
B Lab has recently introduced a new Impact Topic called Fair Work as part of its updated B Corp certification standards, set to take effect in 2026. This topic merges the previous areas of Fair Wages and Workplace Culture into a comprehensive framework aimed at ensuring quality employment practices and positive workplace environments.
But what does this mean in practice? And how can businesses prepare?
What is the ‘Fair Work’ Impact Topic?
The Fair Work Impact Topic is designed to encapsulate essential requirements related to a company’s own workers, focusing on aspects such as fair compensation, employment terms, and workplace culture. By consolidating these elements, B Lab aims to provide a clearer and more cohesive set of standards for businesses to follow.
What are the key components of Fair Work?
1. Employment contracts and work arrangementsCompanies are now required to provide clear employment contracts or offer letters to all employees. Additionally, for variable work arrangements like shift work or zero-hour contracts, there must be equal cancellation notice periods for both employers and employees.
2. Fair compensationThe new standards emphasise the importance of paying a living wage or collectively bargained wages to the lowest-paid workers. Recognising global disparities, B Lab offers flexibility for companies facing external barriers, allowing them to undertake alternative actions such as publicly sharing wage ratios or providing universal childcare.
3. Workplace cultureInstead of directly measuring mental health, which requires clinical expertise, the focus has shifted to proxy themes like wellbeing, belonging, and psychological safety. This approach encourages employers to foster environments where employees feel valued and heard.
What does the ‘Fair Work’ Impact Topic mean for businesses?
Mission-driven companies – like those certified with B Lab – share a core belief: all workers deserve to be treated with fairness and dignity. The introduction of Fair Work as an Impact Topic means these companies are going to be striving for more formal mechanisms to improve workplace dialogue and to measure workplace culture.
Ultimately, the aim is to create avenues to address the priorities and issues that are unique to each workplace, and this is vital to the success of mission-driven companies, like B Corps.
A key element of fulfilling the new Fair Work requirements will be embracing worker feedback. This helps to create positive feedback loops whereby better input from workers leads to better outcomes for all.
The introduction of the Fair Work Impact Topic signifies a shift towards more structured and mandatory requirements within the B Corp certification process. Gone is the flexibility of the old points-based system – now, every company must meet defined criteria across all Impact Topics, raising the bar for what it means to be a truly responsible business.
How can businesses prepare for the new B Lab standards implementation?
The updated standards, including the Fair Work Impact Topic, are expected to be fully implemented by 2026. Businesses seeking B Corp certification or recertification after this should begin assessing their current practices and making necessary adjustments to align with these new requirements. Now is the time to engage with stakeholders, audit your employment policies, and embed Fair Work principles across your operations.
At transformacy, we’re already working with clients to prepare for these new standards.
Ready to futureproof your B Corp journey? Let’s talk about how we can help your business meet the new Fair Work standards – book a call with us today.