Living Wage Employer

The Living Wage certification by the Living Wage Foundation is a commitment by organizations to responsibly pay their employees a wage that meets the basic cost of living in the UK and London, which is higher than the government's National Minimum Wage. This certification is relevant to organizations aiming to demonstrate responsible employer practices and is applicable to all directly employed staff over 18 and to third-party contractors working regularly for the organization. The Living Wage does not apply to contractors supplying products, and wages for staff outside of the UK are not covered by the agreement.

Key Features

• Provides a benchmark for responsible employers to pay a rate that meets the basic cost of living.
• Where a salary calculation is used, accredited employers must also ensure that they pay the Living Wage for each hour of over-time worked.
• Wages for staff outside of the UK are not covered by the agreement.

Trustworthiness

To acquire the certification, organizations must ensure all directly employed staff receive a Living Wage and extend this to regular sub-contracted staff. The accreditation constitutes a signed license between the Foundation and the employer, demonstrating the employer's commitment to the Living Wage. While the Foundation does not carry out annual compliance audits, it has an anonymous whistleblowing scheme and a Compliance Check procedure to ensure adherence to the terms of the license agreement.

Duration and Renewal

The certification does not specify a validity period or renewal process, but it implies an ongoing commitment by the organizations to adhere to the Living Wage requirements as long as they are accredited.

Impact and Significance

Obtaining the Living Wage certification allows organizations to showcase their commitment to responsible employment practices, ensuring their employees receive a wage that meets the basic cost of living. It signifies a voluntary commitment to higher pay standards, benefiting both the organization's reputation and the well-being of its employees. However, the certification's impact is limited to the UK, and it does not apply to product-supplying contractors or to staff outside of the UK.