Fair Work First: guidance

Fair Work First: the approach and what it aims to achieve

Fair Work First is the Scottish Government’s flagship policy for driving high quality and fair work and workforce diversity across the labour market in Scotland by applying Fair Work First criteria to grants, other funding and public contracts being awarded by and across the public sector, where it is relevant and proportionate to do so. It applies to discretionary grants awarded by and across the public sector, but not to non-discretionary funding, such as grant-in-aid funding to public bodies, or to local government general revenue funding.

Fair Work First aims to raise employers’ practices to at least the minimum standards, as set out in the Fair Work First criteria. This is a key aspect of the Scottish Government’s broader, more aspirational, Fair Work agenda and it is hoped that this can provide a catalyst for employers to embark or progress on a broader and more aspirational Fair Work journey as part of their organisation’s continuous improvement.

Our Fair Work agenda is underpinned by the Fair Work Convention’s Framework, which recognises effective voice as a critical dimension of Fair Work. While Fair Work First recognises different forms of voice will exist at both individual and collective levels, trade union access and recognition ensure a strong collective voice for workers.

Through Fair Work First the Scottish Government is asking employers in receipt of public sector grant funding to adopt the following criteria:

• Mandatory
  • payment of at least the real Living Wage;
  • provide appropriate channels for effective workers’ voice, such as trade union recognition
• Desirable
  • investment in workforce development;
  • no inappropriate use of zero hours contracts;
  • address workplace inequalities, including pay and employment gaps for disabled people, racialised minorities, women and workers aged over 50;
  • offer flexible and family friendly working practices for all workers from day one of employment; and,
  • oppose the use of fire and rehire practice.

These Fair Work First criteria seek to address particular challenges in Scotland’s labour market, to make a real difference to people and their communities, business and other organisations and the economy. The mandatory criteria will be the minimum standard required for a grant award, and grant applicants should also confirm that they are committed to working towards the five remaining desirable criteria. Funders should make clear in their grant application documentation how this desirable criteria will inform their funding decisions.

Public sector grants

Recipients of public sector grants awarded on or after 1 July 2023 and eligible agriculture grants awarded on or after 1 April 2024 are required as a minimum standard to comply with the following mandatory criteria:

• pay at least the real Living Wage
• provide appropriate channels for effective workers’ voice i.e.:
  • collectively, for example through trade union recognition
  • individually, for example through staff surveys

Recipients of such public sector grants are expected to commit to working towards the remaining five desirable Fair Work First criteria (noted above).

Public procurement

Fair Work First in public procurement is distinct from the application of Fair Work First in grants. Guidance on Fair Work First in public procurement exercises is available from Procurement Reform (Scotland) Act 2014: statutory guidance and Best Practice Guidance.