Glossary

If you feel that the world of Fair Trade has its very own language – don’t fret! We’ll keep you in the know!

With this glossary we’ll guide you through the common technical terms used by FLOCERT, Fairtrade International and the World Fair Trade Organisation (WFTO).

Learn about the wor(l)ds of Fair Trade below!

Navigate the glossary by letter

Hired Labour (HL)
The term Hired Labour is used to describe workers.
Hired Labour set-up
The term Hired Labour set-ups describes producing companies that are not membership-based (farms, plantations, factories, manufacturing industries, …
Home worker
A worker who produces or delivers services on order and against payment. They work at home, and the products or services are sent to the principal …
Impact
Any effects arising from an intervention or action. This includes immediate short-term outcomes as well as broader and longer-term effects and …
Industrial Processing Plants
Plants that structurally depend on contracted labour (more than twenty workers, seasonal, temporary or permanent). Due to necessary safety measures, …
Ingredient
Any substance, including a food additive, used in the manufacture or preparation of food and present in the final product, although possibly in a …
Initial Audit
In order to become Fairtrade-certified, a company must first apply for certification. Based on the information received during the application phase, …
Internal control system (ICS)
An internal control system measures an organisation’s improvement over time with specific, individual control points.
International Labour Organization (ILO)
The International Labour Organization (ILO) is the international organisation responsible for drawing up and overseeing international labour …
Licence Agreement
The contract between the Licensee and a National Fairtrade Organisation (NFO) or Fairtrade International, which regulates their commercial relations …
Licence fee
A Licensee pays a licence fee for the use of the FAIRTRADE Certification Mark to the National Fairtrade Organisation (NFO).
Licensee
A company licensed by a National Fairtrade Organisation (NFO) or Fairtrade International to use the FAIRTRADE Certification Mark.
Licensing Body
The organisation that draws up and signs a licence contract with a Licensee. In countries where a National Fairtrade Organisation (NFO) is located, …
Main Fairtrade product
The principal product that comes out of a production process. The term “production process” applies to both agricultural production and …
Major Compliance Criteria
A limited number of Compliance Criteria (CC) have been classified as “Major”. Fulfilment of these criteria implies compliance with the …