IISD Model Contract Clauses for Responsible Investment in Agriculture:

Customizable legal provisions to help implement international best practices, principles, and guidance on responsible agricultural investment

28. Employment

 

28.1 Job targets: The Company envisages that the Project will generate the following positions (the Job Targets):

(a) [insert number] unskilled permanent positions, of which [insert number]% shall be held by women;

(b) [insert number] unskilled seasonal positions, of which [insert number] % shall be held by women; and,

(c) [insert number] financial, accounting, technical, administrative, supervisory, and senior management positions and other skilled positions (Skilled Positions), of which [insert number]% shall be held by women.

28.2 The Company shall use its best endeavours to achieve the Job Targets.

28.3 One year after the Effective Date, if the Company has failed to achieve any one of the Job Targets, the Parties [and representatives of the Legitimate Tenure Rights Holder and Local Community] shall meet to discuss the reasons for the failure and to negotiate in good faith any necessary variations to the Agreement, including but not limited to:

(a) increases to the Rental Amount;

(b) variations to the Company’s obligations under Section 29;

(c) revisions to the Job Targets;

(d) additional obligations regarding any new technology that has impacted the achievement of the Job Targets, including a requirement that the Company provide specialized training and skills development in respect of that technology; and

(e) [insert other as appropriate]

28.4 Where the Parties cannot agree as to any necessary variations in accordance with paragraph 28.3, the Parties shall refer the matter to an Independent Expert for final determination in accordance with Section 61.

28.5 Access to employment: the Company shall hire only [members of the Local Community]/[Citizens]/[Residents] for unskilled positions.

28.6 The Company shall provide equitable access to employment for women and men, and shall take all reasonable measures to facilitate women’s access to work at the Project Area including:

(a) providing transportation from the local residential areas to the Project Area;

(b) providing [free]/[low-cost] childcare to Workers with children younger than school age, and for children of school age outside of school hours; and

(c) [insert other as appropriate for the Project].

28.7 The Company shall give preference to qualified [members of the Local Community]/ [Citizens]/[Residents], and in particular to women, for employment in Skilled Positions, it being the objective of the Parties that the operations and activities of the Company under this Agreement should be conducted and managed primarily by [members of the Local Community]/[Citizens]/[Residents].

28.8 The Company shall ensure that [members of the Local Community]/[Citizens]/[Residents] hold at least [insert]% of all management positions within [insert] years of the Effective Date and at least [insert]% of such positions within [insert] years of the Effective Date.

28.9 Succession plan:11 For each management position held by a Worker who is not a Citizen or Resident, the Company shall prepare and submit to the Authority a plan for transitioning that position to be held by a Citizen or Resident (a Succession Plan).

28.10 The Succession Plan shall include, where necessary, provision for on-the-job mentorship by the incumbent in the position of a Citizen or Resident who shall take over the position. The Authority may, at its discretion, transmit the Succession Plan to the immigration authorities for their consideration in reviewing any application for immigration permits made by the Company.

28.11 Subject to this Section, the Company shall be entitled to freely choose its senior management [and the Authority shall facilitate such Persons to obtain the necessary immigration approvals and permits for themselves, their spouses, and Dependents] in accordance with the Applicable Law.

28.12 The Company shall report annually on its compliance with this Section, using Gender-Disaggregated Data, indicating:

(a) the status of the Company’s achievement of the Job Targets;

(b) the number of unskilled positions and Skilled Positions held by [members of the Local Community]/[Citizens]/[Residents];

(c) the percentage of senior management positions held by [members of the Local Community]/[Citizens]/[Residents]; and

(d) the measures taken by the Company to facilitate women’s access to jobs and to ensure equal pay for equal work.


For more information: See generally IISD, 2014, Section 8.1 (Employment); ISLP & CCSI, 2016, Section 2.13.3 (Local Employment and Local Procurement); Szoke-Burke et al., 2018, Section 8 (Employment Creation, Training, and Scholarships); Aizawa & Mann, 2021, Section 4.4 (Maximise Opportunities for Local Economic and Social Development); UNIDROIT & IFAD, 2021, Chapter 4, Part B (Employment Creation, Access to Jobs and Labour Rights).

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    Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), (2018). Guidance for governments – Local content policies. Section 5.2.3.1.

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