48 The entity shall describe the materiality of its employees.

49 The objective of this disclosure requirement is to provide insight into the entity's approach to employment, including the extent and nature of the impacts arising from its employment practices, to provide background information that facilitates understanding of the information reported under other disclosure requirements, and to serve as a basis for calculating the quantitative metrics required to be disclosed under other disclosure requirements in this Standard.

50 In addition to the information required by paragraph 40(a)(iii) of ESRS 2 General Disclosures, the entity shall disclose the following:

51. in respect of the information referred to in paragraph 50(b), the entity may also provide a regional breakdown.

52 The entity may provide the following information broken down by number of persons or full-time equivalents (FTEs):

AR 53 This disclosure requirement applies to all employees working for the companies included in the company's sustainability reporting.

AR 54: A breakdown of employees by country provides insight into the distribution of activities by country. The number of employees in each country is also a key factor in relation to many rights to 'information, consultation and participation for workers and Workers' representatives, both in the EU acquis on labor law (e.g. in Directive 2009/38/EC of the European Parliament and of the Council (108) on European Works Councils and in Directive 2002/14/EC of the European Parliament and of the Council (109) on information and consultation) and in national law (e.g. the right to establish a works council or to have Workers' representatives on management bodies). A breakdown of employees by gender and type of employment relationship provides insights into the gender distribution in the company. In addition, a breakdown of employees by region provides insights into regional differences. A region can be a country or other geographical areas such as a region within a country or a world region.

AR 55 The entity presents the required disclosures in the following tabular formats:

AR 56: The definitions of employees with permanent contracts, employees with fixed-term contracts, on-call employees and full-time and part-time employees differ from country to country. If the company has employees in more than one country, it uses the definitions according to the national legislation of the countries in which the employees work to calculate the data at country level. The data at country level is then added together to calculate the total figures, disregarding differences in national legal definitions. On-call workers are hired by the company without a guaranteed minimum or fixed number of working hours. Employee must be available to work as required, but the company is not contractually obliged to offer them a minimum number of working hours or a set number of working hours per day, week or month. This category includes, for example, casual workers, employees on zero-hours contracts and on-call workers.

AR 57. disclosing the number of employees at the end of the reporting period provides information for that point in time without capturing fluctuations during the reporting period. By averaging these figures over the reporting period, fluctuations during the reporting period are taken into account.

AR 58 Quantitative data, such as the number of employees on fixed-term contracts or part-time employees, is unlikely to be sufficient on its own. For example, a high proportion of employees on fixed-term contracts or working part-time could indicate a lack of job security for employees, but also flexibility in the workplace if this is offered as a voluntary option. For this reason, the company must provide background information to help Users of the information interpret the data. The company can explain the reasons for fixed-term employment. An example of such a reason is the hiring of employees to perform work as part of a temporary or seasonal project or event. Another example is the common practice of offering new employees a fixed-term contract (e.g. for six months) before offering permanent employment. The entity may also explain the reasons for the non-guaranteed working hours.

AR 59 For the calculation of employee turnover, the entity calculates the total number of employees who leave voluntarily or due to dismissal, retirement or death. The entity uses this number for the numerator of the employee turnover rate and may determine the denominator used to calculate this rate and describe its methodology.

AR 60 If data are not available for detailed information, the entity uses an estimate of the number of employees or ratios in accordance with ESRS 1 and clearly discloses where estimates have been used.

Own example

Tabular presentation, paragraph 50 c)