Rural Payments and Services

The five grants listed below will have Fair Work conditionality added to their existing grant conditions:

• Agri – Environment Climate Scheme (AECS)
• Crofting Agricultural Grants Scheme (CAGS)
• Food Processing, Marketing and Co-operation (FPMC)
• Forestry Grant Scheme (FGS)
• Sustainable Agriculture Capital Grant Scheme (SACGS)

For CAGS and FGS Fair Work conditions apply now and will be introduced to AECS from the 2025 application round.For the two other schemes Fair Work conditionality will be applied from the opening of the next application window for each scheme if funding is allocated to these schemes in the future.

Through Fair Work First, the Scottish Government is primarily interested in the action the employer is taking to deliver high quality and fair work, and workforce diversity. While Fair Work is relevant for all employers and all workers, the context in which it can be applied will vary depending on factors such as the type and size of the organisation and the sector and location in which it operates.

The Scottish Government has published supporting documents to the Fair Work First guidance. Businesses intending to apply for any of the five grant schemes listed above must should read the Fair Work First guidance as they will need to comply with the principles if they are awarded a contract.

Background

Scottish Ministers announced on 6 December 2022 that organisations applying for some public sector grants will need to pay at least the real living wage and provide appropriate channels for effective workers’ voice

The Fair Work conditions being applied to qualifying agricultural grants were introduced on 1 April 2024.