees who should be provided with an easy-to-read contract of employment, with particular clarity in relation to wage levels. Employees should be free to choose to work for their employer i.e. the supplier, and be free to leave that employment after reasonable notice is served.
It is the responsibility of our suppliers to ensure that their contractors and subcontractors establish recognised relationships with their employees who should be provided with an easy to read contract of employment, with particular clarity in relation to wage levels. Employees should be free to choose to work for their employer i.e. the supplier, and be free to leave that employment after reasonable notice is served
Reportable offences
The supplier is required to stipulate the reporting of ‘reportable criminal offences’ when recruiting security personnel and undertake security checks of personnel.
It is the responsibility of our suppliers to ensure that their contractors and subcontractors comply with the legal requirements for reporting criminal offences and all other relevant legislation.
Goods manufactured outside the European Union
If any of the goods or services that the supplier will provide are manufactured or performed outside of the EU, they are expected to provide details of the specific goods or services and their country of origin.
We require the supplier to have developed a code of conduct, which requires their suppliers to uphold minimum commitments relating to labour standards. These standards should meet the four ‘core’ ILO conventions on labour rights, namely,
- Freedom of association and the effective recognition of the right to collective bargaining
- The elimination of all form of bonded labour and compulsory labour
- The effective abolition of child labour
- The elimination of discrimination with respect to employment and occupation.
The supplier is required to maintain a plan of action in the event that labour rights concerns are identified in the supply chain and to provide details.
We require that the supplier should undertake procedures to ensure compliance with their code of conduct and provide a copy of their last supplier audit, as applicable.
