Fair Work Action Plan 2022 and Anti-Racist Employment Strategy 2022: equality impact assessment

5. Assessment of Refreshed Fair Work Action Plan

Headline action 1: We will lead by example on the Fair Work Agenda, including sharing and learning of practice, by 2025 and beyond. We will continue to embed Fair Work in all public sector organisations, setting out clear priorities in the roles and responsibilities of public bodies.

This action is likely to further the aims of the Public Sector Equality Duty in eliminating discrimination, promoting equal opportunities, and fostering good relations through embedding fair work practices across the public sector. This action encourages increased diversity and inclusion in the workforce and helps to address inequalities experienced by protected characteristic groups, especially disabled people, racialised minority groups and women.

However, the success of this action could be hindered by the capacity of the Scottish Government and other public bodies to deliver in the event of further political and economic challenges.

Achieving this headline action would achieve a broadly positive impact on protected characteristic groups' ability to enjoy article 14 of the Human Rights Act and support the realisation of rights in line with the International Covenant on Economic, Cultural and Social Rights and article 27 of the UN Convention on the Rights of Persons with Disabilities.

Action 1.1: Scottish Government will undertake an equal pay audit examining pay gaps by gender, disability, race and age by March 2024. We will act on findings to review and refresh our recruitment and retention policies to address workplace inequalities by end of 2025.

Undertaking an equal pay audit could increase the availability of data and disseminate knowledge of existing labour market inequalities within the Scottish Government. This may inform positive action to address any existing gender, disability, ethnicity, and age pay gaps. The latest available data indicates that women, disabled people and racialised minorities could acutely benefit from this audit as they are currently paid less than their counterparts.

Better-informed recruitment and retention policies could advance equality of opportunity for all groups in the workplace, including career progression and reduced occupational segregation. Discrimination based on gender could be minimised, especially in tackling the 'motherhood penalty'^[65] for women who experience disadvantage due to pregnancy and maternity. There could also be recognition that racialised minorities and disabled people are underrepresented in the government's workforce and a drive to increase these numbers. Therefore, action 1.1 could create a more diverse and inclusive government workforce.

In leading by example, the Scottish Government could generate wider long-term impacts through influencing the public sector on best practice. Stakeholder engagement supports that a demonstration of the government's position on pay gap reporting could be necessary to encourage wider participation.

Engagement from public sector organisations could share knowledge of existing labour market inequalities more widely and generate far reaching socioeconomic impacts for protected characteristic groups. Those at highest risk of unemployment, underrepresentation, insecure employment, and poverty could acutely benefit from increasing diversity and inclusion in the labour market, including women, disabled people and racialised minorities.

Close the Gap further identify the importance of recognising intersectionality across these pay gaps, especially across the female population. Each protected characteristic group is not homogenous. Disabled women, racialised minority women, young women and older women face multiple labour market barriers. Disabled and racialised minority women experience are more likely to experience higher pay gaps.^[66] Therefore, in the long-term this action may have disproportionate positive impacts on women with more than one protected characteristic.

Due to the impact on eliminating discrimination and advancing equality of opportunity, the provisional EqIA score for this action is major positive.

Action 1.2: Work with equality organisations and public sector employers to co-deliver a series of engagements with the public sector by the end of 2023 to support employers to address the recommendations of the Scottish Parliament's Equalities and Human Rights Committee's inquiry report into race equality, employment and skills which recommended employers: assess their organisations' understanding of racism and structural barriers; and those subject to the Public Sector Equality Duty as a minimum, voluntarily record and publish their ethnicity pay gap and produce an action plan to deliver identified outcomes.

Engagement with public sector leadership and the voluntary publication of ethnicity pay gap data could drive organisational awareness of the harms of racism and benefits of addressing racial inequality in organisations. This could foster good relations and encourage the elimination of discrimination and victimisation, reducing negative workplace experiences for racialised minorities.

Encouraging the publication of ethnicity pay gap data could contribute to narrowing the 10.3% pay gap (as recorded by ONS in 2019). ^[67] Racialised minority women may disproportionately benefit from an uplift in wages after being 'left behind' in pay gap progress.

A greater understanding of structural barriers could advance labour market opportunities for racialised minorities who are currently overrepresented in low-paid sectors. Racialised minority women are often limited to part time insecure work and could disproportionately benefit from access to new opportunities. This impact could also assist racialised minorities in the recovery from Covid-19 after being more likely to experience unemployment due to their overrepresentation in 'shut down' sectors.

However, the ability of small organisations to collect and publish usable data in relation to the ethnicity pay gap without experiencing GDPR conflicts may delay the public sector in reaching their vision for 2025. Stakeholders expressed concerns regarding the anonymity of pay gap data when sharing intersectional analysis for groups with more than one protected characteristic, such as racialised minority women.

This data collection drive should also be coupled with privacy and confidentiality guidance for employers to develop a sense of trust within the public sector. Stakeholders expressed that racialised minority groups could feel hesitant to engage in equality monitoring for fear of their data being misused and initiating further discrimination. Guidance for employers on demonstrating protection of privacy in daily interactions should encourage discretion when implementing this action.

Due to the impact on eliminating discrimination, advancing equality of opportunity and fostering good relations, the provisional EqIA score for this action is major positive.

Action 1.3: The EHRC and Scottish Funding Council (SFC) will:

Action 1.3.1: Implement National Equality Outcomes across protected characteristics (including disability, ethnicity, sex) from Sept 2022 to Sept 2025, in order to:

• improve student success and retention rates;
• ensure access to and confidence in support for students and staff that fosters good relations and tackle prejudice and discrimination; and
• increase diversity of staff in the workforce and on College Boards and University Courts.

A focus on the success and retention of the student population could maintain the upwards trend of university enrolments with increasing diversity since 2019 ^[68] and tackle the decreasing percentage of pupils achieving the expected Curriculum for Excellence Levels in 2020/21.^[69] These benefits could be enhanced through engaging with the lived experiences of young people when assessing progress towards the National Equality Outcomes.

Implementing a National Equality Outcome for disability could advance equality of opportunity for disabled students and increase their representation in the workforce. Currently, disabled students are more likely to experience lower levels of educational attainment and less likely to enter higher education compared to non-disabled students.^[70] Therefore, action 1.3 could prioritise access to educational opportunities for disabled students which have influence over their future careers.

Increasing the diversity of staff in the workforce could create a diverse and inclusive workforce which is representative of the population. This simultaneously increases the proportion of currently underrepresented groups, including women, disabled people and racialised minorities. Stakeholders felt that, consequently, organisations with more diverse workforces and effective voice channels for workers would be more likely to learn from the experience of their employees and take proactive steps to address inequalities, without this becoming the responsibility of the groups themselves. Specifically, increasing diversity on College Boards and University Courts allows for the needs of an increasingly diverse student population to be met.^[71]

Due to the impact on fostering good relations and advancing equality of opportunity, the provisional EqIA score for this action is minor positive.

Action 1.3.2: Develop a set of SFC annual thematic reviews to inform and direct improvement.

Publishing annual thematic reviews could disseminate knowledge on contemporary inequalities within the higher education sector and develop mechanisms to embed equality in wider societal issues such as access to skills, education, and labour market confidence.

This information could direct funding for teaching and learning provision, research, and other higher education activities in Scotland more inclusively, while also encouraging positive actions to be taken forward across colleges, universities, and other funded bodies to account for their delivery of required outcomes.

Therefore, the diverse student population could benefit from the annual review of higher education services, particularly those with poorer outcomes such as racialised minority and disabled students.

Due to the impact on advancing equality of opportunity, the provisional EqIA score for this action is minor positive.

Action 1.4: Work with partners to establish senior leadership networks to build capability and understanding of racism and racial inequality in the workplace by the end of 2023.

Establishing senior leadership networks could generate top-down action against racial inequality in the workplace. Understanding racism at a senior level could eliminate labour market discrimination meaning more racialised minorities accessing, retaining and progressing in employment.

Consideration of intersectional inequalities could also generate targeted impacts for the higher risk groups who have more than one protected characteristic. Racialised minority women often occupy precarious positions in the workforce and are at risk to the largest pay gaps. Therefore, increasing the number of employers and senior employees who understand this racial inequality could eliminate discrimination through influencing action to uplift the status of racialised minority women in the workforce.

Stakeholders expressed the importance of diversity of thought and voice within the leadership network. Stakeholders believe that having representation of racialised minorities would be necessary to access lived experience of discrimination, comprehensively understand racism and develop positive actions to address racial inequality in the labour market.

However, smaller organisations may not have the capacity to establish senior leadership networks. This could disproportionately disadvantage those with protected characteristics who are overrepresented within SME's or start-up companies. Therefore, the Scottish Government should consider potential support for smaller organisations when implementing this action.

Due to the impact on eliminating discrimination, advancing equality of opportunity and fostering good relations, the provisional EqIA score for this action is minor positive.

Action 1.5: We will work with Scottish Government analysts to run a series of official statistics dissemination sessions with interested stakeholders to help inform their understanding of the labour market landscape in relation to fair work. Where available data allows, this will include considering intersectionality.

Disseminating official statistics could highlight key inequalities within the labour market relevant to each stakeholder's industry and demonstrate best practice in advancing progress through data. This could encourage positive action to eliminate inequalities and seek to establish a fair and inclusive workplace.

Stakeholders felt that more guidance and examples on cumulative effects would assist an intersectional approach to eliminating labour market inequalities. The potential to consider intersectionality in dissemination could progress employers' understanding of the most at risk groups with more than one protected characteristic and generate positive actions towards addressing these disadvantages and advancing labour market opportunities.

Due to the impact on eliminating discrimination and advancing equality of opportunity, the provisional EqIA score for this action is minor positive.

Headline action 2: We will continue to use conditionality to further embed Fair Work in all public sector investment wherever possible.

This action is likely to further the aims of the Public Sector Equality Duty in eliminating discrimination, promoting equal opportunities, and fostering good relations through removing some pay inequalities in the labour market.

The protected characteristic groups who may experience positive impacts is dependent on suppliers and public bodies adopting and demonstrating Fair Work practices. The limits on devolved competence may also restrict the Scottish Government's ability to comprehensively enforce this action.

Achieving this headline action would achieve a broadly positive impact on protected characteristic groups' ability to enjoy article 11 and 14 of the Human Rights Act and realise the rights outlined in future international human rights covenants and conventions, including article 27 of the UN Convention on the Rights of Persons with Disabilities (UNCRPD).

Action 2.1: As part of the Bute House agreement and NSET, and within the limits on devolved competence, we will:

Action 2.1.1: Extend Fair Work conditionality with clear standards and minimum requirements to cover all forms of Scottish Government support within the limits of devolved competence. We will use all levers at our disposal to deliver on this commitment – including the use of grants, reliefs and licencing provisions.

Public sector grant conditionality includes paying at least the real Living Wage and providing channels for effective voice to all employees, as announced on 6^th December 2022.^[72]

Firstly, uplifting workers to the real Living Wage could contribute towards narrowing pay gaps in the labour market, including the gender, disability and ethnicity pay gaps. Further, women are overrepresented in low pay sectors and therefore could experience disproportionate benefits from being paid the real Living Wage. While pregnant women and mothers could receive an increase in maternity pay for those whose income increases with the real Living Wage. This action could also positively impact young employees aged 18-24 who are less likely to be paid the real Living Wage.

This action could also have positive impacts on the cost of living across disadvantaged groups in society. Payment of the real Living Wage could contribute to meeting the additional living costs faced by disabled people and alleviate in-work poverty for households with disabled members who are more likely to experience poverty. It could also reduce the levels of in-work poverty disproportionately experienced by racialised minority households and households with children.

These impacts could be more acutely felt given the current cost of living crisis. Increasing the disposable income households have available to purchase basic and essential goods could raise standards of living and minimise the risk of poverty. Payment of the real Living Wage could relieve the disproportionate financial pressures experienced by single-parent households, households with a disabled member and households with a baby during this economic crisis.

Stakeholders representing young women expressed the positive impact of being paid the real Living Wage in establishing equity in the early stages of women's careers and uplifting them to a position not currently accessible. However, this was followed with a concern that employees could implement the real Living Wage as 'standard pay' rather than enforcing pay brackets, which could restrict opportunities for progression in both pay and grade.

Island community stakeholders further noted the disproportionate positive impact the real Living Wage could have on women living in rural Scotland, particularly pregnant women, and mothers, who are the lowest paid nationally and most likely to work part-time. Further links were made between paying the real Living Wage and reducing poverty, particularly child poverty across the island communities.

However, other stakeholders expressed concern for the viability of the third sector should they need to pay the real Living Wage to secure funding. The third sector should be recognised both as an employer in receipt of government financial support and as a service provider for higher risk groups.

Third sector organisations may have to reduce staff numbers to afford paying increased wages. This could have negative consequences for the delivery of services to high risk groups, particularly in the context of the current cost of living crisis. Further, a representative of disabled people mentioned that many disabled people are interested in working in the third sector. Therefore, payment of the real Living Wage could not only reduce the availability of essential services for protected characteristic groups but also reduce opportunities for employment for a group that is already at risk of unemployment.

Consequently, the Scottish Government should consider how they could assist credible third sector organisations in fulfilling this Bute House Agreement commitment to ensure they can continue to deliver their equality duty.

Secondly, providing channels for effective voice facilitates open communication with workers to share their lived experiences, advocate for equal rights and ultimately improve workplace culture. Through giving workers a voice, they could feel more trusted and valued in the workplace and recognise that their voice matters. These channels could particularly benefit those at high risk of discrimination in the workplace.

One stakeholder highlighted that employee forums can hold significant power and influence as a channel for effective voice, often leading to positive narratives within organisations. However, employees with negative experiences may not feel comfortable sharing these through an in-work forum. Therefore, when implementing this action, the Scottish Government should ensure an avenue for negative experiences is taken into consideration.

A stakeholder representing young women felt that women's rights to participate in trade unions is not widely known and that few women reported utilising trade unions to support them at work. Therefore, there is a need to increase the representation of diversity within channels for effective voice, especially promoting the use of student unions amongst young women.

Other stakeholder feedback was related to young employees' engagement with channels for effective voice. Many young people will be in their first experience of employment and may feel too inexperienced to speak out against workplace discrimination. Therefore, in implementing this action, the Scottish Government should consider how channels for effective voice can be inclusive enough so the youngest employees can participate, such as encouraging employers to inform young people of trade unions when onboarding.

As Fair Work conditionality is extended across the other Fair Work principles, as assessed under action 2.1.2 below, the positive impacts of this action could be enhanced.

Due to the impact on eliminating discrimination and advancing equality of opportunity, the provisional EqIA score for this action is minor positive.

Action 2.1.2: Consider how we can extend conditionality to the other Fair Work principles, including opportunity, security, respect and fulfilment by 2025.

The extension of conditionality to all five Fair Work principles could generate wide-ranging benefits across the protected characteristic groups.

Extending conditionality to opportunity could equalise access to the labour market and generate positive impacts for protected characteristic groups at risk of unemployment and underemployment. This could include women, older people, disabled people and racialised minorities. Disabled people may experience disproportionate positive impacts because stakeholders particularly identified lack of opportunity as the most restricting labour market inequality experienced by disabled people.

Security is largely linked to having a consistent income and thereby could bring particular benefit to those overrepresented in zero-hour contracts and low-paid insecure work, including women and racialised minority women.

Respect encourages mutual support within the workplace and recognises that everyone is entitled to feel valued regardless of pay, status or characteristics. Therefore, this action could lead to minimising feelings of isolation and discrimination within the labour market for vulnerable groups such as disabled people, women and racialised minorities.

Fulfilling work engages with both personal development and career progression. Increasing access to fulfilment in employment could nurture a workplace culture in which employees feel engaged, committed to making a difference, have some control over their work and can source opportunities for growth.

As Fair Work conditionality is extended across all forms of government support, as assessed under action 2.1.1 above, further positive impacts could be generated.

Due to the impact on eliminating discrimination and advancing equality of opportunity, the provisional EqIA score for this action is minor positive.

Action 2.2: By 2023 update the Fair Work First criteria to better reflect priority action required to address labour market inequalities faced by women, people from racialised minorities, and disabled people, ensuring people can enter, remain and progress in work.

Updating the Fair Work First Criteria could increase organisational awareness of labour market inequalities and increase employers' understanding of how best to meet the needs of workers at high risk.

This action could assist employers in eliminating gender discrimination within their workplace, especially for women experiencing occupation segregation and trapped in low-paid professions as well as pregnant women experiencing the 'motherhood penalty'. Employers could also increasingly meet the requirements to make reasonable adjustments for disabled people and reduced the likelihood of direct and indirect discrimination against disabled people. Further, positive action against racial discrimination in employment could uplift racialised minority workers from low-paid precarious positions into positions which match their qualifications.

One stakeholder recommended that the updated criteria engages with the lived experience of these protected characteristic groups. While data collection could inform such updates, lived experience could provide a richer understanding from the perspective of those experiencing the inequalities. This could also highlight intersecting experiences of groups at high risk, who may experience multiple barriers to entering, remaining, and progressing in the workplace, such as racialised minority women and disabled women.

Due to the impact on eliminating discrimination, the provisional EqIA score for this action is minor positive.

Headline action 3: We will support employers to utilise the resources and support available to embed Fair Work in their organisations. We will work collaboratively to develop these resources to support and build capability among employers, employability providers and partners.

Supporting employers to embed fair work principles and implement best practice is likely to further the aims of the Public Sector Equality Duty in eliminating discrimination, promoting equal opportunities, and fostering good relations in the labour market.

However, the positive impacts experienced by protected characteristic groups are limited through barriers to embedding fair work practices, including the Covid 19 pandemic, changing demographics and technological change.

Achieving this headline action would achieve a broadly positive impact on protected characteristic groups' ability to enjoy article 14 of the Human Rights Act while supporting the realisation of right contained in the Convention on the Elimination of All Forms of Racial Discrimination (CERD) and article 27 of the UN Convention on the Rights of Persons with Disabilities (UNCRPD).

Action 3.1: By the end of 2023 we will work with partners to join up provision of advice and support for employers by establishing a central Fair Work resource, making it as simple and efficient as possible for employers to use. This would enhance and consolidate existing material to ensure employers have a clear route to access guidance, support and advice on Fair Work. It will involve:

• Advice and tools to promote the benefits of Fair Work and workplace equality
• Good practice case studies
• Advice on networking and establishing peer support groups
• Collaboration with existing trusted business support services and partners

Establishing a central Fair Work resource could positively impact all protected characteristic groups through enhanced employer awareness and understanding of requirements under the Equality Act 2010. Informing employers of the positive outcomes of employing people with protected characteristics and tools available to assist the employment of these groups could advance equality of opportunity and diversify the workforce.

Providing resources on fair work could disseminate knowledge to overcome stereotypes within the labour market. For example, women experience occupational segregation to 'women's roles' in low-paid caring professions and mothers are perceived as less productive and less valuable members of the workforce. Similarly, disabled people are often considered as passive recipients of care rather than active members of society. Therefore, establishing a central resource could both educate employers and direct employers to advice and best practice in dealing with these stereotypes to establish fair access for all employees.

Stakeholder engagement highlighted the importance of engaging with lived experience through the provision of real-life case studies. These could demonstrate practical positive actions for organisations who may struggle to engage with fair work and have a workforce with limited diversity.

Recognition that this central resource must be "as simple and as efficient as possible for employers to use" could overcome accessibility barriers for employers with tight capacities, especially within smaller organisations, and generate more widespread impacts on protected characteristic groups across Scotland's labour market.

Due to the impact on eliminating discrimination and advancing equality of opportunity, the provisional EqIA score for this action is minor positive.

Action 3.2: Develop a communications strategy to highlight and promote the benefits of Fair work and a diverse workplace to employers including;

• adoption of payment of at least the real Living Wage;
• effective voice channels, tackling the gender pay gap; and
• recruiting, employing and supporting disabled people and workers from racialised minorities.

The strategy will be informed by sectoral and regional analysis and utilise a range of channels.

The direct impacts of adopting payment of the real Living Wage and providing effective voice channels have been discussed under action 2.1.1 above.

Developing a communications strategy could reduce the labour market stigma responsible for disability and racialised structural and systemic barriers to employment. In terms of disability, this could increase organisational awareness of best practice including reasonable adjustments and flexible working requirements. While educating employers on how racial discrimination is embedded in the labour market could lead to better informed recruitment and retention policies to eliminate racial inequality and increase diversity within the workforce.

In particular, black graduates experience the widest pay gap and racialised minority women are trapped in low-paid precarious positions.^[73] Therefore, these groups could benefit most acutely from this action.

Due to the impact on eliminating discrimination and advancing equality of opportunity, the provisional EqIA score for this action is minor positive.

Action 3.3: Increase the number of people who have security of pay and contract by encouraging employers to seek real Living Wage and Living Hours accreditation. We will achieve this through our continuing support of Living Wage Scotland to achieve an additional 5,000 workers uplifted annually to the real Living wage through increases in employer accreditation.

This action could further the direct positive impacts of adopting payment of the real Living Wage discussed under action 2.1.1 above. A particular benefit may be felt by racialised minority women who have been 'left behind' on recent pay gap progress and experience both intra-group and inter-group pay gaps.

One stakeholder expressed that while a target of 5,000 workers being uplifted to the real Living Wage appears significant, this action could be fulfilled by one large, accredited employer. There are no conditions surrounding this action which could target employees at high risk in the labour market and those less likely to be paid the real Living Wage. Therefore, the implementation stage should consider how the benefits of this action could extend equality of opportunity.

Due to the impact on eliminating discrimination and advancing equality of opportunity, the provisional EqIA score for this action is neutral.

Action 3.4: By the end of 2025 we will review and disseminate learning and best practice from on the conclusion of the 2024 Workplace Equality Fund.

The dissemination of learning from the Workplace Equality Fund could encourage positive action to eliminate labour market inequalities and barriers to recruitment, retention and progression. This could foster good relations and increase diversity in the Scottish workforce through encouraging the recruitment and promotion of underrepresented groups, especially women, disabled people and racialised minorities.

Due to the impact on eliminating discrimination, the provisional EqIA score for this action is minor positive.

Action 3.5: We will develop and promote guidance to encourage more employers across all sectors to use positive action measures as per the Equality Act 2010 giving particular attention to sex, pregnancy, race, age and disability by end 2024.

Broader promotion of guidance and the practice of positive action could inform progress to addressing labour market inequalities and could enable organisations to fulfil their equality duty. The recognition of 'all sectors' in this action demonstrates that during implementation the Scottish Government intend to secure far-reaching positive action across the public, private and third sector.

Women could experience advanced equality of opportunity in the labour market as a result of this action, including uplifted wages and status, and pregnant women and mothers could overcome the 'motherhood penalty'. While young people who are currently overrepresented in zero-hour contracts could access more secure employment, the disability employment gap could be narrowed, and racial discrimination could be mitigated.

One business stakeholder felt that organisations may not have the skills to implement these Fair Work practices, especially when applying positive action to recruitment processes. For example, one organisation reported that employees have insufficient digital skills to recruit a younger workforce, which could limit the scope of their equality duty in terms of age. Therefore, to secure equal access for all protected characteristic groups, guidance should also encourage skills development for employers and managers within organisations.

Further, a disability organisation recommended that positive action guidance for disabled people should focus on offering training to bridge the gap between their non-disabled counterparts. They reported a stereotype that disabled people do not have enough skills to secure employment, when it is a lack of opportunity which creates barriers to entry. Therefore, instead of the guidance focusing on providing skills workshops for disabled people, it should focus on the advancement of opportunity in which people know they will not be subject to discrimination.

Due to the impact on eliminating discrimination, advancing equality of opportunity and fostering good relations, the provisional EqIA score for this action is minor positive.

Action 3.6: We will continue to promote existing and new advice and guidance on the benefits of flexible working to organisations across Scotland by working with public bodies to assess provision and highlight best practice throughout this parliamentary term (by 2026).

Evidence of flexible working in practice and stakeholder engagement supports the positive impact of this action for women with caring responsibilities, pregnant women, and disabled people. Increasing organisational awareness of the benefits of flexible working and demonstrating best practice could reduce labour market discrimination and victimisation towards employees who require reasonable adjustments or have caring responsibilities.

Guidance on flexible working could highlight the need for flexibility amongst pregnant women and mothers. Pregnant women may require flexible working hours to attend midwife appointments and the option to work from home when mobility is restricted in the later stages of pregnancy. Mothers currently experience segregation to part-time employment because of unpaid caring responsibilities. Educating employers on the benefits of flexible employment to mothers could advance access to full time and better paid opportunities within this group, which could ultimately reduce the risk of poverty especially amongst single parents.

The Trade Union Congress indicate the potential benefits of home working for disabled people, including greater control over working hours and the ability to adapt routines to suit disabled worker's needs. Further, home working has been reported to reduce fatigue and improve mental health. However, best practice guidance must highlight the importance of providing appropriate office equipment and software to enable full engagement from home, such as speech to text programmes.

During stakeholder engagement, one organisation expressed the need for guidance to clarify the difference between flexible working requests and reasonable adjustment requests for both employers and disabled employees. They felt that disabled employees may experience a barrier in the labour market should they apply for reasonable adjustments through the flexible working path.

This stakeholder also felt that mental health needed to be recognised as a hidden disability within this guidance. Lived experience revealed a tendency for organisations to downgrade mental illness to mental wellbeing, leading to action being filtered into staff training and wellbeing days. This action could generate greater understanding and better-informed positive action of mental illnesses. Further, individuals can often be on the mental health waiting list for 18 months, during which time their working ability may suffer. Instead of this posing a risk to employment, employers should be advised on how to support employees until they are able to receive medical attention, such as rearranging their duties and offering reasonable adjustments.

This could also have intersectional benefits for racialised minority groups. One stakeholder expressed that racialised minorities are more likely to experience traumatic events and can attribute labour market inequalities to health. Therefore, greater understanding of mental health through the implementation of this action could also offer reasonable adjustments for disabled racialised minority groups.

Due to the impact on eliminating discrimination and advancing equality of opportunity, the provisional EqIA score for this action is minor positive.

Action 3.7: Working with employers, equality stakeholders and training providers, develop and implement an intersectional and anti-racist training framework by 2025.

Developing an anti-racist training framework could reduce labour market stigma responsible for racialised structural and systemic barriers to employment. Embedding race equality training in all positions and responsibilities within an organisation could foster good relations within the workplace, provide greater support for racialised minorities in the workplace and better-inform policies and practices to eliminate racial discrimination.

Engagement with equality stakeholders and training providers could also benefit the framework through providing lived experience and expertise in racial inequality.

Taking an intersectional approach, the training framework could generate benefits for racialised minority women who are overrepresented within part-time, insecure, and low-paid work. Disseminating training could highlight this current labour market inequality and uplift women into secure employment agreements and positions of more equal pay, which could have knock-on positive impacts of reducing in-work poverty across racialised minority households.

Further, anti-racist training could minimise discrimination in the application stage. One stakeholder evidenced that racialised minority graduates are disproportionately unable to secure employment that matches their qualifications and fall into low-paid jobs such as retail and call centres. This underemployment can increase vulnerability to debt and poverty if salaries do not enable students to pay back education fees. Therefore, overcoming the initial barrier of entry for racialised minority students could generate both short and long-term positive impacts.

However, the scope of these positive impacts is dependent on the capacity and willingness of businesses to participate in the training framework. Smaller organisations may struggle to allocate time for anti-racist training. Therefore, implementation must support organisational engagement to ensure the benefits are widespread for racialised minorities.

Due to the impact on eliminating discrimination, advancing equality of opportunity and fostering good relations, the provisional EqIA score for this action is major positive.

Action 3.8: We will work with employers and trade unions, in sectors wherelow pay and precarious work can be most prevalent, to develop sectoral Fair Work agreements that deliver improved employment outcomes such as payment of the real Living Wage, better security of work, and wider "Fair Work First" standards.

The development of sectoral Fair Work agreements could advance equality of opportunity for the most at risk protected characteristic groups in the labour market who are overrepresented in low-paid and precarious employment. This includes young people, women, disabled people and racialised minorities.

Accompanying greater security in employment and increased salaries could be foster a workplace culture in which these groups feel more valued and respected by co-workers.

The impacts of paying the real Living Wage discussed under action 2.1.1 are also relevant here, especially amongst women, disabled households and racialised minority households. The positive impacts discussed could also be linked to increased socioeconomic wellbeing and uplifting people out of in-work poverty.

Similarly, increasing security of work could particularly benefit young people and women who are disproportionately represented across zero-hour contracts. Removing the inappropriate use of these contracts could secure regular hours and flows of income for these populations. This could generate an indirect positive impact of improved personal finances and household finances which increases the affordability of basic and essential items.

While working with trade unions positively represents employee voice, other effective voice channels could be engaged with such as employee forums. Stakeholders supported the power and influence these forums can have on workplace activities and the value of lived experience which they provide. Therefore, the sectoral Fair Work agreements could benefit further from wider engagement with employee stakeholders.

Due to the impact on eliminating discrimination, advancing equality of opportunity and fostering good relations, the provisional EqIA score for this action is major positive.

Action 3.9: We will work with employers, workers and trade unions to strengthen effective voice, through a range of appropriate channels. We will do this by supporting strong trade unions and, in line with our NPF employee voice indicator, will promote the benefits of collective bargaining (including sectoral agreements) and other forms of effective voice at individual and collective levels.

The impacts of providing channels for effective voice discussed under action 2.1.1 are also applicable here. Strengthening effective voice and highlighting the value of collective bargaining could establish an open line of communication within the workplace and foster inclusive and fair relations within the labour market.

This action could encourage the involvement of women and young employees in effective voice channels. Representative stakeholders expressed a current lack of knowledge or confidence to participate in workers' unions, which minimise contributions of lived experience. Therefore, enhancing the focus on workers voice could increase the representation of protected characteristic groups across appropriate channels and advance equality of opportunity for all.

Due to the impact on eliminating discrimination, advancing equality of opportunity and fostering good relations, the provisional EqIA score for this action is minor positive.

Headline action 4: We will work collaboratively to develop resources to support workers to access, remain and progress in fair work.

This headline action is likely to further the aims of the Public Sector Equality Duty in eliminating discrimination, promoting equal opportunities, and fostering good relations through supporting workers access, retention, and mobility in the labour market.

Communicating employment and skills opportunities to protected characteristic groups furthest from the labour market may be challenging, especially for those with no internet access, limited access to job services and requiring accessible formats.

Achieving this headline action would achieve a broadly positive impact on protected characteristic groups' ability to enjoy article 14 of the Human Rights Act, while also supporting the realisation of rights within the CERD, article 27 of the UNCRPD and Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW).

Action 4.1: Work with enterprise agencies and Business Gateway to promote Fair Work and deliver wider conditionality, and:

Action 4.1.1: By end of 2023 undertake a review of the Business Gateway website, utilising analytical and tracking techniques to ensure that disabled people find the website accessible, and are able to utilise the advice given to overcome the barriers they face.

This action could overcome accessibility barriers for disabled business owners and establish inclusivity in business support. In addition to analytical and tracking techniques, it could be beneficial to engage with disabled people themselves to confirm accessibility in practice.

Despite these positive accessibility impacts, stakeholder engagement revealed additional financial barriers faced by disabled business owners when starting up a new business. Therefore, they suggested a development on this action, which could be the implementation of additional grants and monetary support for disabled start-ups.

Due to the impact on advancing equality of opportunity, the provisional EqIA score for this action is minor positive.

Action 4.2: Scottish Government Employability Delivery: we will continue to work with Fair Start Scotland providers, within the timescales of the current contract until March 2023, to implement a continuous improvement approach to enhance delivery and outcomes for disabled people and those furthest from the labour market, including people from racialised minorities and women. This will include drawing upon learning from Pathfinders/test and learn projects being delivered by Disabled People's Organisations and the pilot project on community engagement being delivered by CEMVO Enterprises CIC in 2022/23.

A focus on Employability Delivery could continually advance labour market outcomes for disabled people, women and racialised minorities through providing tailored and person-centred support which draws upon learning from initiatives in practice to better inform delivery plans for these groups.

In particular, the Fair Start Scotland Evaluation (Year 3) indicates the need to improve the Fair Start Scotland service for disabled people. This evaluation reveals that the proportion of disabled individuals signing up to the service has dropped from 55% in Year 1 of its delivery to 32% in its third year, and those with a limiting health condition were also more likely to leave because the service was not relevant to their needs.^[74]

In reference to this evidence, one stakeholder felt that the service did not explore flexible and home working as a reasonable adjustment for disabled members. They further felt that service providers overlook the need to create access to opportunity for disabled members and instead focus on skills creation. Therefore, this action could continually provide opportunities to improve the effectiveness of this service for disabled people.

Due to the impact on advancing equality of opportunity, the provisional EqIA score for this action is major positive.

Action 4.3: Scottish Government to work with stakeholders to develop a Delivery Plan 2023-26, outlining the next phase development of No One Left Behind (NOLB) from April 2024. This will:

Action 4.3.1: Build Fair Work outcomes into the design of No One Left Behind by taking account of the lived experience and needs of disabled people, people from racialised minorities, women and the over 50s.

This action could inform the delivery of a person-centred employability system which is responsive and flexible to a diverse labour market. It could increase the Scottish Government's engagement with the lived experience of protected characteristic groups to better prepare employees for work through an employability system that is tailored to their needs. This could further foster good relations between employers and employees through a shared understanding of labour market experiences.

Updating the No One Left Behind partnership for disabled people this way acknowledges the social model of disability. Engagement with lived experience overcomes the stereotype of disabled people being passive recipients or care, and instead acknowledges their contributions to the working economy.

Further, this action could eliminate racialised structural and systemic barriers to entering and progressing in employment. It could also generate mental health and wellbeing benefits for racialised minorities after reporting feelings of lost governmental support during the Covid pandemic.

This action could also tackle gender and pregnancy discrimination in the workplace through acknowledging labour market stereotypes associated with women. It could tackle occupation segregation which traps women in low-paid 'women's roles', typically in caring professions, as well as the motherhood penalty which restricts career progression for pregnant women and returning mothers.

Finally, the lived experience of older employees could tackle the consequences of ageism in the workforce, including forced retirement and restricted career progression. This could consequently alleviate financial pressures of early retirement and improve the mental health of this age group.

Due to the impact on eliminating discrimination, advancing equality of opportunity and fostering good relations, the provisional EqIA score for this action is minor positive.

Action 4.3.2: Draw upon the findings and recommendations of the following:

• Health and Work Strategy Review (2019)
• Supported Employment Review (2022)
• Health and Work Support Pilot final evaluation (2022)
• Individual Placement and Support Review (2022 – forthcoming)

Action 4.3.2 has the potential to deliver positive impacts for disabled individuals and those with a health condition. The recommendations of these reviews prioritise access to fair and healthy work that is tailored to individual needs and supports reasonable adjustments where required.

This action could narrow the largest employment gap in the Scottish labour market – the disability employment gap. These reviews offer mitigation against the risk of losing employment due to ill health and facilitate the return to work after health-related absence. Individual Placement and Support delivers positive employment and health outcomes for those with mental health problems.

A full assessment of the positive impacts action 4.3.2 generates is dependent on the implementation of these recommendations.

Due to the impact on advancing equality of opportunity, the provisional EqIA score for this action is minor positive.

Action 4.4: Skills Development Scotland (SDS) and Scottish Funding Council (SFC) will, on an annual basis, review disaggregated management information including the newly disaggregated Learning Disability statistics and take action where required where poorer outcomes or underrepresented groups are identified. This will include:

Action 4.4.1: Review the equality incentives for disabled people in relation to Work Based Learning (WBL) and make recommendations by end March 2024 with regard to impact on participation and achievement rates for disabled people.

Reviewing disaggregated data could generate positive impacts through providing a more comprehensive overview of labour market inequalities and identifying the at- risk groups with specific needs. Disproportionate positive impacts could be generated through engagement with the newly disaggregated Learning Disability statistics. Previously, data on learning disabilities has not always been separated from 'disabilities' data.^[75] This creates a barrier to assessing whether the needs of those with learning disabilities are being fulfilled. Therefore, action 4.4 could identify previously unknown outcomes and take forward positive action where necessary.

The focus of action 4.4.1 on Work Based Learning could generate disproportionate positive impacts for young disabled students undergoing the transition from school to higher education. This group are particularly at risk of unemployment and are underrepresented in higher education. Therefore, the potential for increasing participation and achievement rates for disabled school leavers could be positive.

While taking a continuous approach is effective, one stakeholder recommended that a third-party input, from an organisation such as the Equality and Human Rights Commission, could add a valuable and unbiased perspective on the annual reviews.

Due to the impact on advancing equality of opportunity, the provisional EqIA score for this action is minor positive.

Action 4.4.2: Review learning from pilot projects for Foundation Apprenticeships for disabled pupils and mainstream lessons learned by October 2023.

Reviewing Foundation Apprenticeships could advance opportunities for disabled students undergoing the transition to employment through an apprenticeship scheme, who are at risk of unemployment.

One stakeholder felt that the positive impacts of this action could be enhanced through extending this action to apprentice schemes at all levels. This engagement revealed that disabled people often have multiple advanced degrees because "they become trapped on a 'conveyor belt' of education". Despite this, people often assume that disabled people lack skills rather than acknowledging their vulnerability to unemployment through a lack of opportunity. Consequently, extending this action to all apprentice schemes could bridge the gap between school and the workplace for disabled students more widely.

Due to the impact on advancing equality of opportunity, the provisional EqIA score for this action is minor positive.

Action 4.4.3: Use intelligence from training and learning providers and participants to develop and deliver disability equality-focused continuous professional development to build the capacity of learning providers to support disabled individuals and ensure a continuous development cycle is implemented by 2023.

Professional development focused on disability and equality could increase organisational awareness of the reasonable adjustments required for disabled employees to work effectively and feel comfortable in the workplace. This action could also facilitate continuous engagement with employers on disability support and guidance, which could ensure that the needs of disabled employees are consistently being met.

One stakeholder acknowledged the benefits of using intelligence but recommended that the training and learning providers should be organisations who deliver services to disabled people, rather than those delivering services about disabled people. They proposed sourcing guidance from inclusive living organisations and disability alliances who are well informed on lived experience and best practice from a disabled person's perspective.

Due to the impact on fostering good relations, the provisional EqIA score for this action is minor positive.

Action 4.5: Skills Development Scotland (SDS) will:

Action 4.5.1: Implement Scotland's Career Review recommendations and develop a model to ensure future career services across sectors provide meaningful and accessible support for disabled people that is both tailored to their needs and available when they need it. The implementation phase of the Career Review is due to be completed by the end of 2022.

Scotland's Career Review recommendations were published in February 2022.^[76] The review engaged with the lived experiences of young people and stakeholders representing a diverse range of backgrounds and generated recommendations tailored to the needs of those who are most at risk in the labour market.

The implementation of these recommendations could generate positive impacts through addressing the specific needs of equality groups and eliminating labour market barriers. The review includes recommendations for those aged up to 25, disabled people, care experienced young people, women, racialised minorities and members of the LGBTI+ community. These recommendations could ultimately advance equality of opportunity through establishing diversity and inclusion across education, training, and employment.

In particular, the recommendations could positively influence the perception of disabled people through adopting the social model of disability. The social model promotes the autonomy of disabled people through recognising barriers established by society are the cause of disadvantage, rather than the disability itself. Therefore, this action could overcome stereotypes of disabled people and acknowledge their role as economically active members of society. Further benefits could be generated from the recommendation to remove labour market barriers rather than just mitigating against them.

Due to the impact on eliminating discrimination, the provisional EqIA score for this action is major positive.

Action 4.5.2: Skills Development Scotland (SDS) will continue to implement the Principles of Good Transitions across our Career Information Advice and Guidance (CIAG), through targeted Continuous Professional Development for all customer-facing CIAG colleagues and managers by the end of March 2023.

The Career Review recommends that career services embed the Principles of Good Transitions for young people.^[77] This could generate positive impacts through recognising the dependencies between career services and post-school pathways, especially for disabled young people between the ages of 14 and 25 undergoing the transition to adult life. These impacts could include a reduction in post-school unemployment and an increased representation of disabled students across higher education.

Further, increasing organisational awareness of these principles through professional development could encourage services to employ a person-centred approach and place young people in the centre of their transition planning, giving them the autonomy and access to opportunity that the current labour market lacks.

Due to the impact on advancing equality of opportunity, the provisional EqIA score for this action is major positive.

Action 4.6: Health and Work: Aligning with the Scottish Government's Fairer and More Equal Society (FMES) Programme by December 2023, Public Health Scotland (PHS) to:

• Collaborate with NHS Boards to develop the NHS Scotland contribution to achieving fair and healthy work outcomes for people across Scotland; and
• Work with Scottish Government, Local Government and NHS Boards to define the health offer to enable those with health conditions to secure, sustain and progress in work.

Collaborating with NHS Scotland could generate positive impacts for all protected characteristic groups through developing their capacity to offer support for fair work and wellbeing across Scotland.

Consideration of fair and healthy work outcomes could particularly benefit women and young people who are overrepresented across zero-hour contracts. Research has identified a link between zero-hour contracts and poor mental health. Therefore, this action could combat the inappropriate use of these contracts and reduce the mental health risk for affected groups.

Defining the health offer could further generate positive impacts for disabled people and those with a health condition. The contribution of professional expertise from the NHS Boards could better inform the provision of reasonable adjustments and ensure that specific needs are considered in the workplace.

Within this health offer, mental illness, as per the Equality Act, is recognised as a disability. As mentioned previously, the workplace tends to downgrade mental illness to mental wellbeing which limits organisational awareness of the need for reasonable adjustments. Therefore, through increasing awareness of mental illness through the health offer both disabled people and racialised minorities – who disproportionately experience mental illness – could benefit.

Due to the impact on advancing equality of opportunity, the provisional EqIA score for this action is minor positive.