ESRS Standard
ESRS Standard
20. The undertaking shall disclose:
(d) the rate of turnover of permanent employees in the reporting period
Application Requirement
Application Requirement
AR 11. For the employee turnover calculation, the undertaking shall divide the number of
employees who leave voluntarily or due to dismissal, retirement or death in service by the average employee headcount.
Good to know
Good to know
What is new in the revised ESRS 2026?
Under the previous ESRS (S1-6 para. 50(c)), the turnover rate was calculated for all employees. Under the revised ESRS 2026 (S1-5 para. 20(d)), it now applies only to permanent employees. Temporary employees are no longer included in the calculation.
Who counts as permanent?
The ESRS do not define “permanent” themselves. According to AR 7, the national laws of the country in which the employees work apply. If you have employees in several countries, first calculate the data for each country under its law. Then add up the country values to get the total number.
In Germany, these are usually employees with an open-ended employment contract.
Part-time work does not matter. Employees with an open-ended contract who work part-time are also permanent.
Temporary contracts (for example project contracts, parental leave cover) are not included. Trainees in Germany usually have a temporary contract.
Non-guaranteed hours employees (employees without a guaranteed minimum number of hours, for example zero-hour contracts) can count as temporary or as permanent under national law (note on AR 10). Follow the classification under national law.
Non-employees are not employees. They include self-employed people and agency workers. They do not belong in the calculation (see S1-6).
How is the turnover rate calculated?
the number of permanent employees who leave in the reporting period (voluntary departure, dismissal, retirement or death in service (AR 11))
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average number of employees (“average employee headcount”)
Document the methodology
Under AR 8 (in connection with ESRS 2 GDR-M), you state the method that you used to calculate the employee data, for example a reporting date or an average. Also state how you distinguish permanent from temporary employment and which national definitions you applied.
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