What is a social return obligation?
Social return is a term that originated in socially responsible public procurement (SRPP). It means that a client includes a social clause in a tender: the supplier devotes part of the contract value to inclusive employment of people with a distance to the labour market. Often this is a percentage of the contract value. The client decides how large that share is and how its value is calculated. On award, the obligation becomes part of the contract.
Within the EU, this fits the 2014 public procurement directives, which allow social considerations as contract performance conditions (Directive 2014/24/EU, Article 70). The European Commission calls this socially responsible public procurement (SRPP) and explains it in its guide Buying Social (second edition, 2021).
Why clients use social clauses
Clients spend large sums every year. Through social procurement they use that purchasing power for people who find it hard to get work on their own. A contract then delivers not only a product or service, but also work experience, a learning place or a job. The client decides who qualifies. For example, in the Netherlands this often covers people receiving benefits under the Participatiewet (Participation Act) or the WW (unemployment benefit), people listed in the Doelgroepenregister (register of people with a work-limiting disability) and students in secondary vocational education (mbo) at level 1 or 2.
How a supplier fulfils a social return obligation
A supplier can fulfil the obligation in several ways, as long as the client's rules allow it:
- employing someone with a distance to the labour market, on the contract or elsewhere in the company;
- offering a work-based learning place or an internship;
- buying from a social enterprise;
- running a social project, in which the supplier puts its own knowledge and time to work to improve the job prospects of disadvantaged jobseekers.
Which forms count and how they are valued is set out in the client's rules. More on how this works for you as a supplier: Socra for suppliers.
What makes the difference in practice
- Start early. Make a plan straight after the award, not halfway through the contract.
- Work with the regional employer service point. For example, in the Netherlands this is the werkgeversservicepunt; it knows candidates and helps to find and support new employees.
- Plan realistically over the contract term. Arranging a placement takes time, and the obligation usually has to be fulfilled within the term of the contract.
- Keep evidence in order from the start. Think of the employment contract, payslips and the doelgroepverklaring (a statement that the person qualifies). Collecting them afterwards takes far more time.
- Track progress. If you can see where the contract stands along the way, you can adjust in time.
How Socra helps to monitor social return
Socra brings the registration, review and progress of social return together in one place, for client and supplier. Candidates' personal data is stored encrypted, and everyone sees only what their work requires.
Read more about Socra for clients and Socra for suppliers.
Frequently asked questions
Who counts as a person with a distance to the labour market?
The client decides. For example, in the Netherlands this often covers people receiving benefits under the Participatiewet (Participation Act) or the WW (unemployment benefit), people listed in the Doelgroepenregister (register of people with a work-limiting disability) and students in secondary vocational education (mbo) at level 1 or 2. The client's rules state which groups count and for how long.
How does a supplier demonstrate social return?
With evidence for each contribution. For a placement this is, for example, the employment contract, payslips and a doelgroepverklaring (a statement that the person qualifies); for a purchase, the invoice from the social enterprise. The client's rules state which documents are needed.
What happens if the social return obligation is not met?
That is set by the client in the contract. Often the parties first look for a solution together, such as a different way of fulfilling it or more time. Some contracts provide for a penalty or another measure.
Does every tender include social return?
No. The client decides per contract whether to include a social return obligation, often above a certain contract value or term. This is set out in its procurement policy.