Fair Work First: guidance - March 2023

Annex B: Conditionality in public sector grants - Evidence and compliance with Fair Work conditionality

In addition to the joint statement from the grant recipient and Trade Union/worker representative to be provided under current Fair Work First arrangements at both the grant application stage and before the final payment is paid, the following evidence is to be provided for real Living Wage and effective workers' voice. Employers who are accessing grant funding are also asked to include a short joint statement on their website, highlighting their commitment to advancing the Fair Work First criteria, including the real Living Wage and effective voice conditions.

Grant recipients should provide the most appropriate evidence for their organisation from the list below. They may need to provide more than one source of evidence depending on the make-up of their workforce and whether contractors/agency workers are employed to directly support delivery of the funded project/activity.

Evidence of payment of the real Living Wage

Living Wage Employer Accreditation

Living Wage Employer Accreditation applies to only:

• directly employed staff aged 18 years of age and over
• those who are not apprentices

Useful reference:

• What is the real Living Wage?
• Become Living Wage accredited

Notes:

(i) Living Wage Accreditation costs start at £60 + VAT per year

(ii) Additional evidence to be provided for apprentices, 16-17 year old workers, and for contractors/agency workers – see table above for information

(iii) Grant managers should be aware that contracted workers do not need to be on the real Living Wage at the point of accreditation, provided there is a plan in place to uplift these workers to the real Living Wage rate within an agreed timescale. Living Wage Scotland refer to this phased implementation as milestones.

Self-declaration

Grant applicants are not required to provide specific evidence but will have to adhere to any arrangements for validating payment of at least the real Living Wage applied by the grant maker/funder and must confirm they will pay at least the real Living Wage their workforce from the start of the funded period; and in advance of making a claim, they must provide evidence of doing so.

The grant maker/funder to set out in their grant guidance/ information how they will validate self-declarations, such as spot checks.

Evidence of appropriate channels for effective workers' voice

Although it is to be encouraged in all organisations, the collective element of voice does not have to be evidenced by organisations with fewer than 21 workers. This aligns with conditions for application for statutory union recognition and is therefore considered as a benchmark in terms of the size of workforce where collective representation would be expected. In all other cases, evidence must be provided to show that voice exists at both an individual and collective level in the organisation. The table below explains how the different channels of voice can be evidenced, the expectation being that at least one channel at both levels (individual and collective) is evidenced.

Voice Channel:

Line Management Relationship (i.e. effective 2-way dialogue through 1:1 relationship).

Level:

Individual

Evidence:

Written confirmation from trade union/worker representative(s) that there is opportunity for regular 1:1 open and two-way dialogue between line managers and their direct reports; that this dialogue exists separately to standard performance review processes; and that worker-manager working relationships are effective.

This could also be supported by evidence of regular engagement survey that supports this; and/or in Organisation's KPI's.

Voice Channel:

Staff /Engagement Surveys

Level: Individual

Evidence:

Written confirmation from both management and trade union/worker representative(s) that an appropriate survey is regularly undertaken and can demonstrate that feedback is provided to workforce and actions created and implemented to address this.

Voice Channel:

Suggestions Schemes

Level: Individual

Evidence:

Written confirmation from both management and trade union/worker representatives that a scheme exists and examples provided of improvements made as a result.

Voice Channel:

Intranet/Online Platforms

Level:

Individual

Evidence:

Written confirmation from both management and trade union/worker representatives that an internal platform exists that allows worker contribution to strategic discussion and examples provided where input is acknowledged and acted upon.

Voice Channel:

Staff Forums / Networks

Level:

Collective

Evidence:

Written confirmation from both management and trade union/worker representatives that network(s) and/or a forum exists, meets regularly, supports open dialogue and is action focussed. Examples of actions progressed should be provided.

Voice Channel: Trade Union Recognition/ Collective Bargaining

Level:

Collective

Evidence:

Copy of Recognition Agreement is provided.

Voice Channel:

Access is provided to trade unions / Pro union Membership attitude is demonstrated

Level:

Collective

Evidence:

1) Trade union(s) confirm that access is granted to recruit and organise members.

And/or:

2) Workers are aware that the employer is happy for them to join a union of their choice (e.g through induction materials, clause in contract).

Voice Channel:

Joint Consultative Committee/s (JCC)

Level:

Collective

Evidence:

Written confirmation from both management and and trade union/worker representative(s) that JCC/s exist and examples of issues covered.

Voice Channel:

European Works Councils (EWCs)

Level:

Collective

Evidence:

Papers from EWC demonstrating membership and active participation.