Questions & Answers
Please confirm that ESRS S1 paragraph 50 (a) should be read as disclosing on countries with at least 10% of employees, not EITHER 50 OR 10%: ‘the total number of employees by head count, and breakdowns by gender and by country for countries in which the undertaking has 50 or more employees representing at least 10% of its total number of employees.’
- Significant employment
Background
ESRS S1-6 paragraph 50 (a) requires the disclosure of the following information: ‘the total number of employees by head count, and breakdowns by gender and by country for countries in which the undertaking has 50 or more employees representing at least 10% of its total number of employees.’ ESRS S1 paragraph AR54 explains that the ‘number of employees in each country is also a key trigger for many information, consultation and participation rights for workers and workers’ representatives, both in the Union labour acquis and in national law.’ This concept of significant employment is furthermore clarified in Disclosure Requirement S1-8. ESRS S1 paragraph 60 (b) defines significant employment as ‘at least 50 employees by head count representing at least 10% of its total number of employees.’
Answer
The breakdown by country must be disclosed for countries where at least 10% of the undertaking’s employees are employed and the number of employees is at least 50, i.e. both threshold conditions need to be met.
ESRS 1 paragraph 50 (a) requires different types of employee information:
(a) the total number of employees by head count; and
(b) breakdowns by gender and by country for countries in which the undertaking has 50 or more employees representing at least 10% of its total number of employees.
As illustrated by Table 1 in ESRS S1 paragraph AR 55, the gender breakdown applies to all employees, i.e., the minimum employment threshold at the country level for reporting does not apply to this. As illustrated in Table 2 in ESRS S1 paragraph AR 55, the number of employees at the country level is to be reported; however, this reporting is mandatory only for countries in which both threshold conditions apply.
Relations
Paragraph | Content |
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Providing a breakdown of employees by country gives insight into the distribution of activity across countries. The number of employees in each country is also a key trigger for many information, consultation and participation rights for workers and workers' representatives, both in the Union labour law acquis (for example, Directive 2009/38/EC of the European Parliament and of the Council “European Works Councils Directive” and Directive 2002/14/EC of the European Parliament and of the Council “Information and Consultation Directive”) and in national law (for example, rights to establish a works council or to have board level employee representation). Providing a breakdown of employees by gender and type of employment relationship gives insight into gender representation across the undertaking. Additionally, providing a breakdown of employees by region gives insight into regional variations. A region can refer to a country or other geographic locations, such as a region within a country or a world region. | |
the total number of employees by head count, and breakdowns by gender and by country for countries in which the undertaking has 50 or more employees representing at least 10% of its total number of employees; | |
Providing a breakdown of employees by country gives insight into the distribution of activity across countries. The number of employees in each country is also a key trigger for many information, consultation and participation rights for workers and workers' representatives, both in the Union labour law acquis (for example, Directive 2009/38/EC of the European Parliament and of the Council “European Works Councils Directive” and Directive 2002/14/EC of the European Parliament and of the Council “Information and Consultation Directive”) and in national law (for example, rights to establish a works council or to have board level employee representation). Providing a breakdown of employees by gender and type of employment relationship gives insight into gender representation across the undertaking. Additionally, providing a breakdown of employees by region gives insight into regional variations. A region can refer to a country or other geographic locations, such as a region within a country or a world region. | |
the total number of employees by head count, and breakdowns by gender and by country for countries in which the undertaking has 50 or more employees representing at least 10% of its total number of employees; | |
the total number of employees by head count, and breakdowns by gender and by country for countries in which the undertaking has 50 or more employees representing at least 10% of its total number of employees; | |
Providing a breakdown of employees by country gives insight into the distribution of activity across countries. The number of employees in each country is also a key trigger for many information, consultation and participation rights for workers and workers' representatives, both in the Union labour law acquis (for example, Directive 2009/38/EC of the European Parliament and of the Council “European Works Councils Directive” and Directive 2002/14/EC of the European Parliament and of the Council “Information and Consultation Directive”) and in national law (for example, rights to establish a works council or to have board level employee representation). Providing a breakdown of employees by gender and type of employment relationship gives insight into gender representation across the undertaking. Additionally, providing a breakdown of employees by region gives insight into regional variations. A region can refer to a country or other geographic locations, such as a region within a country or a world region. | |
the total number of employees by head count, and breakdowns by gender and by country for countries in which the undertaking has 50 or more employees representing at least 10% of its total number of employees; |